Financial Plan

We expect to raise $100,000 as its own capital, and to borrow $100,000 guaranteed by the
parent company as a 10-year loan. This provides the bulk of the current financing required.
Then we start our garments.
Break-even Analysis
Our Break-even Analysis is based on the average of the first-year figures for total sales by
salaries, bonuses costs, and all other operating expenses. These are presented as per-unit
revenue, per-unit cost, and fixed costs. These conservative assumptions make for a more
accurate estimate of real risk. Such analysis shows that we will break-even by the third
year of operations.


Profit and Loss Statement
Year 1 Year 2 Year 3
Sales $1,106,240 $2,300,980 $4,417,881
Direct Cost of Sales $0 $0 $0
Other $0 $0 $0
Total Cost of Sales $0 $0 $0
-80000
-60000
-40000
-20000
0
20000
40000
60000
80000
100000
120000
1 2 3 4 5 6 7 8 9 10 11
Break-even Analysis
year
Profit($)
Gross Margin $1,106,240 $2,300,980 $4,417,881
Gross Margin % 100.00% 100.00% 100.00%
Expenses
Payroll $600,000 $660,000 $726,000
Sales and Marketing and Other Expenses $216,600 $227,430 $238,802
Depreciation $6,000 $6,300 $6,615
Utilities $1,200 $1,266 $1,336
Payroll Taxes $90,000 $99,000 $108,900
Other $0 $0 $0
Total Operating Expenses $913,800 $993,996 $1,081,652
Profit Before Interest and Taxes $192,440 $1,306,984 $3,336,229
EBITDA $198,440 $1,313,284 $3,342,844
Interest Expense $8,050 $6,065 $5,356
Taxes Incurred $45,725 $325,230 $846,597
Net Profit $138,666 $975,689 $2,484,276
Net Profit/Sales 12.53% 42.40% 56.23%






Funding operations:
It will be joint venture of US and Bangladesh where US used to work as a principal shareholder
of the company and profit share will be as per as the partnership agreement .Start up costs
account for a total value of BDT 16000000($2000000). We expect to raise BDT
8000000($100,000) as its own capital, and to borrow BDT8000000 ($100,000) guaranteed
by the parent company as a 10-year loan. These values show that we can move in one plot of
land and prepare it for the purpose of production and other marketing and selling costs. As the
lending interest in USA(3.04%) is much less than Bangladesh(12.3%). We will borrow money
from the USA market and then invest it here.





Forecasting for the future
We will set some objective. Our target is to fulfill those objectives. Our first objective is to
gain the market average. Initially we follow those garments that are in market leader
position. After a certain period when we will be well known for our surroundings, then we
will apply our system. After five years we want to see ourselves in a market leader position.
After that, if the condition is in our favor then we will try to acquire other garments. There
are some other objectives.
Small Factory Setup: We will set up some small garment factory with your own
tailoring or manufacturing experience. We have to hire few tailors. Make garments and sale
finished garments to retailers or whole sellers in your city. We may select products such as
school uniforms, ladies Kurtis, Salwar-kamiz, mens shirt or make ladies blouses.

Subcontracting Business: We will set up small factory and do sub-contracting
work (job-work) for export houses and domestic brands. In buying seasons export houses
book orders in excess quantity than their own production capacity. To complete those
orders on time they look for sub-contractors or job-workers. In this business, we dont
need to handle buyers, dont need to purchase materials. We have to just collect cuttings
from exporters and stitch garments.

Garment Wholesale Business: We can start a garment wholesale business in your
spare time. Source garments from manufacturing hubs and distribute those garments to
shops in smaller cities. As we purchase goods in bulk quantity and from manufacturing
hubs, you will have good margin in this business.

Clothing Store: We can open a garment retail shop or outlet in your small town or
City, in Street corner or inside a mall in metros.

Export Surplus Garments Store: Export quality garments with average prices are
on demand now-a-days. In metros everyone wants to look trendy and wear branded
clothes, but they dont want to spend much money in Brands retail shops. So they look for
export surplus garments. So, opening an outlet for export rejected and surplus garments is
a good and profitable business idea.

Printing and Embroidery Unit: Printing and embroidery are value added
processes in garment manufacturing. In this fashion age, to make product trendy, designer
always adds some colors and patches on their designs. Hence, excluding some basic
product all export orders include printing process or embroidery work or both. To set up
Print and Embroidery business factories needs to invest on machines, so small
manufacturer dont have in-house printing and embroidery machines. Thus, it can be one
good business opportunity in these value added processes.


Garment buying agency: If we are working as a merchandiser in an export house
or buying a house for a few years. We may have developed a good relationship with our
buyers. We have a good opportunity to contact with buyers, take orders and get
manufactured garments from a factory. You can even set up product development and
sampling room to attract more buyer and display wide range of products. We will be
needing a small team to start garment buying house initially.