FINANCIAL PLANNING AND FORECASTING

REVENUE FORECAST

We have estimated the expected sales for our company Bahon for the next 3 years using

our best judgement. For the entire business plan, the assumptions that we are setting is extremely

important and solely based on judgement. Initially, in our first year of operation, we have

assumed a conservative position with a base number of services of only 300 in the first month.

As we move forward, we have assumed an exponential increment in our service’s demand, and

therefore, driving up the number of services in every month till December. For the 2023, we

have broken down our implied revenue on a monthly basis.

We have used exponential smoothing to derive a more accurate analysis of our

calculation for the number of services provided per month in the year 2023. The service charge

per user has been assumed to be TK 82 BDT inside the target areas on average per user

considering the increase in crude oil and gas price, and the overall inflationary effects on the

economy. Due to our heavy marketing and promotional events, we are expecting a sharp increase

in our user base for the months following January. The following contains the monthly sales

breakdown for the year 2023.

Marc
Month Jan Feb h April May June July Aug Sept Oct Nov Dec
Number of
Services 300 470 607 775 980 1,227 1,523 1,875 2,290 2,778 3,347 4,007
Service Charge
per user 82 82 82 82 82 82 82 82 82 82 82 82
24,60 38,50 49,75 63,56 80,37 100,64 124,90 153,74 187,80 227,77 274,41 328,55
Revenue 0 7 8 9 2 1 6 9 6 6 7 3
Total
Revenue in
2023 1,654,653
Next, we have calculated the forecasted revenue for the year 2024 to 2026 using similar

exponential smoothing factors to determine the implied total number of services in the respective

years.

Year 2023 2024 2025 2026

Number of Services 20179 27667 31245 39382
Service Charge per user 82 82 82 82
Revenue 1654653 2,268,722 2,562,074 3,229,296

EXPENSES
Cost of Service: For cost of service, we are not assuming any depreciation. We assumed most of
our costs in development of our app-based mobile and web applications, and the maintenance
cost following that.

Year 2023 2024 2025 2026

Cost of Development 25,000 25,000 30,000 30,000

Customer Service and
Support 15,000 20,000 28,000 40,000
Web Development and
Maintenance 28,000 28,000 32,000 35,000

Total of Service 68,000 73,000 90,000 105,000

Marketing and Promotional Expenses:

Year 2023 2024 2025 2026

Marketing Expenses 250,000 350,000 420,000 500,000

Promotional Expenses 80,000 100,000 150,000 180,000
Advertising Expense 150,000 200,000 350,000 500,000
Flyers and brochures 8000 10,000 12,000 14,000
 Total 488,000 660,000 932,000 1,194,000

Administrative Expenses:

Year 2023 2024 2025 2026

Employee Salaries and
300,000 500,000 600,000 750,000
Wages
Office Rent 100,000 100,000 200,000 200,500

Miscellaneous 20,000 30,000 50,000 60,000

Total Administrative
420,000 630,000 850,000 1,010,500
Expenses

PROJECTED FINANCIAL STATEMENTS

Pro-forma Statement of Profit and Loss

Year 2023 2024 2025 2026

Total Revenue 1654653 2,268,722 2,562,074 3,229,296
Cost of Service 170,000 206,000 256,600 326,960
Gross Profit 1,484,653 2,062,722 2,305,474 2,902,336
Marketing and Promotional Expenses 488,000 660,000 932,000 1,194,000
Administrative Expense 420,000 630,000 850,000 1,010,500
Total Operating Expenses 908,000 1,290,000 1,782,000 2,204,500
Total Operating Profit 576,653 772,722 523,474 697,836
Discounts and Promotional Offer 100,000 100,000 120,000 150,000
Legal Expense 40,000 - - -
Total Other Expenses 140,000 100,000 120,000 150,000
EBIT 436,653 672,722 403,474 547,836
Interest Expense 40,000 70,000 80,000 100,000
EBT 396,653 602,722 323,474 447,836
Tax 99163 150681 80869 111959
Net Profit 297,490 452,042 242,606 335,877

Pro-Forma Statement of Cash Flow

Year 2023 2024 2025 2026

Cash Flow from Operating Activities
Net Profit 297,490 452,042 242,606 335,877
Depreciation 30,000 50,000 70,000 100,000
Change in Accounts 80,000 40,000 20,000 30,000
Payable
Change in Supplies (110,000) (90,000) (100,000) (60,000)
Total Operating Cash Flow 297,490 452,042 232,606 405,877
Cash flow from Financing Activities
Total Financing Cash Flow 100,000 65,000 80,000 110,000
Cash flow from Investing Activities
Purchase of equipment (300,000) (70,000) (100,000) (250,000)
Increase in Intangible 150,000 70,000 100,000 150,000
Assets
Total Investing Cash Flow -150,000 0 0 -100,000
 Pro-Forma Balance Sheet

Year 2023 2024 2025 2026

Assets
Current Assets

Cash 400,000 550,000 650,000 500,000

Supplies 300,000 360,000 504,000 705,000
Total Currents Asset 700,000 910,000 1,154,000 1,205,000
Non-Current Asset
Equipment 400,000 200,000 200,000 200,000
Accumulated Depreciation (40,000) (75,000) (140,000) (165,000)
Intangible Asset 200,000 150,000 300,000 450,000
Total Non-Current Asset 560,000 275,000 360,000 485,000
Total Asset 1,260,000 1,185,000 1,514,000 1,690,000
Total Liabilities & Equity
Liabilities
Current Liabilities - - - -
Short term liability 100,000 150,000 150,500 200,000
Total Current Liabilities 150,000 200,000 250,000 300,000
Non-current Liabilities
Long Term liability - - - -
Total Non-current - - - -
Liabilities
Total Liabilities 150,000 200,000 250,000 300,000
Equity
Partner's Equity 1,110,000 985,000 1,264,000 1,390,000
Retained Earnings - - - 120,000
Total Equity 1,110,000 985,000 1,264,000 1510,000
Total Equity and liabilities 1,260,000 1,185,000 1,514,000 1810,000
Break Even Analysis

While most delivery services are a demand for a big metropolitan city such as Dhaka, the
number of quality service providers are quite scarce. Keeping that in mind, our goal is to provide
the excellent top-of-the-shelf service against our competitors and quickly grab a significant
market share. With that goal in mind, we plan to heavily invest on marketing and promotional
campaigns. This drives up our operational costs, however, with using our best judgement, and
considering the potential demand in the market, our projections and analysis gives us a small but
a positive Net profit from our first year, given we received investments from an experienced
angel investors with particular expertise on the market. With all the insights and wisdom, we are
confident in our judgment that we will reach breakeven at the start of our beginning operational
year. Keeping that in mind, we did not find it necessary to show a detailed calculation of the
break-even analysis.

Sources of Fund

In the initial stage of we assumed a capital investment of 2000,000. We have a total of four
partners, and we will contribute BDT TK 250,000 each. The rest BDT 1000,000 TK will be
funded by an angel investor, for a 10% equity in the company. As we are initially financing our
business through capital investments, we will not be highly leveraged company. We will only
acquire some short-term loans to meet our short-term operational obligations.
Statistical Indicators and Ratios
Return on investment (ROI)

25.00%
22.60%

20.00%
16.79%
14.87%
15.00%
12.13%

10.00%

5.00%

0.00%
2023 2024 2025 2026

From the graph above, we can determine the health of our business within the next few years. As

per our best judgments in the pro-forma projected financial statements, we can gauge the return

on our business. We can see a positive growth in our ROI till the year 2026.
Net Profit Margin

Net Profit Margin

25

19.9249621593126
20
17.9789962004118

15
Net Profit Margin

10.4009356838147
10 9.46912540387202

0
2023 2024 2025 2026

From the above graph, we can analyze the Net Profit margin for our company in the next 4 years.
AS we can see a steady growth from 2023 to 2024, we can however see a decline in 2025, which
indicates a heavy investment for capital expenditures for possible expansion of the company.
Later, we can again see an upward trend from 2026 in our NPM.
Return on Asset

ROA
45%
40% 38%

35%
30%
25% 24%
20%
20%
16%
15%
10%
5%
0%
2023 2024 2025 2026

We have calculated the ROA for our business using the pro-forma statements. As we can see,

there is a sharp increase from the year 2023 to 2024, however, we can also see a massive decline

in 2025, and then again, the company ROA increased in the year 2026, which simply implies that

the company made several capital expenditures and very likely to squeeze more profits in the

coming future.