Executive Summary The project is a down-to-earth one; no ivory tower is there and no Dutch courage is needed.

Its all about mushroom- its cultivation and marketing where investment is extremely possible minimum. o down time exists here as the state o! art technology is not needed. "ven its neither a capital intensive one. The project is aimed at !ul!illing with the very number one basic need i.e.# !ooding along with the ex gratia# nutrition# staying at the heart at the agriculture sector# the mother o! all industries. The projected outcome is that by investing $DT %#&&&#&&&.&& 'e(uivalent o! )*+ ,-#%.&.&&/# net income would be $DT .#00.#1,..,2 which states about %00.234 56I without any substantial variation# due to the existence o! antithesis relationship in between risk and return 'because # here risk is at rock-bottom but the return is sky-rocketing/. Mushroom Mavens INC, LLC 'proposed/ plans to produce and market mushrooms in $angladesh# a country with a conducive climatic condition !or the cultivation o! mushrooms. In $angladesh due to escalating population growth# land to man ratio is decreasing every year. 7s a result# the land available !or cultivation o! vegetables is decreasing. These circumstances create a potential market !or mushrooms# a vegetable with high nutritious value in it. The price o! vegetables is skyrocketing and it is getting beyond the reach o! the common people. This inade(uate consumption o! vegetables has created malnutrition in the general public. In such a situation# the cultivation o! mushrooms would not only bring pro!it !or the company but also meet the needed nutrition !or the people o! the country. 8oreover# the $angladesh 9overnment is also providing a tax holiday !or entrepreneurs cultivating mushrooms. The government and private banks are o!!ering loans to encourage entrepreneurs to be engaged in mushroom business. 7 !ew companies are producing mushrooms !or export# however# !or the local market# there are an insigni!icant number o! producers. There!ore# the main objective o! this company would be to pro!itably serve the people o! $angladesh# who are su!!ering !rom malnutrition due to the inade(uate consumption o! vegetables. The main challenge o! the company will be to position mushrooms as a high (uality and high value-added alternative vegetable in the local market. To achieve this# a heavy promotional campaign will be undertaken. In the !irst two years# this campaign will be concentrated only in Dhaka district. The company gradually will extend to other districts such as :hittagong# *ylhet# 5ajshahi# ;hulna# and $arisal. The company will also populari<e mushrooms in the rural areas through the in!luence o! re!erence groups. The owners policy o! retention o! earnings within the company would support this growth strategy !inancially. In addition# the company would maintain a good relationship with its current creditors; this would help the company in case o! a sudden need o! !unds. The location o! the cultivation plant in the tree-shaded rural areas with an easy communication system !rom the urban areas would help the company to produce (uality mushrooms through the proper maintenance o! temperature. $esides# the companys precautionary measures to tackle the various natural and human created barriers would !urther enhance the (uality and regularity o! its service. In addition# the company would maintain a close relationship with the 8ushroom Development :enter '8D:/# at *avar#

Mushroom Mavens INC, LLC

Dhaka# to be ac(uainted with the recent developments in research and development o! the cultivation o! mushroom at home and abroad. Company Overview The name o! the company will be =Mushroom Mavens INC, LLC. The cultivation plant o! the company will be located at >ayat-kar-:hala village o! the *hripur police station in 9a<ipur district. The company will employ %. employees. The management o! the company will consist o! one general manager '98/# one manager !or the cultivation plant o!!ice# an agriculturist at cultivation plant o!!ice# and one manager !or the sales center. The company will start with an initial investment o! Tk. 1#&&&#&&&# o! which Tk. %#&&&#&&& will be invested by the three !ounding owners in e(ual proportion. The rest o! the initial investment will be obtained through a bank loan. Mission Statement To grow and to make a pro!it in the market through customer satis!action by providing top (uality mushrooms. Vision Statement To meet the daily re(uirement needs !or vegetables !or the malnourished people o! $angladesh. Key Products Di!!erent types o! mushroom are available in this country such as - oyster mushroom# milky white mushroom# straw mushroom# shitake mushroom# button mushroom and reishi mushroom. These di!!erent types o! mushroom are generally grown in the di!!erent seasons o! the year. 6nly the oyster mushroom is generally grown throughout the year. The climatic and other environmental conditions o! $angladesh are also suitable !or the production o! oyster mushroom. 7s the company plans to produce in mass to serve the customers# it will now only !ocus on the production o! oyster mushrooms. This oyster mushroom will be sold !resh# as well as dried. Strategic Goals and Objectives Goals Short term To create awareness and educate the people about the nutritious and medicinal value o! mushrooms. Long term

Mushroom Mavens INC, LLC

To be the market leader o! the vegetable industry in $angladesh by positioning mushrooms as the high-(uality and high value-added alternative vegetable. Objectives The main purpose the company is !ocused to serve the customers with top (uality mushrooms. set-up cultivation plants throughout the country. establish an extensive distribution channel so that mushrooms o! this company will be available throughout the country. improve the livelihood o! the rural people by employing them in the cultivation plants. ndustry Overview and !nalysis The commercial cultivation o! mushroom was !irst started in "urope in the beginning o! the %&th century. 7!terwards it spread to the other countries. In the ancient 9reek# 5oman# and Indian cultures# mushrooms have been considered a delicacy associated with the royal class. 8ushroom cultivation in $angladesh is a recent development. The 9overnment o! $angladesh is promoting the culture o! mushrooms to a large extent. *cienti!ic mushroom production in $angladesh started in the late -02&s by volunteers !rom ?apan named =6verseas :o-operative @olunteersA. In the early -03&s# commercial mushroom cultivation was initiated by the $angladesh 7gricultural 5esearch :ouncil when a 8ushroom Development :entre '8D:/ was established at *avar# Dhaka. The commercial production o! spawn packets o! oyster mushroom started in -030. 6ver time# production increased !rom one metric ton '8T/ in -030B0& to !ive 8T in -00-B0%. Today# there are three mushroom culture centers in the country. The !irst one was established in 8D: at *avar. The other two are situated in 8ymensingh and Dinajpur. These culture centers mainly train people on mushroom cultivation and also provide mushroom growing bags containing CmyceliumC 'growing media/ inoculated with mushroom spawn. The cultivators need to germinate the spawns and later harvest the mushrooms. There is an active interest among local industrialists to commercially produce mushrooms with a view to processing mushrooms !or export. 8ushrooms generally are not considered as a part o! the regular diet in this country. :urrently# mushrooms produced on !arms are locally marketed. 8ushrooms are supplied to hotels# :hinese restaurants# and markets in close vicinity to the residence o! !oreigners. 6ne agroprocessing company also exports mushrooms to "uropean markets. $esides# only a !ew individuals cultivate mushrooms upon receiving training on mushroom cultivation. >owever# most o! them cultivate mushrooms as a hobby# rather than a business.

Mushroom Mavens INC, LLC

G Mar"et Overview and !nalysis

8ore than ,&4 o! the people o! $angladesh live below the international poverty line. Dhile agriculture remains the main source o! income !or around 3&4 o! the people# the countrys per capita arable land stands at &.-% hectares. There!ore# there is limited land available !or the cultivation o! vegetables. 8oreover# a population growth rate o! -.24 per annum is also reducing per capita land holding o! the country. It is obvious that with the increasing population# the countrys cultivable land area cannot meet up with the demand !or vegetables. The price o! vegetables is also very high. Thus# there is a big gap in between the supply o! and demand !or vegetables which can be pro!itably met by introduction o! mushrooms. Potential customers The company will cater to both business and individual customers. Business customers 7ll hotels and :hinese restaurants o! the country are the potential business customers !or mushrooms. These customers will be the bulk buyers !or this product. This segment is very important to make a pro!it !or this company. There!ore# the company will maintain good relations with these customers through instant delivery to ensure their retention. Individual customers Individual buyers would be the other customer segment !or this company. 7ttention will be given to the homemakers o! the urban areas who are very concerned about the health condition o! their !amily members. The economic status o! this segment would comprise the middle or upper middle class. The !ollowing Table - displays the variables that will characteri<e the consumer market o! the company. Table The segmentation variables o! the consumer market o! mushroom Variable 9ender Eamily li!e 6ccupation *ocial :lass >ousehold Income 'monthly/ Condition Eemale 8arried with children Fro!essional# >omemakers 8iddle class# upper middle class Tk.-&#&&& and above

Mushroom Mavens INC, LLC

Size and growth of market 7ccording to $angladesh $ureau o! *tatistics '$$*/# there are . million people who belong to the household with a monthly income above Tk.-&#&&&. The current population growth rate is -.24 per annum. "ven i! the growth rate among the target market is &..4 the si<e o! the market o! the company would increase to ..&%. million in one year. 7ccording to the $angladesh Hellow Fages# there are G% :hinese restaurants in Dhaka city# -1 :hinese restaurants in :hittagong city# % in 5ajshahi# G in ;hulna# and in *ylhet. 7 close look at the list reveals that many o! the existing restaurants have not been documented here. 8oreover# many restaurants open up shop every year. Competitor analysis There is only one company at present located at *avar which produces mushrooms both !or the domestic consumers as well as !or export. Though that companys utmost emphasis is on export# it supplies dried mushrooms to some retail stores such as 7gora# andan# and FI*. 7ccording to 8D:# there are about -& micropreneurs scattered in Dhaka city# who cultivate mushrooms. These cultivators# most o! whom cultivate mushroom in their homestead gardens or roo!tops# have very limited capacity and produce mushroom to sell mostly in their neighborhoods. 7 !ew o! them# however# also supply !resh mushrooms to the above-mentioned retail stores. The company producing commercially and the individual cultivators purchase the spawn !rom the 8D:. The average purchase o! spawn by the company at *avar is not more than %&&& bags per month. The average purchase o! spawn by individual cultivators is around %& spawn bags per week. There has not yet been a well-established distribution channel !or mushrooms. The company at *avar and the individual cultivators supply to the retail stores based on orders.

Mushroom Mavens INC, LLC

Operational Plan

Product overview 7 mushroom is the !ruit o! a !ungus. Its purpose is to disperse spores# microscopic single cells that can grow into new !ungi. The !ungus looks like a series o! branching threads in!iltrating the soil or lea! litter# or in the wood o! living or dead trees. These higher fungi# which produce mushrooms# consist o! many cells. There are di!!erent types o! mushrooms available in this country. The climatic and other environmental conditions o! $angladesh are extremely suitable !or the production o! oyster mushrooms. There!ore# the company has selected this type o! mushrooms to produce in its plant. Facilities and Plant The company will establish a %33#&&& s(uare !oot plant in >ayat-kar-:hala village o! *hripur district# which is located close to a paved road. >ere# the price o! land is very low compared to other places. The labor is also cheap in this locality. The plant includes the production plant# drying and storing house# and an o!!ice building. In addition# the company will also locate a sales centre in ;awran $a<ar# Dhaka. The location o! the plant is shown in the Eigure -.

Eigure -J Kocation o! plant. Production houses (Mushroom houses) Eorty !our mushroom houses will be built. "ach s(uare-shaped house would have an area o! G3& s(uare !eet. Initially# %. houses will be built. Then# over a two year period# the total number o! houses built would be increased to !orty !our. The walls o! these houses will be made o! bamboo and the roo!s will be thatched with =9olpataA# i.e. leaves o! the mangrove plants. $esides# the houses will have trees towering over them. Thus# the re(uired temperature will be maintained. "ach house will have an ade(uate ventilation system. It will be e(uipped with bamboo-made racks and each rack will have 2 shelves. 6ne house will be capable o! accommodating -1-2& spawns 'each rack can house .,0& spawns/. Eigure % shows the layout o! a mushroom house !or the company.
%-.. !t % !t % !t. %!t %-.. !t

G.. !t

% !t

G.. !t

% !t

G.. !t

% !t

Eigure %J The layout o! a mushroom house.

Mushroom Mavens INC, LLC

Drying and storehouse, office room, and trans!ortation 6ne house with an area o! -&&& s(uare !eet will be built. There will be two rooms# one to be used as the drying room# which will be e(uipped with electric bulbs# the other to be used !or storing packaged dried mushroom. There will be a semi-brick built o!!ice o! three rooms with a kitchen. The manager and the agriculturist will share this o!!ice. 7ll the records o! the plant would be maintained here. In addition# the company will have one pickup van !or transporting mushrooms !rom the cultivation plant to its sales center in Dhaka. Equipment and machinery The capital outlay is very insigni!icant. The company will only need a laminating machine !or packaging. Production process The company will collect poly bags called =spawnA !rom 8D:# *avar. *uch bags include CmyceliumC 'growing media/ innoculated with mushroom spawn. 7!ter placingBplanting these bags on the racks o! the mushroom house# harvesting can be completed on an average o! 3 days. >arvesting is done at the early stage o! L!ruiting just be!ore the spreading o! umbrella like !ruit body. 6yster mushrooms begin to grow through holes in the poly bag and !orm a cluster. 8ushrooms can be harvested over three months a!ter plantation. 7!ter harvesting# part o! the produced mushrooms will be packaged !resh and sold immediately. The rest o! the produce will be dried by the heat o! electric bulbs or sunlight. The dried mushrooms will be packaged in airtight poly bags and stored. These would be sent later to the companys sales centre. Research and development The company would maintain a close relationship with the 8ushroom Development :enter '8D:/# at *avar# Dhaka# to be abreast o! the recent developments in research and development o! cultivation o! mushroom at home and abroad. 7lso# the companys own agriculturists will constantly observe its cultivation plants so as to increase production and to ensure (uality. uality assurance The production o! (uality mushrooms re(uires a high level o! competence and skill. The principal management !actors that draw attention are temperature monitoring# watering# carbon dioxide monitoring# humidity control# air movement and hygiene# pest and disease control. The manager and labourers o! the plant will be provided training on these aspects. 8oreover# an agriculturist will be employed to constantly monitor the mushroom houses. :are!ul attention would be given to cleanliness and air-tightness during the packaging o! the product.

Mushroom Mavens INC, LLC

3 Mar"eting Plan

Product 7s mentioned earlier# the company would cultivate only oyster mushrooms. It will sell these mushrooms both !resh and dried. $oth !resh and dried mushrooms will be packaged in polythene bags. The package will also display the logo o! the company. 7ccording to 8D:# this type o! mushrooms consists o!Frotein @itamin M 8ineral Eat :arbohydrate %.-,.4 .2-1&4 &G-&14 &.-&14

Thus# the attributes o! this mushroom and the consumer consumption bene!its can be displayed in the product laddering as !ollows. Froduct
6yster 8ushrooms

7ttributes
Frotein @itamin M mineral Eat

:onsumer consumption bene!its

-Frotects !rom diseases -$uilds bones -8ake bones strong -Froduces heat M energy - *moothens the skin -Froduces energy to work

:arbohydrate

Eigure ,J The product laddering o! oyster mushrooms Price 7 cost-plus pricing strategy will be adopted to set the price o! the product. 7s the economy o! the country is weak# the common people will not be able to purchase the product at a high price. $esides# the company wants to be the market leader o! this industry by establishing a higher (uality product at lower price. This will restrict the entry o! new competitors and de!eat !oreign competitors in the market. 7 .&4 average unit 'kg./ pro!it margin would be achieved by pricing !resh mushroom at Tk.3& per kg and dried mushroom at Tk.%%& per kg. These (uoted prices are lower than the existing market prices# i.e. Tk.-,&--.&Bkg !or !resh mushroom and Tk.%%.Bkg !or dried mushrooms. !istri"ution The company will establish an extensive distribution channel !or mushrooms to make it available throughout the country. It will build six distribution centers in the six divisions o! $angladeshJ Dhaka# :hittagong# *ylhet# 5ajshahi# ;hulna# and $arishal. Erom these distribution centers# the sales representatives will supply the mushrooms to di!!erent retail shops 'small and mega/ on the basis o! their demand. The small vegetable

Mushroom Mavens INC, LLC

traders will purchase mushrooms directly !rom the distribution centers. 6n the other hand# the business customers such as hotels and :hinese restaurants will place order -. days prior to delivery and the company will supply them directly !rom the cultivation plant. The !ollowing !igure shows the distribution channel o! the company. 5etail shops 'small M mega/ :onsumers

Froduction plant $usiness customers

Distribution centers

Kocal vegetable traders Eigure GJ Distribution channel o! mushrooms

:onsumers

Product Promotion "dvertising, #rade !romotion, and $airs The retail shops selling mushrooms will be decorated with attractive posters o! mushrooms indicating the availability and containing the in!ormation about the bene!its o! mushroom consumption. Kea!lets will be distributed to the consumers through the national daily newspapers. The lea!lets will contain the consumption bene!its and cooking process o! mushroom. In the !irst two years# such campaign would be conducted only in Dhaka division. 7!terwards# when the company moves to other divisions# similar campaigns would be conducted there as well. The retail shops and local vegetable traders would be provided with a trade discount. 8oreover# retail shop salespersons and vegetable traders would be handed out T-shirts displaying the companys logo as part o! the motivational techni(ue. The company will participate in trade !airs. The stalls will serve the visitors several kinds o! !ood# pickles etc made !rom mushrooms. Eree cooking recipes# and !ree mushroom sachets will also be provided as part o! the sales campaign. 7s the company targets the rural as well as the urban market# it will launch radio advertisements and word-o!-mouth communication will be spread with the help o! re!erence groups such as the imams# doctors 'rural/ and teachers. It will also provide !ree samples to this re!erence group !or promotion. Customer service The company believes in relationship marketing. There!ore# it wants to build a li!etime relationship with its customers. This will be achieved by paying attention to the customer needs. Thus# the company will provide its phone numbers to the customers so that# they can promptly in!orm about any o! their demands or complaints. 7s it is a new kind o! vegetable introduced to the market# people will be very much con!used about preparing !ood items with mushroom. There!ore# the company will also train and advice customers on preparing !oods containing mushroom. 7 book o! recipes o! exotic !oods prepared with mushroom would be distributed in the urban areas.

Mushroom Mavens INC, LLC

-& S#O$ !nalysis

Strengths $ood value of mushrooms 8ushrooms contain :hitin# a non-soluble protein that precipitates bile in the large intestine so that the bile is eliminated !rom the body instead o! being reabsorbed# !orcing the 7nti @iral body to make new bile. It does this by Increase 7nti libido tumor breaking down cholesterol# and improving cardiac health. Traditional :hinese herbalists :ontrol Immune blood enhance knew o! this e!!ect !or centuries. They always pressure r argued that eating mushrooms cleans the 8ushro om arteries. Eor the most part# these health :ardio :hitin @ascular bene!its center on the e!!ect these mushrooms can have in enhancing and bolstering the Diabetes Kower immune system. :ontained in the cell walls o! protecte choleste d rol ;idney many medicinal mushrooms are compounds tonic that interact with the bodyNs immune system# helping to modulate and enhance it. Eigure .J 8edicinal @alue o! 8ushroom :ancer treatments that employ the compounds extracted !rom medicinal mushrooms have shown tremendous e!!ect on survival rates and disease !ree rates !or patients. >owever# it is also being investigated that these mushroom species can be considered to be e!!ective in alleviating the e!!ects o! >I@B7ID*. 7s mushrooms have a great !ood value the consumers will accept it very rapidly. Pioneer com!any There is no mushroom company which produces purely !or the domestic consumers. There!ore# 8ushroom 8avens will be the pioneer o! the market and it will be easy !or it to build a position in the mind o! the consumers. La%or intensive This business does not re(uire a large amount o! capital. It is mainly labor intensive. It does not re(uire a lot o! land# e(uipments or machinery. 7 simple cropping house# built !rom locally available material is ade(uate. *u!!icient watering o! the cropping house provides the moisture level re(uired to trigger mushroom !ruiting. &overnment facilities The 9overnment o! $angladesh is encouraging the business people to invest in agro-business. It is also providing di!!erent types o! loan !acilities !or these types o! programs. There!ore# it will be easy !or the company to obtain loans and thus to expand the business.

Mushroom Mavens INC, LLC

--

#eaknesses Image of the !roduct In the local market many people believe that mushrooms are a poisonous thing and that it is not edible. This image o! the core product is a major weakness o! the company. Consumer illiteracy 7s it is a new product and consumers have a negative image about mushrooms# it will re(uire educating the consumers about the bene!its o! mushrooms. Price 7s high costs are involved in the production process o! mushrooms# the price o! this product is much higher than o! general vegetables. There!ore# it will not be possible !or the company to serve the lower income groups in the beginning stage. $pportunities '(!and the !roduct line 7t the very beginning the company will just produce oyster mushrooms but it will have the opportunity to produce other types o! mushrooms in di!!erent seasons. It will also be possible to grow the other types o! mushrooms by creating an arti!icial environment using technology. '(!and the mar)et I! the company can educate the rural consumers through a heavy promotional campaign# it will be able to expand its market to a large extent. The company also has the potential opportunity to export mushrooms to other countries. #he !roduction of s!a*n In initial !ew years the company will be dependent on the government agency !or spawn. $ut in three to !our years# when it has accumulated earnings# it can buy the technology !or production o! spawn itsel!. $esides# as raw materials !or production o! spawn such as sawdust# grass straw# mai<e cobs# wheatBmai<e bran etc.# are cheap# the variable cost o! producing spawns will not be high. %hreats Com!etitors The 9overnment o! $angladesh is vastly encouraging the business people to invest in agro-business and is also providing di!!erent types o! loan !acilities !or these businesses. Thus# it is likely that very soon the company will !ace extensive competition. &overnment agency In the !irst !ew years# the company will be collecting spawns !rom the government operated 8D:s. I! the government decides to close down this project# the company will be in trouble. In that eventuality# the company will have to procure a considerable sum on loan to buy the technology !or producing mushroom spawn.

Mushroom Mavens INC, LLC

-%

%is" !nalysis &un'oreseeable barriers( 5isk analysis includes the discussion o! the un!oreseeable barriers the company might !ace and the precautions it would have to take to overcome these barriers. The business might !ace three un!oreseeable barriers. Eirst# it might be the occurrence o! natural calamities such as heavy storms during monsoons# high temperatures during summer or low temperature during winter. *econd# is attack o! any new diseases or pests on mushroom spawn. Third# is the possibility o! a prolonged transportation strike. These barriers would incur high costs !or the company in terms o! taking precautionary measures and thus would lower its pro!it. To secure against heavy storms uprooting the mushroom houses# the company would build the mushroom houses as strong as possible. I! temperatures rise above ,& & :# mushrooms will not come out o! it spawn. *ome measures such as maintaining a high level o! moisture inside the house by spraying water heavily and keeping the !loor wet would be taken to mitigate the situation. In the event o! a much higher temperature# wet sacks would be put up on the walls o! the houses. 6n the other hand# i! temperature !alls below %&&: during winter# the harvest o! mushrooms would also be a!!ected. 8aintaining a !oggy situation inside the house by heavy water spraying and allowing more light to enter the houses would mitigate the problem. >owever# i! the temperature !alls much lower !or a period longer than 1 days# electric bulbs would be lit up inside the houses to keep it warm. This measure would be very costly to operate. To tackle the second barrier# the company would keep abreast o! the development o! diseases or pests o! mushrooms at home and abroad. I! the company observes any anomalous change in any mushroom spawn# it would immediately separate the troubled spawn !rom the rest and would send it to the 8ushroom Development :enter at *avar# Dhaka !or investigation and report. In the event o! a prolonged transportation strike all the yield o! mushrooms would have to be dried up. *ince !resh mushrooms bring more pro!it than dried mushrooms# such event would lower the pro!it !or the company.

Mushroom Mavens INC, LLC

)uman %esource Strategy and Planning

-,

The three !ounding owners will supervise the entire operation o! the company until a general manger '98/ is recruited and appointed. The 98 will be provided training on the cultivation o! mushrooms# and the accounting systems o! the company. The 98 would be responsible !or supervising cultivation and sales activities. *Bhe would also be responsible !or executing promotional campaigns to achieve target sales. *Bhe must be a business graduate with previous experience in managing business in a similar capacity. The company will also recruit a manager# an agriculturist# !ourteen labourers# two security guards# and a cook !or its cultivation plant. The manager will supervise the activities o! the entire plant. *Bhe will also hold the whole husbandry. Thus sBhe must be at least a business graduate with a !ew years o! previous experience o! supervising# and keeping accounts. *Bhe must also be a computer literate with skills in using 8*-word# spreadsheets# and accounting so!tware. The manager would be provided with training on the cultivation o! mushrooms# and the accounting systems o! the company. The agriculturist will work under the manager. *Bhe will serve as an operations and (uality control manager o! the plant. *Bhe will also conduct 5MD activities to increase the production and to ensure the (uality o! the mushrooms. 8oreover# sBhe will train and supervise the labors in taking care o! mushroom spawn# harvesting and packaging mushroom. In case no competent agriculturist can be recruited# the Thana 7griculture 6!!icer will be engaged on a part time basis !or the job. Eourteen labourers will work in two shi!tsJ seven in the !irst shi!t '3J&& am to GJ&& pm/ and the rest seven in the second shi!t '-&J&& am to 1J&& pm/. The labourers will have at least primary schooling so that they can understand directions. These two shi!ts will ensure that mushroom spawn get proper watering early in the morning as well as late in the evenings. 6ne o! the security guards will work !rom 1J&& am to 1J&& pm and the other will work !rom 1J&& pm to 1J&& am. The job o! the security guards would be to protect the mushroom houses !rom animals and humans. The guards must also have at least a primary education. The cook will serve tea and biscuits once a day to the plant sta!!. *Bhe will also cook !or the manager and agriculturist# at least one o! whom would reside in the plant o!!ice. In the sales center# one manager# one accounts o!!icer# and one sales representative will be employed. 7 driver will be recruited !or the pick-up. The manager o! sales center would supervise sales activities. *Bhe would establish contacts with the restaurants and retail stores to sell mushrooms and execute promotional campaigns. *Bhe must be a business graduate with previous experience in selling. The accounts o!!icer must be a business graduate in accounting with skills in utili<ing 8*-word# spreadsheets# and an accounting so!tware. *Bhe will be given training on the accounting system o! the company. The sales representative will procure orders# deliver mushrooms# and assist in executing promotional activities. *Bhe must also be a business graduate as well. The company would provide attractive salaries. $esides basic salaries# it would provide two !estival bonuses to all the employeesJ each e(uivalent o! one months basic salary. In addition# the basic salary would increment -&4 each year along with a .4 dearness allowance. The company will be an e(ual opportunity employer. The owners would continually measure the job satis!action o! the employees in order to take steps to increase the employees work e!!ort and commitment.

Mushroom Mavens INC, LLC

*inancial Management Plan

-G

The business would re(uire an initial investment outlay o! Tk.1#&&&#&&& 'e(uivalent o! )*+ -&&#&&&/. The three !ounding owners will provide Tk.%#&&&#&&&# each member contributing one-third o! the amount. The rest Tk.G#&&&#&&& would be borrowed !rom *mall and 8edium "nterprise '*8"/ division o! Frime $ank Ktd. at an annual interest rate o! -,4. The loan to be borrowed on ?anuary -# %&&.# would be repaid in -& years through -%& monthly installments. Though the potential consumer base is very large# the company will not start with cultivation capacity to !ully meet all demand. %, houses# %. houses# ,& houses# and ,. houses will be intensively used !or cultivation in the !irst three# second three# third three# and !our three months o! the !irst year respectively. The raw materials used in cultivationBproduction are mushroom spawn and polythene. 8ushroom spawn will be purchased on credit every three months. The next months polythene re(uirement will be purchased on the %.th o! the current month. Fayables de!erral periods o! spawn and polythene are %& days and -& days respectively. :urrent months salary will be paid on the .th o! the !ollowing month. Ei!ty percent o! the mushrooms produced in the !irst year will be sold !resh and the rest will be sold a!ter drying. The e!!ects o! promotional campaign in the !irst year would be to increase sales o! !resh mushrooms in the second year. The !irst three months o! the second year will observe a -&4 increase in sales o! !resh mushrooms !rom the sales o! the last three months o! the !irst year. The sales o! !resh mushrooms would increase by -&4 in the second year in three month intervals. 7!ter meeting the demand o! !resh mushrooms# the rest o! the yield o! the second year would be dried. 6ne percent o! the revenue !rom both !resh and dried mushrooms will be expended to provide trade discounts and !ree samples. Eresh mushrooms will be sold out immediately a!ter its production while -%4 o! the produce o! dried mushrooms will be in inventory. Twenty percent o! the !resh mushroom will be sold on credit with an average collection period o! receivables o! 3 days. The dried mushroom will be sold -&&4 on credit with an average receivables collection period o! -& days. The advertisement expenses !or year one and year two is expected to be .4 o! the net revenue o! the respective years. The pro!it o! the !irst and the second year will be completely retained in the company# i.e. there would be no dividend paid to the owners. In the end o! the !irst year# an amount o! Tk.-.#&&&#&&& will be invested in ED5 and I:$ investment port!olio. The average annual interest yield !rom such a port!olio is expected to be -&4. In the end o! the second year# an amount o! Tk.-2#&&&#&&&# which includes interest income o! the second year !rom the port!olio# would be reinvested in the same port!olio. The investment in government securities would help the company enjoy a tax holiday. In the third year# the company plans to establish sales centers in :hittagong and *ylhet. The retained earnings would provide su!!icient !unds !or this purpose. The company would not be !orced to borrow. >owever# the company would maintain a good relationship with the current loan providing bank through regular repayments. This relationship would help the company out# in case o! a sudden need !or external !unds. '*ee appendices -7# -$# %# ,# G7# G$# .7# .$# .:/.