Truck Stand at Kanchpur

Truck Stand Business
1
Semester: Spring 2018
Section: 16
Submitted to:
Mohammad Asif Gazi
Submitted by:
Name ID
Ali ArfiShafat Chowdhury 1510376030
Mokesh Paul 1510167030
Abu Horaira Kamal 1330504630
Adrita Habib 1330357030

2
Letter of Transmittal
Mohammad Asif Gazi
Lecturer,
School of Business & Economics Department of Management
North South University
Bashundhara R/A, Dhaka- 1229
Subject: Submission of Business Plan.
Dear Sir, We are very pleased to submit this business plan of The Book-Loop Cafe, which has
been prepared for the requirement of the course MGT 368. The report has been compiled as per
your requirements. This project helped us to learn a lot about how to write a proper business
plan, scheduling and organizing business activities, financing and budgeting, marketing and sales
activities, which we hope, will benefit us in near future.
Despite the various difficulties faced while preparing this business plan, we have tried to be as
organized as possible. If you need any further information, we will be very glad to oblige.
Sincerely,
Ali Arfi Shafat Chowdhury
Mokesh Paul
Abu Horaira Kamal
Adrita Habib

3
Acknowledgement
We would like to start this business plan by acknowledging our gratefulness to the almighty
Allah; without his blessings, we would not have been able to accomplish this report.
We would also like to acknowledge and convey our heartfelt gratitude to our honorable Faculty
Advisor, Mohammad Asif Gazi, who has given us the opportunity to establish a business plan
and guided and supported us with sincerity and patience throughout the whole work. Without his
guidance, preparing this project would not have been possible. We consider it as a great
opportunity for us to share knowledge and experience in the field of entrepreneurship and
managing a business.
Acknowledgment must go to all of our group members as well. Their support and long hours of
working made it possible to accomplish the project under the pressure of knocking deadline.

4
Table of Content
Contents Page No.
Executive Summary 5
Introduction 6
Marketing Plan 8
Value Proposition 11
Clear evidence of a market
opportunity
12
Evidence of market validation
(Primary & secondary market data)
14
Business Model Canvas 16
Financial Analysis 23
Risk Analysis 25
Growth Strategy 29
Specific investment deal proposal 30
Conclusion 31
Appendix 32

5
Executive Summary
In this report, we have tried to come up with a parking solution for heavy vehicles that carry
goods like trucks, pick up vans, Lorries and so on. We have made a business plan that involves
providing these vehicles with a secure place to park and providing the drivers and helpers with a
place with all the capacity to fulfill their basic and resting needs. So we have chosen the place of
the business or this parking solution at Kanchpur, Narayanganj since this is a very important
entrance point to Dhaka. Investing on this business we are planning to earn 25-30 times more
revenue which is almost 21, 600, 000 taka per year. The total cost that needed for setup the
whole project is 75,000,000Tk. At the first month, we will need 25,000,000 for set up the
business for paying advance to the land owners and developing the infrastructure. At the very
end; we have provided a specific deal proposal to present to the potential investors or creditors.
Additionally, this report contains a detailed overview of our management team.

6
Introduction
➢ Nature of the Business: The name of our business is Truck Stand Business. It is not a
limited liability business. It is a partnership business. We will be giving the parking
facilities especially to those trucks which are importing and exporting products outside
Dhaka. The drivers and the helpers can keep their trucks here and they can take rest in the
hotel rooms. They can also take shower or eat foods by keeping the truck safely.
➢ Distinctive Competencies: We are providing the drivers, helpers or even the owners the
facility of resting, eating, and bathing with the whole safety of the trucks. This differ us
from our competitors because in Bangladesh this opportunity is rear. The other truck
stands are only giving the parking facilities. But ours one is also giving the other facilities
which is helpful for all. That is opportunity of our target market.
➢ Geographic Location: We will start the business in Kanchpur. This is the area where the
trucks are not getting the facility of parking but they need it badly.
➢ Role of Team members: As this is a partnership business, all of the members have some
particular role in this business. We are 4 members in the team. All of our members are
maintaining a particular role.
Mokesh Paul Political matter
Ali Arfi Shafat Chowdhury Bank loan
Abu Horaira Kamal Land problems
Adrita Habib Organizer

7
• Mokesh Paul has a smooth relationship with the politicians. He will handle the political side.
This will help us to get the land easily.
• Ali Arfi will take the loan from the bank. He will see that the mortgage is maintained
properly by all the partners and show it to the bank to bring the loan.
• Abu Horaira will be looking the land problems. He has chosen the land for our business. He
will also make the contract before buying the land.
• Adrita Habib will see all the works are being done properly or not. She will see that the
infrastructures are being maintained or not, hotels are being good or not, quality of food is
good or not. Mainly she will be the organizer of our whole business model.

8
Marketing Plan
This section of this report includes the marketing mix of Truck Stand Businesses’. All of the 4ps
are incorporated here along with market research and value proposition. These are described in
the following.
Product
Truck Stand Business would offer parking space for the cargo trucks, pickup vans, trailers,
Lorries, and containers. The parking space would be equipped with some additional facilities,
such as, hotels, tea stalls, restrooms, repairing workshops, and prayer facility. Moreover, Truck
Stand Business would provide the vehicle and the cargo’s safety as well. So, the product is
divided into three different categories. The categories are shown below-
1. Core Product: Truck Stand Business core product is the space provided for parking the
trucks, pickup, vans, trailers, Lories, and containers.
2. Actual Product: There are multiple actual products offered by Truck Stand Business. Those
are hotels, tea stalls, restrooms, repairing workshops, and prayer facility.
3. Augmented Product: The only augmented product Truck Stand Business would provide is
safety.
Price
Since the target market is generalized throughout all the truck owners, the market is forecasted to
be large. So, a little profit margin would generate significant revenue. On the other hand, trucks
are not luxury, but economy transport. The budget for carrying the cargos through truck do not
usually have high budget. That is why the pricing is assumed to be lower. For this reason, it is
suggested to set the price according to penetration pricing.

9
Place
As mentioned earlier, Truck Stand Business would do business with service. Service is not
transferable. So, the place selected to serve the customers is in Kanchpur. In Kanchpur, Truck
Stand Business would provide parking facility to the pickup vans, trucks trailers containers, and
Lories.
Promotion
This section of the report would incorporate the marketing channels would be used. The channels
would be used here are posters, banners, and other truck stands.
Market Research
To ensure the appropriate offerings, it is necessary to collect certain information regarding the
market. The only way of collecting this information is conducting proper market research.
Moreover, since this type of business is new in the market, there is almost zero information
readily available. Therefore, market research is mandatory for this business.
Truck Stand Business’s market research would incorporate both primary and secondary research
methods.
✓ Primary Research: Among the primary researches, it is planned to take interview of the
truck owners and drivers. Additionally, the assistants of the drivers would also be
interviewed if necessary. The interviews are suggested to conduct both physically as well
as via phone. Likewise, the behaviors of the drivers and the assistants would be observed.
Their behavior would reflect their needs and wants. So, this observation would be helpful
to understand the market.
✓ Secondary Research: To ensure the validity of the collected information regarding the
market, it is undoubtedly necessary to conduct secondary research. As mentioned above,
the business is quite new in the market. So, sufficient secondary information is not
available regarding the same. However, Truck Stand Business would conduct secondary
research.

10
Among the secondary research tools, Truck Stand Business would use the television news and
the newspapers. These tools provide the recent traffic situation of the highways.In addition, the
police records would be a valid source of information regarding this market.

11
Value Proposition
Due to the absence of the proper parking facility, they heavy cargo vehicles cause traffic jam.
This relates many other issues. So, Truck Stand Business intends to solve these issues with
proper parking facility. The value proposition of Truck Stand Business is resolving the traffic
jam in the entry point of the capital city. Besides that they are getting a good place to stay, take
rest, get refreshed, eat, pray, buy parts for their vehicles, buy motor oil and repairing the vehicles
if needed. All these will be provided in one place which will save their money, time and energy
and will ensure their well-being. (See Appendix 1)
Dhaka, the capital city of Bangladesh is overcrowded most of the time with excessive number of
vehicles. Sometimes, the traffics are clotted in the roads even for hours.The traffic controlling
authority often finds it very difficult to manage this issue. The policy making authority is
constantly trying to come up with effective solution. One of their initiatives is to ban the heavy
cargo vehicles in Dhaka for the day time. As a result, they have restricted the movement of this
type of vehicles from 8 AM to 8 PM. Though these vehicles are not allowed to enter the capital
city before 8 PM, they come to the entry points, wait for the entry and start making long cues
from afternoon. Their long queues lead the road blockage. As observed, when they wait for the
entry, they have to face problems. They are exposed to police harassments. Moreover, they have
to pay extortion to the local influential parties. Most importantly, they do not have any safety of
their vehicles and cargos. On the other hand, the waiting vehicles cause severe traffic jam. This
jam hampers the movement of the other vehicles. So, if there is proper parking facility at the
entry points of Dhaka city, the problem would surely diminish significantly. Therefore, Truck
Stand Business wants to solve these problems by providing proper parking facility to the pickup
vans, trucks, trailers, containers, and Lories.
To conclude, the vehicles would receive Truck Stand Business service, would not face the
harassment caused by the police and the influential parties. Moreover, they would not create
problem to the other vehicles to move.

12
Clear evidence of a market opportunity
Truck transport sector is a great economic sector for Bangladesh. Because all types exporting
and importing products are carried by the truck all over the country. But this sector faces
different types of problems. The most talks about problem of this sector is parking problem
because no truck owners have specific parking place for their trucks to park. So they have to park
their truck on the road. So, it becomes a headache reason for the truck owners.
Why it becomes a problem and the reasons behind it
• Dhaka Chittagong high way is the main high way for exporting& importing product. The
imported product delivered through all over the country by this road. To distribute
products the trucks, have to go through in the middle of the Dhaka.But the main problem
is that the trucks do not enter into and go out from Dhaka city till 8.00am-8.00pm. So all
the trucks get stuck all the entry point of the Dhaka city. There are 3 entry points in the
Dhaka city. The entry points are 1.Kanchpur which connected to Dhaka city with
Chittagong port. 2. Gabtoli which connected to Dhaka city with North Bangle. 3. Tongy
which also connected to Dhaka city with North Bangle. These are the major 3 entry point
which connected Dhaka city all over the country. During the day time trucks cannot enter
into the Dhaka city. So, the drivers have to park the truck on road. And had to wait till
night to enter into Dhaka city. But on this time, they had to face many problems. When
they park their truck on the road the police charges 500-600tk per hour for parking. If the
truck drivers are not willing to pay the money the police attached racer with the truck. If
the racer is attached with the truck, then the driver have to pay 2200tk for attaching the
racer. Police also put case against the truck.
• When they park the truck on the road side the driver or helper anyone has to be awake for
watch over the truck. Because some time theft occurrence also be happened.
• There is another bypass road named Kanchon road which connected North West Bengal
with south west bangle. But the main problem is there is huge traffic. It took 8-10 hours

13
for crossing the bypass. So the drivers prefer Dhaka city for going to North Bengal. So
they are waiting for night to cross the Dhaka city. That’s why they park the trucks on the
road.
• Sometime driver needs sleep for 3-4 houses so they have to park the truck and started
taking powernap.
To remove these types of problems, we want to open a truck stand at Kanchpur. Because from
the survey we can see that a truck stand is much more needed on this area. Even we also find that
at Kanchpur there are no types of parking space/ truck stand for the trucks. So, we have a great
opportunity to capture the whole market on this area. If we open a truck stand on this area we can
easily get any kinds of product transporting vehicle like truck, container, pickup, lorry, tailor etc.
because there we will have no kind of competitors to compete with us. In this area we can easily
do our business as in economic term monopoly.

14
Evidence of market validation (Primary
& secondary market data)
From the primary research I can find that truck drivers are facing mainly parking problem in the
Kanchpur area. They also suffer different types of harassment by the police.
The problems are: -
1. Police takes lots of moneys hourly basis for parking trucks on the roads.
2. Police also attach racker for parking trucks on the road. Attaching rackers on trucks is
policy of police to earn money from the truck drivers.
3. Sometime drivers have to take rest or sleep on the roads. So, they park their vehicles on
the road.
From primary research data we have been able to identify their necessity to solve the problem.
We have come up with 3 questions and asked those questions randomly to 10 people. I have
chosen the drivers and the owners of the trucks as my respondents. It helped me to identify
whether our plan is correct or not. (See Appendix 2, 3 and 4)
To solve the problem we want to open a truck stand at Kanchpur area. Because Kanchpur is the
main entry point of Dhaka city which connect Dhaka city through the Chittagong port. This is
the main road which is used for caring exporting and importing goods all over the country. So,
all the trucks have to wait here all over the day till night to enter into the Dhaka city. So, they
have to park the truck on the road during the day time.
So, we want to open a truck stand on this area. For this we need minimum 6 acres of land there.
For the project we already select the land. Our main motive is to give them secure parking
facilities to solve the parking problem and from police harassment. On the sand we will give
truck drivers different types of facilities. This stand will make up with different types of
infrastructure. Such as hotels where drivers & helpers can easily take some refreshments, parts

15
shops where drivers can easily find the necessary parts for their vehicles. On this stand we also
provide mechanical facilities. So, they can easily repair their vehicles. There will also be an oil
shop. There will also some tea stall where drivers can easily take refreshment.
On this area, we will be the first comer who will provide this type of facility for the first time.
So, we will have no competitors on this area. We will be able to run our business very smoothly.
Our main advantage will be we don’t have any kind of political influence. Because our one
partners has smooth relation with the political parties. Because of this type of business political
risk is the main problem. For this reason, there is no chances of arise any competitors.

16
Business Model Canvas
Key
Partners
• Politicians
• Landlords
Key Activities
• Parking facilities
• Security
• Hotels
• Vehicle parts shop
• Oil shop
• Car Repair shops
• Prayer facilities
• Washroom
facilities
• Tea stalls
Value
Proposition
• Resolving the
truck parking
problem
Customer
Relationships
• Long term
relationship
Customer
Segments
The owners and drivers
of-
• Pickup vans
• Trucks
• Trailers
• Containers
• Lorries
Key Resources
• Labors
• Land
Channels
• Banners
• Posters
• Other truck
stands
Cost Structure
• Land
• Land development
• Electricity
• Water supply
• Marketing cost
• Washrooms
• Boundary wall
• Mosque
• Labor cost
• Loan Payment
• Tax expense
Revenue Streams
• Rent from parked vehicles
• Rent from hotels
• Rent from vehicle parts shop
• Rent from oil shop
• Rent from Repair shops
• Rent from tea stalls
Table 1: Business Model Canvas
Designed for: Designed by: Designed on:
Truck Stand at Kanchpur

17
Key Partners
The key partners of our proposed business idea will be-
1. Politicians: We have to keep a good relationship with local politicians to ensure the
security of the business from extortion, possible legal and illegal political and
bureaucratic constraints and other legal issues. One of our team members already has a
relative in the Home Ministry who is an influential politician. We also have reach to
some local influential politicians and they have ensured us to help resolving any issues
regarding the mentioned areas.
2. Landlords: We will go into a deal with the owners of the lands which includes the
advance payment of a lump sum amount and payment of the rest amount in installments.
We will pay the installments as our business starts to operate and grows. So, until the full
payment of the land is paid off, we are considering the landlords as our important key
partners.
Key Activities
The key activities of our proposed business are listed down below.
1. Parking Facilities: We are planning to provide enough parking spaces which will be
able to contain about 500 trucks.
2. Security: We are planning to design a security system of the parked vehicles so that the
drivers or owners will not have to worry about them. The proposed security system
includes the installation of Close Circuit Cameras and employing security personnel.
3. Hotels: We are providing space for renting to at most five hotels where the drivers or
owners and their subordinates can have their meals and take some rest while they are
waiting for their departure time.
4. Vehicle Parts Shop: We are also renting some space to at most five shops that will sell
various parts for trucks, pickup vans and other vehicles. These will facilitate Drivers or
owners to buy necessary parts for their vehicles.

18
5. Oil Shop: We are providing space to a motor oil shop for rent where the drivers/owners
can buy oil for fueling their vehicles.
6. Repair Shops: Space will be rented to at most four repair shops with experienced and
skilled mechanics where the parked vehicles can be repaired, improved or modified if
necessary.
7. Prayer Facilities: There will be a mosque in the premise that will allow the Muslim
drivers/ owners to say their prayers in time.
8. Washroom Facilities: We will also build washrooms with toilets and shower facilities
for our potential clients in the premise.
9. Tea Stalls: We will rent some small spaces for tea stalls to meet the refreshment needs of
our clients.
Key Resources
Key resources of our proposed business are detailed below.
1. Labors: We will handle our accounts and finances, human resource management
and marketing ourselves. We will hire employees for security facility and
maintenance. The overall efficiencies will be used as inputs to the growth of the
business and its revenues.
2. Land: We will purchase a land (Approximately of 6 Acre) to facilitate all our key
activities. Our revenue stream, which will be discussed later, will come from
renting different part of the premise, hence the land, to different businesses and
our main target clients, vehicle drivers and owners. Therefore, the land will be our
main resource as we will utilize it at its full potential.
Value Proposition
Our primary value proposition is resolving the trucks’ parking problem. According to the law,
trucks are prohibited to enter Dhaka between 8 AM to 8 PM. Drivers have to wait at the entrance
points of Dhaka for a long time and they have to park their vehicles at inconvenient areas which
are sometimes illegal. Police creates problems with this type of parking sometimes, as well as

19
local influential groups also create huge chaos. Drivers have to pay some amount of money as a
rent to their parking space, to Police and to these influential groups. Also, to guarantee the
security of the vehicle and carried goods, the drivers and their subordinates have to guard those
in turns. All these issues are costly to these vehicle owners, drivers and staffs. By facilitating the
services above, we are providing them a less costly and secured place to park their vehicles. The
added value is providing them a good place to stay, take rest, get refreshed, eat, pray, buy parts
for their vehicles, buy motor oil and repairing the vehicles if needed. All these will be provided
in one place which will save their money, time and energy and will ensure their well-being.
Customer Relationship
One of the main objectives of our business is to build long term relationships with our customers,
based on trust. We need to turn our first time and potential customers into our loyal customers. In
this business, word of mouth is very important in terms of reputation and reaching more clients.
So, our priority will be to serve the clients the best value at their best convenience so that they
become our regular and loyal customers. Retaining loyal customers is the key to grow in this
business.
Channel
The channels that will used for marketing purposes are given below
1. Banners and Posters: There will be banners and posters containing our promotional
messages, provided services, contact details and address all over the areas nearby. These
posters and banners will be in other trucks and heavy vehicles stands to reach more
clients.
2. Other Truck Stands: Audio advertisements of our business will be played in loud
speakers at someTruck stands all over the country to catch more attention of our target
market. But this channel will be used with caution so violation of laws regarding sound
pollution does not happen.

20
Customer Segments
Our main target customers are the owners and drivers of heavy vehicles, such as- trucks, pickup
vans, trailers, containers, Lorries and so on, that carry goods to Dhaka or anywhere in the
country (where delivering goods requires crossing Dhaka).
Cost structure
A brief of our estimated cost structure is given below.
1. Land: Since we will purchase the land, the maximum portion of our budget will be
dedicated here. According to our estimation, the land we have investigated to purchase
will cost 70,000,000 BDT in total. We have talked to the landlords of this land and they
said it is possible to come to a deal with them. We will pay them 20,000,000 BDT in
advance and rest of the money will be given in installments over 3 years after starting the
business.
2. Land Development: As we have estimated, to get the land ready for the business, we are
considering a cost of 500,000 BDT for land development purposes.
3. Electricity: The initial installment of electricity system and appliances like lights, fans
etc. will cost 200,000 BDT. The overall electricity bill payment is estimated to be 20,000
BDT per month.
4. Water Supply: To facilitate water supply to all the hotels, shops and toilets, we will have
to install our water supply system and that is estimated to cost 100,000 BDT initially. The
monthly Government bill for the water supply will be divided among the hotels’ and
shops’ owners.
5. Marketing Cost: Cost for marketing activities to attract new clients and retain old clients
is estimated to be 200,000 BDT.
6. Washrooms: We are planning to build washroom facilities for our clients and we have
estimated that the construction cost will be 500,000 BDT. Also, there will be added cost
every month for toilet maintenance and that will be added to the labor cost.
7. Boundary Wall: The construction cost of the boundary wall with maximum security
measures will be 1,000,000 BDT.

21
8. Office Room: The construction cost an office room will be 700,000 BDT and the
building will have 100 years of lifetime, depreciating 7000 BDT per year. The
maintenance cost of the office is estimated to be 30,000 BDT per month.
9. Mosque: The construction of a small mosque is estimated to be 1,800,000 BDT and its
maintenance cost per month will be included in the office maintenance costs.
10. Labor Cost: We are planning to hire at most 10 employees initially and the labor cost is
estimated to be 150,000 BDT per month.
11. LoanPayment: The required interest rate of the proposed loan amount is 15% quarterly.
Since we are planning to have a bank loan of 25,000,000 BDT with a 5 year term, we will
have to make 20 payments in total. Each payment will be 1,437,500 BDT in total, which
will include the principal amount of 1,250,000 BDT and interest payment of 187,500
BDT. The total cost here for 5 years will be 28,750,000 BDT.
Revenue Stream
The revenues will be collected from rents paid by all other businesses we are collaborating with.
The revenue streams are listed below.
1. Rent from Parked Trucks: According to our research, we are expected to have
approximately 500 trucks, pickup vans, trailers, containers etc. to provide our parking
facilities. The drivers/ owners will be charged for 120 BDT per day of parking. With this
rate, from this sector, we will earn 60,000 BDT per day, 1,800,000 BDT per month and
21,600,000 BDT per year.
2. Rent from Hotels: Each hotel will be required to pay a rent/ lease (depending on
contract terms) of 30,000 BDT or 15,000 BDT (depending on the location) per month.
We can provide space for 2 large hotels and 3 small hotels, totaling in 5 hotels; from
which we will earn 105,000 BDT per month.
3. Rent from Vehicle Parts Shops: We will rent space to 5 shops for 10,000 BDT per
month, totaling in monthly revenue of 50,000 BDT.
4. Rent from Oil Shop: We will rent space to one shop for 10,000 BDT per month.
5. Rent from Repair Shops: There will be 4 car repair shops each paying 10,000 BDT per
month as lease/ rent, totaling into 40,000 BDT per month.

22
6. Rent from Tea Stalls: We will facilitate space for 5 tea stalls each paying 5,000 BDT as
rent/ lease, added up as 25,000 BDT per month.

23
Financial Analysis
A basic financial analysis accurately depicts the feasibility of business, providing investors with
significant information about where the costs are paid and how much profits could be made
during economic activities. Furthermore, based on analyzing these economic figures, investors
could have a clear indication of the level of funding that is needed for this particular project and
feasible forecasting of profit from the investment in long run.
Land 70000000
Land development 500000
Toilet 500000
Electric Line 200000
Boundary of land 1000000
Water supply 100000
Office room 700000
Mosque 1800000
Marketing & other cost 200000
Total fixed cost 75000000
To begin with, the chart of fixed costs shows that the total cost needed for setup the whole
project. At first, we will need 75,000,000 for set up the business. Among the total cost the
93.33% money means 70,000,000TK will be used for buying the land and the rest 6.67% means
5,000,000TK will be used for the total infrastructure development.

24
Hotels 30000 * 2 60000
15000 * 3 45000
Parts shop 10000 * 5 50000
Mechanical 10000 * 4 40000
Oil shop 10000 * 1 10000
Tea stall 5000 * 5 25000
Total rental income 230000
The chart of rental income shows that the total rental income. On this place we will give some
position to set up shop. Such as hotel, parts shop, mechanical shop, tea stall, oil shop etc. From
these shops we will earn a monthly rent. The total amount of monthly rental income will be
230,000TK.
Electricity bill 20000
Labor cost 150000
Office cost 30000
Total monthly cost 200000
The chart of monthly costs shows that our total monthly expenditure will be the labor cost,
electric bills, and the office cost. Out total estimated monthly cost is 200,000TK.

25
Total monthly income from rent 230000
total monthly cost 200000
Monthly net income 30000
The chart of net income shows the total monthly net income for the business which is not our
main net income or revenue stream. From here we can find that after the monthly expenditure
our total monthly income will be 30,000TK. And this rest of the money will be use for the land
development.
Per day income 120 * 500 60000
1 month 30
Monthly income 1800000
1 year 12
Yearly income 21600000
Break-even point 75000000
21600000
Approximate years for break-even
point (75000000/21600000) 3.472222222
The chart of revenue shows the total revenue. If we charge 120 for 24 hours for parking per truck
and the amount of total truck is 500 per day, our total per day revenue will be 60,000TK. Then
monthly revenue will be 1,800,000Tk. Then our yearly income will be in total 21,600,000 Tk. If
we can generate revenue in this way then we will need 3years 6 months to reach our breakeven
point.

26
Total loan amount 25000000
Yearly installment amount 4
We will pay money within 5 years 5
Total installment amount 20
Total installment 20
Per installment payable 1250000
Per installment interest 15%
Per installment interest payable 187500
Total installment 20
Total amount interest payable in 20
installment 3750000
Total payable to bank 28750000
The chart of revenue shows the total loan amount. We will take 25,000,000Tk loan from the
bank by using our property as collateral. We will get 25,000,000TK against the property of
32,000,000Tk. We will pay the loan amount with interest within 5 years. We will use 20
installments to pay the loan. So, we have to pay bank in total 28,750,000TK with interest rate of
15%.

27
3 month payment 1250000
Interest rate 187500
Payable to Bank 1437500
Income (3 month) 1800000 * 3 5400000
Payable to Bank 1437500
Installment amount of money payable to
land owners 3962500
Payable to land owners 50000000
Installment amount of money payable to
land owners 3962500
Approximate amount of paying
installment of land 50000000/3962500 12.6182965
The chart of revenue shows the land installment payment system. At first well will pay to the
land owners 20,000,000Tk as in advance. And the rest of the amount will be paid by
approximately 13 installments. In per installment we will pay 39,625,00Tk to the land owners.

28
Risk Analysis
➢ One of the major risks that our business can face is the political risk. We are doing a huge
business which will lead to a huge profit in the long run. The main problem can be there
are the politicians of that area. There may be a chance that the politicians may not let us
to get the land. As this is a huge land and profitable business, they will be looking to do
businesses by their own.
To overcome this risk we need to make a good relationship with the politicians. We are hoping
that we will be able to make a good relationship with the politicians as one of our partners has a
smooth relation with a politician. So we are hoping to convince them easily.
➢ Another risk that we can face is the seasonal risk. We are buying the land but the soil
may be raw at that time. So it may get destroyed during the rainy season. By the rain, the
whole soil can get watery. There will be mud and it will be hard for the trucks to park in
this soil. This will automatically decrease the trucks to come in this land and our business
will get affected.
To overcome this risk we need to make the soil hard. But it is hard to do in the first session of
our business. For that reason, we will try to do some temporary works. We will put a drain where
all the waters may pass away. If any truck stuck in the mud, it can get out through the help of
another truck. After 5 years we will be developing this land into buildings. So there will be no
problem then.
We can figure out the position of our business and maintain necessary facts for our business by
doing SWOT Analysis. (See Appendix 5)

29
Growth Proposal
As we are the entrepreneurs, we will be on the introductory stage during starting our business.
But when the time will pass by, we will be improving and reach the maturity stage. But for that
we need to identify how we can grow our business. After certain time, we will be using the land
to make a 2-3 stored building. That will help the trucks to be more secured and it will also keep
the trucks perfect during the monsoon season.

30
Specific investment deal proposal
As we are the entrepreneurs, we have to go to the business angels or venture capitalists for the
new business. But it is hard to get them for our business. Thus we have the option to go to the
bank. We have to give them the proposal for our business so that they lend us the money –
‘Our business is about the truck parking business. We are doing this business basically for the
welfare of the truck business drivers. These drivers are always using the route Kanchpur for their
business. They are facing some difficulties while using the route like Police taking lots of
moneys hourly basis for parking trucks on the roads, Police are attaching racker for parking
trucks on the road, and sometime drivers take rest or sleep by parking their vehicles on the road.
For these particular reasons we have come up with this idea. We have chosen 6 acres land in
Kanchpur. The value of the land is 7 crore. Being an entrepreneur, we have not so much money
in hand. So we will be paying the money to the landlord in installments. We need 3 crore taka to
start our business. We can pay 50 lakhs taka by ourselves. Thus we need 2.5 crore as an initial
amount from bank at 15% interest rate. We will use 2 crore from here to get the land in advance.
We will set up the infrastructure like hotels, toilets, oil shop etc. and for that we need almost 50
lakhs taka. The rest 50 lakhs will be kept for any kind of emergency. We still need to pay 5 crore
taka to the landlords. We will be hoping to pay all the money to the landlords within
approximately 13 installments. We will use our property which worth 32,000,000 taka as
collateral for taking loan from the bank. Among the total cost of 75,000,000Tk, the 93.33%
money means 70,000,000TK will be used for buying the land and the rest 6.67% means
5,000,000TK will be used for the total infrastructure development. We will pay our money to the
bank in four quarters per year that means 4 installments per year. As we are taking the loans for 5
years, we are hoping to pay the money to the bank within 20 installments with interest which is
28,750,000 taka. Thus we are hoping that in 3.5 years we will pay all the money to the landlords
and the bank and reach the break-even.

31
Conclusion
We want to setup a truck stand at Kanchpur. It is a one kind of public facilitated work. If we are
being able to setup this stand then it will have a great impact to reduce the truck parking problem
on the highway. For this reason, the traffic jam will also be reduced from the Kanchpur area. It
is also a huge profitable business. We will be able to generate huge revenue from this business
which is almost more than 20 to 25 times income than in the other businesses. Besides this we
have a huge facility to expand these types of business all over the Bangladesh to reduce the truck
parking problem.

32
Appendix 1
6 Acre Land
At least 500 Trucks / Van Daily
Entry
Exit
Hotel
1
Hotel
2
Hotel
5
Hotel
4
OilToilet
Tea Stall 1
Tea Stall 2
Tea Stall 3
Tea Stall 5
Tea Stall 4
Car Parts 1
Car Parts 2
Mechanic 1 Mechanic 2 Mechanic 3
Light Light
Light Light
Mechanic 4
Car Parts 3
Car Parts 4
Car Parts 5
Mosque
Hotel
3

33
Appendix 2
94%
6%
Is it good to open a truck stand in
Kanchpur?
Yes
No

34
Appendix 3
73.80%
24.20%
2%
Keeping trucks in Truck stand is
good because-
It reduces the chance of
taking money from the
drivers by the Police
It is safer than keeping in
road
No need of truck stand

35
Appendix 4
96%
4%
During using bypass road, is it
better to be in the truck stand rather
than being in traffic jam?
Yes
No

36
Appendix 5
STRENGTH
Reasonable cost
No competitors
WEAKNESS
Raw soil
Rainy season
OPPORTUNITY
Huge possibility to expand
the business
THREATS
Political
SWOT
Analysis

Truck Stand at Kanchpur

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (19)

Similaire à Truck Stand at Kanchpur

Similaire à Truck Stand at Kanchpur (20)

Plus de AbuHorairaKamal

Plus de AbuHorairaKamal (8)

Dernier

Dernier (20)

Truck Stand at Kanchpur