This plan is favourite for:
Participant
Coach
 
 
Business start-up: 

Marketplace Development of Indigenous Handicrafts for Poverty Alleviation

Set-up an OUTLET in selling handicraft goods on profit sharing basis aiming to alleviate poverty of the indigenous population.

The services that will be offered to the indigenous artisans is the opportunity to sell their products on profit sharing basis through the OUTLET. Second, to give them maximum benefit arrangement will be made to join fair trade movement so that their products can be sold out around the globe that can add value to the products and earn foreign currency. It will contribute to the local economy too. Thus it must improve the living standard of them.

Facts

Legal status business
Formally registered
Year of establishment

2008

Sales (US$)
Two years ago: 0
Last year: 0
This year (forecast): 10,000
Year 2 (forecast): 100,000
Year 3 (forecast): 500,000
Net profit after tax (US$)
Two years ago:
Last year:
This year (forecast): 8,000
Year 2 (forecast): 80,000
Year 3 (forecast): 400,000
Total number of Employees
Two years ago:
Last year:
This year (forecast): 4
Year 2 (forecast): 20
Year 3 (forecast): 50

Finance needed

Finance needed for fixed assets (buying of machines, buildings, ...) 100,000
Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) 50,000
Total finance needed (US$) 150,000

How do you expect this to be financed?

Own Contribution in cash 10,000
Loans (debt) 140,000
Shares in your company that you offer to investors (equity) 0
Other sources 0
Total finance needed (US$) 150,000

The Business

What is your product/service?

The products are: hand textile, ornament, furnisher, show piece, toy, wood work, etc. those items are produced by the indigenous people and have great demand in local markets and abroad. Now, they compel to sell their products to the local market at lower rates as they have no alternative.

The services offered is the opportunity to sell products on profit sharing basis (i.e. 75% profit will go to the beneficiaries poor artisans).

What customer need/problem do your products/services satisfy?

The services will satisfy both the customers and producers. It will help the customers in getting products at fair price and the producer to receive higher benefit through this direct marketing system.

How will you make the product/service?

The indigenous handicrafts shop would be a project of Unnayan Uddog (development initiative), a national NGO (charity) of Bangladesh. It coordinates a network of about 50 NGOs (see www.unnayanuddog.org). It will develop a network among the indigenous beneficiaries of those NGOs and collect their products to sell through its outlet.

And who will agree to sell products through us will be provided with training on quality, design and marketing.

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

A dynamic marketing strategy will be followed to sell out the products/ service. Locally it will follow a advocacy based advertisement to attract the customer (indigenous population are a priority group), globally it will use the fair trade movement. Emphasis would be given to sell out the products through fair trade outlets around the globe. And for the purpose it will become members of fair trade movements.

To whom are you selling, what is your market?

Locally we want to sell the products and service to the customers/consumers directly.

Internationally we want to reach the consumers directly through fair trade movement and want to catch the consumers indirectly through international private retailers only.

Describe your competitors?

Local retailers of handicrafts would be the primary competitors. They procure the products from the indigenous artisans at very lower price and sell at higher price keeping a big margin. As the beneficiaries will get most of the benefits (75%) here the OUTLET would be an unique and thus can over come the competition. Internationally, there seems to be no competitors.

What makes your business different/better than your competitors (competitive advantage)?

It is different/better because it promotes the indigenous products only. There is no such business of this kind. So, if a customer hope to buy indigenous products she/he must have the first choice to come here.

What makes your business, your product or service innovative?

It is innovative because it will create scope to sell the products of indigenous artisans like through a cooperative shop. Second, it is new of its kind in the country that will draw the attention of the consumers with less effort. Third, as government and donors want to promote the indigenous population, the business would be able in getting grant to develop quality of products that will reduce the investment cost of business.

How will you ensure the growth of your business?

Primarily through opening chain OUTLETs at other district towns. Second, it will draw more customers by developing the quality and increase the volume through export.

The Entrepreneur & Management

Describe the entrepreneur & management

The entrepreneur obtained MA from University of Dhaka in 1986. Received training on `Export Marketing of Leather & Leather Products' arranged by Dhaka Chamber of Commerce & Industries in 1998. Currently working as Executive Director of a charity and involved in small enterprise development activities. Initially, the Executive Committee of the charity will look after the mangement as the business entity is owned by the charity.

What specifically makes you and (if relevant) your management team most qualified to build this business?

My long experience to work (charity jobs) with the indigenous population and understanding about them.

How much time do/will you expect to spend per week in the business?

30+ hours per week.

Development

How does your business improve the local living standards (social and environmental)?

Indigenous population in Bangladesh are discriminated and extreamly poor with low rate of education, lack of training, access to credit, and other resources. This business will able to address their root cause of the povery and thus quite be helpful to improve their living standard through livelihood development.

Add a public comment

Post title

Post url

Your comment

Author

Comment

Mail

Website

title *required

comment *required

Keep me informed

name *required

email *required

Needs
Advice - business management, Advice - financial, Network - export opportunities