OUR proposed Social Business Plan

Name: The proposed name for our organization is Sopnokhutir Housing society. Address: We are yet to fix a land for our housing project but according to our plan the site for our housing project should be in Fatullah or Pagla. Principles: The main aim of our business is to provide proper housing facilities for the deprived slum dwellers of Dhaka city without taking any initial charges from them. We will ensure better water supply and adequate number of sanitary latrines in our housing project. There will be a waste disposal system in our housing project in order to ensure the cleanliness of the project. We will develop our project in a legal property unlike the illegal slums of Dhaka city. The residents of our housing project will be given opportunities in the income generation activities, based on their existing skills.

Nature of Business: Sopnokhutir Housing society is a non-profitable organization that intends to run a social business for the noble cause of improving the life standards of the urban poor people of Dhaka who are leading their life in a miserable way in the slums.

1|Page

Confidentiality of the Report

Information, data and drawings embodied in this business plan are strictly confidential and are supplied on the understanding that they will be held confidentially and not disclosed to third parties without the prior written consent of the following persons:

Avijit Ghosh & Jaker Jahan Shuvra Entrepreneurs Sopnokhutir Housing society

2|Page

Financial assistance needed

Sopnokhutir Housing societyis a non-profitable organization that aims at providing housing facilities to the underprivileged people who are living in poor conditions in the slums of Dhaka city. We would like to provide housing facilities to these urban poor people with taking any large amount of initial charges. But we will engage the residents of our housing society in income generation activities in order to repay the loan taken from the investors. As its mentioned earlierSopnokhutir Housing societywill run a social businessfor a noble cause. In order to strengthen our positive initiative,Sopnokhutir Housing societyneeds financial assistance from the influential people from our society. The initial estimated investment required to start our project is around 2300000(2 core thirty lac taka). We are very hopeful that the dedicated souls of our society will come forward to help us for the noble cause. Let us make a better world together. With Regards, Avijit Ghosh & Jaker Jahan Shuvra Entrepreneurs Sopnokhutir Housing society

3|Page

Executive Summary
Bangladesh, with a population of 147.4 million is one of the poorest countries in the world; with an estimated 3.4 million people live in some 5000 slums of its capital city, Dhaka. In 2010, the population of the city of Dhaka has been projected at 17.6 million people, with up to 60% living in the slums. Most of these slum dwellers are leading a very miserable life and suffer thousands of problems in their everyday life. Some of the major problems faced by the residents of slum are: 1. Unhygienic living condition, 2.absence of a legal lease or title, 3. inadequate living space and 4.scarcity of safe drinking waters and toilets. Despite of such poor conditions every day we observe the influx of hundreds of new people to the city of Dhaka who accommodate themselves in those slums. But why people in such a large number are coming to Dhaka? There are two factors behind it: a) pull factor and b) push factor. Bangladesh is urbanizing fast. People are moving to places where there are or perceived to have jobs and opportunities. The cities are the new centers of jobs and opportunities. The bigger the centre, the stronger is the pool. Dhaka is the primate city in Bangladesh according for over 30% of the total GDP. It is pulling rural migrants faster and larger than any other cities in Bangladesh. Findings showed that, 56% people migrated to Dhaka city for economic reasons. There are also some push factors working in the process of migration to the cities, especially to Dhaka city. Now-a-days maximum slum dwellers are one kind of environmental migrants. The often natural disasters: flood, drought, cyclones, riverbank erosion destroys the agricultural outcomes every year. While Bangladesh is an agro-based country these disasters are much painful for the farmers and they are obliged to go to the cities. The job sectors of rural areas are not much strong so people are pushed to the cities. According to the Bangladesh Demographic and Health Survey centre (BDHS) conducted upon the slum dwellers revels that most of the respondents of the survey (89%) did not feel that they lived in a hygienic environment, and 93% felt that the slum had lead to disease or ill health in their families. The most desirable place to live was felt to be in their village of origin (57%), while others dreamed of living in higher-class places in the city (14%), a place more quiet (14%) or free of mosquitoes (5%). Only 6% were happy in their current
4|Page

location. Evils described were unclean latrine facilities(30%), harassment by slum owners and need to pay bribes(10%), lack of employment(32%), mosquitoes(86%), extremes of heat(5%), lacking roof(11%), harassment of women(7%), lack of available fuel/gas(17%) and lack of food(3%). Barriers preventing to a move to a more desirable location were stated as a lack of funds (91%), lack of land (11%), inability to find work (10%), lack of government assistance (14%), illiteracy (2%) and large family size (1%). So to improve the living standards of those urban poor people we need to provide them with proper housing facilities at a minimum price and the main objective behind the development of Sopnokhutir housing society is exactly that. Our aim is to provide hygienic and satisfactory housing facilities to the slum dwellers of Dhaka city through this housing project. This housing project can be termed as a social business since our main motive is to provide better accommodation facilities to the deprived slum dwellers of Dhaka. In the initial stage we will launch a campaign in the slum areas of the Dhaka city to introduce our plan among the deprived people of the slums who are looking for better living facilities. From this campaign we will select forty families from any of the slums of Dhaka city. We assume these forty families will constitute a population size of 200 people. In our first project we will provide proper housing facilities to these 200 people. In order to develop our first project we will buy a land of 14400 square feet (20 khata) adjacent to the Dhaka city most probably in the area of Fathulla or Pagla. We will build a total of twenty two storied houses using clay, bamboo, wood and thatch. Two families will be accommodated in the top and the ground floor of each house. We will develop a biogas plant inside our project arena so that all the families get access to the hydraulic gas. In order to provide electricity a solar panel will be establish on the roof of every house. There will be no scarcity of safe drinking water and toilets inside the arena. There will be ten tube wells and fifteen sanitary latrines inside the project field. All together it will be a perfect accommodation for the poor people for our community. There will be no such problem of harassment by slum owners, mosquitoes, extremes of heat, lacking roof, harassment of women or lack of available fuel/gas . It will be a proper accommodation for the deprived people of our society in a calm place where they will feel like they are in their villages.

5|Page

Our plan is to provide all those facilities to the poor slam dwellers without any initial charge. To develop our project we will take bank loan or monetary assistance from the affluent people of the society. Since it is a social business project we hope we will get the aid. But at the same time we will also assure a certain profit margin for the investors. In order generate revenue from our project we will develop four different earning sources inside the project arena. We will create two different gardens for fruits and vegetables. Moreover we will plant plenty of trees inside the project field. We will develop a poultry firm and a cow firm in our project. According to our project plan we will also dig a pond inside the project for fish cultivation. In all those ventures the male members of the family will work as a labor. For that we will constitute a contract with the families who will be helped through this project. The contact will make sure that at least two adult members from each family will work as a labor in our revenue generating projects for a minimum of fifteen years from the date they will be handed over their houses. According to the contract a good amount of wage will be provided to all the labors. Moreover, we will provide a sewing machine to every family so that the female members of the family can also participate in the revenue generating activities and at the same time earn some money for them. Before providing employment opportunities all the working members of the families will be trained properly. From all those projects we will be able to generate a large amount of revenue every year. We will repay our loans though this money. According to our calculations we will be able to pay back all our loans within ten years from the day the project will start. After repaying our loans within ten years we will be able to produce profit from that project which we have planned to use in other socially beneficial sectors. For the overall maintenance of the project there will be a management team consisting ten members. This team will submit a monthly report to the higher authority engaged with this project. A meeting will be arranged once in a month between the families and authority where various issues regarding the project will be resolved. Proper control and feedback mechanism will be developed so that all the problems regarding the project can be solved quickly.

6|Page

Market Analysis:
Dhaka has been recognized as a hub of both economic and political activities of Bangladesh since the seventh century. The earliest available map shows Dhaka extending over an area of only about 1.5 square kilometers near the junction of the Dholai Khal and Buriganga River. Dhaka will be the second largest city in the world in terms of population by 2015, next to Tokyo, with a growth of urban population at a rate of 3.1 per cent per year, according to a report of the United Nations Population Division on agglomeration in the world cities. By then, the projected population of the metropolis will rise to 21.1 million.

Bangladesh's rate of urbanization is 3.15 per cent indicating the mounting housing pressure on Dhaka. The physical feature survey in the city corporation area reveals that there are nearly 225,000 permanent structures, which can accommodate three to four million people. The remaining nine million people dwell in semi-permanent or temporary structures in slums and squatters. So, all those suggest us that a increasing number of people in Dhaka are living in the slums where they are deprived of basic living facilities. The current condition of the slums in Dhaka has been described below: Most of Slums of Bangladesh is situated in Government land and land of railway department is one of the most common locations of Slums. Slums are growing rapidly, now 19.4% of total population of Dhaka City lives in the Slums and lack of government officials presence and activeness are main reason working behind the growing Slums of Dhaka City in the Government Property. Some of the slum lands are owned by a landowner who leases the land giving permissions to build a bamboo shelter to use as a home. Landowners are not thought to pay government taxes and are not accountable for the conditions or safety of the slums. Government land is also illegally occupied by so-called musclemen, who build slum dwellings or rent bare land plots, and allegedly maintain corrupt links with police and political parties; the remainder lived on these lands. On top of rent and the cost of security paid to the landowners and muscle men, the subjects were variably charged for the use of facilities such as toilet, drinking water, bathing water, electricity and gas. All families lived in one-room dwellings, with construction usually of
7|Page

bamboo frame, fencing and roof. Forty-five of 100 dwellings were built elevated over water. An average of 5 people lived in each room, and four families had over eight individuals in one room. Drinking water was from a tube well for most, and five to 100+ families shared each well. The rest used city tap water, also sharing one tap among many. A latrine area (pit or elevated) was located outside the room for most. The rest used a lake, river or non designated latrine areas as a toilet. Bathing water was from a tube well, standing water or river water, and subjects bathed themselves and their children daily, and their clothes 2-7 times per week. Electricity was available to a small number of families though most of them get electricity in their rooms in an illegal way. In the slums there every family has three to four children. Only a small portion of the school-aged children attends school. A large portion of the students could read and write. Children go to work in their early ages to support the household. Childrens health has always been reported to be very poor. Reasons for poor health included rheumatic fever, tuberculosis, leprosy, abscess, epilepsy, disabled hand or leg, kidney disease and non-specific descriptions Immunization . There is a lack of health care facilities in the slum areas. Most of the slum dwellers are uneducated, lives in unhygienic and difficult conditions, works in the informal service sector and consumed a diet low in protein. Health concerns include a variety of acute and chronic conditions. Slum dwellers are comprised of distressed migrants from rural areas, with poverty-driven urbanization due to unsustainable rural economy. Most of the slum dwellers want to get rid of those miserable situations and want to get access of a better living condition. They want to have a hygienic accommodation where there will be no scarcity of safe drinking water and sanitary latrines. They want to live in a legal property in a permanent basis so that the law enforcing authority cant withdraw themselves from their house. They want to get access of natural gas and electricity in a legalized way to avoid disconnection although the slum dwellers dont earn enough to pay the electricity or gas bill. Moreover, they want to live in a quiet place free from hustle and bustle of the city.

8|Page

This is the list of facilities we would like to provide to the slum dwellers through our housing projects: Improved housing and shelter for the slum and squatter dwellers. Better water supply inside the housing project. Adequate number of sanitary latrines for a hygienic living environment. Maintaining safety of all the residents of the housing project. Providing access to gas/fuel and electricity. Accommodation in a legalized property. Improving the garbage disposal system at the living area. Providing opportunities in the income generation activities, based on their existing skills. Overall a housing solution for slum dwellers in a clam place adjacent to Dhaka city. We, the Sopnokhutir Housing society plans to provide all those facilities to the deprived slum dwellers of Dhaka city so that they can lead their life in better living conditions. We believe if we take this initiative most of the slum dwellers will be eager to grave such opportunities. No other organizations have worked on such noble concepts before, so we will be the first mover in this industry. We believe through this housing project we will be able to improve the life standards of the underprivileged slum dwellers.

9|Page

Architectural Plan of Our Project

10 | P a g e

Satellite and Side Views

11 | P a g e

Operational Plan
poultry

Fishing

Dairy Firm

Sewing

Crops

Fig: Agro Product Line

*** Land price appreciation is also a useful tool to maximize assets.

12 | P a g e

Operational Plan
Approximate Revenue Source Poultry Firm Investment 500,000 Approximate Return(per year) 3,60,000 In this Project we firm chicken and producing poultry chicken & egg. We will try to make a hygienic product those will be sold to premium customers. Five star hotels, Hospitals, and selective group of people will our target Customer. Fishing 10,00,000 4,20,000 According to an agriculture specialist 10 taka price per fish can be worth of 100 to 200 taka fish within one year. Firming Vegetable 500,000 480,000 Hybrid seeds we will collect for our best productivity. Consulting with agriculture department we will cultivate crops. Description

13 | P a g e

Dairy Firm

100,000 (Purchasing cost)

480,000One year milk selling

Total 40 cow & per cow purchasing cost is 40,000 taka.

Sewing

80,000

24,00,000 per annual

Per machine purchasing cost 4000 & total 40 machine.

*** All those estimated amount is written by consulting with Krishibid Farid Uddin, Deputy Director, Cotton Development Board, Ministry of Agriculture.

14 | P a g e

Marketing Plan
Bangladesh is one of the world's most densely populated countries with 150 million people, 49 percent of whom live below the national poverty line. In addition, child malnutrition rates of 48 percent are the second highest in the world, a condition that is tied to the low social status of women in Bangladeshi society.

Pricing Plan No down payment. No taka per month for each shelter. More flexibility in term of paying installment. Only labor is our installment (Alternative of Money) Distribution Among the poor people. Applicant must be a homeless. Family Member at least 4 per family. Promotion There are several tools of promotion. But we must concern about it our target customers are extreme poor and not educated. In that case direct marketing will be much more effective. In term of marketing we must know that our target customer are less analytical skilled in comparing better. But our mission is not to make them fool. We just want to make a better life for them. But for our long time better social business operation we must focus on the following marketing tools. In project Promotion. Public relation & Media coverage. Joint activity with other business operators. Make it as a picnic sport.

15 | P a g e

Organizational Plan

Form of Ownership: Partnership.

Partners

JakerJahanShuvra BBA (Marketing & HRM) North South University

AvijitGhosh BBA (Marketing & HRM) North South University Experience and Certificates: Effectively designed IMC tools for Sharp Blade and Nescafe Coffee for Brand marketing and promotional marketing courses. Addressed the strategic management process of British American Tobacco (BAT) and Square Hospitals LTD. Surveyed on NSU computer lab and on community parks in Dhaka. Attended the seminar of marketing guru Philip Kotler at Dhaka. Solved a large number of cases for Marketing and Human resource management courses and attended in a number of educative seminars.

Experience and certificates: Worked as a field officer of Islamic Relief Foundation Worked as a Team member of a research on Vulnerability of flood in Bangladesh and river bank erosion. Assigned Area was Gaibandha district Choor Area. Inspiring the Future Minds by Marketing Guru Prof. Philip Kotler. Standard Chartered Bank Confronting AIDS challenges in 21st century. Workshop on Theater performance and professional film making. Performed as a Cadet in Bangladesh National Cadet Core.

16 | P a g e

Financial Plan
Initial Investment (Assumption)

Investment Land price: House building cost: Biogas plant cost: Solar panel cost: Toilet and tube well investment: Pond digging cost:

Quantity 20 katha*8lac per katha 20,000 per house* 20

Amount 1 core 60 lac taka. 40 lac taka. 3 lac taka 5 lac taka. 2 lac taka

10 lac taka

Poultry and dairy firm Initial Investment Fruit and vegetable garden Initial investment: Purchase of Sewing machine: Investment on training Purchase of transporter van Total investment: 50 thousand per van*5van 5000 per piece* 40 piece

5 lac taka + 5ac taka= 10 lac

5 lac taka

80 thousand taka 2 lac taka 2lac 30 thousand taka. 2 core 29 lac 30 thousand taka

17 | P a g e

Cost (per month)

1. Maintenance cost: For houses and other living facilities= 5 thousand taka For pond =10 thousand taka For dairy firm= 10 thousand taka For poultry firm= 7 thousand taka For fruit and vegetable garden = 3 thousand taka For transporting van= 10 thousand taka

2. Labor cost: For pond = 5 labours*1000 taka= 5 thousand taka For dairy firm= 5labours*1000 taka= 5 thousand taka For poultry firm= 5 labours*1000 taka= 5thousand taka For fruit and vegetable garden = 5labours*1000 taka= 5 thousand taka For sewing= 40 female labour(1 labour per house)*1 thousand taka= 40 thousand taka

Total cost (Per Month) = 1lac 5 thousand taka

18 | P a g e

Revenue per month

From pond: 35 thousand taka From dairy firm: 40thousand taka From poultry firm: 30 thousand taka Form fruit and vegetable garden: 40 thousand taka From sewing: 5 thousand from per family* 40 family= 2lac taka Total revenue: 3lac 45 thousand taka

Gross profit per month: 2lac 40 thousand taka.

Entrepreneurs salary: 20 thousand * 2 entrepreneurs= 40 thousand taka Return to the investors: 2lac taka per month Repayment of the loan: 2lac per month*12= 24 lac per year (approx. 15 year to cover the whole investment loan with interest)

****The residents of our project will work as our labor and they will get the monthly wage. Wage rate may increase with the increase of profit margin and with the decrease of operational coast.

**** After repayment of the loan we will use the profit margin to invest in other socially beneficial projects.

19 | P a g e

Income Statement
Revenue 41,40,000

Cost of goods sold Salary Promotional Expense

12,60,000 4,80,000 50,000 19,10,000

Income Before Income Taxes

19,10,000

(-) Income Tax (No income tax)

000

Net Profit

19,10,000

****In our country no taxes are imposed on agricultural goods.

20 | P a g e