YOUR TOTAL RENT SOLUTION BUSINESS ADMINSTRATIoN DISCIPLINE
Nov 08, 2015
YOUR TOTAL RENT SOLUTION
BUSINESS ADMINSTRATIoN DISCIPLINE
Business Plan Development
RentDoors
Course Name: Entrepreneurship Development
Course Code: BA-3105
Submitted to
Dr. Md. Noor Un Nabi
Professor
Submitted By
Group Name - Untitled Name ID
Shuvro Kumar Paul 110326 Md. Abdus Shakur 120303 Md. Jannat Ul Islam Saikat 120306 Md. Sohel Rahman 120322
Date of Submission: 20 April, 2015
Business Administration Discipline
Khulna University
No. Topic Page
1 EXECUTIVE SUMMARY 1
2 2. ENTERPRIZE OVERVIEW 3
2.1 Mission Statement 3
2.2 Vision 3
3 SERVICE DESCRIPTION 3
3.1 Main Service Portfolio 3
3.1.1 Rent Information for Rent Seekers 4
3.1.2 Rent Management for Apartment Owners/Landlords 4
3.2 Subsequent Wings 4
3.2.1 Grocery Service 4
3.3 Opening Hours 4
4 MARKET AND COMPETITION ANALYSIS 4
4.1 Market Analysis 4
4.1.1 Target Market Demographics 5
4.1.1.1 Population Growth 5
4.1.1.2 Age Segment and Gender Ratio 5
4.1.1.3 Trend of Income and Expenditure 6
4.1.2 Current Apartment Rents 6
4.1.3 Summary of Customer Segment 7
4.1.4 Future Growth 7
4.1.4 Future Growth 7
4.2 Competition Analysis 7
4.2.1 Porters 5 forces 8
4.2.2 SWOT Analysis 9
4.2.3 Pestel Analysis 10
5 Marketing Strategy 11
TABLE OF CONTENTS
5.1 Target Market: 11
5.2 Objective 11
5.3 Marketing Mix 11
5.3.1 Product 12
5.3.2 Place 13
5.3.3 Pricing 13
5.3.4 Promotion 14
5.4 Brand 14
6 THE BUSINESS MANAGEMENT SYSTEM AND STURCTURE 15
6.1 Location 15
6.2 Legal Issues 16
6.3 Enterprise Licensing 17
6.4 Organizational Hierarchy and Structure 18
6.4.1 Roles 17
6.4.2 Qualifications of Internal Stakeholders 19
7 Financial Planning 21
7.1 Sales Forecast Table and Breakdown First Year 21
7.2 Initial Investment Table 21
7.3 Marketing Cost 22
7.4 Monthly Operation Cost 22
7.5 Profit & Loss Statement 23
7.6 Return on Investment 23
8 JohnSon & Scholes justification 23
Reference (footnotes) 25
RENTDOORS BUSINESS PLAN 1
1. EXECUTIVE SUMMARY
Considering the present scenario of housing necessity, it is quite obvious to realize the
importance an organized platform to seek rent service, weather it is an entire apartment or
merely two or three room apartment facility. The population growth rate in Bangladesh has
always been on the rise for last few decades and this rapid growth of population has accelerated
the necessity of a solution-platform where to find available rent information according to the
respective necessity, choice and comfort.
According to the recent population census, the official size of population of Bangladesh has
already reached around 160 millions. Comparatively, in proportion with the increasing
population size, the number of service holders and corporate officials (both government and non-
government) has increased. About 70-75% families in this country do not have own
accommodation/housing facilities. Some of them have to, or in other ways, prefer to live in
rented apartment buildings. Interestingly, the majority of such tenants belong to the Job Holder
Class (JHC). However, this large segment usually is seen facing difficulties to find suitable location
or apartments to facilitate their accommodation needs according to their budget, requirements
and comfort.
To grab this opportunity of need prevailing in the market segment, RentDoors has come to make
help home seekers with rent solution according to their budget, preference and location. The
idea was conceived by one of the founder of RentDoors who along with other key partners of the
business is a student of Business Studies and Management Science. Hence, the educational
expertise in management field in addition with practical market knowledge and experience will
surely be a good combination for RentDoors success.
RentDoors will provide available rent information to its clients on the basis of location, room
requirements, budget range etc. Besides, it will meet the necessity of apartment owners or
landlords by getting their house/apartments rented. RentDoors will operate as a rent agent
among the rent seekers and rent providers. The operational and service domain of RentDoors
will be run in three major citiesDhaka, Khulna and Chittagong.
The marketing strategy of RentDoors will be extensive for initial periods because the concept is
not yet implemented in Bangladesh. The market will require making educated and realizing the
necessity and value of the service proposition.
The profit-loss statement of RentDoors show the viability and profitability of the venture. One of
the main advantages of this venture is its required investment to startup. The venture needs very
RENTDOORS BUSINESS PLAN 2
marginal amount of cash for initial investment in comparison with its potential growth and
profitability.
In short, RentDoors will be a successful profitable venture with high growth potential. RentDoors
promises high quality rent facility within the reach and in the easiest effortless way.
RENTDOORS BUSINESS PLAN 3
2. ENTERPRIZE OVERVIEW
RentDoors will be established as a partnership enterprise under the Partnership Act 1932. The
main operation of the enterprise will be run in Dhaka, Khulna and Chittagong cities. The partners
with overall responsibility will solely manage the capital funding of RentDoors.
2.1 Mission Statement
RentDoors : your total rent solution
The mission of RentDoors is to provide clients with a well-organized platform for their complete
rent solution. We emphasize on client satisfaction and long-term customer relationship.
2.2 Vision
Our vision is to be the largest home rent service portfolio in Bangladesh through quality client
service and familiarizing RentDoors as the number one choice for rent solution.
3. SERVICE DESCRIPTION
RentDoors will be the only service enterprise that works for rent solution. The operation will be
established in Khulna, Dhaka and Chittagong simultaneously. RentDoors care clients preference,
satisfaction and need. The following services will be available at RentDoors with 24 hours/7days
online access.
3.1 Main Service Portfolio
RentDoors have planning to extend business operation by expanding its service portfolio after
five to six years of initial operation. Moreover, the enterprises main service portfolio includes
the following:
3.1.1 Rent Information for Rent Seekers
RentDoors will manage a database where the available updated rent information will be available
according to the location, room size and budget scale. The database can be accessed through
Internet browsing our website (rentdoors.com.bd) or the rent seeker may come in person to our
Chamber Station which will be available in every city where RentDoors will operate.
RENTDOORS BUSINESS PLAN 4
3.1.2 Rent Management for Apartment Owners/Landlords
The apartment owners and local landlords are another customer segment of RentDoors.
RentDoors will serve this segment by advertising and getting their home/apartments rented.
RentDoors will maintain their to let information in the database with the facility of 360 angle
view and necessary details of the apartments to be rented. The apartment owners will also enjoy
the facility of customizing the information of their respective apartments by including extra
features and description.
3.2 Subsequent Wings
Besides the main service offering, RentDoors
has some future planning regarding additional
service offering. Some of those future
offerings are:
3.2.1 Grocery Service
RentDoors will offer day-to-day grocery
service to the clients. Order can be placed
online or through mobile SMS with quantity,
quality and necessary attributes mentioned.
RentDoors will reach the ordered grocery
items to the intended address.
3.3 Opening Hours
The customer Chamber Station will be open everyday except the weekly holiday (Friday) from
9:00 AM to late 11:30 PM. Besides, the online portal will be available for 24 hours and 7 days a
week. Database will automatically update after each 48 hours interval.
4 MARKET AND COMPETITION ANALYSIS
4.1 Market Analysis
In Bangladesh, the house rent market is very big and maintaining a constant growth rate. A large
number of people seek for a rent everyday whether it is for living purpose or official purpose.
RENTDOORS BUSINESS PLAN 5
According to National Bureau of Statistics (NBS), Bangladesh, the large portion of the populace is
composed of age segment ranging from 15 to 50 years.
4.1.1 Target Market Demographics
Our target market is the class of people who live in rented apartment buildings and corporate
business firms searching for suitable office space. Market demographics cover the entitys
different social-economic attributes for example, age, sex, education, income status etc.
4.1.1.1 Population Growth
According to the recent population census (2011) data of Bangladesh National Bureau of
Statistics, the population has reached its 140 million in 2011 and increasing at an average growth
rate of 1.2%. Among this huge span of population, around 70% people live in the rented
house/apartment buildings.
4.1.1.2 Age Segment and Gender Ratio
The age of RentDoors primary target market segment fall between 20-50 years who are usually
seen seeking rent. The bars of the following Age graph show the number of people who are aged
in between 20 and 50 years. RentDoors marketing strategy will focus appealing this segment to
grab the potential opportunity.
RENTDOORS BUSINESS PLAN 6
4.1.1.3 Trend of Income and Expenditure
According to World Bank record, the current per capita GDP of Bangladesh is $958 with an annual
growth rate of 6%. The nominal has increased in last few years though the real income has not
increased that much.
However, peoples lifestyles have changed a lot that are being expressed in terms of expenditure
pattern and allocation. Recently, the trend of expenditure on accommodation sector has
increased as the standard of living is improving gradually.
4.1.2 Current Apartment Rents
Considering last few years data on rent status, the current rent fare is lower than that of last few
years. The reason behind this diminishing trend is the availability of rent because of sudden
growth in house-building
industry. The number of
apartment buildings has
increased in greater
number last few years
and the trend is still on
the rise. The average rent
fare varies from region to
region. In city center
areas, the rate is very high
whereas with same
facilities the fare is
remarkably lower outside of city center areas.
Rent Fare Comparison
RENTDOORS BUSINESS PLAN 7
4.1.3 Summary of Customer Segment
Summarizing the potential customer based on the indicators and studies mentioned
above, the target market statistical portfolio is:
Target Market: Rent Seekers and Apartment Owners/Local Landlords
Population of Locality: 30 million gross (Including Dhaka, Khulna, Chittagong)
Percentage of Total Potential Customers: 60% of total population in target market
Income Group of Potential Customers: Upper-middle to Lower-middle Class
Age of Potential Customers: 20-50 (primarily)
Average Spending Power (on accommodation): 15000 BDT/per month
Average Growth of Target Market: 1.5% yearly
4.1.4 Future Growth
The market will grow in proportion with the total population. Current statistics show that the
growth rate of population in Bangladesh is very high and the number of rent seekers is also
increasing. So, it will be a rational estimate to assume that RentDoors will experience a profitable
constant growth in revenue and resources. The business will grow rapidly in association with the
expanding target market.
4.1.4 Future Growth
The market will grow in proportion with the total population. Current statistics show that the
growth rate of population in Bangladesh is very high and the number of rent seekers is also
increasing. So, it will be a rational estimate to assume that RentDoors will experience a profitable
constant growth in revenue and resources. The business will grow rapidly in association with the
expanding target market.
4.2 Competition Analysis
Since the industry is new in Bangladesh and has a growing demand for the service, RentDoors will
introduce a new way of accommodation in Bangladesh. It will give a competitive edge in the market. This
innovative idea will create an urge to the customers to find accommodation not by themselves but
through RentDoors. They have never before been introduced by this aspect of finding proper
RENTDOORS BUSINESS PLAN 8
accommodation. It will ensure a helpful hand for the home owners too. In order to have a clear idea about
our business idea, we have introduced Michael Porters Five Factor model.
4.2.1 Porters 5 forces
Threat of the new entrants: Industry characteristics is very important to determine the threat of the new
entrants. It depends more on the barrier to entry to the industry. That means the larger the barriers to
entry the more difficult to enter the industry. In this case, the industry is new, so the threat will be higher.
Because, barriers of entry is low. More companies will be interested to come into the industry. Economies
of scale can be useful in the section. If our company can get in the stage of economies of scale then it will
be very expensive to match there service with RentDoors.
RentDoors will have the control over the suppliers because it will capture the supplier market first as it is
the first company to enter into the market. There will be less chance for the switching. So, it will be easier
to control the market share.
Threat of Substitute Products: In every industry there will be a substitute product or service for one. In
the case of RENTDOORS, whole apartment selling and arrangements by Property Bazar Limited and
Property listing.com is the main substitute product for our product. They can enter the market. Online
shops like bikroy.com can introduce apartment renting section and thus it will be our substitute service.
Threat is high in this sector.
Bargaining power of buyers: Customers are essential for the survival of the business. Here buyers power
are low because switching cost is low in this side. And also the number of supplier is very low, so the
bargaining power of buyer is low in this sector of RentDoors.
RENTDOORS BUSINESS PLAN 9
Bargaining Power of suppliers: Here supplier means the land owners. In other sense they are our
customers too. Here there are too much suppliers, so the bargaining power of suppliers are also low.
There is no scope of our suppliers to get into a direct business in an organized way so that condition fulfills
the situation.
Competitive Rivalry: Rivals are the companies with same type of products targeting same customer
group. In this case Property Bazar Limited and Property listing.com are the main competitor. Apart from
this Bikroy.com and ekhoni.com are also competitors. But all those competitors are our indirect
competitors and those are not involved in the manufacturing process of our product.
The different approach of RentDoors will attract the customers towards an easy living situation and tensed
free switching. This integration of easy living solutions will grow customer base more quickly.
4.2.2 SWOT Analysis
To understand the viability of the business and its potential threat we have made this SWOT
analysis to go into the deeper.
Strength
RentDoors, first of all, has its first movers advantages, as there is no such service given
by any other companies.
The market of rent service is very big and the necessity of the service tells about itself.
The partners of the business are experienced in business field, so, that is another
strength that ensures the highest efficiency.
Weakness
Being a partnership business, there may occur some bureaucratic complexities that can
slow it down.
As the operation will be run in three different cities, it may create some difficulties in
running the enterprise properly.
Opportunity
RentDoors have some additional potential opportunity to extend its portfolio alongside
the rent service
The initial investment and operational capital is few in amount in comparison to its
yearly/monthly revenue generation
Since the service has an all over demand in the entire country, RentDoors can easily
expand its operation in future to some other cities.
RENTDOORS BUSINESS PLAN 10
Threats
The idea of this enterprise can easily be copied some other companies. So, there is a
potential competitive threat of the enterprise
As a partnership organization the continuity of the business a major question of
concern.
4.2.3 Pestel Analysis
Now, we will do a PESTEL analysis for our business plan for the analysis of the macro environment. PESTEL
summarizes the possible influence of success and failure of a particular strategy.
Environmental analysis can be summarized into six categories. For the house rent industry in Bangladesh,
can be summarized below
Political: Political situation in Bangladesh is not stable but it wont affect the House Rent industry. Security
controls are high. Easy generation of the license will make it easier for a service company to start the
business. In summary we can say
Instability of government
High security controls
Easy licensing
Economic: Economic condition of people in Bangladesh is not so high like developed countries. But the
growth rate is high. More companies are investing here and more job opportunities are opening. For this,
there will be job switching and more accommodation will be needed. Commercial home apartment
builders are developing also. In summary
Low income
High economic growth rate
More job opportunities
Commercial Home Apartments
Social: People with different cities find it difficult to cope up with the situation and find proper
accommodation in the new city. More students are engaging in the higher education and find it difficult
to get an accommodation in the new place, especially in big cities. Moreover, some people wants their
tenant with some special requirements. Religious pressure is also there too.
Hard to find accommodation in new place
More higher education
People traveling more
Special wants of house owners.
RENTDOORS BUSINESS PLAN 11
Technological: World is developing with the technology. We are also developing to get into the vibe of
technological revolution. More ecommerce site is emerging in the business world. Advanced database
management technology will help secure database management for our customers. Teleconferencing can
be also helpful.
More ecommerce sites
Advanced database management
Advance payment technology
Mobile application technology
Environment: Overall climate conditions in Bangladesh is vibrant in different seasons. Moreover people
are not willing to go for a search in highly rainy day or in a hot summer day. More land for apartments
and housing.
Vibrant season
More land for apartments
Legal: There are some legal restrictions in providing an accommodation services. People need to agree on
the contract with the owners. Legal considerations must be given by the both parties.
Legal restrictions
Legal papers and considerations.
We can see that the macro environmental factors are acceptable for RentDoors. We will do a JohnSon &
Scholes Model for the business plan to justify it after our marketing and financing plan. We will discuss
about it later in the plan.
5 Marketing Strategy
Marketing strategy is the way to achieve our objectives to grab the market share. Its a game
plan. An ideal marketing mix with proper target market will set the proper market plan.
5.1 Target Market: We have set a target group of job holders and students. Our main focus is to
help our customers to get proper accommodation.
5.2 Objective: RentDoorss main objective is to give proper accommodation solution to
customers and also to give proper tenant according to the requirements given by the owners.
5.3 Marketing Mix
RentDoors rely on the services and the satisfaction of the customers. Customer retention and
satisfaction is very important in this business. A proper marketing mix will serve RentDoors to
reach its objective.
RENTDOORS BUSINESS PLAN 12
5.3.1 Product: RentDoors is a service company. It is providing a different product or service
available to the customers to suit their needs for the accommodation. There will be no service
category for RentDoors but 2 types of product for two types of customers. In a sense, our
suppliers are also our customers.
Our main service is to provide proper accommodation and tenants. Two types of service is
described below
Accommodation: RentDoors will provide accommodation service to those who will try to find it
in a new city which is unknown. When someone get into a city, it is very tough for him or her to
find a proper accommodation suitable to him or her. RentDoors will provide information
according to the requirements and also can get him or her to rent the apartment or the house. It
gives a competitive advantage to RentDoors as it will be different from other services. Property
Bazar Limited is giving apartment listing to buy it but RentDoors is giving proper solution to rent
the house or apartment. It can be an indirect substitute product not substitute as we are
contacting our customers over the air and can help them get the home signed in papers for rent.
Tenants: According to the objective RentDoors will provide proper accommodation solution. It
needs to have a liaison with the owners. RentDoors will contract the owner make liaison with the
owner to give tenants according to their choice. Sometimes, it happens that owner is not willing
to give rent to a customer who doesnt suits his or her requirements. We will find a sort list in
our database and customer will choose from his according to the requirements and it will also
suit the need of the owner. Both parties need to sign an agreement of rent abiding the
requirements given by the both parties.
So, our service is different in the ways
Modified service
Suits requirements
Convenience of the service
Customer retention program for our customers (will be discussed in the promotion)
Agreement between both parties to resolve future dilemma.
These differentiation factors in RentDoorss service are
unavailable in the market and therefore will encourage promising results in sales and promotion.
RENTDOORS BUSINESS PLAN 13
5.3.2 Place: RentDoors is a service company. It will provide accommodation services through
online. But it needs to have a physical office in which the papers will be stored and physically
search for the apartment displayed in the office.
The venue or the location of the office will be in a place where people can sassily reach and
overall our office is on the air. Our main office is one the air online portal. People can search in
our page, get membership and go for the apartment needed. The office will be a small room.
There will be place for taking token and there will be a line to get into the place where you will
see the listing.
Above all, RentDoors will work through mainly online portals. It will create a database online and
there will be a mobile application to link it with the webpage database.
5.3.3 Pricing: RentDoors is one of the companies that can earn profit through easy means of
service. Our pricing strategy will be very unique. We wont charge our customers for the
information or getting into the database. We will charge when they were taking the rent. There
will be easy pricing strategy. We will charge differently to our two different customers
Rent Seekers: We will charge 30% amount of the value of the rent for the first month only. And
if we take the customer to the place and get things done through RentDoors then a 1000 tk
charge will be taken along with the 30% value.
House Owners: For the house owners, we will take 40% of the rent amount given by his or her
tenant in the 1st month. No extra charge for the paper work. Only the first months amount is
charged.
So, if we summarize the pricing strategy, it will be like this below
Customer Service Charge Documentation Charge
Rent Seekers 10% of the Rent 1000
House Owners 10% of the Rent No charge
It has been generated after an average costing of the rents and decided on the profit over the
costs. That means RentDoors has created a costing plan and allocated the rent charges calculating
the cities average rent.
RentDoors decided to change its pricing strategy according the Product or service Life Cycle
position. It will add value to the product or service. If we look at the product life cycle, RentDoors
are in the introductory stage of the life cycle. Presented pricing will be suitable for the service to
grab the market. It will take time to move on to a higher pricing strategy if our product reaches
higher level in the life cycle stage.
RENTDOORS BUSINESS PLAN 14
5.3.4 Promotion:
Promotion is the core effect of marketing mix. RentDoorss success primarily depends on the
promotion. Getting people involved in the promotional affairs will need a heavy promotional
programs. But technically we can do it through initially with normal budget. Promotional
activities would include social promotion with some commercial ones.
Main Promotional activities includes
Television Commercial: There will be a 50 sec television commercial for our service
developed by advertising agencies.
Social Media Promotion: To engage more people, RentDoors will have social media pages
with different offers. It will include Facebook page, Google Plus page and twitter page.
Banner: Banners in cities different places will be placed to get people know about our service.
Mobile Application: A mobile application will be developed to increase the participation and
service differentiation. It will be developed for Android OS, iOs and also for windows phone
users.
Leaflet: Leaflets concerning our offers will be promoted in different places and occasions.
Campaign: Easy living campaign will be conducted in the launching ceremony of our each
branches.
Web page promotion: Website design and website promotion will be conducted with the
integration of social media pages. Database panel will be made different for the registered
users.
Customer Retention Program: Customer retention program will be initiated with proper
discounts. If anyone avails our service for a single time, he will be entitled to get a 20%
discount in the two successive services. Also there will be special offers with different
program will be mailed to them through newsletters and also via cell phone calls.
All the branches will be promoted timely. It will give RentDoors a competitive advantage as the
monopoly marketer of the service. If above mentioned marketing mix or blend can be done
perfectly, RentDoors will achieve its objective in time.
5.4 Brand
RentDoors is a brand decided by all of our partners.
Language The official Language for our product is English
Name The name RentDoors emphasizes the way to get your suitable accommodation.
Quality The picture in the logo is a home that represents the suitable destination of anybody.
Colors Primary colors are Yellow and Green in our logo
RENTDOORS BUSINESS PLAN 15
Font Simple font is used
Logo
6. THE BUSINESS MANAGEMENT SYSTEM AND STURCTURE
6.1 Location
RentDoors will serve in three major cities of BangladeshDhaka, Khulna and Chittagong. Each
city with its special characteristics provides some opportunities as well some challenges. One of
the main advantages is the distribution of risks among the three different regions. For example,
if there is a slump in any particular year for one region, the deficit can be distributed to others.
Khulna City: Khulna is the third-largest city of Bangladesh and has a population of about 1.5
million (2012) . Khulna is an old river port located on the Rupsha River. It is an important hub of
Bangladeshi industry and hosts many national companies. Port of Mongla, the second largest
seaport in the country, serves it. It is also one of the two principal naval command centers of the
Bangladesh Navy. The current population density is 19000/per square kilometer. The city is
located at the southwestern region of the country with an areal of 59.57 square kilometer where
the total district covers around 4394.46 km .
Dhaka City: Dhaka is the capital city of Bangladesh and the tenth largest city in the world. It has
an estimated population of more than 15.5 million people in the Greater Dhaka Area. Dhaka is
one of the major cities of South Asia, being Bangladesh's seat of government and an important
cultural and financial center, alongside Chittagong. Dhaka is situated in the economic and
commercial heartland of Bangladesh. It is the seat of the Bangladesh Bank and the Dhaka Stock
Exchange. The city registered a gross municipal product of US$85 billion in 2008. It has seen
strong growth in finance, real estate, telecoms, insurance and technology. Dhaka is one of the
fastest growing startup hubs in the world . There is a large concentration of multinational
companies. The main commercial areas of the city are Motijheel, Dilkusha, Kawran Bazar,
Gulshan, Mohakhali and Banani. The city has a growing middle class, driving the market for
RENTDOORS BUSINESS PLAN 16
modern consumer and luxury goods.
Three Operating Areas in Google Map view
Chittagong City: Chittagong is the second largest city of Bangladesh with a population of 4.5
millions. Often described as the commercial capital of Bangladesh, Chittagong is the largest
seaport and most diversified industrial center in the country; accounting for 80% of international
trade, 40% of industrial output and 50% of tax revenues . It home to many of the oldest and
largest companies in Bangladesh. The Chittagong Stock Exchange has a market capitalization of
US$25 billion. The Port of Chittagong is one of the hundred major container ports in the world,
ranking 90th in 2012. Its annual cargo tonnage was worth over US$60 billion. Chittagong was
ranked as the most efficient port in Asia in 2013. In recent years, it has emerged as one of the
fastest-growing cities in the world. It has a leading per-capita GDP among South Asian cities,
registering at US$5,492 in 2008.
6.2 Legal Issues
As a formal constructive issue, formation of any business venture requires some legal
foundations and legitimate characteristics. RentDoors will be established as a partnership
enterprise under the Partnership Act 1932. The main operation of the enterprise will be run in
Dhaka, Khulna and Chittagong cities. The partners with overall responsibility will solely manage
the capital funding of RentDoors. Along with the founders investment, external equity may
compose the overall operating capital. Whatever the case is, for any such external funding the
responsibility will spread over the founders and partners of the enterprise.
RENTDOORS BUSINESS PLAN 17
6.3 Enterprise Licensing
In Bangladesh, Partnership firms can operate freely without being registered. However, we would
like to register RentDoors under the Partnership Act 1932. The direct authority of commerce
ministry, The Registrar of Joint Stock Companies and Firms (RJSC) deals the licensing procedures.
As a registered firm, RentDoors can enjoy some legal rights and facilities.
To Start a Partnership Firm following task to be required:
Prepare a Partnership Agreement
Partners Meeting Minutes
Trade License
TIN Certificate
VAT Registration Certificate
Import Registration Certificate
Export Registration Certificate
Various License/Permission according to the nature of business
Bank Account
Membership Certificate of respective Trade Body
6.4 Organizational Hierarchy and Structure
As an organizational being, a proper management structure is required to maintain the operation
successfully. RentDoors will maintain a simple four level of tall hierarchy in its operation. On the
top of the level, the responsibility will be bestowed upon the founding partners equally, in
specialization basis. Under the direct supervision of top layer there will be a manager for each
region. The manager will supervise the next level of hierarchy with direct contact with database
operator, telephone operator. And both the manager and database operator will have reporting
relationship with the bottom level employee, the data collector/manager.
RENTDOORS BUSINESS PLAN 18
Figure 2: Organization Hierarchy
6.4.1 Roles
Partners
The main duties and responsibilities that will handled by the founder partners of the organization
are:
Regularly visiting the regional chamber stations and ensuring smooth management.
Negotiating with the apartment owners community/local landlords
Banking roles and cash management
Keeping relationship with key stakeholders
Ensuring employee salaries and payment system
Managing marketing and promotional activities
Managers
Keeping updates of day-to-day operations.
Supervising subordinates and taking care of their regular activities
Managing office hours from 9:30 AM to 11:00 PM
Initial personnel attendance record maintenance
Providing regular updates to the partners
RENTDOORS BUSINESS PLAN 19
Observing the cleanliness of the premises and directing as observed
Keeping a record of all billing and payments made
Database Operator
Updating regularly the available rent information in the database
Maintain online order placement and service delivery
Keeping records of day-to-day sales and forecasting and providing the information to the
regional manager
Reporting to the upper level or the regional manager about the current facilities and required
technological updates if necessary.
Telephone Operator
Regularly receiving clients call and providing them with quality feedback with care
Taking records of SMS booking of any apartment/flat.
Merging the sales information regularly and keeping contact with the regional manager
Data Collector
Collecting rent data time to time and providing the available rent information to the database
operator
Checking and maintaining interval in areas when collecting rent data
6.4.2 Qualifications of Internal Stakeholders
Partner 1 : Shuvro Kumar Paul
Educational Profile Bachelor of Business Administration, Management & Business Administration School, Khulna University, Bangladesh. Major in Marketing.
Diploma in Business Studies and Management Science, Universidade de Santiago de Compostela
RENTDOORS BUSINESS PLAN 20
Profession Profile PR and Communication Officer at Google Business Group, Khulna Region,
Bangladesh.
Partner 2 : Md. Jannat Ul Islam Saikat
Educational Profile Bachelor of Business Administration, Management & Business Administration School, Khulna University, Bangladesh. Major in Marketing.
Partner 3 : Abdus Shakur
Educational Profile Bachelor of Business Administration, Management & Business Administration School, Khulna University, Bangladesh. Major in Marketing.
Profession Profile Owner and manager of Family Business.
Partner 4 : Sohel Rahman
Educational Profile Bachelor of Business Administration, Management & Business Administration School, Khulna University, Bangladesh. Major in Marketing.
Project management, Masaryk Uniersity
RENTDOORS BUSINESS PLAN 21
7. Financial Planning
7.1 Sales Forecast Table and Breakdown First Year
Month Number of Customers (DAY)
Total Customers (monthly)
Rent charge
Documentation
Charge from Owner
Total Spending
% Increase Total Sales
January 8 192 1500 1000 1500 4000 768000
February 11 264 1500 1000 1500 4000 37.5 1056000
March 9 216 1500 1000 1500 4000 -18.18181818 864000
April 12 288 1500 1000 1500 4000 33.33333333 1152000
May 14 336 1500 1000 1500 4000 16.66666667 1344000
June 13 312 1500 1000 1500 4000 -7.142857143 1248000
July 15 360 1500 1000 1500 4000 15.38461538 1440000
August 13 312 1500 1000 1500 4000 -13.33333333 1248000
September 14 336 1500 1000 1500 4000 7.692307692 1344000
October 13 312 1500 1000 1500 4000 -7.142857143 1248000
November 14 336 1500 1000 1500 4000 7.692307692 1344000
December 16 384 1500 1000 1500 4000 14.28571429 1536000
TOTAL 14592000
We have hypothetically estimated the sales of each day, then multiply it for the month. As a result we got
our total sales for the whole 12 months and a total of 1 year sales.
7.2 Initial Investment Table
Cost Item Amount
IT/ Office equipment 800000
Phone Installation Cost (3x3000) 9000
Office Establishment 3000000
Documentation (legislation) 600000
Furniture and equipment 500000
Transportation (10*70000) 700000
Total 5609000
0
500000
1000000
1500000
2000000
Monthly Income
Monthly Income
RENTDOORS BUSINESS PLAN 22
Total Investment will be done through loan. According to the partnership business law, each partner will
be equally liable for the loan amount. And no partner can withdraw money from the profit until it reaches
return on invest = 0 point or the breakeven point. It should be mentioned that a operation expense will
be included in the loaned amount. So, a total of 6006000 taka can be loaned. So, approx. loaned amount
is 6050000 Taka.
7.3 Marketing Cost
Cost Item Amount
TVC 2000000
Media Publishing 1000000
Online Promotion 10000
Mobile application Development 100000
Other Promotion 1500000
Total 4610000
Marketing costs will start from the making of Television Commercial. As it is a new industry. We need to
focus more on promotion. So, here we estimated our marketing costs considering high interest in
promotion to increase the need of the people or increase the population of the market.
7.4 Monthly Operation Cost
Cost Amount
Rent 80000
Employee Salaries 3*30000 = 90000 3*20000 = 60000 3*15000 = 45000 6*10000 = 60000
255000
Office maintenance 12000
Utility Cost 50000
Total 397000
We have incurred monthly costs of Renting 3 offices which is estimated at 40000 taka at Dhaka, 25000
Taka at Chittagong and 15000 Taka at Khulna regional branch. Employee salaries have been divided. And
an office maintenance cost of 12000 taka and utility costs of 50000 Taka has been included
hypothetically.
RENTDOORS BUSINESS PLAN 23
7.5 Profit & Loss Statement
Particulars Amount
Sales (projected) 14592000
Operation Cost (Monthly*12) 4764000
Marketing Cost 4610000
EBIT 5218000
Interest @ 18% on Loaned amount 1089000
EBT 4129000
TAX @ 15% 619350
Net Profit 3509650
7.6 Return on Investment
Now we will see how our business model make returns on investment. We have calculated our ROI for
the first 2 years below -
Year 1 = ROI = (3509650-4609000)/4609000 = (23.85) %
Year 2 = ROI = (7019300-4609000)/4609000 = 52.29 %
We can see that our hypothetical data shows we will get our return on the second year. The break even
point will be in the 2nd or 3rd quarter of the 2nd year.
8. JohnSon & Scholes justification
In the JohnSon & Scholes model we have Suitability, Acceptability, Feasibility justifications.
Suitability: Here strategic choices are suitable with the existing environment. We have done PESTEL
analysis and Porters 5 Factor Model to determine the environmental condition and the position of the
competitors. In both cases, the model suits the environment.
Feasibility: Feasibility focuses on whether the organization has the resources to pursue the strategic
choice. We can see in a hypothetical way that RentDoors can pursue.
Acceptability: It focuses on the financial aspect and stakeholders aspect. Here, it is feasible in both
cases. As the model represents a sound growth and breakeven in the second year, stakeholders will find
it very usefull.
So, the model is perfect.
RentDoors will be a successful profitable venture with high growth potential. Market analysis
shows it is feasible to invest in the business. Investors will be very happy to see the returns So,
RENTDOORS BUSINESS PLAN 24
RentDoors promises high quality rent facility within the reach and in the easiest effortless way.
So, it is the perfect model for rent solutions.
RENTDOORS BUSINESS PLAN 25
Reference (According to Footnotes)
1. Bangladesh National Bereua of Statistics, Census, 2011
2. World Bank Report, 2013
3. Demographics of Bangladesh, Bangladesh Yellow Pages
4. 2007 population estimate, Bangladesh Yellow Pages, 2007
5. Bangladesh Bureau of Statistics; Area, Population and Literacy Rate by Paurashava 2001
6. Anushay & Hossain, "Branding Bangladesh: India's Neighbor Is Becoming A Major Startup
Hub | Anushay Hossain". Huffingtonpost.com.
7. Daily Star, http://archive.thedailystar.net/newDesign/news-details.php?nid=229505
8. "AK Khan group to invest big fund in infrastructure, tourism, textiles". The Financial
Express.
9. Thomas Wu, Kaplan Financial, Learning center, Strategic Choice, Page 6
COVER1Cover 2indexbody