Assignment on Business Plan

Prepared For:
Sabrina Sharmin Nishat
Lecturer, Manganent Studies
Faculty of Business Studies
Bangladesh University of Professionals (BUP)

Course Name: Introduction to Business (GED-1103)

Prepared By:
Abdullah Ashik Adnan
Roll:19241053 Section: A
Management Studies, Batch-05
Faculty of Business Studies
Bangladesh University of Professionals (BUP)

Date of Submission: 20th May,2020

Business Plan for Travel and Tourism

TraveleroBD, LLC
House-09, Road no-23,
Nikunja-2, Dhaka-1229
(02)58962352

Abdullah Ashik Adnan

Shabbir Ahmed Shakil

20th May, 2020

Executive Summary
The tourism industry has undergone rapid growth of unsurpassed nature over the last several
decades. This has mainly been due to the advent of a 'borderless' world and increased
information dissemination about the majestic sceneries throughout the world, with the southern
African region being no exception.
We are on the brink of penetrating a lucrative market in a rapidly growing industry. The current
trend towards an increase in the number of tourists entering the country presents an opportunity
for TraveleroBD to penetrate the market. An opportunity for TraveleroBD s' success exists
because the national tourism industry is growing at a rapid pace annually.
Our services will be positioned very carefully: they will be of extremely high quality,
comfortable, informative and tailored to the client’s needs such that they will enable individuals
to have a greater appreciation of the natural environment and its intricacies.
Our marketing strategy will be based mainly on ensuring customers know about our existence
and the service(s) we fulfill. Hence our intention is to make the right information available to the
right target customers. This will be done through implementing a market penetration strategy that
will ensure that we are well known and respected in the tourism industry. We will ensure that our
prices take into consideration peoples' budgets, that these people appreciate the service(s), know
that it exists, and how to contact us. The marketing will convey the sense of quality in every
picture, every promotion, and every publication. Our promotional strategy will involve
integrating advertising, events, personal selling, public relations, direct marketing and the
Internet, details of which are provided in the marketing section of this plan.
It is important to recognize that we do not intend to just take individuals on sightseeing
excursions, but also to ensure that they appreciate nature through informative briefings on
objects' origins. This element will assist in differentiating us from our competitors and contribute
towards the development of a sustainable competitive advantage. So, we need to engage the right
people in the right place at the right time if we are to ensure optimum growth. We intend to
develop our team so that our people can grow as the company grows - a mutually beneficial
relationship.

In brief, we do not only intend to market and sell our service, but to market and sell travel
solutions and a total-quality environment. This will ensure we establish a reputable corporate
image.
Table of Contents:

Executive Summary -01

Background Information and History -03
Services Description -03
Market Analysis -04
Competitive Comparison -04
Marketing Strategy and Implementation -06
Management Summary -07
Financial Plans -08
Projected Income Statement
Projected Cash Flow
Balance Sheet
Financial Ratios
Contingency Plans
Background Information and History
TraveleroBD is a Private Limited Liability company incorporated at the Registrar of Companies
through the foresight and vision of Mr. Abdullah Ashik Adnan and Mr. Shabbir Ahmed Shakil. It
is a 100% wholly owned by the founders. At present the company office is located at plot 09,
road 23, Nikunja-2, Dhaka, near Nikunja Model College. However, as time progresses the
intention is to move into more accessible and attractive offices in a prime area. This regardless of
the fact that our type of business is not too dependent on office location and size.

Services Description:
TraveleroBD is a travel company that intends to deliver leisure travel excursions to customers.
TraveleroBD intends to guide customers in selecting a trip(s) based on pre-defined vacation
criteria. This analysis will be based on user profiles, set by the consumers, which includes
preferences such as:
(i) Budget
(ii) Activities sought
(iii) Destination, and
(iv) Time of Travel
A traveler will hence be able to select areas of interest based on their preferences and
subsequently identify destinations to visit. The intention is to provide customers with access to
exclusive travel destinations, service to fully appreciate destinations through information
packages, not just sight-seeing, and access to special interest travel according to the
group's/individual's preferences.
TraveleroBD intends to offer the service and knowledge a discerning leisure traveler seeks whilst
on vacation, with the intention of seeing and appreciating the numerous sights in the area.
Keeping in mind the comforts of a tourist, our fleet shall be very well maintained and designed
as per customer standard and expectations. However not wanting to limit ourselves we intend to
be open to special hire by churches, organizations, groups, schools and sports teams, amongst
other related groups.
The locations that we intend to be our main destinations are:
1. Srimangal
2. Rangamati
3. St. Martin’s Island
4. Chittagong Hill Tracts
5. Cox’s Bazar
6. Sonargaon
In putting the company together, we have attempted to offer enough services to allow us to
always be in demand by our customers and clients. The most important factor in developing
future services/products is market need. Our understanding of the needs of our target market
segments shall be one of our competitive advantages. It is critical to our effort to develop the
right new services. In the future, TraveleroBD intends to broaden its coverage by expanding into
additional markets. One of the main services it aims at providing is to become a destination
management company that brings alive the magnificence of this country to the traveler. This will
be done by co-coordinating the traveler's entire experience from hotel bookings, safaris and
tours, greeting and porter services, and to tour packages and incentives. However, in doing so we
will strive to ensure that it is compatible with the existing products and company personnel.

Market Analysis
We are today experiencing a rapid growth in the economy of unsurpassed nature. This has been
brought about by, amongst other things, the relaxation of foreign exchange policies and
macroeconomic policies geared towards attracting foreign investors into the country. The fiscal
and monetary policies of the government geared towards maintaining growth with social justice
have largely contributed towards this, evidenced by our economy averaging a growth rate of 7%
since 1990 - very high by international standards.
The current drive and emphasis by the government on diversification of the industrial base
presents an opportunity for TraveleroBD to make a valuable contribution towards achieving this
goal. Having undertaken a thorough and comprehensive research of the market we realized that
there was a need for a tourist transport company that focuses on providing leisure excursions to
tourists. Though there are mobile operators currently on the market, some of whom have been in
existence for a relatively long period of time, we believe that there is a market need for one that
specializes on providing comfortable and enjoyable transport to tourists and visitors. The tourism
industry is becoming an increasingly important player in the economy and may in the long term
prove really valuable in earning foreign exchange.

Competitive Comparison
There are presently few competitors offering services similar to ours. However, considering the
pace of change and current growth rate of the tourism industry luring many companies into the
sector, this may be short-lived. Hence there will be a need to not only firmly establish ourselves
on the market, but also strongly differentiate ourselves from these other businesses. But on a
broader scale our competition comes in several forms:
1. The most significant competition are hotels and travel agencies offering travel excursions
to their clients. They undertake this service in order to establish a competitive advantage
over their competitors. However, instead of directly competing with them we intend to
 establish good working relationships in the form of strategic alliances such that we are
able to offer the service for their clients and thus enabling them to concentrate on their
core activities whilst ensuring customers are fully satisfied. Our key advantage in this
regard will be our specialty of the service and hence wide knowledge ensuring customer
satisfaction at all times as well as flexibility in providing the service.
2. Existing hotels, lodges and travel agencies may identify the opportunity to diversify into
our intended services utilizing their current client database. Naturally, existing clients
will be inclined towards utilizing these familiar companies due to the fact that a good
relationship may have already been nurtured over the years during their business
dealings. This presents a potential challenge to us, as we need to aggressively market our
services and expertise in the field.
3. Existing safari operators that mainly focus on the remote environs such as Sundarbans
and Chittagong Hill-Tracts are at times able to compromise, offering excursions around
the country, though very rare. For that reason, we intend to focus on this market.
We have identified competing companies, some firmly established, that fill the same needs as
TraveleroBD. We intend to market ourselves in such a way that with time competitor customers
will choose our service over competitors on the basis of our higher quality and informative
excursions. A more thorough outline of our main competitors including their strengths and
weaknesses follows:
1. Victory Travels: Located at 71, Motijheel C/A (Ground Floor) Dhaka, Victory Travels
specializes in tailor-made safaris throughout the country. Victory Travels offers weekend
Adventures, one-day explorations and safari operators. Of particular concern to us are the
one-day exploration tours around cox’s bazar that it offers to local hotel guests. Research
indicated that Victory Travels is the only operator that offers day trips in and around the
country.
2. Talon Corporation: Arguably one of the most reputable companies in our intended line of
business. It has a fleet of nineteen buses comprising two semi-luxury B7 Volvo train-
buses, six semi-luxury B7 Volvo, five M/Benz, four Nissan and two DAF buses. All the
Volvo buses have radio facilities, and one of the train-buses has toilet facilities. With
close to twenty years of experience, they are achieving most of what they envisioned
when they started their business-to provide a nation-wide road transport service
renowned for its efficiency and reliability. The recent launch of a new imported double-
decker luxury bus serves as testimony of their continued dedication towards providing a
good service to their clients.
3. Al-Siraj Travels: Similar to Talon Corporation, Al-Siraj Travels is well respected in the
market with a large fleet of buses. As well as providing daily transport to Chittagong and
several towns it also provides local and international trips by hire. However, they lack the
marketing edge and foreign tourist focus we intend to have.
Marketing Strategy and Implementation
Initially TraveleroBD will focus on the local market in the adventure travel sector. The target
customers will mainly include tourists intending on sightseeing various attractions.
Our marketing strategy will emphasize focus. We are a relatively new company on the market
and hence must focus on certain kinds of services with certain kinds of clients. Initially the
business will focus on the local market, expanding into the regional market as time progresses,
and as we gain the necessary experience. Therefore, the initial aim will be to instill awareness
and confidence in our services. In order to achieve its goal of becoming the premiere mobile
operator, Sephats intends to adopt the following strategies:
1. Establish TraveleroBD’s reputation as a differentiated, specialty provider of city/
adventure travel and excursions. This will be accomplished through a diverse marketing
communications program directed at TraveleroBD’s target market, utilizing various
media as well as the establishment of strategic allies.
2. Provide unparalleled service to the tourists, local and international, of Bangladesh in
order to gain repeat business and build trust. This will include providing superior service
in all phases of the transaction, including timely follow-through.
3. Aggressively promote excursions as healthy, eye-opening and exciting activities with
those who participate in them as appreciative of the finer things in life.
4. We intend to build image and awareness through consistency and distinctiveness in our
service provision.
Our strategy is to grow the business by nurturing clients, differentiating the service from our
competitors, particularly through service and staff behavior. All criteria from customer
satisfaction, service provision, price competitiveness to staff attitudes are to be looked at
thoroughly in the initial stages as areas for improvement. Alliances and collaboration with hotels,
lodges and travel agencies are to be adopted as strategies for market penetration. Training will be
conducted on a regular basis to ensure that our staff is fully meeting customer expectations.
One core element of our strategy will be that of differentiation from our competitors. In terms of
marketing we intend to ensure that our name and services are marketed on an extensive basis so
that customers are aware of our existence. In price, we intend to offer reasonable and competitive
prices in comparison to competition and we need to be able to sustain that. Our service
marketing will strive to ensure that we establish long relationships with clients
Marketing Expenses: Initial marketing and training expenses will be relatively high as we seek to
become known on the market and staff get trained in the professional provision of our services.
This will be brought about by the development of sales literature and advertising expenses.
Pricing Strategy: TraveleroBD will be competitively priced in relation to the dictates of the
market. Due to the introductory nature of our services we intend to implement a penetration
pricing strategy which will ensure that potential customers are not frightened away by our prices,
up until our services are appreciated and fully operational. However, this will dictate that our
costs are prudently kept so as to ensure our financial goals come to fruition.
Promotion Strategy: This strategy will be based primarily on informing potential customers of
the existence of our services and making the right information available to our target customer.
We intend to spread the word about our business through the following:
1. Advertising: This shall be undertaken through trade and industry publications, which are
read by tourists, as well as the local newspapers. A constant look-out will be made of any
special editions in the local newspapers, which may provide an opportunity for us to
advertise our services and business name.
2. Personal Selling: Undoubtedly customer solicitation face-to-face will be a powerful form
of promotion mainly due to the fact that its flexibility will enable us to match the
customer's needs to specific attributes of our services as well as giving concise details of
what we have to offer.
3. Direct Marketing: This will be used but only to a limited extent in the form of
telemarketing and informing potential customers and obtaining referrals where possible.
In the case of telemarketing it will involve our targeting potential customers of our
services and informing them of our existence and destinations.
4. Internet Marketing: The increasing growth of the Internet as an information source
provides an opportunity for ourselves that we may exploit. This is particularly so in view
of the increasing dissemination of information over the World Wide Web, as individuals
and groups look at obtaining the best deal possible.
Sales Strategy: For the short term at least, the selling process will depend on personal
selling/networking and advertising to lure and inform potential customers about the services we
offer and the benefits of utilizing our services. Our marketing does not intend to affect the
perception of need as much as knowledge and awareness of the service category.

Management Summary
The human resources element shall be an essential component in the delivery of the total service.
By encouraging all employees to handle customers well, and by having enthusiastic, capable and
empowered people interacting with our customers, we intend to build the competitive advantage
of being able to comprehensively meet our customers' needs. There will be need to evaluate jobs
and remuneration packages against market benchmarks to employees for their agreed and set out
tasks so as to ensure they are competitive. These principles extend to accident, medical, death
and welfare benefits.
Organizational Structure: TraveleroBD shall be managed primarily by working owners/partners.
The company will engage more of a functional organization structure whereby people shall be
focusing on their prime area of expertise. However, in engaging this organization structure we
intend to ensure that there is open communication between all personnel at all levels. With such
a group we believe it will be simple to communicate with and support one another. Our
organizational structure demonstrates the importance we shall put on our customers, and
ensuring their satisfaction in utilizing our services.
As the company grows there will be more structure to the utilizing, with new employees being
assigned a supervisor or subordinate. When the company is at its full staff potential, it will
operate as any closely held utilizing, but maintain the personal interest in each employee's
personal and family welfare and their contributions to the business.
Management Team: The founders of TraveleroBD are passionate about the activities it will
promote and offer on the market. Management style will reflect the participation of the
directors/shareholders. The company intends to respect its community and treat all employees
well. We will develop and nurture the company as community. However, we realize that we are
not fully conversant in tourism yet and as such intend to engage experienced staff as well as
undergo a training course from a reputable institution.
Personnel Plan: We intend to compensate our personnel well, so as to retain their invaluable
expertise and to ensure job satisfaction and enrichment through delegation of authority. Our
compensation will include health care, generous profit sharing, plus a minimum of three weeks’
vacation. TraveleroBD recognizes that our employees contribute fundamentally to the company's
long-term prosperity, acknowledging our obligation to remunerate them competitively. We
intend to enhance our capacity to attract and retain people of quality through competitive
remuneration packages.
Training: In-house training shall be continuous so that we are continuously up-to-date in meeting
customer requirements. With time we also intend to undertake regular external training
particularly following any new developments in the market. This will ensure we are
implementing the latest techniques and aware of customers’ expectations. By setting our
standards against industry benchmarks we will be able to ensure a regular flow of customers as
they are continually referred to us.
Financial Plan
The financial plan shall be essential if we are to meet our objectives. The intention is to finance
growth through cash flow and equity. Here is an estimation of our financial projection.

TraveleroBD LLC
Pro Forma Income Statement
September 2020-October 2020
1 Sales 95,500
Less: Direct Cost of sales 25,350
Gross Income 70,150
2 Operating Expenses
Payroll 21,000
Sales and Marketing 4,550
Depreciation 0
Miscellaneous 1,200
Rent 15,000
Travel 1,100
Insurance 0
Maintenance 2000
Total Operating Expenses 44,850

3 Net Profit Before Taxes 25,300

Taxes 7,590

4 Net Profit after Taxes 17,710

 TraveleroBD
Pro Forma Cash Flow Statement

Year 1 Year 2 Year 3

Revenues
Cash Sales 95,000 120,500 221,250
Cash from Receivables 65,000 78,000 120,000
Subtotal Revenue 160,000 198 ,500 341,250
Expenses
Cash Spending 68,250 75,250 81,530
Bill Payment 23,000 25,500 31,500
Subtotal Expenses 91,250 100,750 113,030

Total Cash flow 68,750 97,750 228,220

 TraveleroBD LLC
Pro Forma Balance Sheet
September 30, 2020
Year 1 Year 2 Year3

Assets

Cash 450,000 670,000 1,850,000

Accounts Receivable 65,000 78,000 120,000
Inventory 17,000 26,000 57,000
Other Assets 0 0 0
Total Current Assets 532,000 774,000 2,027,000

Long-Term Assets 852,000 852,000 852,000

Accumulated 0 0 0
Depreciation
Total Long-Term Assets 850,000 850,000 850,000

Total Assets

Liabilities and Capital Year 1 Year 2 Year3

Current Liabilities
Accounts Payable 26,500 21,350 19,625
Current Borrowing 0 0 0
Total Liabilities 26,500 21,350 19,625

Paid-in Capital 352,000 352,000 352,000

Retained Earnings (12,500) 5,600 23,500
Earnings 92,500 111,500 165,250
Total Capital 432,000 469,100 540,750

Total Liabilities and 458,500 490,450 560,375

Capital
Net Worth 432,000 469100 540750
 TraveleroBD LLC
Financial Ratios
September 30, 2020

Return on Equity = Net Profit before Taxes = 25,300 = 5.85%

Net Equity 432,000

Current Ratios = Current Assets = 532,000 = 20.075

Current Liabilities 26,500

Quick Ratio = Current Assets – Inventory = 17,000 = 0.64

Current Liabilities 26,500

Debt to Equity = Total Liabilities = 26,500 = 0.0613

Net Equity 432,000
Contingency Plans:
Throughout the year we intend to undertake regular evaluations of our marketing programs so as
to ensure that we are in line with our intended objectives. We project sales to increase gradually,
though slightly slower as we establish a reputation for ourselves. But in the case of problems and
troubles, we have prepared some course of actions, they are:
1. We work with a wide network of hotels/accommodations throughout the country and
have open, fast and direct communication with them in order to find solutions to any
issue that may arise. If the problem is serious, such as a permanent lack of water and the
hotel is not able to provide a solution, we would relocate the clients to another hotel with
availability.
2. If someone is injured during tours, hikes or treks, guides can call another guide to return
with the injured person. In many hikes and treks, horses and mules may be available to
assist in the traveler’s return.
3. If any mechanical failure occurs, our drivers have support vehicles to assist or replace the
primary, if necessary.