LETTER OF TRANSMITAL

July 31, 2012
The Course Instructor
Entrepreneurship Development
Department of Management Studies
………………………………………..

Sub: Submission of Assignment/Report.

Dear madam,
With due respect, we would like to submit the report on Business plan. We have tried to gather all necessary information on the concentrated part of the report to enrich it. We believe that with our limited knowledge, this report will provide a core concept about a Business plan.

We have tried our level best to put thorough efforts for preparing the report. Any shortcoming or flaw may arise as we are very novice in this aspect. We will wholeheartedly welcome any clarification and suggestion about any view and conception disseminated in our report.

Sincerely Yours

Member of the GlobeNet
BBA, 5th Semester (Sec-B)
Department of management studies

Group List

Executive Summary

GlobeNet Wireless Broadband will be an innovative start-up company that will provide wireless broadband internet connections to several Dhaka Metropolitan Areas utilizing Wi-MAX technology, proprietary antennas and repeaters. GlobeNet will be able to serve a larger area with broadband Internet connections.

GlobeNet will be founded by Fahad Karim, with a MBA and an undergraduation on Computer Science from Harvard University (USA), Fahad has the skills to execute on this well-researched business plan. Fahad spent two years at Karim Associates, which gave him not only an incredible and reasonable boost in confidence to accomplish a business venture, but also provided him with solid project management skills and experience.

The market for wireless broadband Internet connection in Bangladesh is new but widely open. Demand for traditional broadband connections is a surpassing forecast. The wireless market is even more exciting due to the significantly lower costs needed in terms of delivery infrastructure. As GlobeNet's customer base grows, costs decrease through scales of economy, creating an even more compelling argument for GlobeNet's existence.

GlobeNet has already targeted three distinct groups. The first is students, a market segment that uses the Internet the most and also has high expectations regarding the speed of the connection. The second group is professionals, people with disposable income, do not have a lot of free time on their hands and a group that uses the Internet for both personal as well as professional purposes. The last group that has been targeted is techies. This group is the early adopters of any type of technology and spends incredible amount of time immersed in Internet technology.

GlobeNet will be a compelling business concept that will advance in technology and proprietary tools to offer a market needs at lower market prices. In addition to earning great margins with low infrastructure costs, margins increase as the customer base increases. This exciting business plan has a high likelihood of success with Fahad Karim responsible for the execution of it. The business will earn modest profits in year two, increasing exponentially in year three. Net profit is forecasted to be commensurate in years two and three.

[pic]

Table of content

|Sl No |Content |Page Number |
| |Introductory Plan |1 |
| |Objectives |2 |
| |Scope |2 |
| |Methodology |2 |
| |Limitation |3 |
| |Organizational Overview |3 |
| |Legal Form |3 |
| |Capital Environment |4 |
| |Management Summary |5 |
| |Personal plan |5 |
| |Business Plan |(6-12) |
| |Mission |6 |
| |Key to Success |6 |
| |Services |6 |
| |Strategy and Implementation summary |6, 7, 8, 9 |
| |Web Plan summary |9 |
| |Market analysis summary |10, 11, 12 |
| |Financial Plan |(12-18) |
| |Break even Analysis |12 |
| |Projected Profit and Loss |13, 14, 15 |
| |Projected Cash flow |15, 16 |
| |Projected balance sheet |16, 17 |
| |Business ratios |17, 18 |
| |Findings |18 |
| |Appendix |19 |

Introduction

GlobeNet
Wi-net BD Pvt. Ltd.
House # 19/B, D Block
59, South Gulshan Avenue, Dhaka. www.globenetbd.com GlobeNet Broadband Wireless is a Wi-NET BD Pvt. Ltd. Company provides broadband wireless internet connection across the Dhaka Metropolitan.

GlobeNet Wireless will be formed in 2013 to offer a reasonably priced wireless broadband Internet connection to compete with DSL or cable offerings. Using Wi-MAX technology, it is economical to set up a neighborhood network. The company will be founded by Fahad Karim. Fahad will rely on outside investors for the necessary start-up costs.

Objective of the report

The Objectives of the report are as follows.

1. Getting the overview ideal of the Business Plan. 2. Prepare ourselves for the making of executive report for any organization. 3. To face any future challenge. 4. To represent ourselves in a different way 5. Provide fast, reliable wireless Internet access. 6. Treat customers with the utmost respect. 7. Become profitable within two years.

Scope

The Scopes of the report are as follows: 1. Getting new ideas, views about creating new clients. 2. Expansion of knowledge and experience regarding operations of a business. 3. Getting inspiration to face future challenges in different sectors.

Methodology of the report

To complete the report we follow the following sources: 1. Entrepreneurship (Sixth Edition- Robert D Hisrich, Peters, Shepherd) 2. Dr. A R Khan (Entrepreneurship: Small business and life of successful entrepreneurs) 3. Internet.

Limitation

The Limitations of the report are as follows: 1. Unavailability of data. 2. Time consuming. 3. Huge formality.

Organizational Overview
The organization overview shares key descriptions of the organization. It should include information that will help interested external candidates better assess their fit with the organization and better understand the organization’s goals. A detailed overview can include information about: • History • Mission • Beneficiaries • Goals • Programs • Outcomes/Achievements • Budget • Founder

Legal form

GlobeNet Wireless will be formed in 2013 to offer a reasonably priced wireless broadband Internet connection to compete with DSL or cable offerings. Using Wi-MAX technology, it is economical to set up a neighborhood network. The company will be founded by Fahad Karim. Fahad will rely on outside investors for the necessary start-up costs.
GlobeNet Broadband Wireless is a Wi-NET BD Pvt. Ltd. company with Fahad Karim as the principal and major owner.

Capital Environment

[pic]

|Start-up Funding |
|Start-up Expenses to Fund |$9,500 |
|Start-up Assets to Fund |$60,500 |
|Total Funding Required |$70,000 |
|Assets |
|Non-cash Assets from Start-up |$5,000 |
|Cash Requirements from Start-up |$55,500 |
|Additional Cash Raised |$0 |
|Cash Balance on Starting Date |$55,500 |
|Total Assets |$60,500 |
|Liabilities and Capital |
|Liabilities |
|Current Borrowing |$0 |
|Long-term Liabilities |$0 |
|Accounts Payable (Outstanding Bills) |$0 |
|Other Current Liabilities (interest-free) |$0 |
|Total Liabilities |$0 |
|Capital |
|Planned Investment |
|Investor 1 |$15,000 |
|Investor 2 |$55,000 |
|Additional Investment Requirement |$0 |
|Total Planned Investment |$70,000 |
|Loss at Start-up (Start-up Expenses) |($9,500) |
|Total Capital |$60,500 |
|Total Capital and Liabilities |$60,500 |
|Total Funding |$70,000 |

Management Summary

Fahad Karim, founder and owner,is the anchor of the management team. Fahad received his under graduation degree on computer science from HARVARD University. While Fahad enjoyed the course work, he recognized that it was not something that he was interested in pursuing as a career. Fahad decided that it would be in his best interest to study for MBA, however, he was not immediately ready to do this. So Fahad headed off to Ghana with the Peace Corps to develop community-based trading systems. Fahad's Peace Corp experience was invaluable, providing him with extensive project management experience as well as giving him confidence that he could accomplish anything he set his mind out to do.
After getting back to the States, Fahad began the MBA program at the University of Chicago. Fahad's courses of study concentrated on entrepreneurial ventures, recognizing at some points his desire to start his own business. Near the end of his second year, Fahad began to hear about Wi-MAX technology. He became interested in what he saw was a strong market need for inexpensive broadband Internet connections transmitted wirelessly, thereby significantly decreasing delivery costs. Fahad formed GlobeNet Wireless to fulfill this market need.

Personnel Plan
The two main employees beyond Fahad are:
Technician: This position is responsible for the smooth operation of the wireless network as well as the website.
Administration: This is a general customer service position, assisting in sales and support.

|Personnel Plan |
|Year 1 |Year 2 |Year 3 |
|President |$24,000 |$36,000 |$48,000 |
|Technician |$19,800 |$21,600 |$21,600 |
|Administration |$15,000 |$18,000 |$18,000 |
|Total People |3 |3 |3 |
|Total Payroll |$58,800 |$75,600 |$87,600 |

Business Plan

Mission
It is GlobeNet Wireless's mission to provide fast, wireless Internet access at a reasonable price. The most important thing to remember is that every customer must be satisfied with our services.

Keys to Success • Practice disciplined growth.

• Reach profitability by year two.

• Ensure that the customer's needs are met and maintain a 90% customer retention ratio.

Services
GlobeNet offers wireless broadband Internet access. The service is DSL speed with customers only needing a Wi-MAX card/modem and to live within range of the signal which covers a thirty block radius currently. There are plans to enlarge the coverage area as more customers sign up.
Wi-MAX technology is based off of 2.4 Mhz spectrum wireless transmissions. Using the same wave lengths that some cordless phones use, the Internet signals are broadcasted out through the neighborhood. With the supplied password and a Wi-MAX receiver in each customer's computer, customers will have fast, wireless Internet connections.

Strategy and Implementation Summary
Simply put, GlobeNet' strategy is to offer a service, demanded by customers, at a price that undercuts the competition. This will be accomplished, not by accepting below-market margins, but by leveraging technology, to help drive GlobeNet' costs down. Awareness regarding GlobeNet' services will be generated effectively and inexpensively to the specific target segments that GlobeNet has focused on.

Competitive Edge
GlobeNet' competitive edge is the effective and efficient use of Wi-MAX technology. Wi-MAX, while a fairly recent technology, has been adopted by several different service providers as well as used for home-based networks. What provides GlobeNet with a competitive edge is its efficient use of the technology. GlobeNet has developed a proprietary antenna that allows for signal transmission over great distances with less signal loss. Additionally, GlobeNet has significantly reduced administrative costs by having most administrative activities like marketing, sales, and service details administered via the Internet.

Marketing Strategy
As the name implies, GlobeNet will be using a GlobeNet approach to developing awareness of the offered services. GlobeNet will adopt a multi-pronged marketing approach:

Advertising/postings with local retailers and commercial businesses. This will provide GlobeNet with great visibility in the exact community that it operates in.

Mailings. GlobeNet will adopt a targeted mailing campaign to local residents.

Website. GlobeNet will leverage its website as a comprehensive and efficient source of marketing/sales information.

Sales Strategy
The sales strategy that GlobeNet will adopt is based on developing an awareness of GlobeNet' service as a viable alternative to Cable and DSL within the community. The message used will be that you can receive broadband speed connections to your computer, wherever it may be, even your laptop on your front lawn, at a price that is a fraction of the current competitors'. This will be done with targeted advertising with local retail/commercial establishments in the area. Additionally, GlobeNet will rely on mailings to get the word out. Lastly, GlobeNet will have a website for marketing, sales, and administrative purposes.

Sales Forecast
GlobeNet has developed a conservative sales forecast. Adoption rates of customers are fairly steady from one month to the next. A conservative approach has been adopted to minimize any external variables that may effect future operations.
GlobeNet believes that it will experience extensive growth for several years for several reasons. The first is the general adoption of broadband connections which has been encouraging for the last several years. Another reason GlobeNet believes their forecast to be accurate is it offers a viable, less expensive alternative to current broadband connections.

[pic]
|Sales Forecast |
| Year 1 |Year 2 |Year 3 |
|Sales |
|Monthly Internet Service |$36,584 |$132,665 |$211,443 |
|Other |$0 |$0 |$0 |
|Total Sales |$36,584 |$132,665 |$211,443 |
|Direct Cost of Sales |Year 1 |Year 2 |Year 3 |
|Administrative costs |$1,829 |$6,633 |$10,572 |
|Other |$0 |$0 |$0 |
|Subtotal Direct Cost of Sales |$1,829 |$6,633 |$10,572 |

Milestones
Milestones are a very important aspect of a business plan. They provide concrete, achievable, yet lofty goals that the business must concentrate on. By targeting lofty goals, GlobeNet ensures that it is aiming high, therefore it is more likely to achieve more. The milestones that GlobeNet has chosen are very specific to the company and will be embraced by all employees.

[pic]

|Milestones |
|Milestone |Start Date |End Date |Budget |Manager |Department |
|Business plan completion |1/1/2003 |2/1/2003 |$0 |Fahad |Management |
|First 10 customers |1/1/2003 |3/30/2003 |$0 |Fahad |Sales |
|Profitability |1/1/2003 |2/1/2004 |$0 |Fahad |Operations |
|Enlargement of the network |1/1/2003 |2/1/2004 |$0 |Fahad |Operations |
|Totals |$0 |

Web Plan Summary
The website will be used for: • Marketing/sales; • Administrative functions.

Website Marketing Strategy
All of GlobeNet' marketing information will be present on the website for viewing and for downloading/printing. Awareness regarding the website will be accomplished by inclusion of the website address on all printed materials. Additionally, the website will have a comprehensive submission procedure to all of the popular search engines.
Development Requirements
The website will be developed in-house by leveraging interns.
Market Analysis Summary
Within the last three years there has been a proliferation of broadband Internet connections. With so many people enjoying fast connections at work, they are no longer willing to deal with a dial-up connection at home. With the advent of Wi-MAX technology, customers can now enjoy a fast connection without having to lay expensive cables since the signal is sent via radio waves. The targeted market segments are: students, professionals, techies.

Market Segmentation
The market can be segmented into three distinct groups:

• Students: these are people currently in academia and are accustomed to fast connections and are willing to pay for it. This group uses the Internet the most, whether they are trading MP3s or downloading videos.

• Professionals: this group conducts a fair amount of business over the Internet, whether banking, e-commerce, or communications.

• Techies: this group embraces technology as they enjoy challenging themselves with technology and the complexity it brings.

Other than the students, GlobeNet' customers are fairly affluent (household income of >$50,000) and spend their money on technology offerings, whether it is digital cable, cellular service, or broadband Internet connections. The target customers are also generally well educated with 65% having a college degree and 20% having a graduate degree. Combining several demographic factors, GlobeNet arrives at the following primary customer profile:

• Spends 10 hours a week on the Internet away from home.

• Has purchased something from a website at least once within the last two months.

• Educated with at least some course work for an undergraduate degree.

• Household income of at least $50,000.

[pic]

|Market Analysis |
|Year 1 |Year 2 |Year 3 |Year 4 |Year 5 |
|Potential Customers |Growth |CAGR |
|Students |9% |54,000 |58,860 |64,157 |69,931 |76,225 |9.00% |
|Professionals |8% |34,000 |36,720 |39,658 |42,831 |46,257 |8.00% |
|Techies |11% |10,000 |11,100 |12,321 |13,676 |15,180 |11.00% |
|Total |8.87% |98,000 |106,680 |116,136 |126,438 |137,662 |8.87% |

Target Market Segment Strategy
GlobeNet has chosen the three aforementioned target markets due to their adoption of broadband Internet technology. It is these three groups that are most likely to use a fast connection and the most willing to pay a premium for the connection.

Service Business Analysis
There are three main participants within the consumer broadband Internet market.

• DSL (digital subscriber line). A connection that utilizes the copper phone lines as the method of transmission.

• Cable. A connection that uses cable TV wiring for transmission.

• Satellite connections. These use satellites, in orbit to provide "cable" TV as well as Internet connections to residential and remote consumers.
Competition and Buying Patterns
As mentioned in the previous section, DSL, cable, and satellite access are the competitors in the broadband market. Consumer buying patterns are based on two factors:

• Availability: not every type of broadband connection is available to every consumer. Consumers often pick service providers based on what is available to them.

• Convenience: this is often based on where the outlet cords are based in the house, whether the computer will be located closer to the cable TV or nearer to a phone jack.

Financial Plan

The following sections outline important financial information.
Break-even Analysis
Average per-unit revenue: based on the $20 monthly access fee.
Average per-unit variable cost: costs based on infrastructure, and administrative costs. Estimated monthly fixed costs: Internet connections costs.

[pic]

|Break-even Analysis |
|Monthly Revenue Break-even |$8,072 |
|Assumptions: |
|Average Percent Variable Cost |5% ($ 404) |
|Estimated Monthly Fixed Cost |$7,668 |

Projected Profit and Loss
The following table and charts show the Projected Profit and Loss.

[pic]

[pic]

[pic]

|Pro Forma Profit and Loss |
|Year 1 |Year 2 |Year 3 |
|Sales |$36,584 |$132,665 |$211,443 |
|Direct Cost of Sales |$1,829 |$6,633 |$10,572 |
|Other Costs of Sales |$0 |$0 |$0 |
|Total Cost of Sales |$1,829 |$6,633 |$10,572 |
|Gross Margin |$34,755 |$126,032 |$200,871 |
|Gross Margin % |95.00% |95.00% |95.00% |
|Expenses |
|Payroll |$58,800 |$75,600 |$87,600 |
|Sales and Marketing and Other Expenses |$2,400 |$5,600 |$12,000 |
|Depreciation |$996 |$1,002 |$1,002 |
|Rent |$2,400 |$2,400 |$2,400 |
|Utilities |$9,600 |$13,000 |$15,000 |
|Insurance |$3,000 |$3,000 |$3,000 |
|Payroll Taxes |$8,820 |$11,340 |$13,140 |
|Other |$6,000 |$6,000 |$6,000 |
|Total Operating Expenses |$92,016 |$117,942 |$140,142 |
|Profit Before Interest and Taxes |($57,261) |$8,090 |$60,729 |
|EBITDA |($56,265) |$9,092 |$61,731 |
|Interest Expense |$0 |$0 |$0 |
|Taxes Incurred |$0 |$2,427 |$18,219 |
|Net Profit |($57,261) |$5,663 |$42,510 |
|Net Profit/Sales |-156.52% |4.27% |20.10% |

Projected Cash Flow
The following table and chart display the Projected Cash Flow.

[pic]

|Pro Forma Cash Flow |
|Year 1 |Year 2 |Year 3 |
|Cash Received |
|Cash from Operations |
|Cash Sales |$36,584 |$132,665 |$211,443 |
|Subtotal Cash from Operations |$36,584 |$132,665 |$211,443 |
|Additional Cash Received |
|Sales Tax, VAT, HST/GST Received |$0 |$0 |$0 |
|New Current Borrowing |$0 |$0 |$0 |
|New Other Liabilities (interest-free) |$0 |$0 |$0 |
|New Long-term Liabilities |$0 |$0 |$0 |
|Sales of Other Current Assets |$0 |$0 |$0 |
|Sales of Long-term Assets |$0 |$0 |$0 |
|New Investment Received |$0 |$0 |$0 |
|Subtotal Cash Received |$36,584 |$132,665 |$211,443 |
|Expenditures |Year 1 |Year 2 |Year 3 |
|Expenditures from Operations |
|Cash Spending |$58,800 |$75,600 |$87,600 |
|Bill Payments |$31,112 |$49,195 |$77,871 |
|Subtotal Spent on Operations |$89,912 |$124,795 |$165,471 |
|Additional Cash Spent |
|Sales Tax, VAT, HST/GST Paid Out |$0 |$0 |$0 |
|Principal Repayment of Current Borrowing |$0 |$0 |$0 |
|Other Liabilities Principal Repayment |$0 |$0 |$0 |
|Long-term Liabilities Principal Repayment |$0 |$0 |$0 |
|Purchase Other Current Assets |$0 |$0 |$0 |
|Purchase Long-term Assets |$0 |$0 |$0 |
|Dividends |$0 |$0 |$0 |
|Subtotal Cash Spent |$89,912 |$124,795 |$165,471 |
|Net Cash Flow |($53,328) |$7,870 |$45,972 |
|Cash Balance |$2,172 |$10,042 |$56,014 |

Projected Balance Sheet
The following table presents the Projected Balance Sheet.

|Pro Forma Balance Sheet |
|Year 1 |Year 2 |Year 3 |
|Assets |
|Current Assets |
|Cash |$2,172 |$10,042 |$56,014 |
|Other Current Assets |$0 |$0 |$0 |
|Total Current Assets |$2,172 |$10,042 |$56,014 |
|Long-term Assets |
|Long-term Assets |$5,000 |$5,000 |$5,000 |
|Accumulated Depreciation |$996 |$1,998 |$3,000 |
|Total Long-term Assets |$4,004 |$3,002 |$2,000 |
|Total Assets |$6,176 |$13,044 |$58,014 |
|Liabilities and Capital |Year 1 |Year 2 |Year 3 |
|Current Liabilities |
|Accounts Payable |$2,938 |$4,142 |$6,603 |
|Current Borrowing |$0 |$0 |$0 |
|Other Current Liabilities |$0 |$0 |$0 |
|Subtotal Current Liabilities |$2,938 |$4,142 |$6,603 |
|Long-term Liabilities |$0 |$0 |$0 |
|Total Liabilities |$2,938 |$4,142 |$6,603 |
|Paid-in Capital |$70,000 |$70,000 |$70,000 |
|Retained Earnings |($9,500) |($66,761) |($61,098) |
|Earnings |($57,261) |$5,663 |$42,510 |
|Total Capital |$3,239 |$8,902 |$51,412 |
|Total Liabilities and Capital |$6,176 |$13,044 |$58,014 |
|Net Worth |$3,239 |$8,902 |$51,412 |

Business Ratios
|The following table illustrates the different Business Ratios, based on NAICS code 518111, Internet Service Providers. |
|Ratio Analysis |
|Year 1 |Year 2 |Year 3 |Industry Profile |
|Sales Growth |0.00% |262.63% |59.38% |15.97% |
|Percent of Total Assets |
|Other Current Assets |0.00% |0.00% |0.00% |56.35% |
|Total Current Assets |35.17% |76.99% |96.55% |87.48% |
|Long-term Assets |64.83% |23.01% |3.45% |12.52% |
|Total Assets |100.00% |100.00% |100.00% |100.00% |
|Current Liabilities |47.56% |31.76% |11.38% |30.66% |
|Long-term Liabilities |0.00% |0.00% |0.00% |23.07% |
|Total Liabilities |47.56% |31.76% |11.38% |53.73% |
|Net Worth |52.44% |68.24% |88.62% |46.27% |
|Percent of Sales |
|Sales |100.00% |100.00% |100.00% |100.00% |
|Gross Margin |95.00% |95.00% |95.00% |100.00% |
|Selling, General & Administrative Expenses |251.52% |90.73% |74.90% |73.80% |
|Advertising Expenses |0.00% |0.00% |0.00% |1.37% |
|Profit Before Interest and Taxes |-156.52% |6.10% |28.72% |1.03% |
|Main Ratios |
|Current |0.74 |2.42 |8.48 |1.97 |
|Quick |0.74 |2.42 |8.48 |1.50 |
|Total Debt to Total Assets |47.56% |31.76% |11.38% |59.78% |
|Pre-tax Return on Net Worth |-1767.98% |90.88% |118.12% |2.93% |
|Pre-tax Return on Assets |-927.10% |62.02% |104.68% |7.28% |
|Additional Ratios |Year 1 |Year 2 |Year 3 |
|Net Profit Margin |-156.52% |4.27% |20.10% |n.a |
|Return on Equity |-1767.98% |63.62% |82.69% |n.a |
|Activity Ratios |
|Accounts Payable Turnover |11.59 |12.17 |12.17 |n.a |
|Payment Days |27 |26 |24 |n.a |
|Total Asset Turnover |5.92 |10.17 |3.64 |n.a |
|Debt Ratios |
|Debt to Net Worth |0.91 |0.47 |0.13 |n.a |
|Current Liab. to Liab. |1.00 |1.00 |1.00 |n.a |
|Liquidity Ratios |
|Net Working Capital |($765) |$5,900 |$49,412 |n.a |
|Interest Coverage |0.00 |0.00 |0.00 |n.a |
|Additional Ratios |
|Assets to Sales |0.17 |0.10 |0.27 |n.a |
|Current Debt/Total Assets |48% |32% |11% |n.a |
|Acid Test |0.74 |2.42 |8.48 |n.a |
|Sales/Net Worth |11.30 |14.90 |4.11 |n.a |
|Dividend Payout |0.00 |0.00 |0.00 |n.a |

Findings
The number of clients are increasing rapidly, but there is a lack of wireless broadband internet suppliers. So there is a great possibility to capture a huge clients.
The main threat is fluctuation of data speed which has been found out by the researchers.
The field of wireless broadband usage is capturing new dimensions as per as the technology is improving significantly.
Due to the implementation of new strategies by other suppliers we need to ensure great care for each and every client.
Huge capital is needed to ensure more coverage in comparison with the price hike of different necessary materials.
It is estimated that we should have a capital of about $100000. Since we have five entrepreneurs so we need to arrange another $30000 to survive in the market.
We have already consulted with our target clients to get their views and we have got some surprising forecasts about their demands and we have a plan to maximize customer satisfaction.