Green Home Construction Company (Pvt) Ltd will offer green home construction services in Bangladesh, targeting high and middle-income customers concerned about the environment. The business plan outlines the company's mission to provide affordable, high-quality green homes through sustainable materials and methods. Key aspects of the plan include market segmentation focused on urban areas, financial projections estimating increasing market share and sales, and compliance with Bangladeshi regulations for registering a private limited company.

1. Eastern University
Business Plan
on
Green Home Construction Company
Course Title: Entrepreneurship Development
Course Code: BUS-304
Group: 1
Submitted To
Mr. Abu Md. Abdullah
Assistant Professor
Eastern University, FBA
Submitted by
Name ID
Jasfia Khanam Fama 133200105
Submission date: 15 December, 2015

2. Table of Contents
1. Executive Summary
2. Company Description
2.1 Mission Statement
2.2 Products and Services
2.3 Legal Status and Ownership
3. Industry Analysis
3.1 Industry Size, Growth Rate and Sales Projections
3.2 Industry Structure
3.3 Nature of Participants
3.4 Key Success Factors
4. Market Analysis
4.1 Market Segmentation and Target Market Selection
4.2 Buyer Behavior
4.3 Competitors Analysis
5. Market Plan
5.1 Overall marketing strategy
5.2 Product, Price, Promotion, and Distribution
6. Management Team and Company Structure
6.1 Management Team
6.2 Board of Directors
6.3 Company structure
7. Operations Plan
7.1 General Approach to operations
7.2 Business Location
7.3 Facilities and Equipment
8. Product Design and Development Plan
8.1 Challenges and Risks
9. Financial Projections
9.1 Sources and Uses of Funds Statement
9.2 Assumption Sheet
9.3 pro forma income statements

3. 1. Executive summary:
Green home construction Company (Pvt) Ltd will be a designer and builder of green homes in
addressing a growing demand for affordable living with a reduced environmental impact.
Increased consumer awareness of environmental issues has driven demand for green buildings,
creating a new market segment within the housing industry. It will be a privet limited company
according to the Bangladesh company act of 1994. All team members of this business plan group
are currently about to complete a rigorous graduate program in Bachelor of Business
administration and we are also about to complete Entrepreneurship business course. Green home
construction Company(Pvt) Ltd will be a contractor specializing in creating quality,
comfortable, and affordable homes for the buyer concerned for our environment, the future, and
simplifying the way we live . This trend will be available only for higher-priced homes;
however, this will be a business plan for high income and higher-middle income people.
Customers will prefer our over those of other builders because of our excellent designs, lower
prices, shorter construction time and lower environmental impact over the entire building life-
cycle. Our company sustainable construction materials, methods and renewable energy sources
to form a systems approach to home design. Specifically, it will reduce natural resource use and
construction waste, increase energy and water efficiency, and improve indoor air quality. Green
Home Construction Company will recognize that different customers have varying desires and
value customizability; hence, we will offer a spectrum of “shades of green” home options.
Location in relation to the customer base will be an important aspect for our business as
transportation costs and other material cost. Thus we are firstly confined our market into Mirpur,
Dhanmondi, Uttora, Gulshan and Bonani but if we can successfully serve our area we will
expand our business location. This collaboration ensures that Green Home Construction
Company Ltd is making a quantifiable contribution towards reducing the environmental impact
of new home construction. Our company is committed to the idea of sustainability realized
through implementation of a triple bottom line: achieving financial, social, and environmental
goals.

4. 2. Company Description:
Company Name: Green Home Construction (Pvt) Ltd.
Business Type: Manufacturer
Main Markets: Bangladesh
Number of Employees: 50-100 People
Year Established: ****
Manufacturing Unit (address): Gazipur, Dhaka.
Main office Contact (outlet): 11/1 Uttra,Dhaka.
Phone-02568707, Mobile- 01776777123
Email: greenhomebd@gmail.com
2.1 Mission Statement:
Protect the future through green building, one house at a time.
2.2 Products and Services:
Products:
Products or Materials choice will be an extremely important element in green home construction
business. Self-promotional product information abounds, so we’ll make it simple. In general,
choose materials on the basis of the expected life span, the transportation cost of moving the
material to the site, implications for energy usage and health damage. Minimize the need for
water usage. Use recycled materials where they make environmental sense. Another general

5. factor will be whether the materials we wish to use meet the local building code in our Green
Home Construction business. This is more likely if the community has adopted an energy
conservation code. Here are some major points:
 Wood
 Bamboo
 Stone
 Solar
 Trees
 Wool
 Cork
 Brick
 Shingles
 Lawn
 Paints
 Plastic Lumber
 Fiber Cement Siding

6. Services:
Our Green Home construction company will be a contractor specializing in creating quality,
comfortable, and affordable homes for the buyer concerned for our environment, the future, and
simplifying the way we live. We compete with other green builders, marketing to homebuyers
who are interested in green homes. Customers will prefer our over those of other builders
because of our excellent designs, lower prices, shorter construction time and lower
environmental impact over the entire building life-cycle. Our company sustainable construction
materials, methods and renewable energy sources to form a systems approach to home design.
Building an energy efficient solar home goes beyond providing additional layers of insulation
and installing more windows facing south. It requires integrating all of the home systems that can
benefit from solar energy without compromising aesthetics or construction quality.

7. Creating value for our customer
As recognition of the detrimental impacts of human activities on environmental and personal
health grows, people are demanding innovative products that respond to these challenges without
sacrificing fundamental lifestyle choices. Green Home Construction Company (Pvt) Ltd offers a
solution to the homebuyer looking for a beautiful home that also reflects their desire to lessen
their environmental impact and protect their health without having to go beyond their financial
means.
Sustainability
Sustainability is the key value of Green Home Construction Company (Pvt) Ltd. Intelligent
design and landscape work can optimize the efficiency of a home to use natural energy and
cooling sources, and is the least expensive way to capitalize on savings from energy use. By
building in a factory, Green Pieces completely avoids weather issues, preventing potential health
and structural problems that are caused by water infiltration during construction. Material and
product choice can have a major impact on the environment and the health of the occupants. We
will offer Green Home Construction Company (Pvt) Ltd homes in different “shades of green”
which will represent a different compilation of green features at different prices.
2.3 Legal Status and Ownership:
Though we are planning our business model is “Privet Limited Company” so, we will do the
following works to establish our business. We will follow the company act of Bangladesh 1994.
The rules are given bellow:

8. Company registration in Bangladesh
This guide will provide to detailed overview of our “Green Home Construction Company”
registration requirements, procedure, and timeline for registering a private limited company in
Bangladesh. Like most other jurisdictions, Bangladesh has a set of initial and ongoing regulatory
compliance requirements for starting and operating a company.
When we register our Green Home Construction company in Bangladesh, note that most
Bangladeshi companies are registered as private limited liability companies (commonly known
as private limited companies). A private limited company in Bangladesh is a separate legal entity
and shareholders are not liable for the company’s debts beyond the amount of share capital they
have contributed. According to the Companies Act 1994, any person (foreign or local) above the
age of 18 can register a company in Bangladesh. We will follow that procedure.
Pre- registration what we do:
Key facts about our company formation:
Company Name: The name must be approved (cleared) before incorporation of the company.
(Green Home Construction Company)
Directors: Minimum 2 directors are mandatory in Privet Limited Company and Directors must
be at least 18 years of age and must not be bankrupt so our members are able to select our
Directors in our Green building construction company. The law of 1994 requires that a director
must own qualification shares stated in the Articles of Association.
Shareholders: Green home construction (Pvt) Ltd Company in Bangladesh can have a
minimum of 2 and maximum of 50 shareholders. Directors and shareholders can be the same or a
different person. Though it’s our first and new business so, we must be select and priority of our
members.
Authorized Capital: We must state the authorized capital in the Memorandum of Association
and Articles of Association of 1994’s company act. It is the maximum amount of share capital
that the company is authorized to issue (allocate) to shareholders.

9. Paid-up Capital: Minimum paid-up capital for registration of our company will be Taka
10,000,000. It is collect our business partners.
Registered Address: In order to register our company, we must provide a local address as the
registered address of the company. The registered address must be a physical address (can be
either a residential or commercial address) and cannot be a P.O. Box.
Required documents:
According to the company act of Bangladesh 1994 for the purpose of company formation in
Bangladesh, the following information is required by the company registrar:
>Company Name
>Shareholders Particulars (National ID)
>Directors Particulars (including Tax Identification Number)
>Registered Address
Registration procedure:
Company registration procedure in Bangladesh is partially computerized. There are three distinct
steps involved in the Bangladeshi company setup procedure so we as well as play this rules:
a) Name Clearance;
b) Bank account opening and bringing in the paid up capital; and finally
c) Company Registration.
Step (b) is only applicable if there is any foreign shareholder in the proposed company.
Post-registration formalities:
Documents issued by RJSC(register of joint stock company):
Certificate of Incorporation: RJSC will issue a Certificate of Incorporation of our company.
The certificate will have the registration number, name of the company and the date of our
incorporation. All the important things are notice.

10. Applying for trade license, tax identification number and other licenses: After the certificate
of incorporation, we should buy a commercial space or rent some space in any commercial area.
Then we need to apply for Trade License and Tax Identification Number. Depending on our
company’s business activities, we may need to obtain more business licenses.
Return filling requirement: We divide return of our company by percentage of each person
share. We will hold 25% of the total return into a bank as reserve for the future shortage of
operation. After deducting the reserve we will divide the 70% return among the shareholders and
5% will be kept for the capital expense.
Annual general meeting: Each calendar year, an Annual General Meeting must be held. The
AGM must be conducted within 18 months of company formation, after which no more than 15
months can elapse between one AGM and the next.
Change in any structure in the company: In case of any change in the board of directors or in
the shareholding structure or any other change, a relevant return must be filed with the RJSC
within a certain period of time.
3. Industry analysis:
Industry analysis, Growth and sales projection of Green Home Construction Company is given
below:
3.1 Industry size, growth rate and sales projection:
Green home construction company will represented 17% percent of the overall construction
market within year-1. This figure will be double present market share valued at minimum year 2
and it will be a “bright spot in an otherwise dismal market.” But Green Home construction (Pvt)
Ltd market share will expect to sharply rise to 29-38 %across a five-year forecast for overall
residential construction. According to the business plan, the two key factors driving market
growth will be the facts that green homes will seen as higher quality, and that they save
consumers money on utility bills. Home that are not only green, but also offer the combination of
higher quality and better value have a major competitive edge over traditional homes.

11. The business plan shows that green building projects will be largely value-driven for consumers.
Two-thirds of builders and remodelers say consumer request green projects to lower energy use
and save money, 80 percent say energy efficiency measures will “persistent” in the market, and
more than half consider durable materials one of the most important features in homes today.
Greater environmental value will bring greater monetary value for buyers. 26 % revenue from
green building features to makes it easier to market homes and 61 percent of customers are
willing to pay more for green homes.
Sales projections:
The sales price of our construction homes will depend on the size of the house (we will expect
1,500-2,000 square feet), the materials used, the distance from the factory, the cost of contractors
in the area, and variables related to the site. A pricing model of a primary assumption will
suggests a price per square foot of 1500 tk will be , which will includes all of the costs related to
on-site work (foundation, service hook-ups and finishing work). The sales price of our houses
will be directly dependent on the final costs of production and the profit margin that we add on.
Taking our cost estimate of 1500tk/sq ft, we will be adding on a strong profit margin of 30%.
3.2 Industry structure:
Affordability:
Affordability is one of the core values of Green business. We believe that in today's market, with
rising fuel costs and the cyclical (and current) state of our economy, our product will be in high
demand. Modular construction will lower production costs and green design will lower life-cycle
operating costs. The result will be a quality product that is available at a reasonable price to a
large market.
Sustainability:
Sustainability is the key value of Green business intelligent design and landscape work can
optimize the efficiency of a home to use natural energy and cooling sources, and is the least
expensive way to capitalize on savings from energy use. By building a factory, Green home
construction company completely avoids weather issues, preventing potential health and
structural problems that will cause by water infiltration during Construction.

12. Some pictures of decorating home by Green Home construction Company:

13. 3.3 Nature of participants
Preferred supplier attributes will be:ial Attributes Systems Attributes
 Contains recycled content
 Energy efficient
 Recyclable
 Water efficient
 No or few toxins
 Certified by a credited source
 More durable
 Locally made
 Less resource intensive
 Certified by a credible source
 Locally made
 Sustainable
 Energy efficient
As production progresses, we will continue to assess material quality through recycling policies
that look to maximize the use of materials and scrap.
Technology status:
Green Home e Construction Company will not in an industry where technology has a regulatory
or legal advantage. Competitive advantages in the construction industry will rest in creating
value for the customer through better service, product differentiation, or lower prices. Green
Home e Construction Company will breaking down the traditional production process in an
existing industry to offer green homes at a lower price.
3.4 Key success factors
As a green builder, our indirect competition will be other builders who offer single-family
homes, regardless of construction methods. Being that Green Home construction, our most
similar competitors will be those companies that are using the same methods to for developing
bring green homes to their customers.
While higher initial costs represent the primary barrier for green building to enter the
mainstream, this can also be perceived as a great opportunity. Evidence shows that many
consumers want green homes but are not willing to pay a very large premium for the green
features. The potential of this underserved market could be huge.
If green home construction company buildings can be made without the price premium or close
to the cost of a custom-built, non-green home, a large portion of the market can be captured.

14. Green home construction will looks to capitalize on this underserved market by providing high-
quality, high-design that are cost comparable with traditionally-built, non-green homes.
4. Market Analysis
The green home construction market are not available all the country but in the Front Range is
excellent. Although “green building” is a small segment of the industry overall, green home
building statistics indicate that it is growing rapidly.
4.1 Market Segmentation and Target Market Selection:
For analyzing market we divide the whole market according to the target buyers. Market analysis
and market segmentation process is given below:
Market Segmentation
We divide our market according to geographic, demographic, psychographic and behavioral
segments. The Followings are described below:
a) Geographic segmentation:
Geographic segmentation refers to the customer’s country, nation, state region, cities,
neighborhoods etc we will divide our market for Green home construction business according to
some basic areas because we will be starting our business newly. It will be risky if we expand
our operation widely. So we will firstly develop our business into Mirpur, Dhanmondi, Uttora,
Gulshan and Bonani but if we can successfully develop we will start throughout the other
districts and capture whole country.
b) Demographic segmentation:
Demographics refer to physical characteristics of people such as ethnicity, income, family size,
occupation, education, marital status, social class, and stage of the family life cycle.
 Income: We are dividing our market on the basis of income. We will be dividing our
customers in different income level like, high-income level, upper- middle income level
etc.

15.  Occupation: We will divide our market on the basis of occupation. If the people are
high class standard they will definitely choose our company for construction company.
c) Psychographic segmentation:
Psychographic segmentation includes life style of the customers. Social class and personally
also has great impact on physiographic segmentation. The followings are described below:
 Life style: We will divide our market on the basis of life style. Because life style has
highly impact of choosing the home construction company.
 Social Class: We will be dividing our market on the basis of Social Class. Social Class
has high influence the customer willingness to pay. Aristocrat people will always wants
to live in such a luxurious place.
Target Market Selection:
 We will be targeting customers who make up an under-served niche market for
environmentally sound homes. Our target customers can be defined as well-educated
individuals who desire to be surrounded by nature, respect the environment, and preserve
for the future. Customers will come from upper-middle and rich peoples. Our target
market, therefore, will be potentially very small for the first time.

16.  Therefore, our marketing strategy is to “preach to the converted,” focusing on customers
who will be sincerely interested in this type of housing and are seeking it out, rather than
trying to convince people who will not be motivated by a concern for the environment.
 Since we will position ourselves as the only area builders that specialize in green
building, we believe that we can capture most of the buyers who want a specialist.
However, we will not be intended to become a big builder using production building
techniques.
4.2 Buyer behavior
 A Price cognitive group of customer who can decide principally upon the basis of price
or economy comparison.
 Group of customers who emphasize on business quality like design, style, raw materials
etc.
 An impulse group of customers who buy on the basis of physical appeal and will not be
relatively insensitive to brand name.
 A group of new customers who haven’t yet stabilized the psychological dimensions of
their behavior.
4.3 Competitors Analysis:
As a green builder, our direct competitors are the other construction company who offer single
family homes, regardless of construction methods. There are also competitions that can provide
the building design concept and successfully operate their construction business in the
marketplace. There are many competitors in construction business but no one can develop this
unique idea of Green home construction. So we will have not to face any direct competition in
this regard.
5. Marketing plan:
The overall marketing plan and marketing strategy will describe below:
5.1 Overall marketing strategy:
The purpose of Green home construction business will be to design and build high-quality,
environmentally-sound single family homes, one at a time. This will be accomplished by

17. positioning Green home construction Company as a unique building company that creates
quality, comfortable, and affordable homes for the buyer concerned for the environment. Our
target market will be different segments of the consumer market whose criteria for housing
include affordability and “greenness.” Therefore, our marketing strategy will be “preach to the
converted,” focusing on customers who are sincerely interested in this type of housing and are
seeking it out, rather than trying to convince people who are not motivated by a concern for the
environment. Those who are deeply concerned about sustainability .
5.2 Product, price, promotions and distributions
The 4ps of our home construction business is described in the below:
Product or Service Strategy
Green home construction business will be a service-oriented company with a unique product
designed for people who value simplicity and the natural environment. What differentiates our
product in our target market will be that we specialize in green building, unlike our competitors
who are able to provide green design and construction, but don’t specialize in it.
Our primary strength will be our people. We pride ourselves in our genuine commitment to the
future of the earth, our respect for nature and her resources, and our desire to live in harmony
with all things living. We will design and build homes in tune with these values for people who
share these values.
Our main weaknesses may be seen as an idealistic, Utopian regard for the planet which may lead
to a perception of our company as not serious about competing in a real-world environment.
But Green home construction business will be serious about providing high-quality,
environmentally-sound single family homes. Customers who hane interested in this type of
housing will select us because of the type of home we build and because of the professional,
personalized service we offer.
We pride ourselves on a systems approach which needs the unique input of Green home
construction company people and methodology. One aspect of what we do may be reproducible,
but not the entire system.
Pricing Strategy
Using a target sales price of 4500 tk per square feet Green home construction Company will use
the design-build approach to pricing our natural homes. A budget will be set from the very start

18. of the project with the buyer and the home will be designed and built around that budget. Many
contractors make a large profit from these change orders hence they welcome additions and
modifications. The design-build delivery method will be very unique to residential construction
but can be achieved with open communication and trust between ANH and our clients.
Advertising and Promotion Strategy:
Green home construction Company will employ a high touch strategy for advertising and
promotion. Some print advertising may be used, e.g., Yellow Pages ads and occasional
newspaper advertising. We believe personal selling and publicity will be more effective ways to
get our product before the eyes of consumers. Because it affords the greatest opportunity to focus
on target markets and specific customers and to deliver a specific message, personal selling by
the principal we will use website and face books for further promoting our Green home
construction Company.
Distribution:
We will distribute our service through demographic segmentation. We will divide the whole
market into some basic area and we firstly want to serve that area prospected.
6. Management Team and company structure:
Green Home Construction Company Ltd is organized as a privet limited company and is
designed to be a lifestyle business for the founder, in Dhaka city. We followed the Privet
company act of 1994 to construct the company structure and management team.
6.1 Management Team:
All team members of this business plan group are currently about to complete a rigorous
graduate program in Bachelor of business administration and we are also about to complete
Entrepreneurship business course. All team members are energetic, hard-working, and have a
strong personal drive to bring to the market a home that is greener and more affordable than
other competitors’.
We are aware that the strength of the company’s management team can be as, or more, important
than the business concept itself. We will be worked to bring together as a strong management
team comprised of experience, award-wining home designers, and specialists in marketing, sales,
operations, and business relations. For doing that the management team members must have to
complete a special course on architecture of home construction and home decorating

19. management. Thus Green home construction company Ltd will ensure that they had a strong,
achievement oriented management team to operate the business successfully. The management
team includes the Managing directors of different departments like Finance, Accounting, sales &
Marketing, Human resource management, Project manager, construction managers etc. Each of
the department head will be responsible for taking any decision and will be accountable o the
board of directors.
6.2 Board of directors:
According to the company act of 1994 the company must have to 2 boards of directors and the
board of directors will be chosen by the maximum shareholder’s vote. The board of directors will
be responsible for making all types of decision like finance decision, management decision or
any other investment decision. The final investment or decision will be taken according to the
decision of board of directors.
6.3 Company structure:
As is common with entrepreneurial ventures, the present team members will perform many
duties, over and above those described in this section. The following team members are expected
to take the company off the ground. When the managerial positions are filled the Directors
described below will work to support the management team and Officers. The company
structural hierc ahy is given below:
7. Operation plan:
We divide our operation plan into two phases according to our green business idea. It will be
more profitable for us and easier for us to operate our business. The 2 phases are described
below:
7.1 General approaches to operation:
Phase one:
To get a stable position in the market while not exposing the company to excessive risk, Green
Home Construction Company Ltd will contract with an small project for ( short time contract) to
produce homes for the first phase. The experience gained from the existing construction will help
our company to establish relationships with key players, such as contractors, landscape
architects, local inspectors and boards, developers, and customers. We will plan to be closely
involved in the process, including design, material choice, module manufacturing, transportation,

20. on-site contracting, module placement, and landscaping. Our involvement will ensure initial
quality control and help the process move more smoothly when we will begin to operate expand
project.
Phase two:
Once our Green Home Construction (Pvt) Company Ltd will gain a stable place in the regional
market, we will look to purchase or build a factory. Purchasing an existing factory is the
preferable option, as it will be require a smaller capital outlay and is associated with less risk.
During the first year of operation through smaller project, we will be researching a pre-existing
factory in Gazipur areas for purchase. There are several modular manufacturers located in our
focus area and during our first year of operation we will look to procure one of these factories. If
a suitable factory is not available for purchase, we will purchase land and build a factory near to
our forest. This process will take much longer and be more expensive than the prior option.
Building a factory will also require procurement of equipment.
However, it will also allow for freedom to design the factory for our specific purposes, possibly
including dual assembly lines so that we may frame the modules out of either wood or steel.
While Green Home Construction Company operating as a manufacturer, we will evaluate them
on environmental criteria and flexibility to work with the Green business. We will have a
recycling and waste reduction policy. In addition, we would like our manufacturing operation to
evaluate its supply chain on environmental merits and will be open to using more
environmentally-friendly materials. While we understand the complexity of prior supply chain

21. arrangements, we would like to make our constructing homes healthier and more
environmentally friendly. As production progresses, we will continue to assess material quality
through LCA (life cycle analysis) and recycling policies that look to maximize the use of
materials and scrap.
7.2 Business location:
Green home construction company Ltd will be a regionally-specific business, so it will be
necessary to select the location for the new company very carefully. A modular home factory can
generally serve an area contained approximately within a 300 -400 mile radius before
transportation costs become prohibitively high.
In this case GIS (geographical information systems) software was used to create maps
representing the market and customer profiles. Our main geographic location of our green home

22. construction will be Mirpur, Dhanmondi, Uttora, Gulshan and Bonani but if we can successfully
serve our area we will expand our business location.
7.3 Facilities and equipments requirement:
We will purchase a land which is far from Gazipur in the remote area, and we will form a forest
where we planted different types of trees which is used to make home construction and internal
home designing. We will set our factory near Gazipur which is situated in near to our forest So
that we can easily operate our business. We will produce different types of products like doors,
windows, furniture and different types of thing which are used to decorate and build customers
buildings.In general, the facility acquired will be a large warehouse-like structure with
dimensions at least 200 feet by 300 feet. The height of the factory can vary, but ideally has space
for a mezzanine and crane that feed the main assembly line or span the central bay of the factory.
Factories also usually include space for inventory and offices. The property should be large
enough to store module units not ready for transport. A modular factory usually requires some
heavy equipment in the form of one to three cranes either fixed or mobile to move large wall or
floor sections and forklifts to move additional inventory throughout the factory.
The materials for our homes will be heavily researched regarding their sustainability features and
our suppliers will be chosen on experience, reputation, location, and environmental commitment.
The features of our materials and equipments are:
Material Attribute:
• Contains recycled content
• Rycycleable
• No or few toxin
• More duerable
• Less Resourseintensive
• certified by credible source
• Locally made
• sustainability
System Attribute
• Energy efficient
• Water efficient
• Certified by a credited
source
• Locally made

23. 8. Product or service design and development plan:
We will want to establish a business that is green building. Our main concept will be using eco-
friendly materials to make a building. A green building is one whose construction and lifetime
of operation assure the healthiest possible environment while representing the most efficient and
least disruptive use of land, water, energy and resources. The optimum design solution will be
one that effectively emulates all of the natural systems and conditions of the pre-developed site –
after development is complete. Once the decision to build green has been made, one of the first
steps in the green design process will be to establish firm environmental goals for the project. It
will be important to set specific measurable goals for things like energy efficiency, water
conservation, on-site treatment of rain water and storm water, material and resource
management, construction waste management, and to assign responsibility for meeting these
goals to specific members of the design team.
8.1 Challenges and Risk:
 Separate capital and operating budget: The critical issue will be that most have
appropriated for real estate acquisition independently from fund for property operation.
 Spilt incentive for owner budget: Sometime owner does not want pay the extra money
for spilt incentive.
 Lack of transit oriented development: Green building is booming but the infrastructure
necessary to achieve the greatest efficiency. But in Bangladesh infrastructure will not
reach in many districts.
 Limited post occupancy evaluation: There will be a little information available
showing how building designed with sustainability.
 Greening existing building: It will be a new business. So we have not so many direct
competitor but we have to face so many indirect competitors.
 Resistance to change: New means risk and uncertainty. So we will have to face many
challenges.
 Lack of integrated design: Design the building sustainably will be expensive. So only
higher income people can afford this.
 Limited resource: In this Green home construction business there are limited resources
in Bangladesh. So we will have to face many challenges.
 High cost: Green project will be very high costly project.

24.  Limited investor: Here is limited investor for our project. So we will have to face many
difficulties.
 Competitive risk: There will be high risk of competing service product.
 Managing talent and skill shortage: perfectly manage talent and skill will be very
difficult for our new business.
9. Financial projection:
We estimate annual financial report, assumption balance sheet ,income statement and cash flow
analysis for 3 years to projected a roughly profit we can gain from green home construction
business.
9.1Sources and uses of funds:
Sources of funding:
We will arrange 1 core tk and we will divide the sources of fund according to the internal and
external sources which is given below:
Internal sources:
1) Self funding:25,00,000
2) Family & frinds:10,00,000
External sources:
1) Investor:32,00,000
2) Loan & line of credit:28,00,000
3) Commit to a major customer:5,00,000
Uses of fund:
 The money needed for various purposes for business startup; such as permanent office.
 Beginning quantities of supplies.
 Hire skilled employee.
 Needed equipment and furniture cost

25.  Purchase of building/land or cost of deposit for rent.
 Small promotional activity cost.
 Other startup cost such as feasibility analysis.
9.2 Assumption Balance Sheet:
Description Year-1 Year-2 Year-3
1.Assets
Cash & Equivalents
Inventory
Accounts Receivable
Property, Plant, Equipment
Less: Accumulated Depreciation
Total Assets
Liabilities
Account Payable
Debt
Deferred Taxes
Total Liabilities
Equity
Total Liabilities & Equity
30,00,000
40,00,000
10,00,000
15,00,000
75,000
20,00,000
30,00,000
5,00,000
5,00,000
25,000
10,00,000
20,00,000
8,00,000
2,00,000
10,000
95,00,000 59,75,000 39,90,000
25,00,000
30,00,000
0
10,00,000
20,00,000
75,000
9,90,000
10,00,000
1,00,000
55,00,000 30,75,000 20,90,000
40,00,000 29,00,000 19,00,000
95,00,000 59,75,000 39,90,000

26. 9.3 Performa Income Statement
Year-1 Year-2 Year-3
Revenue 2,00,000 9,00,000 20,00,000
Cost (90,000) (3,00,000) (3,00,000)
Gross Margin 1,10,000 6,00,000 (6,00,000)
Total Operating expenses (40,000) (40,000) (40,000)
Operating Income Before Tax
Less: Tax (15%)
70,000
(10,500)
5,60,000
(84,000)
10,60,000
(1,59,000)
Net Income After Tax 59,500 4,76,000 9,01,100