Project Feasibility Study On Cycle Courier Service

CycleCourierservice 1
Feasibility Study
Project Feasibility Study on CycleCourierservice
Supervised By:
Ms. Jafrin Sultana Assistant Professor Dept. of Business Administration Dhaka City College
Submitted By:
Group: Pathshala (06) Section: A Group Members Name Md. Ariful Haque Mst. Tahmina Akter Wahid Hossain Shams Zerin Chowdhury Shayla Sultana 11th Batch BBA Id No. 021 026 030 073 367
Date of Submission: May 13, 2013
Prepared by: Pathshala
Feasibility Study
Letter of Transmittal
May 6, 2013 Ms. Jafrin Sultana Assistant Professor Department of Business Administration Dhaka City College Dhanmondi, Dhaka. Subject: Submission of Feasibility Study on CycleCourierservice
Dear Madam, Weve pleasure in submitting the feasibility study on CycleCourierservice, as required by you. This report contains the managerial aspects, market and demand analysis, technical analysis, financial aspects, economic and ecological analysis of the cycle courier service in Dhaka city. As a green business idea, weve choose cycle courier service. We think this business will provide more customize service profitably for customer and contribute to the welfare of society. We hope you find this report satisfactory. Respectfully submitted
Md. Ariful Haque On behalf of Group Pathshala.
Feasibility Study
Acknowledgement:
Thanks to Almighty Allah, weve successfully completed the business plan on Cycle Courier Service. A special note of thanks to Ms. Jafrin Sultana, Assistant Professor of Dhaka City College and Md. Shahinur Sobhan, Assistant Professor of Dhaka City College, for their expert guideline. A business report cant be done only single effort, we are cordially thanking to those people who are not in focus but give enormous effort i.e. our family member by helping us.
We would like to thanks Quazi Enterprise to give enough time and patience to make this report softcopy into hardcopy.
Feasibility Study
Table of Contents
Executive Summary ...................................................................................................................................... 8 Objective of the Report ................................................................................................................................. 9 Methodology ................................................................................................................................................. 9 Primary Data ............................................................................................................................................. 9 Secondary Data ......................................................................................................................................... 9 Mission........................................................................................................................................................ 11 Vision .......................................................................................................................................................... 11 Objective ..................................................................................................................................................... 11 Business Summary ...................................................................................................................................... 12 Firm Ownership .......................................................................................................................................... 12 Management Structure ................................................................................................................................ 13 Personnel Plan............................................................................................................................................. 14 Market and Demand Analysis ..................................................................................................................... 16 Market Analysis ...................................................................................................................................... 16 Market Analysis .......................................................................................................................................... 17 Trend Analysis ............................................................................................................................................ 17 Elasticity of Demand........................................................................................................................... 19 Market Growth .................................................................................................................................... 20 Market Need........................................................................................................................................ 20 Service Business, Competitor Analysis .............................................................................................. 21 Positioning/Competitive Advantage ................................................................................................... 21 Market Mix ......................................................................................................................................... 21 Sales Strategy ...................................................................................................................................... 22 SWOT Analysis ...................................................................................................................................... 22 Strengths ............................................................................................................................................. 22 Weaknesses ......................................................................................................................................... 22 Opportunities....................................................................................................................................... 23 Threats................................................................................................................................................. 23 Service Offering ...................................................................................................................................... 23 Keys to Success....................................................................................................................................... 23 Critical Issues .......................................................................................................................................... 24 Technology ................................................................................................................................................. 26
Feasibility Study
Technical Arrangement ........................................................................................................................... 26 Location and Site ........................................................................................................................................ 27 Start-up Summary ....................................................................................................................................... 30 Start-up.................................................................................................................................................... 31 Start-up Funding ..................................................................................................................................... 31 Break-even Analysis ................................................................................................................................... 32 Break-even Analysis ............................................................................................................................... 32 Net Profit Monthly ...................................................................................................................................... 33 Payback Period (Discounted) ...................................................................................................................... 34 Accounting Rate of Return (ARR).............................................................................................................. 34 Projected Profit and Loss ............................................................................................................................ 35 Pro Forma Profit and Loss ...................................................................................................................... 35 Pro Forma Cash Flow ................................................................................................................................. 36 Pro Forma Balance Sheet ............................................................................................................................ 37 Economic Analysis ..................................................................................................................................... 40 Ecological Analysis .................................................................................................................................... 40
Feasibility Study
Feasibility Study
Introductory Part
Feasibility Study
Executive Summary
CycleCourierservice is a bicycle based courier service in Dhaka metropolitan city, catering to financial institution, Online shop, Industries and Professional & Household customers. The CycleCourierservice can transport documents as well as parcels to clients. Online shop and financial institution are the primary group of customers. As a green business CycleCourierservice will satisfy its customer and its an eco friendly business project so it can be brought revolutionary change in courier service industry. The CycleCourierservice will offer reliability and industry insight to corporate, customers, enabling it to provide superior service relative to the current service providers. This will allow the company to rapidly gain market share. Profitability will be reached by month nine, and revenue for year three will be very comfortable.
Feasibility Study
Objective of the Report

The objectives of the report are the following 1. 2. 3. 4. 5. To gather knowledge about business report writing To learn how to maintain a project on green business idea To gather knowledge practically on report writing by group work. To explore the information and idea to get the best idea and work on it. Introducing with business report writing criteria and content
Methodology
Primary Data
Primary data is collected by oral conversation with different retail shop which is connected with relevant sector.
Secondary Data
The secondary data is collected from different organizations website, internet, search engine etc. the followings are the secondary source of data. 1. 2. 3. 4. 5. Webpages of different courier service Internet Books Articles Search engine
Feasibility Study
Management Aspects
Feasibility Study
Mission
CycleCourierservices mission is to provide online b2c and c2c shop and Dhaka metropolitan corporate house with an environmentally friendly, expedient delivery service. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall in to place. Our services will exceed the expectations of our customers.
Vision
Our vision is to spread CycleCourierservice to most of the cities in Bangladesh within 10 years.
Objective
The objectives of the report include: 1. 2. 3. 4. To provide courier service with affordable price. Providing fast delivery with priority basis. Achieving target level of delivery. Customer or clients satisfaction
Feasibility Study
Business Summary
The CycleCourierservice is a bicycle courier service that serves the online b2c and c2c firms and corporate house of Dhaka Metropolitan city. The firm offers a document & parcel delivery service for financial institution, corporate house and city dwellers. The firm can offer a scheduled pick up as well as a spontaneous run. Within nine months the business will be profitable.
Firm Ownership
The firm will be a partnership firm and registered under section 58, chapter vii, Partnership Act, 1932. The firm owned entirely by Md. Ariful Haque, Tahmina Akter, Wahid Hossain, Shams Zerin & Shayla Sultana. The contractual relationship among partners will be equal partnership i.e. partners contribute and share equally in investment and profit of the firm.
Feasibility Study
Management Structure
Managing Director & CEO
Network Engineer
Operations Executive
Financial Executive
Marketing Executive
Order receiver (Page Admin)
Expert Messengers
Junior Executive
Messengers
In management structure, the partners are participating without remuneration.
Feasibility Study
Personnel Plan
The CycleCourierservice will consist of Partners of firm completing HR functions, financial functions, and general business management. The firm will hire a full-time dispatcher and eight bicycle messengers. While bicycle messengers seem to be transient, the training of a new one is relatively quick and cheap, so if one leaves, he/she can be replaced quickly.
Personnel Plan
Year 1 Network Executive Cum Order Receiver Marketing Executive Messenger
240,000 240,000 144,000
For first four years firms payroll plan will be unchanged. Firms will recruit new messenger s as per need. The 10 messengers are permanent. And part time messengers will be recruited as per heavy delivery order. The part time messengers will be paid weekly basis. They are paid tk. 60 per hour of work.
Feasibility Study
Marketing Aspects
Feasibility Study
Market and Demand Analysis

Market Analysis
The courier business is related to service business. Now a day the term courier is widely used in business world. Financial institutions, firms, professionals, business persons, households uses courier to send their need documents, gift, samples, passports, medicine etc with in very short time. Bicycle courier service will open new experiences of every business person, professionals, institutions and assorted customer to send their parcel within very short time and very cheap rate. Bicycle courier service primarily serving the financial institution and online based business of all over Dhaka city. This is a particularly attractive segment because financial institutions and online shopping have a constant need for delivery services. Most institutions have a constant need for delivery services to one branch to another branch and one institution to another institution of financial institutions and b2c and c2c online shopping business. Most institutions and online shopping business are sending things constantly during the day. Bicycle courier will be able to set-up contracts with organizations and online business to provide multiple scheduled pick-ups each day. The Bicycle Courier service also serves non-financial institutes customers who are in need of a courier service. In addition to document, the Bicycle courier can transport small parcels, gift, samples, passports, medicine etc. within the Dhaka city firstly. Bicycle Courier will serve three distinct groups. The first group of customer: financial institutions. This will be the group that is targeted primarily. Financial institutions are constantly in need of document delivery to branch to branch. It is may be to clients, other financial institutions, Bangladesh Bank or to corporate branch. On the other hand the online shopping business also need to delivery their product within very short time with low price and reliably. This is the regularity of needed delivery is the reason that financial institution and online shopping business are targeted. One a financial institution and an online shopping company have become satisfied customer, it is likely that they will begin to increase their delivery needs. This then become a steady, high frequency, long term customer. Financial institutions and online shopping business have constant delivery activity; many institutions require pick-ups through the day and require dependability, which is one of the competitive advantages of Bicycle Courier service. Another advantage is to deliver the documents, gift, samples, passports, medicine etc. within very short time with low price. The other groups are assorted deliveries needed in the city. This could come from a wide variety of business that requires delivery within the city.
Feasibility Study
Market analysis (pie)

Profesionals and households 12% Industries 27%
Financial institutions 28%
online b2c and c2c 33%
Market Analysis
Potential customers Growth Year-1 Year-2 Year-3 Year-4 Year-5
Financial institutions Online shopping Assorted customers Total
10% 15% 6% -
21000 24750 21750 75000
23100 28463 23055 74618
25410 32732 24438 82580
27951 37642 25904 91497
30746 43288 27458 101492
Trend Analysis
Year Demand Year-1 75000 Year-2 74618 Year-3 82580 Year-4 91497 Year-5 101492
Feasibility Study
Trend Analysis
120000 100000 80000 Demand 60000 40000 20000 0 0 1 2 3 Year 4 5 6 y = 6986.3x + 64079 R = 0.9247
Demand Linear (Demand)
The R-squared value indicates how closely trend line follows data; the closer its value is to 1, the closer it follows data. Here, R = 0.924 so it is much closer to 1.The Linear Equation, y = 6986.x + 64079 shows the a= 64079 and b= 6986.
Feasibility Study
Elasticity of Demand From 2005, the document delivery market in Dhaka alone achieved million of revenue. In Dhaka city there are situated the head office of almost every business and financial organizations there need to delivery important document to one branch to another branch. So the demand of CycleCourierservice will gradually increase constantly for the online shopping business now a day it become most popular to the customers. It saves time and cost. For the reason the targeted market will expand in very future. Online c2c shopping site faces problems of delivery. They feel insecurity to collect the purchased product. B2b types online shopping business also faces problem to deliver the item sold in short time. Many buying house also send their samples to their prospected customers. CycleCourierservice is here for solving those types of problems. Provides all the documents, parcels, gifts, and online shopping delivery services in the Dhaka city area with very short time relatively low price with full of reliability. Probable demand estimation chart is for five financial year of CycleCourierservice. Y axis shows the delivering every parcel delivery in a year.
90000 80000 70000 60000 50000 40000 30000 20000 10000 0 year-1 year-2 year-3 year-4 year-5 financial institution Online b2c and c2c service assorted custommer
Figure: Probable Demand Estimation
Feasibility Study
Market Growth CycleCourierservice is target basically financial institutions and online shopping firms and other assorted business the market must grow in significantly. The market may grow 10% for financial institutions, 15% for online shopping and 6% for all other business. Since 2005 the courier service is increasing day by day.
Market growth
16 14 12 10 8 6 4 2 0 Financial institutions Online shopping Assorted customers
Figure: Market Growth
Market Need
CycleCourierservice is providing its customers with a fast, reliable document, gift, samples,
passports, and medicine etc. delivery service throughout the whole Dhaka city area. CycleCourierservice seeks to fulfill the following benefits that are important to satisfy customers: Professionalism: While the delivery service does not inherently represent the firm, the firm will not use a service that is not professional to avoid any type of "halo effect" where the actions of the delivery service are interpreted to be indicative of the firm itself. Expedited Service: Financial organizations conduct business within a set of closely monitored by corporate branch and Bangladesh Bank. The online business firms also delivery their product with in very short time for developing customer belief and satisfaction. The deliveries must always be made on time for both firms. This not a concern for CycleCourierservice because they utilize a redundant backup system, ensuring prompt delivery.
Feasibility Study
Service Business, Competitor Analysis There are approximately 20 different delivery services in the Dhaka city area, they provide courier or messenger services. They use cars as the means of transportation. In general, the bicycle messengers are less expensive because they have lower overhead. In the heart of Dhaka city, the bicycle messengers can be as fast as or faster than the car-based courier services because of all the automobile traffic. There are five different companies that target financial organizations and online shopping industries by catering to their special needs. All of these are car-based services. In according to other, all other courier service company there may face the problems of traffic jam, threat of political violence. For these reason there faces insecurity of delivering the important documents timely and delivering online shopping products within very short time. For that reason the organizational works may stop for a little time which directly affects the total economic development of a country. On the other hand CycleCourierservice low cost, convenience and reliable to all parties because it must registered under the post office (amendment) Act 2010.
Positioning/Competitive Advantage CycleCourierservice will position them as a professional, reliable delivering service for the Dhaka. Financial institutions and online shopping business require a delivery service as it is more efficient to have documents delivered to other branch or corporate office than for them to make the delivery themselves. This positioning will be achieved by leveraging CycleCourierservices competitive edges, reliability and industry insight:
Reliability is a characteristic that is very important to courier service. The target market requires reliable deliveries. The delivery of financial documents is critical. CycleCourierservice wills to achieve reliability through a redundant backup system that always provides an alternative method of delivery if the specific bicycle messenger encounters difficulty. By having a back-up system, CycleCourierservice ensures that even if the primary messenger fails, there is a backup ready to complete the delivery. The second competitive advantage is relevant and convenience. It is a true advantage for CycleCourierservice. The low price and delivering with very short time the necessary document, parcel, gift and online products delivery is another competitive advantage for CycleCourierservice.
Market Mix CycleCourierservice marketing mix is comprised of the following approaches to pricing, distribution, advertising and promotion, and customer service.
Feasibility Study
Pricing: The pricing model will be flexible; it can be either a par delivery charge or a monthly subscription based on the number of pickups during the time period. Distribution: CycleCourierservice will service the downtown Dhaka community. Advertising and Promotion: A multi-faceted campaign will be used to accomplish the stated marketing objectives. Customer Service: CycleCourierservice recognizes that superior customer service is a necessary characteristic in order to gain market penetration.
Sales Strategy CycleCourierservice recognizes that it is difficult to break into many financial and online shopping businesses and displace their current service provider and will offer a 20% discount for a months worth of services. While this is a bit of a hit in terms of profitability, it is only a short-term concern. The longterm gain is securing a repeat customer. In addition to this economic incentive, The CycleCourierservice will employ the marketing persons powers of persuasion when they are speaking with prospective clients and firms. Marketing force will directly target the company's reliability and fool-proof back-up systems.
SWOT Analysis
The following SWOT analysis captures the key strengths and weaknesses within CycleCourierservice and describes the opportunities and threats facing outside of CycleCourierservice. the the
Strengths Unmatched industry insight. Benchmarked training programs ensuring professionalism and efficiency. The use of fast, eco-friendly delivery vehicles (bicycles). Frequent move in any time, any reluctant condition of the country. Traffic jam no more hamper in any transferring important documents, gift, parcel, passport, medicine or online shopping delivery. There is no check point for bicycle rider. Weaknesses o The lack of brand image, a factor of being a start-up. o The struggle to convince financial institutions, online shopping and other assorted business to ditch their current service provider in favor of CycleCourierservice. o The ability to balance time devoted to operations versus business development.
Feasibility Study
Opportunities The continual need for document delivery by CycleCourierservice. The increasingly developed infrastructure for bicycles. Huge turnover may contribute to economical development of a country.
Threats o High turnover within the messenger industry. o Covering only the Dhaka city area. o Lack of trust an important factor of being a start-up. o Electronic filing. o Technology use.
Service Offering
CycleCourierservice will provide a bicycle messenger service that targets basically financial
institutions and online shopping business. The service can be used to serve by
CycleCourierservice.
For financial institutions to transport documents to a client or other branches of same institutions as well as to other financial organization.
In addition to responding to immediate calls for delivery, CycleCourierservice will set up a payment basis with financial organization for a regular pick up every day to deliver documents and parcels. Although CycleCourierservice will target to delivery financial and online shopping service. It will accept jobs from other companies, business organizations, professionals and individuals that require a messenger service in Dhaka city. These jobs will be accepted but not solicited. The messenger service offers delivery times ranging from one to three hours only. In addition to document delivery and shopping and sample item delivery, small packages can be delivered. It is rare that a financial institution is in need to deliver packages so this will generally apply to the ancillary business. The maximum dimensions for package delivery are 12x8x8.
Keys to Success

The keys to success are for CycleCourierservice: Reliability Convenience Custom service E-commerce Technology Effective customer relationship
Feasibility Study
Critical Issues
CycleCourierservice is still in the speculative stages as a start-up organization. The critical issues that it faces are: The need to take a conservative approach to expansion. Expansion must not occur for the sake of growth in itself, but should occur because the customers will be better served.
Feasibility Study
Technical Aspects
Feasibility Study
Technology
For CycleCourierservice, often some important technologies are available. We use technology for delivery purpose. 1. Messengers use Google map on their smartphones and find the destination. 2. Messengers can contact with destination point through their phone. 3. Customers can order through online via phone app or web browser. Or they can call our hot number. 4. We maintain a website and everything will be monitor by network manager. Customer can chat with network manager throw our chat box. 5. Customer can track their delivery through our website. Because messenger will monitor by network manager through GPS On their phone.
Technical Arrangement
Satisfactory arrangement must be made to obtain the technical know-how needed for the proposed service process. Our technical arrangement to serve the customer with more efficient and effective way, the following arrangement is ready to delight customer. Collaboration with network support provider to our website and cellular network with teletalk internet and cellular line. The period of collaboration agreement will be ten years. A server will be used to keep the information through online GPS Tracking device is to be used to monitor the delivery
Inputs and Utility

This project is totally service oriented. Here the main input is human labor. Human skills are needed to run this business. There will be two types of labor input messenger and executive level management skills input. Utilities are obvious factor of any organization. Power will be needed for office equipment, water is needed for refreshment. Here no fuel is required due to green business idea. So we are CO 2 free organization. There will be needed very little amount of power because its required for only office purpose not like the production unit. The availability of power is satisfactorily sufficient; we also ensure the power backup system through IPS and UPS.
Service Mix
Service & Delivery Zone Cycle courier collects & deliverers within a parameter of X kilometer. We will Take in any parcel of X kg & within ? X ? X ?cm boundary.
Feasibility Study
For regular collection on monthly basis, please contact our sales for option price & service option.
Zone A up to X km
1. Green Collection before x hour, delivery by the day ends x hr 2. Yellow Collection before x hour, delivery by the day ends x hr 3. Red Hot! Collection before x hour, delivery by the day ends x hr
Zone B up to K km
Zone C up to K km
Zone D up to K km
Premium RUSH X Zone
Location and Site

The choice of location and site follows an assessment of demand, size, and input requirements. Location of CycleCourierservice is in Dhaka metropolitan city and site would be four economically important zone of Dhaka i.e. Head office in Motijhil, branch office will be in Mirpur, Dhanmondi and Gulshan. These four Business hubs will be work for delivery the document, parcel or other delivery items. The sites are chosen for our potential market. We emphasize on Mottijhil commercial area. The branch will be interlinked with a server. The server Computer will be monitored by CEO.
Feasibility Study
Proximity to Employee and Market The service point or business hub will be proximate to the employee and messengers. Due to its business nature its totally market or customer oriented. The business will be in commercial and business oriented zone of Dhaka Metropolitan city.
Governmental Policies: Its a green business, so government encourages us to operate it without any regulations. The only courier service related regulations are implied.
Machines and Equipment

There will be following machine and equipment required for the business office branch. 1. Server for recording data and maintain the communication to the clients. 2. GPS Tracking device 3. Bicycle related equipment
Project Charts and Layout

Project charts and layout is very important issue to both service or product oriented business. The following project charts and layout is designed to delivery service.
Feasibility Study
Financial Aspects
Feasibility Study
Start-up Summary
CycleCourierservice will incur the following start-up costs:

Office furniture including: two desks, two chairs, and two file cabinets. Two computer systems including a printer, IPS & UPS for power cut, CD-RW, and a broadband Internet connection. Two phone lines. Fax machine and copier. Development of a website that allows delivery orders to be placed online and received every five minutes. Legal fees for the incorporation of the firm. Symphony W30 smartphone with teletalk 3G. Ten handsets will be needed initially. Messenger bags with firm logo.
START UP
4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 Expense
Figure: Start-Up of the Firm
Assets
Investment
Loan
Feasibility Study
Start-up
Requirements Start-up Expenses Legal Stationery etc. Brochures Consultants Insurance Rent Research and development Expensed equipment Other Total Start-up Expenses Start-up Assets Cash Required Other Current Assets Long-term Assets Total Assets Total Requirements Amount 550,000.00 10,000.00 2,000.00 20,000.00 0.00 0.00 0.00 0.00 18,000.00 600,000.00 600,000.00 0.00 3,400,000.00 4,000,000.00 4,600,000.00
Start-up Funding
Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets Liabilities and Capital Liabilities: Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) 0.00 2,100,000.00 0.00 0.00 3,400,000.00 600,000.00 0.00 600,000.00 4,000,000.00 600,000.00 4,000,000.00 4,600,000.00
Feasibility Study
Total Liabilities Capital: Planned Investment Md. Ariful Haque Shayla Sultana Shams Zerin Wahid Hossain Tahmina Akter Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital Total Capital and Liabilities
2,100,000.00
500,000.00 500,000.00 500,000.00 500,000.00 500,000.00 0.00 2,500,000.00 600,000.00 1,900,000.00 4,000,000.00
Total Funding
4,600,000.00
Break-even Analysis
The Break-even Analysis indicates what The CycleCourierservice will need to achieve in monthly revenue to reach their break-even point.
Break-even Analysis
Monthly Revenue Break-even Assumptions: Contribution Margin Ratio Estimated Monthly Fixed Cost 95%
482,105
458,000
Feasibility Study Sales
Total Revenue
Breakeven point
Total Cost
458,000
Fixed Cost
20000
Unit
Figure: Break-even Analysis
Net Profit Monthly
Net Profit Monthly

300,000 200,000 100,000 0 - 100,000 - 200,000 - 300,000 - 400,000
Figure: Monthly Net Profit
Net Profit
Feasibility Study
Payback Period (Discounted) Calculation of Discounted Payback Period

Year Cash Flow 0 1 2 3 4 - 4,000,000.00 303,666.00 477,794.00 1,373,352.00 3,364,191.00 Present Value @10% - 4,000,000.00 276,060.00 394,871.07 1,031,819.68 2,297,787.72
Cumulative Net Cash Flow after Discounting
- 4,000,000.00 - 3,723,940.00 - 3,329,068.93 - 2,297,249.24 538.48
Discounted Payback Period = A + B/C Where, A = Last period with a negative discounted cumulative cash flow; B = Absolute value of discounted cumulative cash flow at the end of the period A; C = Discounted cash flow during the period after A.
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Accounting Rate of Return (ARR) Calculation of Accounting Rate of Return

Average/Annual Cash Inflow Annual Depriciation Average Accounting Income Initial Investment Accounting Rate of Return 1,379,750.75 300,000.00 1,079,750.75 4,000,000.00

ARR = 27%
Feasibility Study
Projected Profit and Loss

Pro Forma Profit and Loss
Year 1 Sales Direct Cost of Sales Other Total Cost of Sales Gross Margin Gross Margin % Expenses Payroll Sales and Marketing and Other Expenses Depreciation Cellular service Utilities Insurance Rent Wage of Part time Messenger Total Operating Expenses Profit Before Interest and Taxes Interest Expense Taxes Incurred Net Profit Net Profit/Sales 3,360,000 600,000 300,000 36,000 180,000 60,000 960,000 96,000 5,592,000 -580,928 252,000 0 -883,328 -16.75% 3,360,000 600,000 300,000 37,800 190,800 72,000 979,200 360,000 5,899,800 614,594 226,800 0 387,794 5.66% 3,360,000 900,000 300,000 43,200 194,400 78,000 1,028,160 1,080,000 6,983,760 1,484,952 201,600 0 1,283,352 14.40% 3,360,000 990,000 300,000 43,200 198,288 101,400 1,130,976 1,188,000 7,311,864 2,850,591 176,400 0 2,674,191 25.00% 5,274,813 263,741 0 263,741 5,011,072 95% Year 2 6,857,257 342,863 0 342,863 6,514,394 95% Year 3 8,914,434 445,722 0 445,722 8,468,712 95% Year4 10,697,321 534,866 0 534,866 10,162,455 95%
Proft and Loss

3000000 2500000 2000000 1500000 1000000 500000 0 -500000 -1000000 -1500000
Figure: Projected Profit and Loss
Proft and Loss
Year 1
Year 2
Year
Year 4
Feasibility Study
Pro Forma Cash Flow

Year 1 Cash Received Cash from Operations Cash Sales Cash from Receivables Subtotal Cash from Operations Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance 0 0 0 210,000 0 0 0 5,417,741 - 303,666 296,334 0 0 0 210,000 0 0 0 6,379,463 477,794 1,077,794 0 0 0 210,000 0 0 0 7,541,082 1,373,352 1,973,352 0 0 0 210,000 0 0 0 7,933,130 2,764,191 3,364,191 263,741 4,944,000 5,207,741 342,863 5,826,600 6,169,463 445,722 6,885,360 7,331,082 534,866 7,188,264 7,723,130 0 0 0 0 0 0 0 5,114,075 Year 1 0 0 0 0 0 0 0 6,857,257 Year 2 0 0 0 0 0 0 0 8,914,434 Year 3 0 0 0 0 0 0 0 10,697,321 Year4 4,219,850 894,225 5,114,075 5,485,806 1,371,451 6,857,257 6,240,104 2,674,330 8,914,434 8,557,857 2,139,464 10,697,321 Year 2 Year 3 Year4
Feasibility Study
Pro Forma Balance Sheet

Year 1 Assets Current Assets Cash Accounts Receivable Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Accumulation Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth 844,554 0 416,560 1,261,114 1,890,000 3,151,114 2,500,000 0 -883,328 1,616,672 4,767,786 767,786 1,377,072 0 607,258 1,984,330 1,680,000 3,664,330 2,500,000 0 387,794 2,887,794 6,552,124 2,552,124 1,437,653 0 0 1,437,653 1,470,000 2,907,653 2,500,000 0 1,283,352 3,783,352 6,691,005 2,691,005 1,504,000 0 0 1,504,000 1,260,000 2,764,000 2,500,000 0 2,674,191 5,174,191 7,938,191 3,938,191 3,400,000 300,000 3,100,000 4,767,786 Year 1 3,100,000 300,000 2,800,000 6,552,124 Year 2 2,800,000 300,000 2,500,000 6,691,005 Year 3 2,500,000 300,000 2,200,000 7,938,191 Year4 296,334 1,371,451 0 1,667,786 1,077,794 2,674,330 0 3,752,124 1,973,352 2,139,464 78,189 4,191,005 3,364,191 2,265,040 108,960 5,738,191 Year 2 Year 3 Year4
Feasibility Study
Monthly Cash Flow

BDT 1,200,000 BDT 1,000,000 BDT 800,000 BDT 600,000 BDT 400,000 BDT 200,000 BDT 0 BDT 200,000 BDT 400,000 Net Cash Flow
Figure 1: Monthly Cash Flow
Month Month Month Month Month Month Month Month Month Month Month Month 1 2 3 4 5 6 7 8 9 10 11 12
Cash Balance
Feasibility Study
Economical and Ecological Aspects
Feasibility Study
Economic Analysis
As a green business CycleCourierservice is a social revolutionary idea. Bangladesh is well resource of human. So labor intensive industry will shine here for its cheap labor. The CycleCourierservice is totally labor intensive service firm. It takes part in highly social benefit. It creates employment opportunity for the society. The following economic benefits are brought by CycleCourierservice. The CycleCourierservice impacts on distribution of income in the society It impacts on the level of savings and investment in the society It contributes in self-sufficiency, employment and social order.
Ecological Analysis
In recent years, environmental concerns have assumed a great deal of significance and rightly so. The CycleCourierservice is fully eco-friendly business idea, so it is pollution free and need not concerned with environmental damage. The following aspects are advantage for CycleCourierservice There is no environmental damage is concerned with it So there is no need for taking any restoration measure
Appendix
Sales Forecast
Month 1 Sales Financial Institution Online B2C and C2C shop Industries 55,620 45,201 30,210 60,050 48,000 42,000 72,150 52,520 51,200 86,500 56,500 54,040 102,540 64,500 61,070 124,500 82,500 76,090 156,030 102,530 94,250 174,580 124,060 105,640 110,500 514,780 203,045 150,210 131,020 135,600 619,875 221,350 172,640 143,025 156,580 693,595 230,120 185,042 152,010 190,450 757,622 236,250 186,940 165,040 215,460 803,690 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Professional and Household Total Sales
25,010 156,041
36,000 186,050
44,300 220,170
48,600 245,640
56,400 284,510
70,540 353,630
86,400 439,210
Direct Cost of Sales Financial Institution Online b2c and c2c shop Industries Professional and Household Subtotal Direct Cost of Sales
Month 1 2,781 2,260 1,511 1,251 7,802
Month 2 3,003 2,400 2,100 1,800 9,303
Month 3 3,608 2,626 2,560 2,215 11,009
Month 4 4,325 2,825 2,702 2,430 12,282
Month 5 5,127 3,225 3,054 2,820 14,226
Month 6 6,225 4,125 3,805 3,527 17,682
Month 7 7,802 5,127 4,713 4,320 21,961
Month 8 8,729 6,203 5,282 5,525 25,739
Month 9 10,152 7,511 6,551 6,780 30,994
Month 10 11,068 8,632 7,151 7,829 34,680
Month 11 11,506 9,252 7,601 9,523 37,881
Month 12 11,813 9,347 8,252 10,773 40,185
Feasibility Study
Personnel Plan
Month 1 Network Executive Marketing Executive Messenger Total People Network Executive Marketing Executive Messenger No. of Personnel 4 4 10 80,000 80,000 120,000 80,000 80,000 120,000 80,000 80,000 120,000 80,000 80,000 120,000 80,000 80,000 120,000 80,000 80,000 120,000 80,000 80,000 120,000 80,000 80,000 120,000 80,000 80,000 120,000 80,000 80,000 120,000 80,000 80,000 120,000 80,000 80,000 120,000 20,000 20,000 12,000 Month 2 20,000 20,000 12,000 Month 3 20,000 20,000 12,000 Month 4 20,000 20,000 12,000 Month 5 20,000 20,000 12,000 Month 6 20,000 20,000 12,000 Month 7 20,000 20,000 12,000 Month 8 20,000 20,000 12,000 Month 9 20,000 20,000 12,000 Month 10 20,000 20,000 12,000 Month 11 20,000 20,000 12,000 Month 12 20,000 20,000 12,000
Total Payroll
280,000
280,000
280,000
280,000
280,000
280,000
280,000
280,000
280,000
280,000
280,000
280,000
Pro Forma Profit and Loss

Month 1 Sales Direct Cost of Sales Other Total Cost of Sales Gross Margin 156,041 7,802 0 7,802 148,239 Month 2 186,050 9,303 0 9,303 176,748 Month 3 220,170 11,009 0 11,009 209,162 Month 4 245,640 12,282 0 12,282 233,358 Month 5 284,510 14,226 0 14,226 270,285 Month 6 353,630 17,682 0 17,682 335,949 Month 7 439,210 21,961 0 21,961 417,250 Month 8 514,780 25,739 0 25,739 489,041 Month 9 619,875 30,994 0 30,994 588,881 Month 10 693,595 34,680 0 34,680 658,915 Month 11 757,622 37,881 0 37,881 719,741 Month 12 803,690 40,185 0 40,185 763,506
Feasibility Study
Gross Margin % Expenses Payroll
95.00%
95.00%
95.00%
95.00%
95.00% 280,000
95.00% 280,000
95.00% 280,000
95.00% 280,000
95.00% 280,000
95.00% 280,000
95.00% 280,000
95.00% 280,000
280,000
280,000
280,000
280,000
Sales and Marketing and Other Expenses Depreciation Cellular service Utilities Insurance Rent
50,000 25,000 3,000 15,000 5,000 80,000
50,000 25,000 3,000 15,000 5,000 80,000
50,000 25,000 3,000 15,000 5,000 80,000
50,000 25,000 3,000 15,000 5,000 80,000
50,000 25,000 3,000 15,000 5,000 80,000
50,000 25,000 3,000 15,000 5,000 80,000
50,000 25,000 3,000 15,000 5,000 80,000
50,000 25,000 3,000 15,000 5,000 80,000
50,000 25,000 3,000 15,000 5,000 80,000
50,000 25,000 3,000 15,000 5,000 80,000
50,000 25,000 3,000 15,000 5,000 80,000
50,000 25,000 3,000 15,000 5,000 80,000
Wage of Part time Messanger Total Operating Expenses Profit Before Interest and Taxes Interest Expense Taxes Incurred Net Profit Net Profit/Sales
8,000
8,000
16,000
16,000
24,000
24,000
458,000
458,000
458,000
458,000
458,000
458,000
466,000
466,000
474,000
474,000
482,000
482,000
309,761 25,200 0 334,961 -214.66%
281,253 25,200 0 306,453 -164.72%
248,839 25,200 0 274,039 -124.47%
224,642 25,200 0 249,842 -101.71%
187,716 25,200 0 212,916 -74.84%
122,052 25,200 0 147,252 -41.64%
48,751 25,200 0 -73,951 -16.84%
23,041 25,200 0 -2,159 -0.42%
114,881 25,200 0 89,681 14.47%
184,915 25,200 0 159,715 23.03%
237,741 25,200 0 212,541 28.05%
281,506 25,200 0 256,306 31.89%
Feasibility Study
Pro Forma Cash Flow

Month 1 Cash Received Cash from Operations Cash Sales Cash from Receivables Subtotal Cash from Operations Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interestfree) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments
7,802 433,000 9,303 433,000 11,009 433,000 12,282 433,000 14,226 433,000 17,682 433,000 21,961 433,000 25,739 433,000 30,994 433,000 34,680 433,000 37,881 433,000 40,185 433,000 124,833 0 124,833 148,840 31,208 180,048 176,136 37,210 213,346 196,512 44,034 240,546 227,608 49,128 276,736 282,904 56,902 339,806 351,368 70,726 422,094 411,824 87,842 499,666 495,900 102,956 598,856 554,876 123,975 678,851 606,098 138,719 744,817 642,952 151,524 794,476
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
0.00%
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0 0 0 0 124,833 Month 1
0 0 0 0 0 180,048 Month 2
0 0 0 0 0 213,346 Month 3
0 0 0 0 0 240,546 Month 4
0 0 0 0 0 276,736 Month 5
0 0 0 0 0 339,806 Month 6
0 0 0 0 0 422,094 Month 7
0 0 0 0 0 499,666 Month 8
0 0 0 0 0 598,856 Month 9
0 0 0 0 0 678,851 Month 10
0 0 0 0 0 744,817 Month 11
0 0 0 0 0 794,476 Month 12
Feasibility Study
Subtotal Spent on Operations Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Longterm Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance
440,802
442,303
444,009
445,282
447,226
450,682
454,961
458,739
463,994
467,680
470,881
473,185
210,000 0 0 0 440,802 315,969 284,031 0 0 0 442,303 262,254 337,746 0 0 0 444,009 230,663 369,338 0 0 0 445,282 204,736 395,264 0 0 0 447,226 170,490 429,511 0 0 0 450,682 110,876 489,125 0 0 0 454,961 -32,867 567,134 0 0 0 458,739 40,927 640,927 0 0 0 463,994 134,862 734,862 0 45,000 0 512,680 166,171 766,171 0 0 0 470,881 273,936 873,936 0 0 0 683,185 111,292 711,292

Project Feasibility Study On Cycle Courier Service

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CycleCourierservice 1

Project Feasibility Study on CycleCourierservice

Date of Submission: May 13, 2013

Prepared by: Pathshala

Md. Ariful Haque On behalf of Group Pathshala.

Prepared by: Pathshala

Prepared by: Pathshala

Prepared by: Pathshala

Prepared by: Pathshala

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Objective of the Report

Prepared by: Pathshala

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Managing Director & CEO

Order receiver (Page Admin)

In management structure, the partners are participating without remuneration.

Prepared by: Pathshala

240,000 240,000 144,000

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Market and Demand Analysis

Prepared by: Pathshala

Market analysis (pie)

Financial institutions 28%

online b2c and c2c 33%

Financial institutions Online shopping Assorted customers Total

21000 24750 21750 75000

23100 28463 23055 74618

25410 32732 24438 82580

27951 37642 25904 91497

30746 43288 27458 101492

Prepared by: Pathshala

Demand Linear (Demand)

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Figure: Probable Demand Estimation

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Figure: Market Growth

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Inputs and Utility

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Premium RUSH X Zone

Location and Site

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Machines and Equipment

Project Charts and Layout

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Figure: Break-even Analysis

Net Profit Monthly

Net Profit Monthly

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