Business Pitch

MANAGEMENT 368.01

Submitted to:
Mohammad Asif Gazi
Lecturer,
Department of
Management,
School of business and
economics, Submitted by:
North South University
Team A

Fahmida Kaniz Tithy Md. Rashed Dastgir

1611348030 1610154630

Mridul Saha Mir Nahian

1711627030 1712619630

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Contents
1. Introduction..........................................................................................................................................7

1. Name and address of business..........................................................................................................7

2. Name and address of the principal....................................................................................................8

3. Statement of Financing Need............................................................................................................8

4. Statement of the Confidentiality of report........................................................................................8

2. Evidence of strong team and, with relevant skills...............................................................................9

1. What’s your personal reason to think about this venture?..............................................................10

2. Skills that can contribute in this venture?.......................................................................................10

3. Justification.....................................................................................................................................11

3. Clear evidence of a problem worth solving.......................................................................................12

1. Commercial viability of your proposed idea/product/service........................................................12

2. What is the market gap that your idea/product/service will address?............................................13

3. Justify with proper research data....................................................................................................14

Primary Research:...........................................................................................................................14

Secondary Research:.......................................................................................................................16

4. Business Environment Analysis/ Evidence of market opportunity by research................................17

Task Environment..................................................................................................................................18

1. PESTEL Analysis...........................................................................................................................18

2. Porter's five forces..........................................................................................................................19

3. SWOT.............................................................................................................................................20

4. Stake Holders Analysis...................................................................................................................21

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 4.1. Major economic, technological, legal, and political trends on a national and an
international level............................................................................................................................21

4.2. Total industry sales over the past five years.......................................................................22

4.3. Anticipated growth in this industry.....................................................................................22

4.4. New firms that have entered this industry in the past three years...................................22

4.6. The nearest competitor.........................................................................................................23

4.7. Our business operation can be better than this!.................................................................23

4.8. Sales of our major competitors are on an average steady?...............................................23

4.9. The strengths and weaknesses of our competitors.............................................................24

4.10. Trends that are occurring in our specific market area..................................................24

4.11. Profile of your customers?................................................................................................24

4.12. Our customer profile differs from that 'of our competition?........................................24

4.13. Evidence from our potential customer that they will accept your product?................24

4.14. What is the estimated customer size, growth rate and profitability for your venture?
25

5. Business model..................................................................................................................................26

1. Business Model Canvas:.................................................................................................................26

2. Pricing Model:................................................................................................................................27

3. Social Goal:....................................................................................................................................27

4. Sustainability:.................................................................................................................................28

5. Eco-friendly:...................................................................................................................................28

6. Ethical:............................................................................................................................................28

6. Description of venture.......................................................................................................................29

A. Product(s)....................................................................................................................................29

B. Service(s)....................................................................................................................................30

D. Office equipment and personnel (existing/ potential).................................................................31

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Personnel....................................................................................................................................................31

1. Mission of the new venture.......................................................................................................31

2. The reason why we will be successful in this venture?..........................................................31

3. Development work has been completed to date.....................................................................32

4. Our product(s) and/or service(s).............................................................................................32

5. Describe the product(s) and/or service(s), including patent, copyright, or trademark

status.................................................................................................................................................32

6. Location......................................................................................................................................32

7. Is your building new? Old? In need of renovations? (If renovation is needed, state costs.)
33

8. Location and suitability of that location for our business.....................................................33

9. Office equipment.......................................................................................................................33

10. Office equipment leased or purchased?..............................................................................33

11. Experiences we have and/or will need to successfully implement the business plan......33

7. Production plan..................................................................................................................................34

a. Manufacturing Process...................................................................................................................34

b. Physical Plant..................................................................................................................................34

c. Machinery and Equipment..............................................................................................................34

d. Name of Sub-Contractors of the services.......................................................................................35

8. Operational plan.................................................................................................................................39

A. Description of company's operation............................................................................................39

B. Flow of orders for goods and/or services....................................................................................41

C. Technology utilization................................................................................................................42

9. Market plan (7 P's).............................................................................................................................43

9.1 Product:.......................................................................................................................................43

9.2 Pricing.........................................................................................................................................43

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 9.3 Promotion:...................................................................................................................................44

9.4 Place:...........................................................................................................................................44

9.5 Packaging:...................................................................................................................................44

9.6 Positioning:.................................................................................................................................44

9.7 People..........................................................................................................................................45

10. Organization structure....................................................................................................................45

i. Form of Ownership.........................................................................................................................45

ii. Identification of partners or principal shareholders........................................................................45

Terms of Agreement:.........................................................................................................................46

Authority of principal........................................................................................................................46

c. Management team background.......................................................................................................47

d. Roles and responsibilities of the members in the organization......................................................48

11. Assessment of Risk.........................................................................................................................50

i. Evaluate the weakness of business.................................................................................................50

ii. New Technologies..........................................................................................................................50

iii. Contingency Plans.......................................................................................................................51

12. Financial Plan.................................................................................................................................52

a. Assumptions...................................................................................................................................52

b. Pro forma income statement...........................................................................................................54

c. Cash flow projections.....................................................................................................................55

d. Pro forma Balance Sheet................................................................................................................56

e. Breakeven analysis.........................................................................................................................57

f. Ratio Analysis.................................................................................................................................58

Sources of funds.........................................................................................................................................58

Personal finance.........................................................................................................................................58

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g. Horizon/Growth analysis................................................................................................................59

h. Sources and applications of funds..................................................................................................59

i. A specific investment ‘deal’ proposal for the investors.................................................................60

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1. Introduction

Over the years mostly all of us used CNGs [CNG-run auto rickshaws], though it was not easy to get one.
Sometimes, it took half an hour to find one and often haggling with them over fare was upsetting. But
things have radically changed over the last few years due to ridesharing apps like Uber, Pathao and
Obhai etc. According to Bangladesh Road Transport Authority (BRTA), there are 24 ridesharing
companies giving relief to thousands of city dwellers. As the ride sharing app is increasing day by day
it’s become hard for the user like us to choose the best one for moving from one place to another. People
have to install different ride sharing apps in one phone. Which makes it harder for them to choose the
best one for ride when it’s needed. Installing so many apps and having a look at different app when we
need ride it’s become very much hectic and time consuming at a time.

So, remove all these problems and make life easier for the user of ride sharing app we come with a one
app solution named as ‘Track me’. This is the app which provides solution for all of us. This app will
bring new era in ride sharing industry of Bangladesh. It will enable user to use all the ride sharing app
together at a time. It will let the user to know which ride sharing option will provide him the best value
for money for the time being through the comparison of all the rides that is available near him. Then the
customer can also compare the drivers rating and other stuff.

When it’s done one call for the ride according to his preference. We will also make sure that our app is
very much user friendly and keep on updating it by looking at the user reviews. It will take only 80mb to
download. ‘Track me’ is a simple version of the rider app that saves space, works on any network, and on
any Android phone. So now the ride sharing app user don’t need to install all the app the in their device.
Our one app will provide them twice as much benefits that they used to get from having 4 to 5 different
ride sharing app.

1. Name and address of business

Name: Track Me
Address: Banani, Dhaka.

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2. Name and address of the principal

Name Address
Moddho Bashabo, Sabujbagh, Dhaka
Fahmida Kaniz Tithy
2/6, Darussalam, Mirpur, Dhaka
Md. Rashed Dastgir
64 Green Road, Dhaka-1205
Mridul Saha

Mir Nahian 123/c, Dhaka cantonment-1206

3. Statement of Financing Need

We will have a value based pricing in order to use our app. We as an entrepreneur will develop the app
which is named as ‘Track me”. We will be working from home so for this we are in no need to rent any
house initially. But to develop this app we need huge amount of money which is around twenty to
twenty five lakh tk and we can afford 5 lakh tk of our own. So in order to have the sufficient money in
hand and to develop this app we will share our idea with the govt. and ask for their help to lend us the
required money. And when we will raise money for our app development we later on when the app will
be developed we will launch it on the Google play store and other platform for free. We will also use the
subscription method in our app through the user of our app will get extra benefit if they purchase the
subscription. Which will be on a monthly and yearly basis

4. Statement of the Confidentiality of report.

Track Me’s Business Plan readers hereby acknowledges that the information provided is completely
confidential and therefore the reader agrees not to disclose anything found in the business plan without
the express written consent of the business owners. It acknowledged that the idea of our plan is very confidential
in nature and if it came up in touch with public domain through any means it can be harmful of our business. Any
disclosure of this plan is strictly prohibited without our permission. It might become a direct harm to our business. If
lost this business plan document must be reported to Mr. Mridul Saha or any other members above mentioned.

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2. Evidence of strong team and, with relevant skills /
Experience
Md. Rashed Dastgir
 Computer skills: Word
d, Excel,
PowerPoint.
 Additional skills: Have skills in
Finance, experienced in dealing with
Corporate matters.

Fahmida Kaniz Tithy

 Computer skills:Word, Excel,
PowerPoint.
 Additional skills:Have skills in
marketing sector, can communicate
with people very well.

Mir Nahian
 Computerskills: Word, Excel,
PowerPoint.
 Additional skills:Have skills in
marketing sector, also have
knowledge in HR department. Can
handle people nicely.

Mridul Saha
 Computer skills:
Word, Excel,
PowerPoint. Adobe illustrator
 Additional skills:
Skilled in market
analysis. Highly efficient in predicting
market behavior.

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1. What’s your personal reason to think about this venture?

We want to make our customers lives easier by making their transportation experience more
soothing. As all of us partners face a similar difficulty during morning rush hour, transportation
experience becomes very harsh in that hour. No ride sharing service is readily available as promised. So,
we noticed that we do not have the opportunity to compare this ride sharing services in a live view in
real time. Which would give us the idea about the availability of nearest ride sharing service. This
opportunity would lessen the hassle of finding cheaper and nearest ride sharing service. This would help
save some money from the consumers end and still get their job done.

From a personal perspective we can say that many of us have faced various kind of problems
regarding the availability of ride sharing services during morning rush hour and rainy weather. So, we
just wanted to give people the opportunity to see their nearest ride sharing service and also compare the
price and choose the cheapest one. We read in Google about many complains about this availability
issue.

2. Skills that can contribute in this venture?

Md. Rashed Dastgir is skilled in finance. He can contribute in finance department of the
business. Managing financial transaction of any business is one of the key aspect of running the business
itself. He also holds some corporate dealing experience which would help the business to make contracts
with various ride sharing services available in the Bangladeshi market.

Fahmida Kaniz Tithy is skilled in marketing sector. She can contribute her skill to sell our
business proposition more properly. She is also very good with dealing with people, she can help the
business to manage various people when needed.

Mir Nahian is skilled in both marketing and human resource department. His knowledge will
help the company to manage its work force efficiently and also will help to penetrate the market in a
successful manner which would lead to success of the business.

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Mridul Saha is efficient in market analysis. His skill can be very crucial for our business. As he can
efficiently predict the market behavior our venture can always be a step ahead of our competition. This
would lead to more and more market share. Such is expected from our venture.

3. Justification

As we are well diversified work force, we believe that we can accomplish our stated goal. Our
idea is a startup so it is only natural that we would want to expand our venture in its future years. Rather
than waiting for some employer to employ us we plan to implement our combined skills to start a
business which would improve our living standards and also improve our society.

Our business will also expand other business markets as it would increase market competition.
Worldwide new business ideas are getting embraced and new business are getting more opportunities.
This idea would also lead to development of transportation system of Bangladesh. Maybe less CNG
drivers and more bikers on the road. This would create better opportunity of employment rather than
being unemployed. So, gradually we want to improve our society and keep improving our surroundings.
Keeping our promises to our customer and making their lives more convenient.

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3. Clear evidence of a problem worth solving

1. Commercial viability of your proposed idea/product/service.

Our service is basically providing a platform through an application which will help our
customer to choose between all the nearest ride sharing services and comparing prices of them as well
and then choose the convenient one. However the importance of ride sharing service now-a-days is
unexplainable in a city like Dhaka. Andaleeb, Haq, and Ahmed (2007) in their study identified that the
citizen of Dhaka faces problems of not having a personal car where quality public transport facilities is
also very fragile. However, the current situation of transportation and communication system in
Bangladesh is improving with the technological enhancement, and the transportation market is
expanding with different forms of ride-sharing service (Teubner & Flath, 2015). Nowa-Days how
popular a ride sharing service in Bangladesh is needs no explanation. Everyone is using ride sharing
application because of its convenience, user friendly and flexibility for the busy people like us. Just
using a simple smartphone technology one can save time in their daily life. DHAKA (Reuters) - Ride-
sharing motorbike services are surging in popularity in the Bangladeshi capital of Dhaka, where
nightmare traffic often means that walking is faster than traveling by car or bus.

Congestion in Dhaka, one of the world’s most crowded cities with a population of 20 million,
eats up 3.2 million working hours per day, according to a 2017 World Bank study. Average traffic
speeds have dropped to 7km per hour from 21km/h over the last decade, only slightly faster than the
average walking speed. At this situation ride sharing app came with an amazing charm. So , what I am
trying to say here is the good impacts of ride sharing apps in our daily life and here is where our idea
lies, to ease the life of the ride sharing users we have a came up with a service that will provide our
customers the best way to choose between the top listed ride sharing service available near and also
comparing their price. And then choose the best one for themselves.

But now-a-days it seems ride sharing services are not giving the proper service a customer needs
because of the extreme competition, new policies of government. Moreover, during rush hours it is quite
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difficult to get a ride, either they demand higher fare or they just simply don’t accept the ride request
which creates a much messed up situation for person using one single ride sharing application. As
customers cannot access multiple ride sharing services in one platform, we cannot see which ride
sharing services are available near me during that rush hour. Our application service gives our service
that advantage through our application to see the availability of various ride sharing services
simultaneously within few moments. Which will be very convenient for the people in a hurry in rush
hour of the day. Analyzing this need of our target customers we compared our service as a solution for
the existing problem.

2. What is the market gap that your idea/product/service will address?

Market gap is the specific area where we can dominate if we can find that gap. This gap is
something that provides a very small possibilities to others to dominate. It is said that finding the
appropriate gap in the market is great for one’s entrepreneurial career because by this we can be the
unique player in the market.

The service we are providing to our customers is unique and new to them. So grabbing the
market and seeking the attention of the investors will be easy. As we are solving the problems related to
ride sharing services through our application service and no one else has come up with such an idea, this
will be a great advantage for us. And our knowledge and experience says the problem is worth solving
and here we came up with our application to solve for the customers. And here our strengths are we are
unique, there is a huge demand for ride sharing services so people will be definitely needing or liking
our service when in trouble finding a ride. Our application is going to track all the nearest ride sharing
services at that moment within few minutes. This is going to help busy people reach their destination on
time and without any hassle.

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Our Strengths are

1. Our Idea is unique.

2. There is a huge demand for ride sharing service

3. Very minimal cost.

3. Justify with proper research data.

Before coming up with this idea we have done proper research on the market of this sector. And our
research has found out some positive outcome regarding this application.

Primary Research: Our primary research includes survey with a questionnaire (B2C).

For our B2C survey, we have conducted a simple questionnaire. The results have given us insight
to what extent the market is ready for the service we are offering, to which extent we should shape our
final offerings. It has also helped us assess feasibility of our plan.

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How often do you use ride
sharing services?

14% Daily
7% Weekly
50%
Monthly
29% Never

When do you face

problem using ride sharing
services?

21% During office hour

Bad weather
57%
22% Never

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 Is it more convenient than
other transportation
system in terms of time
saving?

21% Yes
No
79%

Would you like a service that will

provide you an application with
which you can see the nearest
ride sharing services at that
moment and their prices as well?

29%
Yes, definitely
No, this is not possible
71%

Secondary Research: In his study, DeMaio (2009) identified that the future of ride Sharing service
would be more efficient with the use of updated GPS tracking system, distribution of vehicles to
everywhere in a country and a new business model. The near future of this service can be predictable as
the traffic congestion is increasing because of more busy people wants to travel, and the world becomes
conscious about environmental sustainability. However, Bicocchi and Mamei (2014) expressed that for
long term success, every ride-sharing company needs to target consumers with more diversified user-
friendly offers by anticipating demand.

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So as we said before that the demand of ride sharing very high and this is the reason our service is going
to be very feasible in the market. These Research says it all.

4. Business Environment Analysis/ Evidence of market

opportunity by research.
Business Environment

Task Environment
App Developers
Lisencing
Monitor Panel
Google contract
Data Storage

Micro Environment
Internal Environment
The company itself
members, Panel
Management,
Money,etc.

Political, Economic
Macro Environment Demographic,
technological, natural,
Global Social

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Task Environment

Application Developers: - application designer, engineering, maintenance and keeping things up-to-
date

Licensing: - government documents, ICT Division permission, Network using documents and others
companies’ documents

Monitor Panel: - computer engineer, computers, ISP, centralized office space

Google Contract: - permission for maps usage, app store contract

Data Storage: - Cloud purchase, storage manager, data sales

1. PESTEL Analysis

Politics Economics Social

increase use of ride sharing apps

increasing concern on traffic rules
High paid employee's growing rate of social discounts
plenty on rule breaking
inflation rate high more involvement in the social
the monitor and feedback from world
customers and companies usage of available resources

Technological Environmental legal

Improvement creates variability Too much lightening can put Declared it illegal
Updates for traffic servers down so far 16 companies have applied
Easier for leading life Rains or weather charges traffic for that

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2. Porter's five forces

Threat of new Degree of rivalry Bargaining power Bargaining power Threat of

entrant of buyer of supplier substitutes

Patent right Non-competitive Power of choice The services that is Existing or new
certification of ours structure (industry (eco-friendly price being provided (ride companies can
will help our consisting few options available) convenience) has launch new
business in a major number of such many substitutes innovative services
way service that can which can satisfy
determine price the same needs of
comparison) the consumers.

Easy to avail Growing demand No way of This core resource Any of our B2B
economies of scale (rivalry causes our switching brands (ride convenience) integration can take
business to rise and vital to us place to rule the
establish) market

Potential scope of Exit barriers Google paying for Ride sharing Probable technology
building brand (investment in fixed downloads industry is attacks with high
loyalty assets cannot be comparatively so investment in the
sold or used this causes the need market to create
alternatively) of our application great demand
resulting in intense
rivalry

high Competitive Fixed Costs are Buyer with high Traffiic updates Integration
Retaliation is Relatively High and information and need to be precise
Anticipated as so depend on Favorable selections
demand for greater sponsorships might create
reasonable prices and Ads problems

No switching Existing services Buyer high scope of

availble built strongly inside ride apps in the
the industry industry

There are gaps in

the market as there
is no such ride
convenient sharing
app in the market

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 Average medium Average medium Average high Average medium Average high
(positive) (positive) (negative) (positive) (positive)

Forces HIGH MEDIUM LOW

Threat of new entrant ✓

BP of supplier ✓

BP of buyer ✓

Substitution Threat ✓

Intensity of rivalry ✓

3. SWOT

‘Strategic Fit’ is the effective match and management of the environmental opportunities and threats
while taking into account our strengths and weaknesses. Setting a vision and implementing market
targeting and positioning to find the strategic fit.

Strength Weakness
1. The first to serve this service 1. Based on all the ride sharing companies
2. Low cost of office setup and cost 2. New technology changes would be
reasonably low expensive
3. Demand high will lead to sponsorship 3. A reasonable subscription might not be
4. deep sales after trail packs used worth it
5. time saved in usage
6. Real time traffic broadcast
7. Varies payment ways

Opportunity Threat
1. Monetization of the real traffic 1. New entries can easily appear
2. Cheap price might attract more customers 2. Chances of being Obsolete
3. More information will be available of both 3. Not improving the services will lead to
4. Fair business practice and no competition closure
5. strong and developing community

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 6. targeted and sales less then sponsorship
7. increased investment opportunities
can convert existing offering for new market
like GPS

4. Stake Holders Analysis

We believe that our firm should create value for all stakeholders, not just shareholders. We have
responsibilities not only to our investors and employees but also to a whole customers segment or the
users of affected or might possibly be affected by our operations. The operation model of ours is highly
laboratory centric, consisting harmful compounds and machines. Our culture will help us achieve those
safety standards. Also, we plan to active steps for disposal of operation wastes, recycle most part of it,
making our firm eco-friendly from beginning till the very end.

4.1. Major economic, technological, legal, and political trends on a national and
an international level
As of now in Bangladesh, the practice of using ride sharing apps are in the peek because
of the Traffic in Dhaka city. The country is a developing in its pace but also with new ideas
and ventures. The extent of the report incorporates evaluating market potential, consulting
with colleagues, venture basic leadership, company enlargement composing then on in
associate organized approach by shaping purpose by purpose fabricating procedures and
decisive cash connected angles by assessing the expense of crude material, particularization
the financial gain articulation, anticipating the financial record then forth. They in addition
supply freelance PreInvestment and Pre-Feasibility Studies, Market Surveys and Studies,
Preparation of TechnoEconomic feasibleness Reports, Identification and choice of Plant and
Machinery, producing method furthermore as instrumentality needed, General steering,
Technical and industrial substance for putting in place new trendy ventures on the
concomitant themes. a big range of the designers, venture specialist and trendy practice
corporations in Bharat and overall square measure utilizing the concept with feasibleness and
desirability to introduce succeeding massive factor.

21
 Our service is creating a huge market and helping the ride sharing people with the
benefits of the company given. This will not only help those people but also will help the
help the nation with increase income and also providing contribution in the nation GDP and
helping unemployment.

4.2. Total industry sales over the past five years.

Ride sharing started back in the back 2017, by the name Pathao it got viral and quit
famous. Then slowly came in various companies such as Uber, Shohoz, Ohbhai and many
more. So, it is new in Bangladesh it has short history about its past. The sales was so much
that pathao valuation was almost BDT 850 crores.

4.3. Anticipated growth in this industry

This new idea is expanding all through the world and even in our nation; its utilization is
mounting step by step. Thus, it can possibly turn into GPS tracker selling industry like ride
sharing industry. Different investigations have proposed that the ride sharing business is getting
collapsed of competitively felled due to switching customers during competitive market from
2017 still now. While the world is building its new technology by enhancing its local standards,
for what reason would we stay behind this potential industry?

4.4. New firms that have entered this industry in the past three years
There is almost a new idea to the Bangladesh economy and completely new service to both
the riders and passengers. The need of this app is totally for the growing competition between
ride sharing apps. But every now and then there is a new ride sharing app into the market, even
though they are struggling to stay in the current market.

4.5. New products that have been recently introduced in this industry

Since a very long period of time, pathao uber and many more are in this ride sharing
industry. The industry becomes concentrated in places where such environmental where the
traffic jam is the major problem people want to reach to their destination or work on time.
However, the present scenario is this form of discounts and offs are majority prioritized. Besides

22
 in Malaysia, Thailand, Indonesia and many more countries has already adapted to this ride
sharing app. For example, Trivago an perfect company to explain our business, creating the
comparison of prices between businesses.

4.6. The nearest competitor

Till now there is no such company or business that has been providing the same or
nearest type of service in the economy. The competitor will soon be arriving in the market with
bigger investment. The competitor is not available now but can be the particular company whom
we are not promoting in the near economy

4.7. Our business operation can be better than this!

Because of our innovative kick, we have no direct brand competition locally, and
internationally too.
However, since our indirect service competition is relatively low since they are many
strong ride sharing business in Bangladesh who are maintaining and some are low, so
comparison is highly recommended by almost all the 45 people we asked of our projected
market.

4.8. Sales of our major competitors are on an average steady?

Our major competitors are not established in the industry and so customers are more prone
to look for a service like this in this economy switching from one to another app is annoying and
comparing is time waste. They will not gain the word of mouth that our business is going to be
received from our old customers, when we will offer something better (cost effective, time save,
real time comparison) these customers will nevertheless switch to the competitors.

4.9. The strengths and weaknesses of our competitors

Strength and weakness of our competitors will be pretty much similar. Firstly, the local
customers compete in terms of price since most of the extraction model mechanism are of similar
cost, they serve with discounts or offers. Secondly, the intensity of their competition is on the
fright cost, depending on who are providing better offers. However, some of our projected
market is mainly to cost of the companies, but on the quality and so they choose best ride sharing
experience.
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 4.10. Trends that are occurring in our specific market area
At present the market is becoming more environment conscious. Many firms are gaining
competitive advantage by labeling themselves as easy smooth and dominating in the market. To
achieve such distinctive competencies and add more their brand equity all their corporate social
responsibility is headed towards that incurring additional taxes as cost. However, if they can get
such advantage among their existing cost structure, just by switching to our suggestion options
from their own time-wasting decision making, there is no reason for them not to do it.

4.11. Profile of your customers?

Our projected market is anyone using a ride sharing application, concentrating more on firms
who give discounts, offs and external benefit or gifts. We plan to focus on the branded firms
such as PATHAO, UBER and OHBHAI. Being cheap, this label alone is enough for such firms
to differentiate themselves from their competitors and gain comparative advantage.

4.12. Our customer profile differs from that 'of our competition?
 We are more cost efficient, offering price which is far less because we already have sponsorships

 Providing to cut off wasting time

 Super-fast decision making and easily making decision and moving on the wheels

4.13. Evidence from our potential customer that they will accept your product?
Our Minister for ICT, Zunaid Ahmed Palak urged for his intervention to address five issues.
They are (a) a car may only be registered with one company (b) a car has to be more than a year
old to join the ride sharing platforms (c) ride sharing services cannot charge higher fares than the
taxi cabs (d) there has to be a ceiling determining how many vehicles a company can register (e)
vehicles registered outside Dhaka cannot offer ride sharing services.

We have also seen in an interview of Zunaid Ahmed Palak, have written a letter to the
NBR requesting it to withdraw the proposed VAT of 7.5 per cent from e-commerce industry.

24
 We have talked with 45 people from random asked them about their ride sharing industry
and asked wether our plan will be helpful or not and they have been showing more interest
towards our business and will be using it in the future.

4.14. What is the estimated customer size, growth rate and profitability for your venture?
 Mailnly the user of our app will be those people who uses ride sharing app on daily basis.So the
customer size will be pretty big such as:Students spacially the university going people,jobholder
etc.

 We are hoping for a higher growth rate for our app.So we are are estimating for around 1million
download within a year of our app.

 At first we are not looking for higher amount of profit from our app launch because as it’s a app
which is totally new to people.So it will take some time to grow.Later on we are expecting to get
pop up add view sponsor,higher amount of installion,comission from the platform which will
help us to achieve the targated profit level.

5. Business model.

1. Business Model Canvas:

Key Key activities: Value Customer Customer

partners: Propositions: Relationship: Segments:

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1) Drivers 1) Analyze data & 1) Ride on 1)Highly 1) Price sensitive
2) Investors improve demand automated 2) Those who
3) Mapping 2) Refine value 2) Easy to get 2)Transparent, want a cost
data proposal ride and safe, secure and efficient ride at
providers 3) Marketing to wait short fair their doorstep
4) Specialized balance supply time
& demand 3) Getting the
technology
4) Platform(app) best value
5) Payment
development though price
process: and comparison
Bkash. enhancement 4) Income
5) Communication generation
with the drivers,
customers and
partners.

Key Resources: Channels:

1) Pricing 1) Track me
algorithm mobile app
2) Routing 2) PR
algorithm 3) Social media
3) Brand
4) Apps,
architecture.
5) Data &
analytics

Cost Structure: Revenue Streams:

1) Platform development 1) Commission
2) Marketing 2) Subscription
3) Salaries 3) Ads, data sell
4) Legal and settlement 4) App installation
5) Customer acquisition cost

26
 2. Pricing Model:
We will have a value based pricing in order to use our app. We as an entrepreneur will develop
the app which is named as ‘Track me”. We will be working from home so for this we are in no need to
rent any house. But to develop this app we need huge amount of money which is around twenty to
twenty five lakh tk and we can afford 5 lakh tk of our own. So in order to have the sufficient money in
hand and to develop this app we will share our idea with the govt. and ask for their help to lend us the
required money. Later on when the app will be developed we will launch it on the Google play store and
other platform for free. We will also use the subscription method in our app through the user of our app
will get extra benefit if they purchase the subscription. Which will be on a monthly and yearly basis.

3. Social Goal:
Track me social goal is to continually expand and bring its services to different cities to allow
riders and drivers to connect. To take over the transport industry by being the cheapest, easy ride all over
the country Bangladesh through the comparison off all the ride sharing app that’s available near the app
user. Our app will make life easier for the riders and the drivers will be able to get more riders all the
time than they used to get before.

4. Sustainability:
Our goal is to make every journey best one. When we help more people move with fewer, fuller, and
more efficient cars, we may help save fuel, improve air quality, and increase a transportation system’s
efficiency with each trip. Just what our cities need. If we can develop our app on a regular basis and add
more and more features in our app according the need of our app user. Than we can gain more user day
by day. Which will help us to sustain in the market for a longer period of time.

5. Eco-friendly:
Ridesharing has the following environmental and ecological benefits: Ridesharing helps the public use
fewer cars and reduce car congestion because people consider it cheaper to rent a car than have their
own. Ridesharing helps conserve non-renewable energy sources because fewer cars require less fuel. As
we know Dhaka city is one of the most polluted city in the world. So our ambition is to donate one
percent of our profit for tree planation program.

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6. Ethical:
We will follow every ethical rules and regulations to build trust in our app users mind. And we will
always think of the ways for better tomorrow by finding new ideas, ways and developed updates
services for the betterment of the app user. And we will be always fully aware of all the legal issues such
as protect the privacy of our app user. We will take legal permission and have the license of all other
apps to include them in ‘Track me’ app.

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6. Description of venture

A. Product(s)
Our product will provide our customers with the opportunity of viewing and choosing between
various ride sharing services. This will make it easy to choose which ride sharing services a certain
person wants to avail for themselves. Through this process our customers can save some time and
money. A visual representation of our idea given below-

B. Service(s)
In our existing market there is no other firm that is providing a service quite similar to that of
what we are aiming to provide. We are going to offer new kind of services in a existing market. As we
are a startup business we plan to start small and grow over time. We also plan to expand our business
horizon through offering more diverse services in future. As our service is software application based,
we plan to make our application free to download for all, give out promotional discounts. Charge a
minimal amount of subscription fee weekly, monthly and yearly.

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C. Size of business (existing/ potential)
As we are the first business of this kind in the existing market we are going to take the first
mover advantage. So the size of the business is bound to be small at our initial stage. We will be
focusing in our ride sharing comparison service in our initial years of business. In future we plan to
expand our business to different sectors. That would lead to broader amount of potential customer for us.
Scope for business would increase. For example first we will include all ride sharing services in our
application and eventually would include other service providers such as courier service provider.

D. Office equipment and personnel (existing/ potential)

As we are a startup, we would not require a big office to provide and also would not require a
large employee force. But as we plan to grow, both our office and employee force are going increase in
time. To initiate our business, we would require-

I. An office to keep up our operational work.

II. Servers to store data.
III. Most importantly perfectly functioning computers.

Personnel

I. An application developer to develop our application and constantly developing it in order to

provide superior experience to our customers.

II. A financial supervisor to keep track of financial transactions.

III. Some expert in marketing department.
IV. Highly efficient operational manager to keep our operations perfectly efficient as it a key aspect
of our business idea.

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 1. Mission of the new venture
The mission of this venture is to create a hassle free travel experience for our customer. It is not
possible to absolutely remove all kind of hassle in travel experience by our venture, but we will do
our best to achieve it. As in our venture we do not require any kind of factory we are absolutely
ecofriendly.

2. The reason why we will be successful in this venture?

Our venture will be successful because, in our existing market there is no competition who is
providing same kind of service as we are. As our mission is to make our customers life easy our idea
will be embraced in a very well manner in the market. If we can provide the seamless experience
that we promise, our venture will be a success.

3. Development work has been completed to date

Our business is still in planning level. So, no development has been made yet except for the
perfection of the business idea. Business does not exist yet.

4. Our product(s) and/or service(s)

Our product is strictly software application based and providing services through that
application. A normal computer with a stable internet connection can get the job done.

5. Describe the product(s) and/or service(s), including patent, copyright, or trademark

status.
Our business will be a startup business. So, it is only natural that initially our business will be
very small. We will take less risk and try to penetrate the market in a less risky way. Because less
risk means less chance of failure. Our idea of the business will be under copyright law and we will
also patent our application so that no other firm can take our idea and application. We will also make
insurance of the business so that if an unfortunate incident occurs we can handle it.

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 6. Location
Our business will be located in Dhaka city. Preferably in Banani. As we just need a rented place
and some computers with internet connection we do not require a highly business centered area such
as Gulshan or Motijheel. But as our business expands we would shift our location. Preferably in
Gulshan.

7. Is your building new? Old? In need of renovations? (If renovation is needed, state
costs.)
Our building is not new. We plan to lease a building for our initial business years. As taking
lease would lead to getting tax exemption. In our initial years we would not need any kind of
renovation in our work place. But in future renovation might be needed depending on our growth. If
that would be the case than we would preferably shift our office than renovate the existing one. This
would save us much cost.

8. Location and suitability of that location for our business.

Our operations will mostly be done online. But every business needs to have a certain location
which would serve its business purpose. Track Me would open its office in Banani. This would serve
our cause well to operate our business. As Banani is a business area it is a suitable place to locate a
business.

9. Office equipment
For office equipment we will need a few functioning computers to develop our application.
Strong storage system to build servers which will hold data for our business. Some desks to work
on. But as we grow we will require more equipment. Such as larger servers and more strong network
system.

10. Office equipment leased or purchased?

As mention earlier in this proposal we would lease equipment in our initial years as that would
lead to getting some tax exemption. As we grow our business we will purchase our own equipment
as our need arises.

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 11. Experiences we have and/or will need to successfully implement the business plan.
In order to successfully implement the business plan we will very good application developer. As our
application is the main way how we communicate with our customers we have to make very user
friendly application. If we end up making our application complex it would hamper our market entrance
and create a bad impression on the market. So, mostly we will need good application developer. Than
we will need corporate officers who will make contracts with various ride sharing services? Marketing
officers to promote our business properly. In our initial years we would not need any HR department as
our business would not be big enough for HR department. Finally we can say if we can manage good
application developers, good corporate officers, good finance officer, good marketing officer we can
successfully implement the business plan in the existing market of Bangladesh.

7. Production plan

a. Manufacturing Process
Our production will be in five steps as follows:
Step 1( A sample video )
sample video to check the idea of Track me.
Step 2 (Create an application)
check the app and make learn the usage of app
Step 3 (sign-up with others)
Sign-up contact with the ride sharing industries.
Step 4 (set up algorithm)
compare algorithms and set up the peak hour prices.
Step 5 (track down others)
Create the easy pathway to track riders by the customers through pathway.

b. Physical Plant
At this stage of our business as because it is just a start up there will be no physical plant.
We do not have big investment at this moment to build or rent a physical plant surveillance and

33
 we are not also watching it on basis. So, the physical plant of our company will be the hug room
with high speed internet and modern computer.

c. Machinery and Equipment

The machinery and equipment that will be needed for our production are-

1. Super Computers
2. Monitor
3. Furniture
4. Paper works
5. Network coverage

6. Location tracker
7. GPS transmitter to app

d. Name of Sub-Contractors of the services.

The sub-contractors of our main service at this initial level will be the
Uber(+)Pathao(+)Sohoz(+)OHBHAI as because we will be getting algorithms in exchange of
royalty fee from them. Initially we are nothing without their algorithm, in a word without them.
So in future when we will be successful in our business we will be heading for the bigger control
over customers of ride sharing business for future process. The subcontract fee is different for
each of the contract during the 6 month period of the contract. We assume that Uber would require
15lacs, Shohoz would require 10lacs and Pathao would require 7lac for 6 months. And one of our
business goals is to grow the economy of ride sharing business and help those freelancer.

34
1. Being responsible for all or part of the manufacturing operation
Yes, we will be responsible for all of our control operation as because the idea is ours
and we will be taking charge of everything. Whatever the deals will be made we are going to
take responsibility for that.

2. Subcontractors
We will be having many subcontractors. The ride sharing Businesses they are The Uber,
Pathao, Sohoz, OHBHAI and many more. But they are the ones who would be the main sub-
contracts. They would be providing us with algorithms and instead we are going to provide
with some of their promotional campaign or a royalty. It will be easier than for the collecting
method.
3. Reason why these subcontractors were selected
These subcontractors were selected because they are all good for our business and they
all are experts on their ride sharing industry and have awareness about the service we are
going to provide. They have strong networking and have knowledge about certain
departments.

4. Cost of subcontracted manufacturing

Our subcontractor will take small charge from us now in their initial level as because we
are just starting up our business but if it’s a success we will receive huge investments from
them as their promotions or would be retaining their old customers. They are totally insiders.

5. The layout of production process

See manufacturing process

35
36
37
 8. Operational plan

A. Description of company's operation

Describing our startup's operation here we will talk about two things; first of all we will talk about
the value chain analysis. Secondly, we will talk about the company's level of hierarchy describing the
business level strategies the functional level Strategies and the corporate level strategy.

Overall operation divided into three levels.

Functional level strategy- this is wherever the competitive benefits square measure achieved.

Primary activities: Relate to our final service design, creation, delivery, marketing, support, and after-
sales service
R&D
• Design and style of our final service and production on processes
• Superior services cape design which will increase
Production
• Creation process of completing rides
• Helps lower cost structure and leads to differentiation
Marketing and sales
• Brand positioning and advertising – will increase customers’ perceived value of our final service
• Marketing and sales – will help create value by discovering customers’ needs
Customer service
• We will provide after-sales service, support, loyalty program and structural bonds as required.
• Create superior utility by solving customer problems and supporting customers after purchase

Support activities: Provide inputs that allow the primary activities to take place

Materials management
• Controls the transmission of physical materials through the application
• Low cost and creates more profit
Human resources
 Information systems
 Ensures value creation by making sure that we have the right combination of skilled people 
Electronic systems to improve efficiency and effectiveness of our value creation activities
Company infrastructure
 Startup wide context within which all the other value creation activities occur  Simple structural
and control with proper equipment.

38
There square measure four ways that to realize competitive advantage in business level strategies; these
square measure superior quality, superior innovation, superior method and superior client retention.
Superior potency is achieved by economy could be a scale, learning affects, experience, curve versatile
product technology, mass customization, selling eight P's, client defection rate lowest, simply in time
production, R&D technology, unit of time methods then on. Superior quality is achieved in terms of
quality as liableness and quality as excellence. Superior innovation is achieved by characteristic the
failure rate and reducing innovation failures through agile development. We can do superior client
retention by demonstrating leadership and shaping the behavior and angle of the staff.

Business level strategy talks about top level decisions regarding a product or service line. Business
level strategy helps securing competitive advantage in existing product or market competitive advantage
comes from distinctive competencies.

Business level strategy will be managed in terms of each offensive and defensive. As a market niche, it's
higher to focus on a tiny low section then become follower by having its own purpose of distinction and
complete identity. Slowly with the passage of your time Track Me will become competition to any or all
the leaders during this specific business. With increasing potency and effectiveness Sarafina aims to
become leader within the material compound business.

Distinctive competencies can be of two types of resources which include tangible and intangible
resources and another is capabilities. It also talks about porter's generic strategies we can also take help
of Bowman strategy clock from which we can identify perceived value to the consumer in terms of
changes in price.

Our Track ME will see cost advantage in its target segment also serve our Niche strategic target
more efficiently than care its competitors. Now coming back to Bowman strategy clock at first we will
start from position 1 low price and low added value with the passage of time we will achieve the
position to low price and then for hybrid and continuously go for differentiation and focus differentiation
stage.

Market development and customer groups falls under the business level strategy. It is very important
to identify the innovators, early adopters, early majority, late majority and laggards so that our start-up
does not fall into chasm. The number of early majority determines the number of late majority.

39
 We are also taking into account the top-level strategies which talks about the long-term direction of
company, mission, vision, strategies and tactics of Green Eureka. It also talks about growth strategies
(concentration, diversification), stability and retrenchment (turnaround, niche, divest, harvest). It also
talks about the resource allocation and BCG matrix at different stages of PLC.

B. Flow of orders for goods and/or services

In a nutshell

Select the options

Set up the
Application of firms or provide
destination
price range

top one is the

Select desired offer Compare the result
cheapest and
of the offered price
carries discount

The Firm's app

The ride sharing
open for the
takes place
request

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C. Technology utilization
Track Me aims to become the technical standard of the industry. We believe that we will have to
engage in no way to become the technical standard of the company. Strategies Track ME will adopt for
avoiding war are given below:

• ensure prominent service

• leverage killer offering to attract customer to share our app
• Razor blade strategy
• Corporate with competitors
• license the format
Track Me is basically a disruptive technology; it is a brand new offering in the market that has the
potential to destabilize the existing industry standard.

Upon being so, the quality of this technology initially is not good. We will start off by serving a
very niche market. Overtime the quality of the district is technology of our startup will improve and will
take over the mass market; this way our starter will bring technological Paradigm shift in this particular
industry if commercialized properly, efficiently and effectively. Initially investment to improve the
performance of the disruptive technology don't go directly to improvement of performance they get
involved to serve fixed cost such as rent, machine, workers etc. Later the whole Investments is devoted
to the improvement of the performance of the disruptive technology; however, in the end Technology
reach maximum potential and will not be able to improve any longer; it can bring some small

41
incremental improvement; which is a clear indicator to look for another Suitable potential disruptive
Technology to continue leadership position in the market.

9. Market plan (7 P's)

9.1 Product: Ensure the supremacy of our application and service. Which will lead to
customer benefits, reliability, and serviceability. Our final product/application will also
launch with strong customer service panel which will eventually lead to loyalty of
customers and give us a better position in the eyes of our customer in comparison to the
competition. We will also ensure to help our customers as much as possible by providing
our promised quality or service.

9.2 Pricing: In the initial stage of our business we are not planning any charges for our
services. We aim to provide excellent service through which we will get customer loyalty.
Customer loyalty would give us a good customer base. After we have achieved a large
customer base and pioneer market share in this sector, we will go for a subscription based
business format though it would not be necessary to subscribe in order to use our
application. Subscribers would get certain benefits such as discount coupons etc. This
subscription will be categorized in three ways and priced accordingly (Assumption):

I. Weekly - 10tk
II. Monthly - 100tk
III. Yearly – 500Tk

42
9.3 Promotion: For promotions we will give ads through applications, You-tube and
various social media. We will also sponsor various university events and this will make us
known as startup. Through this kind of social campaigns we will promote ourselves. As our
target customers does not watch television, we will not waste any resources promoting
ourselves through TV. Our initial stage promotional cost is not more than 1 lakh taka. And
You-tube ad videos costs $10 per day which is going to be very expensive for us initially.
So Giving ads through applications and You-tube will be our after promotion strategy.
Initially here what we are going to do for promotion is to cover events of university or other
national tech events. Usually these events are held for 2 or 3 days and we will set up a stall
for these 2 or 3 days. Which will cost us 12000 taka per day. And as our target customers
are mostly university going students so it will a very good promotion opportunity for us.
And after making some profit and growing our business we will then invest more money for
higher level promotions.

9.4 Place: As our business is highly dependent on an application, we will focus on

ecommerce. This will pave us a multichannel distribution system of our service. Play-store
will also be a medium for our application. Considering this situation, we will prepare
various strategies so that we can confront any kind of unwanted situation arises.

9.5 Packaging: We will offer services through an application. So, we do not need any

kind of packaging.

9.6 Positioning: Track me will position itself for the convenience and reliability it offers
to its customers. As there is no competition in the market it would be a perfect positioning
for our start up. Our value proposition which is convenience and saving opportunity will

differentiate us from the competition and give us an advantage . A valuable position serves
customer needs and stands out from the competition in a way that has meaning to
customers. So this will be our service positioning.

43
 9.7 People: Manpower is a crucial part of an organization, especially when that
organization is a startup. A Startup’s effectiveness depends on the people’s effectiveness
who are working within the organization. Total quality of the management and the king
force of the organization has to be very efficient to provide their customers the promised
quality of services. As in a startup there is very few number of people working. So every
single employee has to be tremendously productive and manage value creation in every
sector. We will also train our employees after recruiting and there in future after growing
there will a internship period for new employees.

10.Organization structure

i. Form of Ownership
Form of ownership in our organization would be partnership business. There will be four partners in this
business. This would lead to easier management in operations of the business. Organization would be
more efficient and effective if it is lead this way. Furthermore it keeps the opportunity to change the
structure of the business in the future if the need arises.

ii. Identification of partners or principal shareholders

Before we pitch our business idea and ask for investment from principal investors our business would
consist of four partners.

I. Md. Rashed Dastgir

II. Fahmida Kaniz Tithy
III. Nahian Mir
IV. Mridul Saha

44
Terms of Agreement:
Each partner will bear equivalent responsibilities and will have the same amount of commitment
to the business. Each partner will get equal portion of the benefit the business earns just like each partner
will have to equally bear the loss the business occurs. None of the partners would be allowed to pull the
benefit off in the initial years of the business. If any of the partners has a suggestion for the business,
he/she should present the suggestion or idea before other partners and there will be a vote whether that
certain suggestion or idea should be followed or not. If the suggestion gets majority votes then the
suggestion or idea would be followed. On the worst case scenario if any partner wants to want to pull
back from the business then the other partners will pursue association act.

 Confidentiality agreement.
 Copyright.
 Patent.
 General partnership.
 Service marks.
 Trademark.
 Trade secret-To tackle whoever makes a move against any individual who breaks an
understanding or classified relationship or who takes or uses other inappropriate intends to get
mystery data.

Authority of principal
In the business the partners will have equal rights over the business as well as the business
decisions and any kind of transaction made in the business’s name. Any kind of conflict of opinions
would be solved through voting system. Every partner would have equal obligation towards the business
and will be in charge of their particular obligations. Regarding the capital and liabilities everything will
be equal as per depicted in the partnership act. Work will be carried out and monitored directly under the
partners. This will make the business run more flawlessly.

45
c. Management team background

Name Designation Expertise

Md. Rashed Dastgir Executive officer of operations. Undergrad student majoring in

Finance in North South University.

Fahmida Kaniz Tithy Executive officer in Finance and Undergrad student majoring in
Accounting. Finance in North South university.

Mir Nahian Executive officer in HR. Undergrad student majoring in

Human Resource in North South
University.

46
Mridul Saha Executive in marketing. Undergrad student majoring in
Marketing in North South University.

d. Roles and responsibilities of the members in the organization

Md. Rashed Dastgir

a. He will monitor the operations side of the business.

b. Make sure everything runs smoothly in day to day operations.
c. Make contracts with the approval of other partners.

Fahmida Kaniz Tithy

d. She will keep track of daily transactions.

e. Keep the organizations cash flow in check.
f. Allocate financing in different sectors of the business.

Mir Nahian

g. He will oversee the recruitment process in the organization.

h. Keep up the motivation of the employees.
i. See to employees demand and needs.

Mridul Saha

j. Manage the marketing sector of the organization.

k. Manage branding of the organization.

47
If incorporated, the principal shareholders and their owned stock.

In our initial stage we will be a partnership business. There will be four partners. But in the future
if our business gets incorporated the four partners will hold equal amount of shares. We will seek
venture capitalists. We would offer equity in exchange for their investment.

Voting or Non-voting stockholder.

All the shareholders will have the right to vote. But if the core partners do not agree on a certain
voting topic then the decision will not prevail. But after incorporation the voting procedures will be
followed as it is mentioned in the company act.

Check signing authority.

All the partners will have the authority to sign check but it is important that other members
approve that signed check. If a partner does not follow this check signing rule then he/she may face
legal consequences.

What are the salaries, bonuses, or other forms of payment for each member of the
management team?

Profit gained from the business will be equally divided between the partners. The partners would
not get any kind of salary, bonus or any other form of payment other than profit. In the future when
the company grows and we have to hire employees, then 50% bonus of the pay scale would be
offered during religious festivals such as Eid, Puja, and Christmas.

48
11.Assessment of Risk

i. Evaluate the weakness of business

If we analyze the sustainability properly there might appear some great risks for our business
plan. Surely the market is uncontested and there are no direct competitors for this business but the
problem is somewhere else. As our business is mostly based on all the ride sharing apps of our
present time, this might create an issue for our business. Like if any of these brand declines our
proposal of giving their algorithm or if they seem not interested in making any contract with us then
our business might lose its exact customer. But this risk is manageable. If we start our business with
the rest ride sharing brands or the brands agreeing with our contract, eventually they will see what a
good market they are getting. A market with more customers and also getting royalty from us going
to be very profitable for them. Then we believe the brand not agreeing with our contract might get
encouraged by the progress of other ride sharing apps. Moreover to ensure the viability of our plan
we will make launch our application for testing as MVP. The MVP will then measure how effective
this application for the customers. Then this will be surely a risk-free business plan.

ii. New Technologies

As our business is based on technology, technological advancement is most important for us.
New technologies might seem challenging for us. But we will take this as an opportunity. But if we
unable to cope up with that then we have plans for that too. Competitors coming up in the market
with more advanced technology is a risk undoubtedly but when we gradually grow we can hire more
efficient engineers to work on more efficient application and server systems. We can be then ahead
of our competitors with more advanced technology. Technology is for all so it is not going to be
hard for us to adapt new technologies. Using technologies or ICT to expand our business is a scope.
So we will focus on the newer ways to expand using new technologies.

49
 iii. Contingency Plans
The purpose of a contingency plan is to resume the normal business operation after being
disrupted by some uncertain event. The expected risks for which we will be needing some
contingency plans, are possibilities of Data hacking, after certain time period there will be some
competitors in the market, our customer might switch to other competitors, negative publicity.

Data and information are the most important sources of our revenues and our total business plan.
We will make sure of increasing the security to fight against data hacking. Even after increasing
security do not help us from being attacked by data hacking then there will be a backup server
naming Server 2. If server 1 is hacked then we will stop the whole server at once and after that we
will operate everything through server 2. Usually hacking occurs by glitch or malware in the servers
so our engineers will be continuously checking if there are any glitches so we will be extra careful
always.

When a significant amount of time has passed, there will be other competitors in the market. So
we cannot just sit back let our market share got stolen by them. So depending on how value and cost
effectiveness our competitors are we will be offering our customer standardized and customized
service. If our competitors also start giving their customers standardized and customized services
then we will move to cost leadership, price leadership and customized service for our customers.
And we believe if we sustain in the market for this long period then we will eventually win the trust
of our customers so they will not switch to other new competitors. And To be successful in this
venture we will practice cognitive adaptability according to the competitors in the market.

50
12.Financial Plan

a. Assumptions
Since our "Trackme" application activity is in the design phase, we do not execute our plan, but we
are anxious to do so. Most cost structures are shown in the below sections of direct material, direct
work and production overheads. Assuming sales (number of downloads and uses of Trackme app)
and expenses for the income statement, cash flows and the balance sheet. This is a start-up and that's
why we're not taking risks and we want to see the market reaction. The total budget for the launch of
our application is around 20 lakh Taka. And this money will be collected as follows:

We will be investing our own capital of 5 lakh as startup capital and we will take taka 15 lakhs from
investors by sharing our idea with them. And if they get convinced they will surely invest on our plan
and invest 15 lakh at initial stage as seed capital or as a start up financing help. The advantage of doing
so is we don’t have to pay any sort of interest for it. We are dividing our financial plan into four
stages.

I. Current year (2020): Since this is a start-up business, the first year we are targeting the
customer who uses app such as uber, pathao and sohoz to observe their acceptance about our
app. For the first year our partners will be will be uber, pathao and sohoz. Based on the user
rate and app installation we are assuming our profit.
II. After 2 year (in 2021): In the second year of our app launch, we are planning to attract
some more customers beyond our network. This time we will be expecting more profit. Our
plan is to include more option in our app such as subscription method through the update
and partner with other ride sharing app such as obhai and pickme.
III. In 3 year (in 2022): Depending on our capacity and number of users, we will try to partner
with all the available ridesharing app in Bangladesh by this time go for commercialization.
Here, we are predicting to reach our break-even and achieve our profit both from our first
attempt. We will gain total 46.66% profit at this stage which will be equally divided among
our partners also will be kept for expenses for next year. For which we will seek venture
capitalist. We will use our profit from previous year and ask 720,000tk from investors with
25% equity, of which in three years they will get the main balance as well as a bit profit.
From year 4 of their investment, their actual profit will start.
IV. In 5 years (in 2024): We will be trying to expand our network and make a strong customer
community by approaching to the global market.

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 Activities Year 1 Year 2 Year 3 Year 5 2024

2020 2021 2022 Worst case Best case

Number of 1000 1200 2000 2000 2400

sales(Download
(1000 in a (1200 in a (2000 in a (2000 in a (2400 in a
of our app) month, so in a month, so in a month, so in a month, so in a
month, so in
year 14400) year 24000) year 24000) year 28800)
a year
12000)

Growth 20% 50% 0% 70%

Sales revenue 12000*50 14400*50 24000*50 24000*50 28800*50

600000 720000 1200000 1200000 1440000

Cost
Variable cost 12000*10 14400*10 24000*10 24000*10 28800*10
(120000) 144000 240000 240000 288000

Fixed cost 12000*2 14400*2 24000*2 24000*2 28800*2

(24000) 48000
28800 48000 57600

Cost incurred (144000) 172800 288000 288000 345600

Revenue 456000 547200 912000 912300 1094400

Financial 200000 256000(profit 720,000(venture Give 25% of Give 25% of

Activities from previous capitalist) + revenue back revenue back
803200 (profit to investor to investor
year)
from previous (380800), (273600),
within 3 years within 3 years
year)
they will get they will get
all their all their

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 money back, money back,
with 95200 with 68400
profit at their profit at their
rd
3 year 3rd year

256000 547200+256000= 1523200 531500 820800

Profit
803200

b. Pro forma income statement

Activities 2020 2021 2022 2 024

Worst Best
Net Sales 600000 720000 1200000 1200000 1440000

Cost of Sales 144000 172800 288000 288000 345600

Gross profit 456000 547200 912000 912300 1094400

Other Income - - - - -

Debts and 200000 - 720,000 380800 (25% of

receivable revenue)
Profit/(loss) from 256000 803200 1523200 531500 820800
operations

c. Cash flow projections

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Operating Activities 2020 2021 2022 2024

worst case Best case

Net Profit 256000 803200 1523200 531500 820800

Change in Working (20000) (5000) (6000) (6000) (7,888)

Capital

Accrued Expense

Cash flow from (50000) 25000 30000 30000 45000

operating activities

Increase/(Decrease) in (40000) 35500 33500 33500 37500

owners Equity

Financial Activities 200,000 - - - -

Increase in cash 110000 60500 63500 63500 82500

Cash in the beginning 0 110000 170500 234000 297500

Cash in the end 110000 170500 234000 297500 380000

d. Pro forma Balance Sheet

Activities 2020 2021 2022 2023

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Asset worst case Best case

Current Asset

Cash 110000 170500 234000 297500 380000

Inventories 15000 9500 10,089 13,758 9,730

Total Current
Assets

Property and
Equipment

Less – Acc
Depreciation

Total Asset

Liabilities and
Owners Equity

Accounts Payable

Accrued Expense
( wages )

Total Liabilities

Owner’s Equity 500000 545400 600000 600000 650700

Retained Earnings

Total Liabilities and

Owner’s Equity

e. Breakeven analysis
Particulars 2020 2021 2022 2024

worst case Best case

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 Sales 600000 720000 1200000 1200000 1440000

Less: Variable Cost 120000 144000 240000 240000 288000

Contribution 480000 576000 960000 960000 1152000

Less: Fixed Cost 24000 28800 48000 48000 576000

Revenue 456000 54720000 912000 912000 576000

We are assuming that with our existing capability and resource we are reaching break-even after 3rd year,
making revenue of 456000 in first year. This profit will be some used and some further invested into
expansion of our business

Again, in our 3rd year, after encountering growth and not be able to meet that growth with existing
capacity; we will seek venture capitalists for investment to update our app and also for promotional
activities. This will give rise to our cost structure. For meeting the needs we will need a total of 1523200
tk of which we will ask 720000 from venture capitalist and rest from our profits of previous years. The
breakeven will be reached after 50400 user of our app.

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f. Ratio Analysis
Ratio 2010 2021 2022 2024

ROA 30% 35% 36% 36% 37%

ROE 3% 4% 4% 4% 5%

Liquid Ratio

Current Ratio N/A N/A N/A N/A N/A

Quick Ratio N/A N/A N/A N/A N/A

Overall Financial
Ratio

Debt

Debt to Equity N/A N/A N/A N/A N/A

Sources of funds

Personal finance
Each partner = 125000 TK
Total personal investment = 125000 TK * 5 = 500000 TK

After that, we will take a loan of 15 lakh taka from the creditors. Therefore, our total investment for the
business is 20 lakh tk.

After contributing 1 lakh 25 thousand per person (total 4 persons), we invested 5 lakhs of our own
capital in this app launch. The return mainly comes in the third year and in the middle we equalizes the
expense and the profit. With some extra amount of sales we managed to increase our profit thereby.

g. Horizon/Growth analysis
To identify market opportunities and the underlying threats of moving in a specific direction, the
Handoff matrix plays an important role. For our startup, we plan to identify possible development
techniques by focusing on the business idea, establishing satisfactory points and objectives for the

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partners and evaluating the options, demonstrating the opportunity cost and the sustainable global
business around that idea. For now, we will focus completely on product development.
Subsequently, we plan to present a new updated version of our application with different options and
varieties that can be defined as product development. Later, if opportunities are observed in the b2c
segment, we will also consider entering that sector, which could be a market development. As for
diversification, we are always ready when the opportunity comes in our way. Well, that's how an
entrepreneur should be, looking for opportunities and cognitive adaptation. Now, seen from the
perspective of the horizon, our horizon 1 will continue until the first year, where it will save our
profits to invest in marketing. Horizon 2 will be dedicated to the use of the experience curve and the
learning effect to start marketing. Horizon 3 will be dedicated to achieving.

h. Sources and
applications of funds
As our honorable faculty member suggested, we will try our luck with government funds. If this
does not work, we will actively engage in seed capitalist research to manage our start up financing.
Some of the honorable mentions are the Angel group, venture capital, the accelerator etc. And later
on we will seek for venture capitalist in order to expand our business at developmental stage as 2 nd
stage financing.

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i. A specific investment ‘deal’ proposal for the investors
We present our 720,000 taka proposal in exchange for 25% of the capital of our startup. As by
that time our business will be at growth or maturity stage so we assuming that we will surely make
profit out of it. So in order get large amount of loan we have propose for higher interest rate. Our
strategic projection ensures that the money invested, the original, will take 3 years to return with a
certain return that they will also receive in the fourth quarter of the third year. The insurance returns
3 times the money invested and could increase if the opportunities continue to be synergistic with
our strengths.

NOTE: The above shown income statement is based on only income from Google play store. In the
income statement it is mentioned that play store will pay us for per download. We showed 1000
downloads per month in our initial months but it is not necessary that 1000 users will use our
application for their daily commute. We assume that at least 50% of the total downloaded amount
which is 500 will be our potential customer in the initial stage. This will create another income
source for us. In Future we plan to expand our income sources. For example if our business goes
well we plan to go on a contract with ride sharing services based on agency concept.

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