Entrepreneurship Development Project - Old Age Home
Entrepreneurship Development Project - Old Age Home
Entrepreneurship Development Project - Old Age Home
(AIUB)
Entrepreneurship Development
GROUP – 4
Prepared for:
Sayeed Nayeem Emran
Prepared by,
Akter Halima
01-02635-3 (4)
Salma Akter
01-02388-2 (31)
Parvin Farhana
01-02691–3 (25)
Mumtaz Shaheen
01-02693-3 (45)
Section – B
Date of submission
9/5/2005
Table Of Content
Page number
1)Acknowledgement. 1
2) Executive Summery. 2
4) Objectives
14
5)Location 15
8) Financial Aspects 17
8.1. Source of cash 17
8.2. Uses of the Cash 18
8.3. Cost of the Project 20
8.4. Income Statement 21
8.5. Balance Sheet 22
29
: 31
11) Weakness 34
12Findings 34
12) Conclusion 35
13) References 42
1. Acknowledgement
We had some barriers and time limitation to do project of old age home;
otherwise we probably could do more accurate analysis.
We are,
Old age home is a new concept of Bangladesh .As our social economic
cultures are going to be change people are going to busy day to day, and
they couldn’t properly give the impression of being after their partners. The
concept is worked for them and those purpose. The concept is worked for
them. Many people of our country are stayed in abroad and there is no one to
give the impression of being after their parents appropriately.
This is our social welfare foundation to assist the old people. But not for
those people who went to sent their parents criminally means they have time
to look after parents but they doesn’t want to keep their parents with them.
Our location will be Uttara and this a service center and partnership
Organization and operation time hours 24 and no competition is accessible
in Bangladesh up to this period but in the future it its demand will be high.
Facilities provided by the old home are Proper food service; Provide the best
accommodation, Gymnasium facilities, Treatment, Staff, Entertainment,
Internet facilities.
We collect the data by Primary survey and secondary survey. Survey areas
are Uttara, Dhanmondi, Gulshan, Baridhara, and Banani
Pricing strategy of our business plan is that, final price for per person is
10,000TK per month. Discounts are also given to those clients who pay their
amounts yearly basis.
According to government’s policy, the authority will have to pay 15% taxes
and duties upon their overall yearly profit
3.1.Introduction
Old home center is a new concept of Bangladesh .As our social economic
culture are going to be change people are going to busy day to day, and they
couldn’t properly give the impression of being after their partners. The
concept is worked for them and those purpose. Basically in our urban area
people are generally work (both husband and wife) all the day long and
principally service couple couldn’t take care their parents properly .The
concept is worked for them. Many people of our country are stayed in
abroad and there is no one to give the impression of being after their parents
appropriately .We want to work with those parents to start our old age home
center business and that’s why obovsly our target customer is higher class of
up to 50 years old people or parents.
This is our social welfare foundation to assist the old people. But not for
those people who went to sent their parents criminally means they have time
to look after their parents but they doesn’t want to keep their parents with
them.
3.6.Project plan element
• Overview:
• General Approach:
This section describes both the managerial and the technical approaches
to the work. The technical discussion describes the relationship of the
project to available technologies.
• Contractual Aspects:
This critical section of the plan includes a complete list and description of
all reporting requirements, customer-supplied resources, liaison
arrangements, advisory committees, project review and cancellation
procedures, proprietary requirements, any specific management
agreements (e, g., use of subcontractors), as well as the technical
deliverables and their specifications, delivery schedules, and a specific
procedure for changing any of the above.
• Schedules:
This section outlines the various schedules and lists all milestone events.
Each task is listed, and the estimated time for each task should be
obtained from those who well do the work.
• Resources:
There are two primary aspects to this section. The first is the budget.
Both capital and expense requirements are detailed by task, which makes
this project budget. One-time costs are separated from recurring project
costs. Second, cost monitoring and control procedures should be
described. In addition to the usual routine elements, the monitoring and
control procedures must be designed to cover special resource
requirements for the project.
• Personnel:
• Evaluation Methods:
Dames and Brandt also break the project life cycle into four stages:
conceptualization planning, execution, and termination.
3.Main Program:
In our business plan is based on yearly basis. After each year the
project is calculated then the activities are done again for the
coming year as like the previous year and so on .
• Couples who are doing job and their parents live alone in the home
and not available servant to take care of them, from this reason to give
proper treatment of them (Parents), we are going to open or start the
Oldage Home Center.
5) Location:
Our location will be Uttata, sector 3.
1. Environment
2. Transportation facilities
4. Survey result find that Uttara will be our best location to start our
business.
Schedule:
2.Marketing aspects 30 – 3 – 05
5. Final project 9 – 5– 05
Description:
Competition : No competition.
Facilities provide of them:
• Proper food service: Service them on accurate time and food quality
will be balance with their physical demands. Not only to give them
accurate time and balance diet food but also to take care with nurse by
standing on them to look after properly.
• Provide the best accommodation: Air conditioned facilities, TV,
attached toilet, corridor, veranda, phone facilities, care facilities,
garden etc.
• Gymnasium facilities- there will be a physician or gymnasium person
to guide them properly and all equipments are available.
• Treatment: There will be 2 doctors, and 5 nurse for giving them
proper treatment.
• Staff: Staff provide for them. Four women there will be maidservant
and man servant for man.
• Entertainment: Prayer room for Namaz. If any one who want to paint /
singing / play have those facilities. There will be also have Internet
facilities to communicate with their children whereever they wants
any time.
16
2) Marketing Aspects
Effective demand in the past and present: According to our primary and
secondary information. Our concept becomes very clear that in past,
there was no existing of old age home in Bangladesh. But in recent few
years, it is being accepted in our society by basically those people whose
children are of their old parents. Couples both work are also have the
opportunities for their parents to give a better living standard by
providing not only food and clothing but also by
• Consumers:
Basically, old people are the targeted customer of our business plan.
8.3.1) PRICING:
• Pricing strategy of our business plan is that , final price for per
person is 10,000TK per month .
• Special discounts are given to those clients who are related or came
through our organization’s employees. Discounts are also given to
those clients who pay their amounts yearly basis .
• Web Page:
• TV Channels:
• Personal selling:
8.4.3.SERVICES:
• User education:
There are different education service programs for the clients of this
organization like the authority provides physician for proper healthy
education psychetist for their mental growth. Computer teacher to teach
them basic computer learning and so on.
The organization provides such as after leaving the old age home, if any
client wants to come here they can, they can join in different educational
service provided by the organization services provided by the
organization they can come here for refreshment purpose etc.
7)
Financial Aspects :
3.Balance sheet
2.BankLoan:
7.2
.
USES OF CASH:
Expenses/Month:
3)Physician/Consulting:
4) Entertainment
5)Furniture :
TV: Tk.1,00000
AC: Tk.15,00,000
Bed: Tk.2,88,000
Dining Table: Tk.80,000
Chair: Tk.80,000
Fan: Tk.66,000
Sofa: Tk.110,000
6)Others :
WASA : Tk.2500
Eletricity : Tk.10000
Gas : Tk.1400
Telephone Bill : Tk.3000
Inter Net : Tk.1500
Dish Charge : Tk.500
PROJECT COST
Income statement
Revenue 5400,000
Less cost of good served 2858,000
Gross profit 2542000
2502,
Selling And administration expanse 000
Depreciation 0
Operating Profit (EBIT) 40,000
Interest Expanse 20,000
EBT 20,000
Tax
(15%) 3,000
Net
profit
or loss 17,000
Pro Forma
Statement
Suppose Sales increase by 20% and also 20% percent increase in cost
.and the pro forma income statement would thus be :
Income statement
Revenue 6480000
Less cost of good served 3429600
Gross profit 3050400
Selling And administration expanse 3010400
Depreciation 0
Operating Profit (EBIT) 40,000
Interest Expanse 24000
EBT 16,000
Tax
(15%) 2,400
Net
profit
or loss 13,600
Balance Sheet
Current asset
Cash TK.5, 00,000
Accounts receivable 0
Inventory 0
Prepaid expenses TK.19, 20,000
Other TK.16, 28,500
TOTAL TK.24, 20,000
Fixed asset
Furniture& fittings Tk. 1751500
Vehicle Tk.40, 00000
Machinery Tk .5,00,000
Improvements 0
Building & land (net) Tk19, 20000
Total fixed assets
Total assets Tk.98, 00,000
TFC = 19,20,000
Q = 19,20000 / 4000
= 41 person.
EBIT- = 40,000
+ Dep =0 (Because very first year)
-Tax (15%) = - 3000
= 40,000/40,000-20,000
=2
4) Payback period:
= 5 Years
= 89316
7) Ratio Analysis
= 24,20,000 /20,00,000
= 1.21
= 0.28 * 100
= 28%
= 04 *100
= 40%
= 0.00315
= 0.315 %
Dupont Analysis
= 0.315 %*
Table of Financial Analysis
No
1 Q = 19,20000 / 4000 41 persons
2 Projected cash flow: Tk 37,000
3 Degree of financial 2
leverage
4 Pay Back period 5 Years
5 NPV (project) 89316
6 Current ratio 1.21
7 Debt to Total Asset 28%
8 Dept to Equity 40%
9 Profit Margin .315 %
10
11
12
13
Graph
• Managing director :
• Manager:
The directors of the organizations hire one responsible person for this
post. Under this person four different departments i.e. Health, Education,
Marketing, Finance departments work.
• Health department:
There are two health or medical officers under whom several nurses and
medical attendances work . Health officers work on hour basis . One
person is for general health care facilities and another is specialist on
different medical cases.
• Education department:
• Marketing department:
• Finance department:
Activities 1 2 3 4 5 6 7 8 9 1 1 1 1 14 15 16
0 1 2 3
1) Survey
3) Site Selection
Competed
4) Financial Analysis
5) Marketing Analysis
7) Legal procedure
8) Complete management
And organization
9) Arrival of machinery at
the site
10) 90% decoration
completed
11) Weakness:
This was a very sensitive issue to the people of the society. So we were
that much aware about this so that our idea wouldn’t hurt the mentally of
the people.
12. Findings:
• People of our society didn’t take our idea negatively. As social culture
of Bangladesh has been changed a lot. People ’s thoughts have been
developed a lot also. People who are living abroad, who work for
daylong cant take care of their parents. This type of organization is
very much helpful for them.
• Government policy was not that much strong while starting this
project.
13) Conclusion:
- Entrepreneurship Development
Nazrul Islam & Mohmmad Z Mamun .
- Project Management
Jack R. Meredith & Samuel J, Mantel, JR.
- Cost Accounting
Horngner Datar Fastern.
- Principal of Management
Robert Kreitner