Multilevel Marketing Business Plan

8/8/2019 Multilevel Marketing Business Plan

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Business Plan for MLM Developed by Abul Khayer Kazi

Executive Summary

One of the main struggles that were at the start of business, the idea was, in fact.

Which is wanted something scalable and necessary in our society. Through hundreds

of ideas before combed current companies business. By this time of discovery, I

found what I will be the five most important concepts in order to determine what to

believe is the perfect business idea. So, what is the perfect idea? Each entrepreneur

has any concept of your business. While Google is a big deal for the founders of the

company can be a major problem for others, only on the technology or do not want

to run a large organization. Therefore, the company is defined by the perfect

business owners. In this sense, well start in my five concepts to find the right one:

Understand Number One Customers: This may seem odd to start here, how do you

know your customers before they have a business idea into effect. The answer is

simple to make your customer transactions, so there is no business without

customers. If you have a business idea, does not seek to develop the idea of what

potential customers want or need to think, but know what your customers really

want. Too often, entrepreneurs have an idea on its head and the right to jump with

both feet. But after this they soon discover that their target audience, what they

have to offer. Have used time and money on a single project is not the perfect

business idea.

On the other hand say that you have no idea to go and the understanding of theconsumers (who lead your customers) on the perfect idea. Learn what consumers

need and potential construction meets these needs that the customers their way into

your home is the perfect business idea. Number Two Passion: Passion here does

not mean that you are a fan of your product or service. However, this means an

interest in what you do. More often than not, it will be 15 to 18 hours a day working

on your business from the outset usually during the first 12 to 18 months (more

than 2 years) in this economy. You need to constantly considering how to improve

and grow your business and talk to everyone, everywhere. If you only have one

company that has no passion for something that does not jump out of bed every

morning to start, it becomes very difficult to put in the time and energy to make it a

success as an idea of a perfect fit.

Number Three Understand your competition: Every company has competition is

made either directly or indirectly. Think of the movies. You have the direct

responsibility of the videotapes, or television rental shops at home. They also have

All right Reserved to [email protected] 1


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indirect competition from any other activity where consumers spend their disposable

income, such as bowling, paintball, golf, etc. Whatever the people in their spare

time. In addition, some competitors are ruthless. This means that if you promote and

deliver a product that is similar to them, but at a lower price to achieve only

competitors to lower their prices or to strike. If you have already started businesses may be able to undercut their prices enough to make the drive out of business.

Please note, your competitors what they are willing to do to get it out of your

market you can spend more time in a price war, while the growth of your business

not the idea of enterprise perfectly.

Number Four Cash Flow: Many entrepreneurs enter the business world with big

ideas but very poor understanding of the necessary capital to the about your

company. Most of them are prototypes of your product or service and understand

what it is on the product or service production, but not the necessary capital to the

rest of the organization including marketing management (very expensive but very

necessary), rather than add staff ( salary or wages), insurance or supplies and other

costs very quickly, such as telephone, Internet, etc., the knowledge of the entire

cash flow is used to ensure that all costs (fixed and variable) by the company

perfect business idea will be covered. I have seen too many words, companies with

excellent products fail because they simply do not cover the rent or utilities.

Number Five She: Do you know who you are. Know your strengths and

weaknesses. Knowing that you are willing to do the ready and capable of what it

takes to lead your business successful. I worked with several entrepreneurs in the

past that I think we all need to do is hang the shingles and they did. So when it

comes to the actual day-to-day business to run are not willing to devote time,

energy or money to invest for success. Therefore, we know how much you are willing

to work. In addition, you know your personal financial situation and what the

company needs to generate to cover your lifestyle. If you think your company pays

you a salary for a big day it will not. And if you are not the perfect business idea

for you. Take the outside distractions, how your personal financial situation You

Get Those commissioned so if your business concept to materialize you will beable to focus exclusively on the design and growth. Ultimately, the financial security

they need is the perfect business idea. Whatever your level of desire for your

business a way of life of the mother-and-pop operation or a multinational

conglomerate with if you develop a business idea with these five concepts in mind

is your idea of business idea that you perfect.



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Multi-Level Marketing (MLM) opportunities seem to be everywhere you turn these

days, not only online, but in every part of your life including school and church,

where fervid entrepreneurs lobby even their bible study groups to buy their product

or service. Even police departments have been invaded by MLM schemes. The San

Diego police department actually had an illegal pyramid scheme discovered withinone of its departments!

Equally prevalent are the misconceptions of what this business is and whether it

really is a legitimate business or a scam. Trying to find "truth" in this morass of

information is a challenge. The appeal of a business with minimal investment and a

support system in place cannot be denied. But is this for real? Let's take a look.

One of the most confusing aspects of assessing the viability of many of the business

"opportunities" being hyped is the variety of terms used to describe them. MLM is

also frequently called network marketing, consumer direct marketing, or seller

assisted marketing and other terms continue to surface.

The Concept

Multi-Level Marketing

MLM is essentially any business where payouts occur at two or more levels. For

instance, if you make a sale, both you and the person who recruited you will get a

portion of the proceeds. This is the most commonly used term partly because its

definition fits within the legal restrictions for this type of business.

Network Marketing

Network Marketing means that a distributor network is needed to build the business.

Usually such businesses are also MLM in nature in that payouts also occur at more

than one level. The term Network Marketing is sometimes also incorrectly used to

indicate that the business uses a network of product suppliers in order to offer a

broader selection of products. Businesses that describe themselves this way are

usually trying to differentiate themselves, suggesting that their program is superior

to other programs.Consumer Direct Marketing

Consumer Direct Marketing is a deceptive term that labels the distribution chain as

consumers rather than distributors. In such businesses the distributor must also buy

the product for their personal use.



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Seller Assisted Marketing

Seller Assisted Marketing Plans is a term used by California law to describe a variety

of business forms which include MLM. A minimum $500 investment must be involved

to qualify as a Seller Assisted Marketing Plan.Here is some information to help you decide if this is a good path for you.

The Legality of Multilevel Marketing

MLM companies operate under their own set of guidelines which come in every

possible variety imaginable. The general looseness of the guidelines has resulted in a

large number of lawsuits from distributors who have lost substantial sums of money

in the programs. The landmark legal case for the industry is the 1979 Federal Trade

Commission ruling on Amway which found that although Amway engaged in

deceptive practices, as long as profits were made through the sale of product, the

company could continue to operate within the law.

For MLM businesses to operate legally, they must meet the following criteria:

1. The company brings a product or service to the marketplace that is (a) retailable

and (b) being retailed;

2. The product or service reaches the end user through direct sales representatives

(independent contractors), rather than through traditional retail establishments;

3. The company's compensation plan (a) is designed to reward representatives for

the sales of the product or service they make, and (b) includes a feature that

additionally rewards a representative who introduces an additional representative to

the company, based on the sales volume of the second representative.

A business that has all these components except for 3 (b) is a single-level direct

selling company. 3 (b) is what makes it an MLM. All of the criteria above must be

met for the MLM business to be legal. Any missing component turns it into an illegal

business. For instance, if in 3. the second representative does not personally sell the

product or service, the business is no longer legal. How much that percentage of

sales needs to be has not been defined. If a program compensates representatives,

directly or indirectly, simply for the introduction or enrollment of other participants inthe program, it is considered to be a pyramid scheme which is illegal.

Additionally, recent court decisions have ruled that at least 70% of all goods sold by

the MLM company must be purchased by non-distributors.

Beyond understanding what an MLM is, however, there is still an incredible

controversy raging about whether these companies really do what they say they do.



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The Truth Be hind the Claims

Let's look at what an MLM promises and the truth behind those promises. Some of

the claims made are:

1. Network marketing is a way to make tons of money.

The Truth

2. MLM is the wave of the future. Eventually all products will be sold by MLM.

The Truth

3. MLM operations don't have huge advertising and marketing budgets so they can

afford to pump a lot more dollars into developing their products, resulting in a higher

quality product that can still be sold at a lower price than comparable items sold

through conventional means.

The Truth

4. There are an endless group of recruits available to be down line distributors.

The Truth

5. It is easy to sell to your friends and family. They love you and want you to

succeed.

The Truth

6. MLM can be done in your spare time. You make millions while you sleep.

The Truth

Many people liken what happens in many MLM companies to being brainwashed by a

cult. Members mouth company mottos with no conscious awareness of how ludicrous

the claims may be. There are families who feeling they have "lost" a family member

to an MLM scheme, have initiated cult deconditioning to "rescue" their family

member from the organization. While this is not true of most MLM organizations, do

question all exaggerated claims asking for substantiation of facts. In suspect

organizations, instead of facts, a smokescreen of counter challenges will be the usualresponse.

Are there good MLMs and is this a viable way to make a living? Of course. In sense,

the success of the good companies is what has attracted so many scammers. But the

scammers are so invasive and overwhelming in their sales pitches, it is difficult to dig

down to the real gems in this field.



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The MarketOne, Two, Step! will grow at 3% and there are many potential customers now, patientlyawaiting the start of business. One, Two, Step! will differ from other retail ICT Modules

stores because we will always be less expensive than the competition, but we will stillmaintain the high quality of our ICT Moduless.

Also, we will offer a sales promotion on a monthly basis, such as:

buy one, get one half price buy one, get one free half off on ICT Moduless from the previous season "One, Two, Step!" dollars (for every $50 dollar purchase, the consumer receives

an additional 20% off of their next purchase)

The Sales StrategyOur marketing strategy will not exceed 5% of our annual gross sales. We will use a widerange of approaches, including our website with free shipping, postcards, business cards,and word of mouth.

Objectives

The objectives of One, Two, Step! are:



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1. To market trendy, elegant ICT Modules, ranging from sizes 5-13, that will cater to the needs of the everyday woman.

2. To receive a 50% profit margin within the first year.3. To provide customer service, measured through new and repeat business (our goalis that 50% of our customers will return within 6 months for an additional

purchase) and multiple sales (our goal is that 30% of our non-running and 60% of our running ICT Modules sales are accompanied by an additional purchase).

4. To achieve a net profit of $5,000 by year two and $15,000 by year five.

Mission

The One, Two, Step! mission is to offer quality, name brand ICT Modules andaccessories in an assortment of sizes and styles to accommodate the chic in every human.

Keys to Success

In order to succeed in the women's ICT Modules industry One, Two, Step! must:

Carry an assortment of ICT Moduless sizes and style to fit the personalities of anywoman.

Provide customers with top-notch personalized customer service in an atmosphereof southern hospitality.

Advertise and promote in all areas so that our customer base will learn more aboutOne, Two, Step! Continuously review our inventory and sales and adjust our inventory levels

accordingly. Most importantly, always stay on top of the latest trends in the style of women's

ICT Modules

How to Find a Good Multilevel Marketing Business

For your initial MLM experience it is usually wise to start with a company that has

been in business at least three years and is a public company. Eighty-five percent of

network companies fail within the first 18 months so you know it has made itthrough some major hurdles if it is still around after three years. And, if it is publicly

traded, you have access to information about its background and the background of

the officers. Find out what the compensation method is for the officers. A percentage

of sales in addition to salary indicates that they have an investment in you doing

well, which is a good sign.



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Another good sign is if the MLM is a member of the Direct Selling Association, a

major industry organization which monitors MLM activities worldwide. Also, check out

what your state's laws are on MLM organizations. The "toughest" states are

considered to be Michigan, Arkansas and Georgia. If an MLM practices in more than

one state, it is meeting more than one set of legal requirements, which may indicatea solid footing for the company.

After you have investigated the company itself, take a look at the product.

Why would someone want to buy it from you rather than an established retail

establishment?

Is it unique?

Is it something lots of people would use so you have a large number of

potential buyers?

Is it something people need to buy frequently?

Is this something that is a fad and will go out of style?

Be truthful with yourself. Just because you think a certain vitamin will save the

world, can you convince others enough to make a decent living at this business?

What type of bonus or commission plan does the company offer? Most companies

base commission on the sales of you and your "down line". Bonuses are offered by

some companies as are group health insurance programs, reduced rates for products

purchased for your own use, and other variations on compensation add-ons. Be

certain to ask when and how you get paid. Is it a regular payment plan?

Additional benefits come from support that the company may offer in terms of

literature, audio and video tapes, training, conventions, newsletters, online access

and web pages. Investigate costs for each of these services. Some companies make

the majority of their money from selling you support, rather than selling products.

Your sponsor is part of that support system and should be accessible and provide

you with training and the information needed for you to be successful.

The internet has become a powerful tool for MLM entrepreneurs. That does not mean

spamming everyone you can get an email address on with your sales pitch. Sale or

valid contacts are rarely made that way. It is an expensive, nonproductive way toexpend your efforts, no matter what people tell you who are selling mailing lists with

"prequalified" buyers.

What does work? Online discussion groups and chat rooms are great places to

network. If you set up a website, you can set up auto responders to deliver

additional information if someone selects the opportunity for more information on the



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site or forms can be used to allow the visitor to leave contact information should

they wish to contact you directly. Subscribe to online newsletters which may allow

advertising

It is also wise to contact the Better Business Bureau and the Direct Selling

Association for any complaints about the company.

Questions to Ask Before Investing

There are many resources available to help make an informed choice if MLM sounds

like something you want to try. For starters, the Federal Trade Commission gives

some excellent words of wisdom:

1. Avoid any plan that includes commissions for recruiting additional distributors.

It may be an illegal pyramid.

2. If the pay plan does not pay out 75 percent or more in the first two levels,

don't bother looking at the program.

3. Beware of plans that ask new distributors to purchase expensive inventory.

These plans can collapse quickly - and also may be thinly-disguised pyramids.

4. Be cautious of plans that claim you will make money through continued

growth of your "downline" - the commissions on sales made by new

distributors you recruit - rather than through sales of products you make

yourself.

5. Beware of plans that claim to sell miracle products or promise enormous

earnings. Just because a promoter of a plan makes a claim doesn't mean it's

true. Ask the promoter of the plan to substantiate claims with hard evidence.

6. Beware of shills - "decoy" references paid by a plan's promoter to describe

their fictional success in earning money through the plan.

7. Don't pay or sign any contracts in an "opportunity meeting" or any other

high-pressure situation. Insist on taking your time to think over a decision to

join. Talk it over with your spouse, a knowledgeable friend, an accountant or

a lawyer.

8. Do your homework. Check with your local Better Business Bureau and stateAttorney General about any plan you're considering - especially when the

claims about the product or your potential earnings seem too good to be true.

If you think you want to invest, you should:

Be wary if the start-up cost for the investment is substantial



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Find out if the company will buy back inventory

Look into what the consumer market is for the products (i.e., how many

people would realistically buy this product)

Industry WatchdogsThe Federal Trade Commission (FTC), Better Business Bureau (BBB), and the United

States Post Office (USPS) have investigated a number of multilevel marketing

businesses.

The Better Business Bureau gives the following advice:

Before investing, get all the facts about the company, its officers, its

products. Find out the start-up cost, and the company's buy-back policy.

Get written copies of the company's marketing plan and sales literature.

Check with others who have experience with the company and its products.

Are the products actually being sold to consumers?

To check on a company, contact your local Better Business Bureau, district

attorney or state attorney general's office.

The United States Postal Inspection Service advises:

"Fraudulent pyramid schemes typically violate the Postal Lottery Statute (Title 18,

United States Code, Section 1302). They contain all three elements of a lottery: prize

(expectation of monetary or other gain from participation in the pyramid); chance

(the monetary return you may receive from your participation is entirely up to

chance, that is, dependent on the efforts of those below you in the pyramid); and

consideration (the fee you pay to become a distributor). Frequently, the entrance fee

into the pyramid is very high. In many cases, the money spent for such an entrance

fee can often be considered lost the moment you pay.

To protect yourself against falling victim to a multi-level marketing scheme, note

whether the basis of the promotion is the sale of a product at the retail level, as

opposed to an emphasis on recruiting more and more distributors to help you

increase your income. "

Numerous consumer advocacy groups monitor and post information about scams.Check them out before signing any agreement. If there is high pressure to sign up,

you don't want to be part of this organization. Typical come-on lines include sales

pitches like "new opportunity, only taking the first 100 applicants" or "this price is

good for today only." Walk away from these "deals." You will not regret it.



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While no one really makes the millions promised by so many of the scams, many

people find a very satisfying career in some of the multi-level marketing ventures.

With the right company, you may find like-minded colleagues who are pursuing

similar goals. In some ways, it can be the best of all worlds -- no boss, but a good

social network and a job where hard work pays off. However, don't leap withoutlooking carefully. There are also deep shoals that can draw you in over your head

rapidly. If you tiptoe into the water carefully, checking that you have firm footing all

the way, you will find yourself swimming happily into entrepreneurship.

Company Summary

One, Two, Step! is organized as a sole proprietorship in the name of Chloe Goodlowe.

One, Two, Step! will be located at 123 ICT Modules Lane in Houston, TX temporarily,until we have the volume to expand into a separate store, to be located in West Houston.The site is the owner's house, along a busy pedestrian area in the trendy shopping sectionof downtown, and is zoned for commercial/residential use. A prominent street-levelentrance leads into a foyer and 2 parlors which are already renovated to accommodate the

business. Built-in shelving with under-shelf lighting will highlight the ICT Moduless,while antique display tables will hold special and sale items, and accessories. The houseis equipped with security monitors, and the second parlor is fully wired for phone andinternet access. We will use a point-of-sale system to handle in-house sales. Websitesales will be processed by an online credit card processor affiliated with our websitehosting company.

The hours of operation will be Monday - Friday 10 a.m. - 6 p.m., Saturday 10 a.m. - 8 p.m., and closed on Sundays. Customers will be able to purchase directly from our website and VIP Showcase Events. There will be extended special hours designatedduring Christmas holiday shopping season.

All merchandise will be purchased according to the company's mission and customer focus of ICT Moduless ranging from sizes 5-13 and accessories.

Company Ownership

One, Two, Step! is organized as a sole proprietorship where I, Chloe Goodlowe, amresponsible for the daily management, sales, and development of the company.

Start-up Summary

One, Two, Step! start-up costs are listed below. The company will start with two monthsof inventory on hand for ICT Moduless and accessories, as this is the main revenuegenerator. The majority of the company's assets will reside in inventory. The openingday's cash on hand balance will be $10,000.



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Successful operation and building a loyal customer base will allow One, Two, Step! to beself-sufficient and profitable in year two.

Start-up

Requirements

Start-up ExpensesLegal $500Stationery, business cards etc. $500Credit Card Set-up $200UPS Account $300Supplies (special made ICT Modules boxes, invoices, etc.) $500Website Start-up $3,000Total Start-up Expenses $5,000

Start-up AssetsCash Required $10,000Start-up Inventory $15,000Other Current Assets $5,000Long-term Assets $0Total Assets $30,000



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Total Requirements $35,000

Strategy and Implementation Summary

One, Two, Step! will use a strategy of providing a service to all women consumers withregular ICT Moduless and "plus size" ICT Moduless. We will offer a product that mostwomen consumers will require. We will create an atmosphere that is appealing to thetruly fashion forward consumer.

Strategic Assumptions:

1. Every female resident in Houston,TX is a potential customer.2. Promoting on the Web, by word of mouth and promotional postcards will give

One, Two, Step! the opportunity to draw customers from outside Houston, TX.3. One, Two, Step! will aggressively pursue all contacts through networking.

Competitive Edge

One, Two, Step! will differ from other retail ICT Modules stores because we will always be less expensive than the competition, but we will still maintain the high quality of our ICT Moduless.

Also, we will offer a sales promotion on a monthly basis, such as:

buy one, get one half price buy one, get one free half off on ICT Moduless from the previous season "One, Two, Step " dollars (for every $50 dollar purchase, the consumer receives

an additional 20% off of their next purchase)

Marketing Strategy

Our marketing strategy will not exceed 5% of our annual gross sales. Marketing will bevia:

1, 2 Step! website (to be launched in the first year of business)- free shipping if ordered by 2pm central.

Advertisement postcards Business Cards Word of mouth

Sales Strategy

Our key to sales strategy at One, Two, Step! will be a great buying experience, everytime. Once a customer comes in the door, they will be greeted and assisted as much or as



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little as they wish. Some customers are uncomfortable with lots of personal attention;others expect it. Chloe's experience as a retailer has taught her how to read the subtlesigns that tell her what a customer is seeking when they enter. All customers will beoffered tea or coffee while they shop, and we will have comfortable chairs for friends tosit in while waiting.

Our sales goal is to generate repeat business and strong word-of-mouth advertising basedon this great buying experience. Word of mouth in new women's apparel and accessorystores tends to spread to family, friends, co-workers, church members and people wedepend on to provide us a service (hair stylist, nail salon,doctors, etc.), in and out of state.

We also plan to have software to collect customer information such as:

Names, addresses, email addresses and phone numbers What type of ICT Moduless the customers prefer

One, Two, Step! will also accept returns/exchanges of unworn ICT Moduless with receiptwithin 30 days of their purchase to build a trust with all of our customers.

Sales Forecast

I expect a growth rate of 3% annually on ICT Modules sales. I am projecting my sales to be at this level due to the low wholesale prices and the demand for women's ICTModuless. If you notice in my forecast table for the Christmas holidays and summer time,sales will increase. College kids will be out of school from May to August. Researchshows that most consumers tend to spend the most money during the holidays for

Christmas gifts and they can't miss out on all of the great holiday sales.

In January, sales will most likely decrease because the average consumer has spent a lotof money for the holidays. January is the month to play "catch-up" on paying their creditcard bills and restoring their bank accounts back to normal.

Direct costs for ICT Modules and accessory sales are set at 70% for the first three years.This is much higher than normal for the industry, because of our pricing and specials - wecan undersell the competition not through volume, but through the value-added of anexclusive location, personal service, and the owner's independent income, which does notrequire a paid salary.



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Sales ForecastYear 1 Year 2 Year 3 Year 4 Year 5

SalesICT Modules $106,440 $109,633 $112,922 $116,309 $119,799Accessories $1,419 $1,461 $1,505 $1,550 $1,597Total Sales $107,859 $111,094 $114,427 $117,859 $121,396

Direct Cost of Sales Year 1 Year 2 Year 3 Year 4 Year 5ICT Modules $63,864 $65,780 $67,753 $63,970 $59,900Accessories $852 $877 $903 $899 $926

Boxes and bags $1,079 $1,111 $1,144 $1,179 $1,214Shipping costs for website sales $2,157 $2,222 $2,289 $2,357 $2,428Subtotal Direct Cost of Sales $67,951 $69,989 $72,089 $68,405 $64,468

BANGLADESH NIRMAAN

PROJECTS

E-Membership



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E-Shop

E-Learning

E-Commerce

Project Developed By:

Company Information

Company Name : ..

Address : 448 MM Ali road, Chittagong.

Contact No : +880-31-2865023, 01917719980

Corporate E-mail :

Support :

Bankers : Standard Chartered Bank,

BRAC Bank.

About e-shop

An Bangladesh is racing towards the new millennium, we are witness a sea ch

ange in the way of business is being done. What was unimagined and untaug

ht of even a decade ago is fast concretizing into an

exciting business opportunity. . Ltd. has

capitalized on its scope and established several business units servicing the

diverse segments of customers in Bangladesh. We want to coil up through a

chain. it never means opposite. But its an upgraded version based on

concrete reality. We know how to satisfy. And firmly we want to launch it. Westarted to inaugurate a business that means delivery on demand in

99.99% up-time.

E-shop is one of the platforms to tailor the needs of customers of

.. which aims to develop



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communication among product manufacturers, marketers, service providers,

ultimate consumers. It wants to develop an e-chain among the & e-shops

and e-stakeholders through digitalizing business services and solutions for

facilitating business efficiency.

Business, Partners & Customers

What is our business?

To make the business more productive through electronic manifold business services

to provide better value to the customer by benchmarking

the supply chain and value delivery Network.

Who are our customers and partners?

In this competitive and Hi-tech business arena every services is going to be under th

e shade of digitalization and we have equipped to facilitate services where there are

potentialities and gapes to re-engineer the business

services process. Under the umbrella of . we are going to

serve in the following area:

Farmers, Producers, Services providers,Technology vendors, Supply

chain members, End user/Customer/Consumer ,

Target Group

Value to the Customer

. Ltd. is ready to extend its hand to customize

services so that you may feel us your reliable partner.We make the services:

COST- EFFECTIVE

HOME DELIVERY

LESS MONITORING INVOLVEMENT

LEES PHYSICAL INVOLVEMENT



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We have efficient and dedicated team members to facilitate

the customers effectively. We personating services

to tailor and serve individual needs.

Our Strengths

Human Capital

We are in a position to handle enough amount of liquid money for our e-business

in the e-world through our efficient and expert multi dimensional team. They are

really very much equipped and conversant with the related business area.

Who are in our team?

ICT Professionals.

ICT Engineers.

ICT Consultant.

Expert Executives.

Marketing Consultant.

Marketing Team.

Sales Team.

Management consultants.

Our Mission and Vision

Ltd.s mission is to provide

manifold services to customers through e-shop & e-shop provides

consumer products and services and even from the e-health care services to

legal aids we exist to attract and maintain our member. With a strictadherence to this maxim success will be ensured. Our services and products

will exceed the expectations of the customers. And to deliver value added

services toward our member. Ltd.s

understands peoples needs best and through e-shop it tailors the needs

of its customers which aim to develop communication among product



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consumers . Its talent vision is to bring equal facility in service getting. It

wants to develop an e-chain among the & e-shops and e-stakeholders

through electronic and digital business services and solutions for facilitating

business efficiency.


Mission

+ Balance in distributing the goods & services.

+ Building Platform for product manufacture, distributors,

retailer, for the general consumers, which platform will be sustainable

& profitable.

+ As per demand of the consumers the stream of supply of

goods & services storing & production can be maintained.

+ Organizing the retails & distributors, developing a social investment

within a platform. Creating a goods & services market, whereby socially

profitable of goods & services will be accommodated. Which

can ensure the win situation for all concern.

+ Developing a sustainable & perfect market

for the product manufacturers, importers, service providing

companies etc..


Vision

Introducing a sustainable platform based on Win-Win strategy& method for product manufacturers, service providers,

distributors, whole-seller, retailers, & general

consumers by which balanced distribution, production & of daily

necessaries goods & services can be maintained.



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e-shop Background We have been supplying for over a decaled the daily necessaries

goods & services to the entire retailers of Chittagong successfully.

Our remarkable success since 1998 to till today in distribution of every

production of BRAC Dairy & foods projects i.e. Aarong milk &

other product of Aarong foods.

Although we started the distribution & supply business

only from the Kotwali Zone but today with the help of Almighty

ALLAH we have spread our distribution & supply chain all

over the Chittagong metro as SOLE DISTRIBUTORS of BRAC Dairy & Food

project successfully.

And we have been entitled as the only one

successful distributor. Achieved the ample success in marketing.

Our Marketing Network

The revolutionary change will come in the life style of million of

peoples it will bring improvement in their standard of life in

this new millennium due to the development of e-network among the

consumers, distributors & companies.

We firmly believe change cannot be resisted so we are working as

the introducer of tele-Commerce, m-commerce, e-Commerce by developing

the Tele-network, e-network.

Goal of Our Network



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Creating a common network of business running mechanism

by partnering the producers, distributors, all of the agent whole sellers

retailers of the country in a linear platform where all of the

concerned STAKEHOLDER exists in their chair. And all of the necessary

activities & communication can maintain harmoniously among this chainmember. So there will have no chance of deterioration in the chain

relationship which will be easy to take any key decision regarding anything.

No development is possible before ensuring the

continuous development of technology getting along

with the changing circumstances & time, rice, Dal, wheat, milk product

including all of the service & goods. If these can be made available to the

general & ultimate consumer through electronic mechanism, then only

a country wide e-distribution platform can be developed

continuously along with it all to the concerned stakeholders & institution

in this distribution network & chain will be benefited. It

will add new dimension in the strain of development of the countrys

economy.

Who is Behind US?

e-shop comes forward to serve the people with its intrinsic attributes with the hand

of ICT & e-shop Development Ltd. Its first setup of operation in Bangladesh to

ensure the unique and equal IT and e-services services to the all classes

people in the society and to reduce discrimination in this regard. ICT & e-shop

Development Ltd. is one of the most dynamic IT based business powerhouse in

Bangladesh. Ltd. is based in Chittagong. It

provides all kinds of ICT solution likeTelecommunication.

Software.

Web based Services & application.

Call centre.

&



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Media of Order & Supply Management Order Collection Media :

e-Commerce based web portal.

Call Centre.

Daily Schedule basis.

Supply Media:

Through own transport (Direct Supply).

Through Manufacturer.

Through Rented Transport

Ultimate Product & Services of e-Shop

Community based e- Health

Community based e-Marketing

Community based Housing

Community based e-Learning & u-Learning

Community based e-Security Service

Community based e-Care Services

Community based Telecom Services

Community based Call Centre Solutions and services

Community based e-Commerce

Community based production and distribution

community based Public Information and e-Care centreCommunity based Cooperative society or ltd. company

e-NGO for community based development

Community based Poverty reduction projects

e-Money



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Management Summary

When the company begins the start-up phase, I want to hire an assistant to basically be

my right hand and one other person for coverage. The hire process will be well-thought-out and will take serious consideration to make sure that the employees will betrustworthy, have great attitudes and can provide excellent customer service. Iwill continue to be in charge of Operations.

I also would like to reach out to college students looking for part-time jobs or just asummer job to earn some extra money for school. I am also willing to hire to the "right"

person with no experience, because I feel that everyone has to start somewhere. Iremember someone who gave me a chance when I had no experience and now I feel it'smy turn.

Personnel PlanThere will be two part-time employees working 20-30 hours per week. They will be paidat a rate of $9.00 per hour. All employees will benefit from a one day paid holiday ontheir respective birthdays and one week of paid vacation after twelve months of employment. Bonuses will be given annually in the month of December.

At this time medical/dental benefits will not be offered to employees. As profits increasein the future medical/dental benefits will be offered to all employees.

Personnel PlanYear 1 Year 2 Year 3 Year 4 Year 5

Operations Assistant (part-time) $12,150 $12,200 $12,300 $12,300 $12,300Sales Associate (Part-Time) $9,360 $9,400 $9,400 $9,400 $9,400Total People 2 2 2 2 2

Total Payroll $21,510 $21,600 $21,700 $21,700 $21,700

Financial Plan

Sales growth will be aggressive the first 18 months as we sharpen our merchandiseassortment, size scales, and stock levels to better meet our customers' requirements.

However, it is expected that One, Two, Step! will become profitable in the first year, butnot excessively so. This is partly due to our lower overall sales price for merchandise,compared to our competitors, but also due to the fact that all our sales must come fromcustomers lured away from other retailers. Once we have a solid customer base, we canincrease our margins slightly without risk of losing customers.



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Break-even Analysis

Our break-even analysis is summarized by the following chart and table. In order to break even, we must sell at least $7,312 of ICT Modules and accessories per month. We shouldeasily sell more than this even in our first month.

Break-even Analysis

Monthly Revenue Break-even $6,585

Assumptions:Average Percent Variable Cost 63%Estimated Monthly Fixed Cost $2,436

Projected Profit and Loss

The following table and charts show our profitability for the next three years, and detailour operating expenses. these include a portion of the mortgage for my house, for thespaces which will be dedicated solely to business operations.



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Pro Forma Profit and LossYear 1 Year 2 Year 3 Year 4 Year 5

Sales $107,859 $111,094 $114,427 $117,859 $121,396Direct Cost of Sales $67,951 $69,989 $72,089 $68,405 $64,468Other Costs of Sales $0 $0 $0 $0 $0Total Cost of Sales $67,951 $69,989 $72,089 $68,405 $64,468

Gross Margin $39,908 $41,105 $42,338 $49,454 $56,928Gross Margin % 37.00% 37.00% 37.00% 41.96% 46.89%

ExpensesPayroll $21,510 $21,600 $21,700 $21,700 $21,700Marketing/Promotion $2,375 $1,500 $2,000 $2,500 $2,750Depreciation $0 $0 $0 $0 $0

Mortgage %/Rent $1,800 $1,800 $1,800 $1,800 $1,800Utilities $960 $1,000 $1,100 $1,200 $1,300Insurance $1,800 $1,850 $2,000 $2,200 $2,250Website maintenance $372 $375 $375 $375 $375POS contract/fees $420 $450 $450 $450 $450Payroll taxes $0 $0 $0 $0 $0

Total Operating Expenses $29,237 $28,575 $29,425 $30,225 $30,625

Profit Before Interest and Taxes $10,671 $12,530 $12,913 $19,229 $26,303EBITDA $10,671 $12,530 $12,913 $19,229 $26,303Interest Expense $2,274 $1,875 $1,459 $1,042 $626Taxes Incurred $2,519 $3,196 $3,436 $5,456 $7,703

Net Profit $5,878 $7,458 $8,018 $12,731 $17,974 Net Profit/Sales 5.45% 6.71% 7.01% 10.80% 14.81%

Start-up Funding

I will be investing $10,000 in the business, and am seeking another $25,000 in SBA long-term loans, to be repaid over six years.



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Start-up Funding

Start-up Expenses to Fund $5,000Start-up Assets to Fund $30,000Total Funding Required $35,000

Assets Non-cash Assets from Start-up $20,000Cash Requirements from Start-up $10,000Additional Cash Raised $0Cash Balance on Starting Date $10,000Total Assets $30,000

Liabilities and Capital

LiabilitiesCurrent Borrowing $0Long-term Liabilities $25,000

Accounts Payable (Outstanding Bills) $0Other Current Liabilities (interest-free) $0Total Liabilities $25,000

Capital

Planned InvestmentOwner $10,000Investor $0Additional Investment Requirement $0Total Planned Investment $10,000

Loss at Start-up (Start-up Expenses) ($5,000)Total Capital $5,000

Total Capital and Liabilities $30,000

Total Funding $35,000

Projected Cash Flow

Our projected cash flow is outlined in the following chart and table. The table lists salestax collected and paid out, as well as repayment of the loan we are seeking.



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Pro Forma Cash FlowYear 1 Year 2 Year 3 Year 4 Year 5

Cash Received

Cash from OperationsCash Sales $107,859 $111,094 $114,427 $117,859 $121,396Subtotal Cash from Operations $107,859 $111,094 $114,427 $117,859 $121,396

Additional Cash ReceivedSales Tax, VAT, HST/GST Received $0 $0 $0 $0 $0

New Current Borrowing $0 $0 $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 $0 $0 New Long-term Liabilities $0 $0 $0 $0 $0Sales of Other Current Assets $0 $0 $0 $0 $0Sales of Long-term Assets $0 $0 $0 $0 $0

New Investment Received $0 $0 $0 $0 $0Subtotal Cash Received $107,859 $111,094 $114,427 $117,859 $121,396

Expenditures Year 1 Year 2 Year 3 Year 4 Year 5

Expenditures from OperationsCash Spending $21,510 $21,600 $21,700 $21,700 $21,700Bill Payments $70,868 $82,102 $84,729 $82,123 $81,093Subtotal Spent on Operations $92,378 $103,702 $106,429 $103,823 $102,793

Additional Cash SpentSales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0Principal Repayment of Current Borrowing $0 $0 $0 $0 $0Other Liabilities Principal Repayment $0 $0 $0 $0 $0

Long-term Liabilities Principal Repayment $4,164 $4,165 $4,165 $4,165 $4,165Purchase Other Current Assets $0 $0 $0 $0 $0Purchase Long-term Assets $0 $0 $0 $0 $0Dividends $0 $0 $0 $0 $0Subtotal Cash Spent $96,542 $107,867 $110,594 $107,988 $106,958

Net Cash Flow $11,317 $3,227 $3,833 $9,871 $14,438Cash Balance $21,317 $24,544 $28,377 $38,248 $52,686



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Important Assumptions

I assume that the economic conditions will improve in the next two to three years.Therefore, business will be good in year one, but years two and years three. One, Two,Step! will be very successful.

General AssumptionsYear 1 Year 2 Year 3 Year 4 Year 5

Plan Month 1 2 3 4 5Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00%Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00%Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00%Other 0 0 0 0 0

Projected Balance Sheet

The table below outlines the projected balance sheet. While, as a retail store, we have no plans for long-term assets, we will have a healthy cash balance, growing over the nextfive years. We plan to pay off our loan within six years, and increase the net worth of the

business from $5,000 at start-up to over $15,000 by the end of five years.

Pro Forma Balance SheetYear 1 Year 2 Year 3 Year 4 Year 5

Assets

Current AssetsCash $21,317 $24,544 $28,377 $38,248 $52,686Inventory $13,255 $12,111 $12,475 $10,905 $10,208

Other Current Assets $5,000 $5,000 $5,000 $5,000 $5,000Total Current Assets $39,573 $41,655 $45,852 $54,154 $67,894

Long-term AssetsLong-term Assets $0 $0 $0 $0 $0Accumulated Depreciation $0 $0 $0 $0 $0Total Long-term Assets $0 $0 $0 $0 $0Total Assets $39,573 $41,655 $45,852 $54,154 $67,894

Liabilities and Capital Year 1 Year 2 Year 3 Year 4 Year 5

Current LiabilitiesAccounts Payable $7,859 $6,649 $6,992 $6,728 $6,660Current Borrowing $0 $0 $0 $0 $0Other Current Liabilities $0 $0 $0 $0 $0Subtotal CurrentLiabilities $7,859 $6,649 $6,992 $6,728 $6,660

Long-term Liabilities $20,836 $16,671 $12,506 $8,341 $4,176Total Liabilities $28,695 $23,320 $19,498 $15,069 $10,836

Paid-in Capital $10,000 $10,000 $10,000 $10,000 $10,000Retained Earnings ($5,000) $878 $8,336 $16,354 $29,084



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Earnings $5,878 $7,458 $8,018 $12,731 $17,974Total Capital $10,878 $18,336 $26,354 $39,084 $57,059Total Liabilities andCapital $39,573 $41,655 $45,852 $54,154 $67,894

Net Worth $10,878 $18,336 $26,354 $39,084 $57,059

Business Ratios

One, Two, Step!'s ratios can be seen in the table below. For comparison, we haveincluded standard business ratios for the Miscellaneous retails stores industry, SIC Code5999.

Ratio Analysis

Year 1 Year 2 Year 3 Year 4 Year 5 IndustryProfileSales Growth n.a. 3.00% 3.00% 3.00% 3.00% 2.79%

Percent of Total AssetsInventory 33.50% 29.08% 27.21% 20.14% 15.03% 33.69%Other Current Assets 12.64% 12.00% 10.90% 9.23% 7.36% 24.88%Total Current Assets 100.00% 100.00% 100.00% 100.00% 100.00% 75.34%Long-term Assets 0.00% 0.00% 0.00% 0.00% 0.00% 24.66%Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Current Liabilities 19.86% 15.96% 15.25% 12.42% 9.81% 37.95%Long-term Liabilities 52.65% 40.02% 27.27% 15.40% 6.15% 16.70%Total Liabilities 72.51% 55.98% 42.52% 27.83% 15.96% 54.65%

Net Worth 27.49% 44.02% 57.48% 72.17% 84.04% 45.35%

Percent of Sales

Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%Gross Margin 37.00% 37.00% 37.00% 41.96% 46.89% 31.49%Selling, General & AdministrativeExpenses 31.55% 30.29% 29.99% 31.16% 32.09% 18.95%

Advertising Expenses 0.00% 0.00% 0.00% 0.00% 0.00% 1.80%Profit Before Interest and Taxes 9.89% 11.28% 11.28% 16.32% 21.67% 1.05%

Main RatiosCurrent 5.04 6.27 6.56 8.05 10.20 1.77Quick 3.35 4.44 4.77 6.43 8.66 0.70Total Debt to Total Assets 72.51% 55.98% 42.52% 27.83% 15.96% 61.43%Pre-tax Return on Net Worth 77.19% 58.11% 43.46% 46.53% 45.00% 2.23%Pre-tax Return on Assets 21.22% 25.58% 24.98% 33.58% 37.82% 5.78%

Additional Ratios Year 1 Year 2 Year 3 Year 4 Year 5 Net Profit Margin 5.45% 6.71% 7.01% 10.80% 14.81% n.aReturn on Equity 54.03% 40.68% 30.42% 32.57% 31.50% n.a

Activity RatiosInventory Turnover 5.95 5.52 5.86 5.85 6.11 n.aAccounts Payable Turnover 10.02 12.17 12.17 12.17 12.17 n.aPayment Days 27 33 29 31 30 n.aTotal Asset Turnover 2.73 2.67 2.50 2.18 1.79 n.a



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Debt RatiosDebt to Net Worth 2.64 1.27 0.74 0.39 0.19 n.aCurrent Liab. to Liab. 0.27 0.29 0.36 0.45 0.61 n.a

Liquidity Ratios Net Working Capital $31,714 $35,007 $38,860 $47,425 $61,235 n.aInterest Coverage 4.69 6.68 8.85 18.45 42.03 n.a

Additional RatiosAssets to Sales 0.37 0.37 0.40 0.46 0.56 n.aCurrent Debt/Total Assets 20% 16% 15% 12% 10% n.aAcid Test 3.35 4.44 4.77 6.43 8.66 n.aSales/Net Worth 9.92 6.06 4.34 3.02 2.13 n.aDividend Payout 0.00 0.00 0.00 0.00 0.00 n.a

N.B. The Information is collected from the Web and Local Market in Bangladesh, AsianRegion.

Documents

Multilevel Marketing Business Plan