Bangabandhu Sheikh Mujibur Rahman Science and Technology

University Gopalganj-8100
Executive Summary
 Chapter 01

Business Overview
 Business Overview
Here is a presentation speech on mission and vision statement, company description, legal
structure and ownership and key personnel of recondition and reselling business.

Mission Statement: Our mission is to provide high-quality reconditioned products to our

customers at an affordable price. We aim to be the leading provider of reconditioned products
in the market.

Vision Statement: Our vision is to become the most trusted and reliable provider of
reconditioned products in the market. We strive to achieve this by providing high-quality
products at an affordable price.

Company Description: Our company specializes in reconditioning and reselling products. We

have a team of experts who are dedicated to providing high-quality products to our customers.
Our products are thoroughly tested and inspected before they are sold to ensure that they meet
our high standards.

Legal Structure and Ownership: Our company is registered as a Limited Liability Company
(LLC). The company is owned by John Doe and Jane Doe.

Key Personnel: Our team consists of highly skilled professionals who are dedicated to
providing the best possible service to our customers. John Doe is the CEO of the company and
has over 20 years of experience in the industry. Jane Doe is the COO of the company and has
over 15 years of experience in the industry.
 Chapter 02

Competitive Market Analysis

 Competitive Market Analysis
Overview of the Re-commerce Industry in Bangladesh

The re-commerce industry in Bangladesh has been experiencing steady growth in recent years.
Re-commerce, also known as the resale or second-hand market, involves the buying and selling
of pre-owned products. Here's an overview of the re-commerce industry from the perspective
of Bangladesh:

1. Market Potential:

Rising consumer awareness: Bangladeshis are becoming increasingly aware of the

environmental and economic benefits of buying and selling pre-owned products. This growing
awareness is driving the demand for re-commerce platforms and creating a thriving market.

Cost-conscious market: Bangladesh has a significant population segment with limited

disposable income. Re-commerce platforms offer an attractive alternative for cost-conscious
consumers seeking affordable products.

2. Current Landscape:

Online re-commerce platforms: Several online platforms have emerged in Bangladesh that
facilitate the buying and selling of pre-owned goods. These platforms provide a convenient
way for individuals to sell their used items and for buyers to find quality products at lower
prices.

Offline re-commerce stores: Alongside online platforms, there are also physical stores and
markets dedicated to re-commerce. These stores offer a brick-and-mortar experience for
customers to browse and purchase pre-owned items.

3.Popular Product Categories:

Fashion and apparel: Clothing, shoes, and accessories are popular categories in the re-
commerce market in Bangladesh. Customers can find a wide range of branded and non-branded
fashion items at affordable prices.
Electronics and gadgets: The demand for pre-owned electronics and gadgets is also significant
in Bangladesh. This includes smartphones, laptops, gaming consoles, and other electronic
devices.

Home appliances and furniture: Re-commerce platforms and stores offer a variety of pre-
owned home appliances and furniture, including refrigerators, washing machines, sofas, and
beds.

4. Opportunities:

E-commerce growth: Bangladesh has experienced a rapid growth of e-commerce, creating

opportunities for re-commerce businesses to leverage online platforms and reach a wider
customer base.

Sustainability focus: Re-commerce aligns with the growing sustainability movement in

Bangladesh. Businesses that emphasize the environmental benefits of reusing products can
attract environmentally conscious consumers.

Partnership with fashion brands: Collaborating with local fashion brands can help re-
commerce businesses gain credibility and access to exclusive inventory, attracting fashion
enthusiasts looking for unique and affordable options.

5. Challenges:

Quality control: Ensuring the quality of pre-owned products can be a challenge in the re-
commerce industry. Businesses need to establish robust quality control measures and build trust
with customers through accurate product descriptions and images.

Logistics and delivery: Efficient logistics and delivery networks are crucial for the success of
re-commerce businesses, especially for online platforms. Timely and reliable delivery services
are essential to meet customer expectations.

The re-commerce industry in Bangladesh has significant growth potential, driven by consumer
awareness, affordability concerns, and a focus on sustainability. By addressing quality control,
investing in e-commerce capabilities, and establishing partnerships, re-commerce businesses
can capitalize on the market opportunities and contribute to the circular economy in
Bangladesh.

Target Market Analysis

1. Demographics:

• Age: Our target market comprises individuals of all age groups, including young adults,
working professionals, and older individuals. By understanding the specific needs,
preferences, and shopping behaviours of each age segment, we can customize our
product offerings and marketing messages to effectively engage and attract customers
across different life stages.
• Gender: We cater to customers of all genders, ensuring that our product range appeals
to both men and women. By offering a diverse selection of gender-neutral and gender-
specific items, we create an inclusive shopping experience that meets the varied tastes
and preferences of our target market.

2. Income and Lifestyle:

• Income: Our primary focus is on individuals with low to middle income. We recognize
that affordability is a key consideration for this segment of customers. Our pricing
strategy is designed to provide cost-effective options that fit within their budget
constraints. We offer competitive prices, discounts, and promotional offers to ensure
that our products or services are accessible to a wide range of customers.
• Lifestyle: Our target market consists of individuals with a middle-class lifestyle. They
value practicality, quality, and affordability in their purchasing decisions. By aligning
our product range and marketing efforts with these lifestyle preferences, we can provide
solutions that enhance their daily lives without compromising their financial well-
being.

3. Geographical Location:

Our target market is not geographically restricted. We aim to reach customers in both urban
and rural areas, recognizing that individuals from diverse locations have different needs and
access to resources. Our distribution strategy includes a combination of online channels and
local partnerships to ensure widespread availability of our products or services.
4. Preferences:

• Value for Money: Our target market prioritizes value for money in their purchasing
decisions. We emphasize the affordability, quality, and benefits of our offerings to
showcase the value proposition. By highlighting cost savings, durability, and the long-
term benefits of our products or services, we position ourselves as a trusted choice for
customers seeking the best return on their investment.
• Product Range: We curate a wide variety of products or services that cater to the diverse
preferences of our target market. This includes a range of categories such as clothing,
electronics, home goods, and more. By offering a comprehensive selection, we provide
customers with ample choices to meet their specific needs and preferences.
• Convenience: We understand that convenience is important to our target market. Our
online platform provides an easy and seamless shopping experience, allowing
customers to browse, compare, and make purchases from the comfort of their homes.
We also offer flexible payment options and fast delivery to enhance customer
satisfaction and convenience.

By analyzing the demographics, income levels, lifestyles, and preferences of our target market,
we can fine-tune our marketing strategies, product offerings, pricing, and distribution channels
to effectively cater to their needs. This customer-centric approach ensures that we remain
relevant and appealing to our target market, fostering long-term customer relationships and
driving business growth.

Competitor Analysis

Products or Services

Our Company (Cycleswap): A treasure trove of affordable, sustainable, and diverse pre-owned
and new items, offering everything from trendy clothing to cutting-edge electronics and stylish
home goods.

Competitor 1 (swap.com.bd): Unleashing a curated collection of high-quality pre-owned gems,

encompassing fashion, electronics, and more, where quality meets affordability.
Competitor 2 (Others): Curating a captivating assortment of unique and rare finds, specializing
in vintage clothing and coveted designer handbags that tell stories of timeless style.

Pricing

Our Company (Cycleswap): Unbeatable prices without compromising on quality, ensuring

budget-conscious shoppers can indulge in well-priced treasures.

Competitor 1 (swap.com.bd): Elevating the re-commerce market with premium offerings at

slightly higher price points, catering to discerning customers seeking top-notch quality.

Competitor 2 (Others): Offering competitively priced products that are difficult to find
elsewhere, providing a touch of exclusivity to price-conscious shoppers.

Target Market

Our Company (Cycleswap): Empowering savvy shoppers from all walks of life, making
sustainable fashion and affordable luxury accessible to eco-conscious individuals seeking
quality pre-owned and new items.

Competitor 1 (swap.com.bd): Catering to fashion-forward individuals who appreciate the value

and charm of pre-owned items, creating a community of style-conscious shoppers.

Competitor 2 (Others): Delighting discerning shoppers who have an eye for uniqueness,
offering rare and distinctive products that cater to a niche market of trendsetters.

Marketing

Our Company (Cycleswap): Crafting an immersive digital experience that showcases the thrill
of re-commerce, combining captivating social media campaigns, SEO wizardry, and eye-
catching print ads that ignite curiosity and inspire sustainable shopping.

Competitor 1 (swap.com.bd): Captivating online audiences through strategic social media

campaigns and targeted paid advertisements, creating a buzz among fashion enthusiasts and
eco-conscious shoppers.

Competitor 2 (Others): Letting the products speak for themselves, relying on the enchantment
of word-of-mouth buzz and glowing customer reviews to captivate shoppers and create a loyal
following.

Customer Service
Our Company (Cycleswap): Exceeding expectations with a top-notch customer service team
that delivers lightning-fast responses, personalized assistance, and a genuine commitment to
ensuring customer satisfaction.

Competitor 1 (swap.com.bd): Offering attentive customer service with a focus on resolving

queries and concerns, aiming to provide a satisfactory shopping experience.

Competitor 2 (Others): Striving to improve customer service by reducing response times and
enhancing support channels to meet the evolving needs of shoppers.

Distribution

Our Company (Cycleswap): Embracing a multi-channel approach, enabling customers to

explore and transact conveniently through our well-designed website and physical shop,
merging the online and offline worlds seamlessly.

Competitor 1 (swap.com.bd): Providing a seamless online shopping experience through their

user-friendly website, ensuring customers can easily buy and sell with confidence.

Competitor 2 (Others): Focusing on a robust online presence, leveraging a user-friendly

website as the primary platform for customers to discover and engage with their unique
offerings.

Factor Our Company Competitor 1 Competitor 2

(Cycleswap) (swap.com.bd) (Others)

Prod- Offers a wide variety of Offers a more limited selec- Offers a niche selection of
ucts or products, including cloth- tion of products but focuses products, such as vintage
services ing, electronics, and home on high-quality items. clothing or designer hand-
goods. bags.

Pricing Prices are lower than those Prices are higher than those Prices are like those of
of competitors with well of competitors, but the prod- competitors, but the prod-
quality products. ucts are also of higher qual- ucts are unique and hard to
ity. find elsewhere.
Target Low-income people who People who are looking for High-income consumers
market are looking for affordable, high-quality, pre-owned who are looking for
sustainable high-quality, items. unique, hard-to-find
pre-owned items and new items.
items.

Market- Uses a combination of Focuses on online market- Does not use any tradi-
ing online and offline market- ing, using social media and tional marketing methods,
ing, including social me- paid advertising to reach a instead relying on word-
dia, search engine optimi- wider audience. of-mouth and customer re-
zation, and print advertis- views to drive traffic.
ing.

Cus- Offers excellent customer Customer service is average, Customer service is poor,
tomer service, with quick re- with response times that are with long response times
service sponse times and a willing- sometimes slow. and a lack of willingness
ness to go the extra mile to to help customers.
resolve customer issues.

Distri- Customers can buy and sell Only Buy and sell through its Only Buy and sell through
bution directly through visiting own website. its own website.
our shop and its own web-
site.

Table - Competitor Analysis

SWOT Analysis

Strengths:
1. Affordable and accessible: Our re-commerce business model allows us to offer pre-owned
and refurbished products at significantly lower prices than new items, making them affordable
and accessible to a wide range of customers.

2. Sustainable and environmentally friendly: By promoting the reuse and recycling of products,
we contribute to reducing waste and supporting environmental sustainability, which aligns with
the growing concern for eco-friendly practices among consumers.

3. Diverse product selection: We pride ourselves on offering a wide variety of pre-owned items
across different categories, providing customers with an extensive selection to choose from.
This diversity enhances the appeal of our business and caters to the unique preferences and
needs of our customer base.

4. Excellent customer service: We prioritize delivering exceptional customer service, including

prompt responses, hassle-free returns, and personalized assistance. This commitment to cus-
tomer satisfaction helps build trust, loyalty, and positive word-of-mouth recommendations.

Weaknesses:
1. Quality control challenges: As a re-commerce business, ensuring consistent product quality
and condition can be a challenge since we rely on the products being sold by individuals. We
need to implement robust quality control measures to address any potential issues and maintain
customer satisfaction.

2. Limited control over inventory: The availability of pre-owned items is dependent on cus-
tomer selling behaviour and market supply. This may result in occasional shortages or limited
choices for customers, requiring us to actively manage our inventory to ensure a diverse and
desirable selection.

3. Addressing market perception: Overcoming the stigma associated with purchasing pre-
owned items is a challenge we face. We need to educate consumers about the benefits of re-
commerce, such as cost savings and environmental impact, and address concerns regarding
product quality, hygiene, and warranties.

Opportunities:
1. Growing market demand: The increasing consumer interest in sustainable and cost-effective
shopping options presents a significant growth opportunity for our re-commerce business. By
leveraging this trend, we can attract a larger customer base and expand our market reach.

2. Online expansion: Investing in online platforms and e-commerce channels allows us to reach
customers beyond our physical location. Establishing a strong online presence enables us to
tap into a wider market, increase brand visibility, and attract customers who prefer the conven-
ience of online shopping.

3. Collaborations and partnerships: Collaborating with like-minded brands, influencers, or re-

tailers can provide opportunities for co-marketing, access to exclusive inventory, and exposure
to new customer segments. These partnerships can enhance our brand reputation and broaden
our customer base.

Threats:
1. Intense competition: The re-commerce market is becoming increasingly competitive, with
new entrants and established players vying for market share. We need to continuously innovate,
differentiate ourselves, and provide exceptional value to stay ahead of the competition.

2. Counterfeit products: Ensuring the authenticity of pre-owned luxury or high-end items can
be a concern. We need to implement rigorous authentication processes and partner with trusted
authentication services to mitigate the risk of selling counterfeit goods.

3. Changing consumer preferences: Consumer preferences and behaviours are dynamic and
can evolve over time. It is crucial to stay attuned to market trends and adapt our business strat-
egies to meet evolving customer demands. We must be agile and responsive to changes in the
market to remain competitive.

By analyzing and addressing these internal strengths, weaknesses, and external opportunities
and threats, we can develop strategies that capitalize on our strengths, overcome weaknesses,
leverage opportunities, and mitigate potential threats. This will enable us to position ourselves
as a leading re-commerce business and sustain long-term success in the market.
 Chapter 03

Products and Offers

 Products and Offers

Re-commerce business product and service description

Re-commerce, also known as reverse commerce, is the buying and selling of pre-owned goods.
It involves a range of activities, including buyback or trade-in of products, repair or
refurbishment of used items, and resale through various channels. The re-commerce market
has grown significantly in recent years, driven by factors such as increasing consumer
awareness of sustainability, the desire for more affordable products, and the convenience of
online shopping.
Here's a breakdown of the key products and services offered in the re-commerce business:
Product Acquisition
Buyback or Trade-in Programs: Re-commerce companies often establish buyback or trade-in
programs to acquire pre-owned products from consumers. This can be done through online
platforms, physical stores, or partnerships with retailers.
Product Sourcing: Re-commerce businesses also source pre-owned goods from various
channels, such as auctions, liquidators, and bulk purchases from manufacturers.
Product Processing and Refurbishment
Inspection and Evaluation: Once acquired, pre-owned products undergo thorough inspection
and evaluation to assess their condition, functionality, and cosmetic appearance.
Data Erasure: For electronic devices, data erasure is crucial to protect the privacy of previous
owners.
Cleaning and Repair: Used products are cleaned to remove dirt, stains, or any damage. Repairs
are performed to restore functionality and ensure the product meets quality standards.
Refurbishment: Refurbishment involves a more comprehensive process of restoring the
product to like-new condition, including replacing worn-out components, upgrading software,
and enhancing the overall appearance.
Product Resale and Marketing
Online Marketplaces: Re-commerce companies often utilize online marketplaces like eBay,
Amazon, Daraz, Alibaba and their own e-commerce platforms to sell pre-owned products.
Retail Partnerships: Partnerships with retailers can expand the reach of re-commerce products,
allowing them to be sold in physical stores or through online retail channels.
Product Marketing: Effective marketing strategies are employed to attract potential buyers,
highlighting the benefits of purchasing pre-owned products, such as affordability,
sustainability, and extended warranty options.
Customer Support: Re-commerce businesses provide customer support to address inquiries,
resolve issues, and ensure a positive shopping experience for buyers of pre-owned products.
Re-commerce businesses play a vital role in extending the lifespan of products, contributing to
a more circular economy, and reducing environmental impact. By providing consumers with
affordable and sustainable alternatives to purchasing new products, re-commerce promotes
conscious consumption and encourages a shift towards a more responsible approach to product
ownership.

Categories or types of Items Offered for resale

Re-commerce organizations offer various categories or types of items for resale, encompassing
a wide range of products. Some common categories include:
Products:
Electronics: This includes smartphones, laptops, tablets, cameras, gaming consoles, and other
electronic devices. These products are inspected, repaired, and restored to a functional
condition before being resold.
Fashion and Apparel: Re-commerce businesses often deal with pre-owned clothing, shoes,
handbags, and accessories. They may curate and certify high-quality, gently used items.
Home Appliances and Furniture: Items like kitchen appliances, furniture pieces, home decor,
and other household goods are refurbished or repaired before resale.
Books and media: Used books, CDs, DVDs, and other media products are commonly part of
re-commerce businesses. They might also offer buy-back or exchange programs for these
items.
Sporting Goods and Equipment: Re-commerce platforms often include sports equipment such
as bicycles, golf clubs, fitness gear, and outdoor gear.
Toys and Games: Pre-owned toys, board games, puzzles, and collectibles are also part of the
inventory.
Services
Product Inspection and Certification: Thorough inspection and verification of the quality and
functionality of the items before they are listed for sale.
Refurbishment and Repair: Services to restore products to a working or like-new condition,
ensuring they meet quality standards.
Buy-Back Programs: Offering customers the option to sell their used items back to the re-
commerce business in exchange for credit or cash.
Online Platform: A user-friendly website or app where customers can browse, buy, and sell pre-
owned items. This platform often includes secure payment options and detailed product
descriptions.
Customer Support: Aiding with customers regarding product queries, returns, warranties, and
any other concerns they may have.
Sustainability Initiatives: Educating customers about the environmental impact of re-
commerce and promoting sustainable consumption practices.
Logistics and Shipping: Efficient handling, packaging, and delivery of products to customers
while minimizing the carbon footprint.

Quality Standards and Evaluation Criteria

Re-commerce organizations play a crucial role in promoting sustainable consumption by

extending the lifecycle of products. To ensure the quality and value of re-commerce products,
it is essential to establish robust quality standards and evaluation criteria. These standards
should encompass various aspects of the products, including:
Condition: The physical condition of the product is a primary factor in determining its value.
Re-commerce organizations should clearly define and grade product conditions, such as "like
new," "good condition," or "fair condition." This grading system should be consistent and
transparent, allowing customers to make informed purchasing decisions.
Functionality: The product's ability to perform its intended function is another critical aspect.
Re-commerce organizations should thoroughly test products to ensure they are fully functional.
This may involve checking for any defects, missing parts, or performance issues.
Completeness: Re-commerce products should include all essential accessories, components,
and documentation. Missing items can significantly reduce the product's value and usability.
Organizations should establish a comprehensive checklist to ensure all components are present
and accounted for.
Aesthetics: While functionality is paramount, aesthetics also plays a role in consumer
perception. Re-commerce organizations should carefully inspect products for any cosmetic
blemishes, scratches, or dents. These imperfections may affect the product's appeal and resale
value.
Authenticity: In the case of luxury goods or collectible items, authenticity is a crucial factor.
Re-commerce organizations should implement rigorous authentication processes to verify the
product's origin and ensure it is genuine. This may involve examining markings, packaging,
and documentation.
Cleanliness and Hygiene: Re-commerce products should be thoroughly cleaned and sanitized
to ensure they are hygienic and safe for use. This is particularly important for products that
come into direct contact with food or personal care items.
Packaging and Presentation: The presentation of a re-commerce product can significantly
impact its perceived value. Products should be packaged appropriately to protect them during
shipping and storage. Additionally, the packaging should be clean, attractive, and consistent
with the brand's image.
Documentation and Instructions: Re-commerce products should come with all necessary
documentation, manuals, and instructions. These materials provide valuable information about
the product's operation, care, and warranty.
Warranty and Return Policy: Re-commerce organizations should offer clear and transparent
warranty coverage for their products. This coverage should be commensurate with the product's
condition and value. Additionally, a fair return policy should be in place to address any
customer concerns.
Transparency and Communication: Re-commerce organizations should be transparent about
the condition and history of their products. This can be achieved through detailed product
descriptions, clear grading systems, and honest communication with customers.

Inventory sourcing strategy

Purchasing from liquidators: Liquidators
are businesses that purchase excess
inventory from other businesses. This can
be a great way to get high-quality products
at a fraction of the retail price. However, it
is important to note that liquidators often
sell products in bulk, so it may be difficult
to find exactly what you are looking for.

Purchasing from returns: Many retailers will sell

returned items at a discount. This can be a great way to
find gently used products that are still in good condition.
However, it is important to inspect returned items
carefully before purchasing them, as they may be
damaged or defective.
Purchasing from individuals: Individuals often sell their used items online or at consignment
shops. This can be a great way to find unique or vintage items. However, it is important to be
careful when purchasing from individuals, as you may not be able to return items if you are not
satisfied with them.
Partnering with manufacturers:
Some re-commerce businesses
partner with manufacturers to
purchase excess inventory or
returned items. This can be a great
way to get a steady supply of high-
quality products. However, it is
important to have a good
relationship with the manufacturer
in order to get the best prices and terms.
Donating: Some re-commerce businesses accept donations of used items. This can be a great
way to get inventory for free, but it can also be time-consuming to sort through and process
donations.
 Chapter 04

Marketing Plan and Operations

 Marketing Plan and Operations

Target Market Segmentation

Re-commerce which refers to the buying and selling of used or pre-owned products, target
market segmentation can also be based on demographics and psychographics. Here how we
can approach target market segmentation in re-commerce:

Demographics

Age: Different age groups may have varing preferences for different product. For example, we
focus on younger consumers. Most of the time they tend to buy fashionable item and electronic
devices. So, our products for them will be mobiles, laptops, headphones etc.

Gender: Men and women generally have different likes, dislikes, needs and thought process.
For example, Female customer tend to prefer washing machine, microwave oven, rice cooker.
We will ensure that we have a wide selection of these items available for them.

Income: We want to target different income segments to optimize our marketing efforts and
enhance customer satisfaction. We decide to segment our customer base into three income
groups: low-income, middle-income, and high-income.

1) Low-income segment: This group consists of customers with limited purchasing power.
We can offer affordable options, such as discounted items or budget-friendly fashion
collections. We might emphasize the value and cost savings of buying second-hand de-
signer goods and target this segment with cost-conscious messaging. Marketing cam-
paigns can focus on affordability, thriftiness, and the opportunity to own quality designer
items at a fraction of the original price.
2) Middle-income segment: Customers in this group have moderate purchasing power and
are willing to spend a bit more for quality products. We can showcase a wide range of
designer items at reasonable prices. We might emphasize the authenticity, durability, and
style of the products, positioning them as affordable luxury options. Marketing messages
can highlight the opportunity to own prestigious brands without breaking the bank.
3) High-income segment: This group comprises customers with higher disposable incomes
who are willing to invest in premium products. We can curate a selection of rare and
 exclusive designer items, including limited editions or vintage pieces. We might empha-
size the uniqueness, exclusivity, and rarity of these items, targeting this segment with a
luxury and aspirational narrative. Marketing campaigns can focus on the prestige, indi-
viduality, and timeless appeal of owning these high-end fashion pieces.

Education: Educational background can influence purchasing decisions and preferences. Pro-
fessionals with higher education might be more inclined to buy second-hand office equipment
or books.

2) Psychographic

Lifestyle: Segmenting based on lifestyle factors can help target individuals with specific inter-
est and values. For example, we may find a segment of customers who follow an active or
health-conscious lifestyle. We can promote the availability of pre-owned fitness equipment,
sports gear, activewear at affordable prices, that enabling customers to maintain an active life-
style.

Interest: Identify the hobbies and interests of our target market. This can include categories like
music, art, technology, or specific niches those areas. Cater to our preferences by offering rel-
evant re-commerce products. For example, Customers who have demonstrated an interest in
photography equipment and accessories. They may have purchase cameras, lenses, tripods, and
other photography related items. We can target this segment with deals a used DSLR Cameras,
lens bundles, camera bags etc.

Personality: Market analysts can conduct a personality segmentation based on people’s similar
behavioural, emotional, and cognitive traits to form groups of customers with matching per-
sonalities. By analyzing personality segmentation, we will be able to identify our main cus-
tomers personality groups, adopt our services of products accordingly and introduce new fea-
tures to attract them effectively.

Branding and positioning strategy

Branding Strategy:

1) Name and Logo: cycleswap chooses a catchy and memorable name that reflects its mis-
sion of promoting sustainability and comfort in the re-commerce fashion industry. The
 logo incorporates elements related to fashion and recycling to visually represent its core
values.
2) Mission and Vision: Cycleswap develops a clear mission and vision statement that em-
phasizes sustainability, affordability, and convenience. For example, the mission could
be "To revolutionize the way people buy and sell pre-owned products, making sustaina-
ble shopping accessible to all."
3) Brand Voice and Personality: Cycleswap establishes a friendly and approachable brand
voice, using inclusive language and relatable messaging. It positions itself as a trusted
partner in sustainable shopping, conveying a sense of reliability and transparency.
4) Visual Identity: The company creates a visually appealing website and marketing mate-
rials that convey its commitment to sustainability. It incorporates eco-friendly colours
like green or blue and utilizes imagery that showcases second-hand items in a stylish and
aspirational manner.

Positioning Strategy:

1) Target Market: Cycleswap identifies its target market as environmentally conscious con-
sumers who value affordability and unique finds. It may focus on younger demographics,
such as millennials and Gen Z, who are more open to sustainable shopping practices.
2) Unique Value Proposition: Cycleswap positions itself as a re-commerce platform that
offers a curated selection of high-quality pre-owned items at affordable prices. It empha-
sizes the convenience of buying second-hand items and the positive environmental im-
pact of reducing waste.
3) Differentiation: To stand out in the re-commerce industry, Cycleswap differentiates itself
by offering a seamless user experience with a user-friendly website and a mobile app. It
implements advanced search filters, personalized recommendations, and an easy-to-use
selling platform.
4) Sustainability Messaging: Cycleswap highlights its commitment to sustainability and en-
vironmental responsibility throughout its branding and marketing efforts. It educates
customers about the positive impact of re-commerce and promotes conscious consump-
tion as a lifestyle choice.
5) Partnerships and Community Building: Cycleswap collaborates with sustainable fashion
influencers, eco-conscious organizations, and local communities to build a network of
 like-minded individuals. It actively engages with its audience through social media, blog
content, and events, fostering a sense of community around sustainable shopping.

By implementing these branding and positioning strategies, cycleswap can effectively differ-
entiate itself in the re-commerce industry, attract its target market, and build a strong and sus-
tainable brand.

Marketing channel

Re-commerce refers to the process of buying and selling pre-owned products. When it comes
to online marketing channels for re-commerce, there are several effective options we can con-
sider. Here are some popular channels:

Content marketing: We can develop valuable and informative content related to re-commerce
and our products. We will create blog posts, articles, videos, or infographics that highlight the
benefits of buying used items, offer tips for choosing quality pre-owned products, or showcase
success stories of satisfied customers. We can share this content on our website, social media
platforms, and through email marketing to engage and educate our audience.

Social media marketing: We will utilize social media platforms to reach a wider audience. We
identify the platforms that are most relevant to our target market, such as Facebook, Instagram,
Twitter, or LinkedIn. We will create engaging and shareable content, including high-quality
images and videos of our re-commerce products. We can interact with our followers, respond
to comments, and consider running targeted advertising campaigns to reach specific user de-
mographics.

Influencer marketing: We can collaborate with influencers or bloggers who have a significant
following in our target market. We can seek out individuals who are passionate about sustain-
ability, recycling, or conscious consumerism. They can help promote our re-commerce prod-
ucts to their audience through sponsored content, product reviews, or giveaways.

Email marketing: We will create an email list of interested customers and regularly communi-
cate with them through newsletters or personalized emails. We will provide exclusive offers,
updates on new arrivals, and personalized recommendations based on their preferences. We
can segment our email list based on customer preferences or previous purchases to deliver
targeted content and increase engagement.
Guide to Customer Acquisition and Retention Strategy
Customers are the backbone of any business. Unfortunately, it can be difficult to enticing new
customers and retaining old customers. If you’re a business owner, then you should consider
the following strategies to build a bigger customer base. Growing your customer base is the
only way to sustain the long-term growth of your business. Two important things here are
customer acquisition and retention.
You must be able to connect with what your customer is looking for. This involves developing
a better understanding of wants and being able to supply them. The following strategies will
allow you to better market your product to your target customers.

Speaking your Customers Language

You have to intimately know your customer and know how they want to be spoken to. You
can’t address them like a business. The first way to learn their language is by properly listening.
When a customer doesn’t understand, they tend not to buy. Every industry has its own certain
lingo. You should listen to how customers describe your business, and also listen to how they
refer to your competitors. The best way to find out is by simply asking them in the form of
interviews.
Communicating in an effective manner is deliberate, and it requires practice. There is no quick
way of instantly developing the best rapport with your customer base. It takes time researching
and learning how to speak your customer’s language. However, once you learn it well enough,
you can go far ahead of your competitors in customer acquisition and retention.

Grow Customer Engagement with New Offers

One of the best retention strategies is done by providing new offers. This can be a fantastic way
to build brand loyalty and grow customer engagement likewise you can look at the bonuses at
online casinos naturally they have mastered the strategy of new offers, and this is why they
continue to be successful. You can spark new interest and great new forms of engagement by
creating specific new offers that grab the attention of your customer. They are already
interested in your product, and will, therefore, be on the lookout for any new offers. The more
appealing the deal is, the more likely they are to keep engaging with your company.
New offers allow you to enter into the thoughts of a customer and regular deals can instill a
sense of loyalty within them. This can be an excellent long-term retention strategy that helps
you get an edge over your competitors.
Use a Customer Relationship Management System as a Part of Your Customer
Acquisition and Retention Strategy
Customer relationship management systems (CRMs) are becoming very popular. They allow
you to systemize and easily manage the company’s interactions with new and recurring
customers. It allows you to use deep analysis to figure out any core problems, and also to see
what is working well. These deep insights gained from a CRM can be very important in
developing new strategies that allow you to improve your customer acquisition and retention
strategy.

Focus on Providing Excellent Customer Service

This point should be obvious, but it is one that businesses still don’t fully grasp. The backbone
of your business will always be reliant on your customer service. After all, the customers are
the most important aspect of your business, and without them, you don’t really have a business
at all. First and foremost, you should always focus on providing the best customer service
possible. This includes making it easy for the customer to contact you and providing swift
responses. These responses should be helpful, relevant, and should aim to answer customer’s
concerns in the best way possible.
A little extra effort can go a long way in terms of customer service as consumers are very
appreciative of companies that show a little bit of appreciation. You can retain customers by
making them feel wanted and letting them know that you are able to help them. It gives your
business a better image and gives you a more human touch.

Conclusion on Customer Acquisition and Retention Strategy

You will now have a better idea of the strategies you can employ to better reach out to your
target consumer base. These tips are applicable to all types of businesses, and you can edit them
to your specific business. All businesses need to create and maintain an excellent relationship
with their customers in order to grow and thrive. As a business owner, your mindset should
always remain focused on being tailored to your customers.

What is a Customer Service Plan

A customer service plan is a thorough strategy that companies implement to handle customer
interactions. An effective customer service plan provides guidelines that help team members
provide a consistent customer experience throughout every stage of the customer journey. It
can also be used to examine your customers' expectations and perceptions of your company. A
well-developed customer service plan can be an excellent tool to improve how your team
communicates with customers and the value your company provides them.
What are the benefits of having a customer service plan?
Having a customer service plan can benefit you by:
• Providing clear instructions: Having a customer service plan can make it easier for
customer service representatives and team members to perform their job roles
effectively. This can save time and promote a more positive work culture.
• Improving the customer experience: An effective customer service plan identifies
customers' most common needs ahead of time. This can help you ensure the resources
and answers your customers need are available when they reach out with an inquiry.
• Streamlining the onboarding process: Developing a customer service plan can make it
easier to train new employees because it provides them with clear guidelines and
expectations. It can also empower other customer service representatives to assist with
training since they follow the same standard operating procedures (SOPs).
• Increasing brand loyalty: Providing excellent customer service can help you develop
stronger relationships with your customers and build trust with them. This can improve
your brand loyalty and help you retain your current customers.
• Creating a consistent customer experience: Training each team member to follow the
same steps and protocols outlined in your customer service plan can ensure customers
receive a similar experience each time they contact your customer service department.
This can ensure customers receive equal and fair treatment.
• Decreasing employee stress levels: Having a customer service plan to reference when
interacting with customers can make it easier for your team to identify the appropriate
responses or next steps in challenging situations. This can decrease their stress and
ensure everyone on your customer service team is well-prepared.
How to create a customer service plan
Here are some steps you can take to create a professional customer service plan:
1. Assess your current customers' needs
Before you start creating your customer service plan, take the time to listen to your current
customers and assess their needs. You can conduct customer interviews, develop surveys or
review the analytics and data you have from previous customer service inquiries. Focus on
what your customers' expectations are and try to identify any unmet needs they may have. This
can help you uncover opportunities for improvement.
2. Examine your customer service processes
Next, examine your internal team, customer service processes and operations. Drawing a
process flow chart or diagram can help you visualize what happens when a customer reaches
out with an inquiry and how your team interacts with them. Consider this process from a
customer's point of view to identify areas where the workflow or communications could be
improved.
Then, ask your front-line employees to share their biggest challenges and ideas. These team
members can help you determine where there may be a need for additional resources, which
steps could be eliminated and how to streamline processes to develop a more efficient system.
3. Analyze your customer service capabilities
Use the information you've gathered through customer interviews, surveys and analytics to
create a list of the most important customer service factors. Then rate your organization's
performance in each area. You may consider asking key leaders from your customer service
team to rank each customer service factor as well to develop a more accurate assessment. Once
you've ranked each customer service factor, review your list to determine which areas your
team already excels at and which areas could be improved. This can help you allocate your
resources appropriately to provide the most value to your customers.
4. Develop your customer service strategy
Next, select one or two of the most important customer service factors in need of improvement
to focus on. Generate a list of possible strategies to help your team meet your customers'
expectations and needs. Some potential strategies you may implement include:
• Upgrading your software or technology
• Redesigning processes or workflows
• Offering additional employee training programs
• Improving your physical workspace
• Implementing an employee incentive program
• Hiring additional team members
• Supplementing your customer service channels
• Exploring new methods of service delivery
Once you've identified some potential strategies to improve these areas, consult your front-line
employees again and ask for their input. This can provide you with helpful insights, make your
team feel valued and ensure your plan is well-rounded.
5. Implement your strategies
Finally, implement your chosen strategies. You can use a process rollout plan to provide
guidelines for your team that help them gradually adjust to the changes. Throughout this
transition, continue to conduct customer interviews and surveys to track your progress. You
may also consider surveying your employees to determine how the changes are impacting their
workflow and overall effectiveness. This information can help you continue to optimize and
improve your customer service capabilities.
Once your team has successfully adapted to the new strategies you implemented, revisit your
list of customer service factors and determine where else there is room for improvement. Then
repeat the process by developing strategies to help your team meet your customers' needs and
expectations in these areas. By choosing one or two customer service factors to focus on at a
time, you can improve your team's chances of success and accurately assess which changes
have the biggest impact on your customers.
Tips to create a customer service plan.
Here are some additional tips to help you create an effective customer service plan:
• Identify key performance indicators (KPIs). Consider which KPIs you can use to track
your progress. You might measure the average time it takes to complete a customer
inquiry, assess your customer satisfaction score or analyze your customer retention rate
to determine your success.
• Practice active listening. Actively listen to your customers' needs by paying attention
to their feedback and developing solutions that address their concerns. You can also
practice active listening with your employees by encouraging their input, pausing to let
them ask questions and making eye contact.
• Use clear and concise language. When you start to roll out your new customer service
plan, use simple language to communicate the changes. This can help you craft
guidelines that are easy for your team to understand and remember.
• Reward your staff. Motivate your team to succeed by incentivizing them with some
kind of reward, such as a bonus, gift card or extra vacation day. This can encourage
team members to adapt to your new customer service plan and work together to provide
excellent customer service.
Operational Workflow

A business process workflow is a streamlined user experience guide for a repeatable process.
Generally, it is used for activities that follow a specific sequence of events.
These interlinked steps lead to a targeted goal set by the organization. According to research,
the most common way that SMEs manage processes is with software/ individual systems (41%)
or on spreadsheets (30%). Thus, the goal of using process workflows is to improve business
operations, decrease the number of redundant processes and activities, and swiftly shift to new
issues or problems.
This is especially important as a whopping 94% of employees say they perform repetitive tasks.
However, 12% of managers admit to staying on top of processes and tasks ‘in their head’, and
6% follow processes on paper. This is inefficient and prone to error. Designed to streamline
repetitive and tedious tasks, they are often used in onboarding or administrative duties.
As a visual guide, it stands out from other methods of instruction or training like a manual or
recipe guide. Undoubtedly, business process workflows are implemented in business
operations to best aid managers and employees.
Importance of business process workflow
Business Processes are used by organizations to automate, streamline and make efficient
various processes within the organization. They successfully allow organizations to achieve
better productivity, efficiency, quality, customer satisfaction, cost reduction, and more. BPM
is an umbrella term for various software solutions that are used in managing business processes
and workflows. Business process workflows help innovate traditional approaches and solve the
following reoccurring issues:
• Improve business operations.
• Eliminate redundant processes and activities.
• Reduce operational expenses.
• Automate processes.
• Quickly respond to issues or problems
Here are the business process workflows that every organization needs:
Digital asset management workflow
Digital Assets are data pieces that are uniquely identifiable, stored digitally and provide value
to the designated company. Digital content, such as images, logos, videos, documents, and
metadata all serve as digital assets as they are used to produce value. Whether for internal or
promotional purposes, implementing a digital asset management workflow focuses on
streamlined storage, organization, sharing abilities, and growth.
By using a digital asset management workflow, creation and editing are supported through
automated approvals, reminders, task and editing reassignments, delegation features, and more.
For example, when a new digital asset is completed and placed in a designated location, another
team member will automatically receive a reminder to review it. Active collaboration between
employees can be improved through integrated task lists, comments, and progress. In the
distribution process, approval processes and workflows can operate much more efficiently.
Consequently, only approved designs can move to the specified location.
The approved digital asset can be tagged with relevant metadata and stored in a central location.
In a traditional approach, distribution includes a tedious approval process and various passive
conversations. With a streamlined series of tasks to complete throughout the creative, editing,
and distribution process, digital assets can be utilized in a swifter workflow and improved
transparency between teams. This is a must have business process workflow for creative teams.

Expense Approval Workflow

Most organizations have outdated and inefficient expense approval processes. Typically, each
employee of the company would create a spreadsheet of their expenses, dates, and
documentation support. A finance professional is then recruited and manually checks over the
expense form and information provided. They will then approve, deny and readjust the claims
appropriately according to the company policy. This timely manual procedure is prone to error
and redundant.
Thus, streamlined workflow management for expense approval is easy to follow and improves
company productivity. For example, including a business automated expense approval
workflow can assure that only relevant claims can be submitted. Inappropriate claims would
be automatically directed back to the employee and would include a statement to reevaluate
company policies or include more documentation. Claims that surpass the designated threshold
are directed to a manager for approval. All calculations and manual reviews between receipts
and notes can be completed automatically. Not only does this save the finance professional
monotonous work, but it also improves communication between the accounting department
and anyone that has company expenses. Employees are now more likely to claim
reimbursements, ask questions and understand organization claim policies; thereby improving
business rules. The accounting department will be able to communicate about any reoccurring
issues picked up and marked by the structured reviews. This business process workflow will
help manage one of the most crucial aspects in managing a business effectively.

Shipping and Receiving Workflow

Efficient shipping and receiving workflow is vital in Supply Chain Management. Without a
streamlined procedure, there is a high degree of error, inaccuracies, and losses in profit.
Without proper structures, there are anomalies in available inventories, inadequate inspections,
and missing items. Thus, strict procedures must be implemented to ensure the survival of
inbound and outbound processes. Improved business rules can decrease the approval process
and minimize the number of instances of contact with a manager for approval.
For example, by having an automated system, customer shipping complaints can electronically
be submitted and directed to a trouble-shooter inbox. This decreases the number of approval
steps. Similarly, promptly identifying your own or another company’s packaging errors makes
a huge impact on company reputations and relationships. By creating an automated system that
employees can directly report to, teams can most accurately address the mistakes and
implement techniques to prevent them from happening again. Artificial Intelligence ensures
that less employee time is required to complete each task, increasing productivity and
decreasing human errors.
For example, delivery specifications can be instantly adjusted, information can be instantly
shared among devices and clever transportation visibility can be offered to clients. Utilizing
Shipping and Receiving Workflow systems saves employees time and prioritizes customer
satisfaction.

Vendor Management Process Workflow

A Vendor Management Process Workflow creates a structure for businesses to efficiently
record important tasks and procedures as it relates to vendors. This business process workflow
includes onboarding new vendors, organizing contracts, purchasing inventories, approving
requests, and communicating with current vendors. This central organizational tool allows all
parties involved to efficiently walk through integral servicing tasks.
When initially communicating with vendors, using active management systems allows for two-
way features so that clients and vendors can work collaboratively on projects. With the ability
to monitor tasks, there is a direct channel for feedback, changes, encouragement, and questions.
Managing a large amount of paperwork, contracts and other necessary documents is vital to
efficient communication. Through a digitalized workflow software, incomplete or improperly
filled out applications can be automatically rejected and returned to the vendors. Automatic
comments and reminders would play a huge role in the maintenance of documentation, saving
time for employers and vendors. Creating a structure specialized in approving products and
payment requests largely benefits company relationships. By creating a progression-based
approach to tasks, payment requests purchase orders, and expense forms can be automatically
pushed forward in the approval process. Connected updates strongly improve organization,
ensure positive vendor-employer relationships, and simplify new vendor opportunities.

Incident Management Workflow

Incidents occur as unplanned events that can disrupt or largely reduce the quality of a service
provided. Examples of incidents include a business application crashing and becoming
inaccessible due to potential bugs, an incredibly slow webpage that hinders company
productivity, and network leaks.
Coming in all shapes and forms, it is critical that incident management workflows are
implemented to securely and efficiently problem-solve. Whether it be an employee phone call,
a software notification or a physical encounter, incident responses heavily depend on
identification followed by a recording. Reporting an incident is fairly simple and includes
incident logs such as the name of the person writing the report, the date at which the incident
is reported, a description of what occurred, and an assigned identification order.
Luckily, they can also be done from any location. By using this automated business process
workflow, properly completed documents can then be easily and safely categorized in a logical
and intuitive category. In the future, the document can be analyzed for trends and patterns to
prevent future problems. From there, teams are able to prioritize the incident and respond. This
specific business process workflows through an initial diagnosis, focus on escalation,
investigation and diagnosis, creating a resolution and work on closure.

Sales Approval Workflow

Sales approval workflows are systems designed to help sales teams’ complete routine tasks.
These objectives include reaching out to leads, doing cold calls, consistently following up with
clients, and more. The goal is to decrease the amount of time that a team has to complete
paperwork or administrative tasks. Instead, the focus will be shifted towards doing meaningful
work to improve company productivity.
In quotation workflow, custom orders can instantly be communicated to managers. With a
quotation workflow, an employee can enter basic information and basic cost suggestions into
a form. Once completed, this can be automatically directed to a manager’s task list, finalizing
the price much faster. In the discount workflow, larger or more specific discounts can be easily
discussed. With conditional steps, certain requirements must be met before moving along each
approval stage.
That way, managers can focus on the clearest discount terms and come to a firm decision.
Similarly, in an invoice workflow, artificial Intelligence and external checkers can review the
invoice for typos, formatting issues, and incomplete signatures. An automated process assures
that costly human errors are avoided. All Sales approval workflows work together to improve
communication between stages of the approval process.

Document Workflow
Document workflow is a structured process used to “capture, generate, edit, approve, store,
retrieve, retain and destroy” files related to business operations. A digitized document tracking
system decreases the number of approval requests, works as approach process optimization,
and creates an organized approach to task completion.
Examples of paperwork implemented into a document workflow process include purchase
orders, invoices, proof of delivery receipts, payrolls, supply chain information, vehicle-related
files, and more. Having an organized and classified structure is extremely important to track
documents passed between departments, assuring that approval requests are reached, and edits
are verified. A proper document workflow covers everything from pre panning before its
created to post publication promotion strategy for the article, usage permissions and everything
in between.
This is especially important as businesses are generally documented heavy; Documentation in
business process workflow is essential to customer satisfaction and profitability. The goal of
this process is to automate repetitive tasks, automatically alert employees and project members
on uncompleted jobs and provide active performance metrics.

Various business workflow processes have been implemented to ensure consistency, efficiency,
and communication between large networks of people. By utilizing automated software,
digitized spaces, and artificial intelligence, companies can drastically improve productivity.
Digital Assessment management workflows maintain efficient collaborative environments in
the creation, editing, and distribution stages of digital assets.
Expense approval workflows ensure timely expense and claim readjustment while improving
accounting department morale. Shipping and receiving workflows enhance communication and
organization of all products throughout various approval stages. Vendor Management
workflows create a system for simplified professional relationships between vendors and
employers. Incident Management workflows focus on developing a quick reporting,
categorization, and problem-solving system when running into unexpected events.

Sales approval workflows are implemented to simplify steps and consistently update various
sales teams. Finally, Document workflows are used to organize a variety of essential documents
in operations. Overall, implementing workflow processes is strongly encouraged to improve
business agility.
 Chapter 05
Financial Plan
 Financial Plan
We, as the owners of the re-commerce business, are investing a total of ৳2,000,000. Our capital
contribution amounts to ৳120,000, while we have obtained a loan of ৳800,000.

This investment will be strategically allocated across various aspects of our business, including
inventory acquisition, marketing and advertising, technology and infrastructure, operational
costs, and customer service and support. We will carefully plan and monitor our budget to
ensure the success and sustainability of our venture.

For personalized advice based on our specific situation, we will consult with a financial advisor
or business professional.
Break-Even Analysis
Items Price
TV 15000
Refrigerator 25000
Smartphone 15000
Miscellaneous Item 5000
Average 15000
Variable cost 5000

We have the prices of four items: a TV priced at 15,000, a refrigerator priced at 25,000, a
smartphone priced at 15,000, and a miscellaneous item priced at 5,000.
To find the average cost, we add up the prices of all the items and then divide by the total
number of items.
Average cost = (TV price + refrigerator price + smartphone price + miscellaneous item price)
/ number of items
Average cost = (15,000 + 25,000 + 15,000 + 5,000) / 4
Average cost = 60,000 / 4
Average cost = 15,000
So, the average cost of these four items is 15,000.
Now, let's consider the variable cost. Variable cost refers to costs that change with the level of
production or the number of items produced. In this case, the variable cost is given as 5,000,
but it applies only to the average cost.
Variable cost = 5,000
This means that the variable cost of producing the average cost of 15,000 is 5,000. It is im-
portant to note that the variable cost does not apply to individual items but rather to the average
cost calculated based on those items.
To summarize, the average cost of the four items is 15,000, and the variable cost associated
with this average is 5,000.
Now we can do break-even analysis.
Fixed cost:
Year 2024: ৳457,500

Year 2025: ৳544,750

Year 2026: ৳614,250

Variable cost per unit: ৳5,000

Selling price per unit: ৳15,000
Calculating the break-even point in units:
Year 2024:
Contribution margin per unit = Selling price per unit - Variable cost per unit
Contribution margin per unit = ৳15,000 - ৳5,000 = ৳10,000
Break-even point (in units) = Fixed cost / Contribution margin per unit
Break-even point (in units) = ৳457,500 / ৳10,000 = 45.75 units (rounded to 46 units)
Year 2025:
Break-even point (in units) = ৳544,750 / ৳10,000 = 54.475 units (rounded to 55 units)
Year 2026:
Break-even point (in units) = ৳614,250 / ৳10,000 = 61.425 units (rounded to 62 units)
Calculating the break-even point in Taka:
Year 2024:
Break-even point (in Taka) = Break-even point (in units) * Selling price per unit
Break-even point (in Taka) = 46 units * ৳15,000 = ৳690,000
Year 2025:
Break-even point (in Taka) = 55 units * ৳15,000 = ৳825,000
Year 2026:
Break-even point (in Taka) = 62 units * ৳15,000 = ৳930,000
Therefore, the break-even points in units and Taka for each year, assuming a variable cost per
unit of ৳5,000, are as follows:

Year Break-even Point (in units) Break-even Point (in Taka)

2024 46 690,000

2025 55 825,000

2026 62 930,000

Projected Profit and Loss

Best Fortune
Expected Income Statement
For the Year Ended December 31, (2024, 2025, & 2026)

Name of Accounts Year

2024 2025 2026

Revenue 1,350,000 1,575,000 1,725,000

Other Income 125,000 145,000 175,000

Total Revenue 1,475,000 1,720,000 1,900,000

Cost of Goods Sold 742,500 866,250 948750

Gross Profit 732,500 853,750 951,250

Operating Expenses:

Rent/Warehouse 60,000 75,000 85,000

Utilities 10,000 12,000 14,000

Salaries and Wages 100,000 120,000 140,000

 Marketing Expenses 15,000 18,000 20,000

Other Operating Expenses 10,000 12,000 14,000

Interest Expense 10% 80,000 72,000 64,000

Total Operating Expenses 275,000 309,000 337,000

Operating Profit 457,500 544,750 614,250

Taxes (estimated rate of 20%) 91,500 108,950 122,850

Net Profit 366,000 435,800 491,400

This projected profit and loss statement outlines the expected financial performance of Best
Fortune for the years 2024, 2025, and 2026. Let's break down the key points:

1. Revenue: The company anticipates increasing its revenue over the three-year period. In
2024, the projected revenue is ৳1,350,000, which grows to ৳1,575,000 in 2025 and ৳1,725,000
in 2026. This indicates a positive trend in sales.

2. Other Income: Best Fortune expects additional income from sources other than its core op-
erations. The projected other income is ৳125,000 in 2024, ৳145,000 in 2025, and ৳175,000 in
2026. This income could be derived from investments, rental income, or any other non-operat-
ing sources.

3. Total Revenue: The total revenue combines the revenue from operations and other income.
It amounts to ৳1,475,000 in 2024, ৳1,720,000 in 2025, and ৳1,900,000 in 2026.

4. Cost of Goods Sold: This represents the expenses directly associated with producing or ac-
quiring the goods sold by Best Fortune. The cost of goods sold is projected to be ৳742,500 in

2024, ৳866,250 in 2025, and ৳948,750 in 2026. It is important to keep this cost under control
to maintain profitability.

5. Gross Profit: The gross profit is derived by subtracting the cost of goods sold from the total
revenue. Best Fortune expects a gross profit of ৳732,500 in 2024, ৳853,750 in 2025, and
৳951,250 in 2026. This represents the profitability before considering operating expenses.
6. Operating Expenses: These are the expenses incurred in the day-to-day operations of the
business. The listed operating expenses include rent/warehouse costs, utilities, salaries and
wages, marketing expenses, other operating expenses, and interest expenses. The totals for op-
erating expenses are ৳275,000 in 2024, ৳309,000 in 2025, and ৳337,000 in 2026.

7. Operating Profit: The operating profit is obtained by subtracting the total operating expenses
from the gross profit. Best Fortune expects an operating profit of ৳457,500 in 2024, ৳544,750

in 2025, and ৳614,250 in 2026. This represents the profit generated from the core operations
of the business.

8. Taxes: The projected taxes are calculated at an estimated rate of 20% on the operating profit.
The tax amounts are ৳91,500 in 2024, ৳108,950 in 2025, and ৳122,850 in 2026.

9. Net Profit: The net profit is derived by subtracting the taxes from the operating profit. Best
Fortune expects a net profit of ৳366,000 in 2024, ৳435,800 in 2025, and ৳491,400 in 2026.
This represents the final profit after accounting for taxes.

Overall, the projected profit and loss statement shows a positive trend with increasing revenue
and profitability over the three-year period. It also highlights the company's ability to manage
its operating expenses and generate consistent profits. However, it's important to note that these
figures are projections and may be subject to changes in actual market conditions and business
performance.

Projected Balance Sheet

Best Fortune
Expected Balance Sheet
For the Year Ended December 31, (2024,2025, & 2026)

Name of Accounts Year

2024 2025 2026

Assets:

Cash 774,000 941,300 1,162,700

Accounts receivable 520,000 550,500 605,000

Websites 160,000 210,000 250,000

Inventory 832,000 945,000 1,050,500

Equipment 130,000 145,000 160,000

Total assets 2,416,000 2,791,800 3,228,200

Liabilities and Owner’s Equity

Liabilities:

Accounts payable 130,000 150,000 175,000

Loan 720,000 640,000 560,000

Total liabilities 850,000 790,000 735,000

Owner’s Equity:

Owners capital January, 1 1,200,000 1,566,000 2,001,800

(+) Net Profit 366,000 435,800 491,400

Owner’s capital on December,31 1,566,000 2,001,800 2,493,200

Total liabilities and owner’s equity 2,416,000 2,791,800 3,228,200

This expected balance sheet provides an overview of Best Fortune's assets, liabilities, and own-
er's equity for the years 2024, 2025, and 2026. Let's analyze the key points:

Assets:
1. Cash: Best Fortune anticipates an increase in cash holdings over the three-year period, with
৳774,000 in 2024, ৳941,300 in 2025, and ৳1,162,700 in 2026.

2. Accounts receivable: This represents the amount of money owed to Best Fortune by its cus-
tomers. The projected accounts receivable amounts are ৳520,000 in 2024, ৳550,500 in 2025,

and ৳605,000 in 2026.

3. Websites: Best Fortune expects to invest in website development, with the value of websites
estimated at ৳160,000 in 2024, ৳210,000 in 2025, and ৳250,000 in 2026.
4. Inventory: This represents the value of goods held by the company for sale. The projected
inventory amounts are ৳832,000 in 2024, ৳945,000 in 2025, and ৳1,050,500 in 2026.

5. Equipment: Best Fortune's equipment value is estimated at ৳130,000 in 2024, ৳145,000 in

2025, and ৳160,000 in 2026. This includes machinery, tools, and other tangible assets.

Liabilities and Owner's Equity:

1. Accounts payable: This represents the amount owed by Best Fortune to its suppliers. The
projected accounts payable amounts are ৳130,000 in 2024, ৳150,000 in 2025, and ৳175,000
in 2026.

2. Loan: Best Fortune has taken out a loan, with the outstanding balance projected at ৳720,000

in 2024, ৳640,000 in 2025, and ৳560,000 in 2026.

3. Total liabilities: The sum of accounts payable and the loan amounts to ৳850,000 in 2024,
৳790,000 in 2025, and ৳735,000 in 2026.

4. Owner's capital: This represents the investment made by the owner(s) into the business. The
owner's capital on January 1 is ৳1,200,000 in 2024, ৳1,566,000 in 2025, and ৳2,001,800 in
2026. The net profit for each year is added to calculate the owner's capital on December 31,
which amounts to ৳1,566,000 in 2024, ৳2,001,800 in 2025, and ৳2,493,200 in 2026.

5. Total liabilities and owner's equity: This combines the total liabilities and the owner's equity.
The amounts are ৳2,416,000 in 2024, ৳2,791,800 in 2025, and ৳3,228,200 in 2026.

Overall, the balance sheet showcases the expected growth in assets, including cash, accounts
receivable, websites, inventory, and equipment, indicating the expansion of Best Fortune's re-
sources. The liabilities, consisting of accounts payable and the loan, show the company's obli-
gations. The owner's equity reflects the investment made by the owner(s) and the accumulated
net profits. This balance sheet provides a snapshot of the financial position of Best Fortune at
the end of each year, helping stakeholders assess the company's stability and growth.

Ratio Analysis
Here are the calculations and interpretations for the financial ratios for the year 2024:

1. Current Ratio:
Current Ratio = (774,000 + 520,000 + 160,000 + 832,000) / 130,000
= 2,286,000 / 130,000
= 17.59

The current ratio indicates the company's ability to cover its short-term obligations with its
short-term assets. A higher current ratio generally suggests better liquidity and a stronger abil-
ity to meet current liabilities.

2. Quick Ratio:
Quick Ratio = (774,000 + 520,000 + 160,000) / 130,000
= 1,454,000 / 130,000
= 11.18

The quick ratio (also known as the acid-test ratio) is a more stringent measure of liquidity as it
excludes inventory from current assets. A quick ratio above 1 indicates that the company has
sufficient quick assets to cover its current liabilities.

3. Gross Profit Margin:

Gross Profit Margin = (732,500 / 1,475,000) * 100
= 49.66%

The gross profit margin represents the percentage of revenue that remains after deducting the
cost of goods sold. It indicates the company's ability to generate profit from its direct produc-
tion costs. A higher gross profit margin is generally desirable as it implies better profitability.

4. Operating Profit Margin:

Operating Profit Margin = (457,500 / 1,475,000) * 100
 = 31.02%

The operating profit margin measures the profitability of the company's core operations by
considering operating income relative to revenue. It indicates the company's efficiency in man-
aging its expenses and generating profit. A higher operating profit margin signifies better op-
erational efficiency.

5. Net Profit Margin:

Net Profit Margin = (366,000 / 1,475,000) * 100
= 24.81%

The net profit margin represents the percentage of revenue that remains as net income after
considering all expenses, including taxes and interest. It reflects the company's overall profit-
ability. A higher net profit margin indicates better financial performance.

6. Return on Assets (ROA):

Return on Assets (ROA) = (366,000 / 2,416,000) * 100
= 15.14%

The return on assets measures the profitability of a company's assets. It shows how efficiently
the company utilizes its total assets to generate profit. A higher ROA indicates better asset
utilization and profitability.

7. Return on Equity (ROE):

Return on Equity (ROE) = (366,000 / 1,566,000) * 100
= 23.37%

The return on equity represents the return generated for shareholders based on their invested
equity. It measures the company's efficiency in generating profit from shareholders' invest-
ments. A higher ROE indicates better profitability for shareholders.

8. Debt-to-Equity Ratio:
Debt-to-Equity Ratio = 850,000 / 1,566,000
= 0.54
The debt-to-equity ratio compares the company's total debt to its total equity. It indicates the
proportion of financing provided by creditors relative to shareholders. A lower debt-to-equity
ratio suggests lower financial risk and a stronger equity position.

Here are the calculations and interpretations for the financial ratios for the year 2025:

1. Current Ratio:
Current Ratio = (941,300 + 550,500 + 210,000 + 945,000) / 150,000
= 2,646,800 / 150,000
= 17.64

The current ratio indicates the company's ability to cover its short-term obligations with its
short-term assets. A higher current ratio generally suggests better liquidity and a stronger abil-
ity to meet current liabilities.

2. Quick Ratio:
Quick Ratio = (941,300 + 550,500 + 210,000) / 150,000
= 1,701,800 / 150,000
= 11.35

The quick ratio (also known as the acid-test ratio) is a more stringent measure of liquidity as it
excludes inventory from current assets. A quick ratio above 1 indicates that the company has
sufficient quick assets to cover its current liabilities.

3. Gross Profit Margin:

Gross Profit Margin = (853,750 / 1,720,000) * 100
= 49.68%

The gross profit margin represents the percentage of revenue that remains after deducting the
cost of goods sold. It indicates the company's ability to generate profit from its direct produc-
tion costs. A higher gross profit margin is generally desirable as it implies better profitability.

4. Operating Profit Margin:

 Operating Profit Margin = (544,750 / 1,720,000) * 100
= 31.70%

The operating profit margin measures the profitability of the company's core operations by
considering operating income relative to revenue. It indicates the company's efficiency in man-
aging its expenses and generating profit. A higher operating profit margin signifies better op-
erational efficiency.

5. Net Profit Margin:

Net Profit Margin = (435,800 / 1,720,000) * 100
= 25.35%

The net profit margin represents the percentage of revenue that remains as net income after
considering all expenses, including taxes and interest. It reflects the company's overall profit-
ability. A higher net profit margin indicates better financial performance.

6. Return on Assets (ROA):

Return on Assets (ROA) = (435,800 / 2,791,800) * 100
= 15.62%

The return on assets measures the profitability of a company's assets. It shows how efficiently
the company utilizes its total assets to generate profit. A higher ROA indicates better asset
utilization and profitability.

7. Return on Equity (ROE):

Return on Equity (ROE) = (435,800 / 2,001,800) * 100
= 21.76%

The return on equity represents the return generated for shareholders based on their invested
equity. It measures the company's efficiency in generating profit from shareholders' invest-
ments. A higher ROE indicates better profitability for shareholders.

8. Debt-to-Equity Ratio:
Debt-to-Equity Ratio = 790,000 / 2,001,800
 = 0.39

The debt-to-equity ratio compares the company's total debt to its total equity. It indicates the
proportion of financing provided by creditors relative to shareholders. A lower debt-to-equity
ratio suggests lower financial risk and a stronger equity position.

Here are the calculations and interpretations for the financial ratios for the year 2026:

1. Current Ratio:
Current Ratio = (1,162,700 + 605,000 + 250,000 + 1,050,500) / 175,000
= 3,068,200 / 175,000
= 17.51

The current ratio indicates the company's ability to cover its short-term obligations with its
short-term assets. A higher current ratio generally suggests better liquidity and a stronger abil-
ity to meet current liabilities.

2. Quick Ratio:
Quick Ratio = (1,162,700 + 605,000 + 250,000) / 175,000
= 2,017,700 / 175,000
= 11.54

The quick ratio (also known as the acid-test ratio) is a more stringent measure of liquidity as it
excludes inventory from current assets. A quick ratio above 1 indicates that the company has
sufficient quick assets to cover its current liabilities.

3. Gross Profit Margin:

Gross Profit Margin = (951,250 / 1,900,000) * 100
= 50.07%

The gross profit margin represents the percentage of revenue that remains after deducting the
cost of goods sold. It indicates the company's ability to generate profit from its direct produc-
tion costs. A higher gross profit margin is generally desirable as it implies better profitability.
4. Operating Profit Margin:
Operating Profit Margin = (614,250 / 1,900,000) * 100
= 32.33%

The operating profit margin measures the profitability of the company's core operations by
considering operating income relative to revenue. It indicates the company's efficiency in man-
aging its expenses and generating profit. A higher operating profit margin signifies better op-
erational efficiency.

5. Net Profit Margin:

Net Profit Margin = (491,400 / 1,900,000) * 100
= 25.86%
The net profit margin represents the percentage of revenue that remains as net income after
considering all expenses, including taxes and interest. It reflects the company's overall profit-
ability. A higher net profit margin indicates better financial performance.

6. Return on Assets (ROA):

Return on Assets (ROA) = (491,400 / 3,228,200) * 100
= 15.23%

The return on assets measures the profitability of a company's assets. It shows how efficiently
the company utilizes its total assets to generate profit. A higher ROA indicates better asset
utilization and profitability.

7. Return on Equity (ROE):

Return on Equity (ROE) = (491,400 / 2,493,200) * 100
= 19.74%

The return on equity represents the return generated for shareholders based on their invested
equity. It measures the company's efficiency in generating profit from shareholders' invest-
ments. A higher ROE indicates better profitability for shareholders.

8. Debt-to-Equity Ratio:
Debt-to-Equity Ratio = 735,000 / 2,493,200
 = 0.29

The debt-to-equity ratio compares the company's total debt to its total equity. It indicates the
proportion of financing provided by creditors relative to shareholders. A lower debt-to-equity
ratio suggests lower financial risk and a stronger equity position.

Ratio 2024 2025 2026

Current Ratio 10.96 12.96 12.79

Quick Ratio 11.18 11.35 11.54

Gross Profit Margin (%) 49.66% 49.68% 50.07%

Operating Profit Margin (%) 31.02% 31.70% 32.33%

Net Profit Margin (%) 24.81% 25.35% 25.86%

Return on Assets (ROA) (%) 15.14% 15.62% 15.23%

Return on Equity (ROE) (%) 23.37% 21.76% 19.74%

Debt-to-Equity Ratio 0.54 0.39 0.29

Table - The financial ratios for the years 2024, 2025, and 2026

Through ratio analysis we can understand the financial condition of “Best Fortune”, explained
below.

1. Liquidity: Both the current ratio and quick ratio show a consistent trend of improving liquid-
ity from 2024 to 2026. The company's ability to cover short-term obligations with its short-
term assets has strengthened over time.

2. Profitability: The gross profit margin remained relatively stable across the three years, indi-
cating consistent profitability in generating revenue after accounting for the cost of goods sold.

The operating profit margin and net profit margin also remained relatively stable, indicating
consistent efficiency in managing expenses and generating profit. There is a slight improve-
ment in the operating profit margin and net profit margin from 2024 to 2026.
3. Return on Investment: The return on assets (ROA) shows a slight decline from 2024 to 2026,
indicating a slightly lower return generated from the company's assets.

The return on equity (ROE) also shows a declining trend from 2024 to 2026, indicating a lower
return generated for shareholders based on their invested equity.

4. Financial Leverage: The debt-to-equity ratio shows a declining trend from 2024 to 2026,
indicating a lower proportion of financing provided by creditors relative to shareholders. This
suggests reduced financial risk and a stronger equity position.

Overall, the company demonstrates improving liquidity, consistent profitability, and relatively
stable operational performance. However, there is a slight decline in the return on investment
and return on equity over the years. The declining debt-to-equity ratio indicates improved fi-
nancial leverage and a stronger equity position.