Course Code: FIN 301 Semester- Spring’2024

Group Name: Group 3 (Finance Prospectors)

Coordinator name and cell number: Eidmam Rahman (01718548359)

Date of submission: 30.03.2024

-
Submitted By

NAME ID CONTRIBUTION

Ta-seen Tasnia 2120950 Market Analysis + Marketing and Sales

Strategy

Md Israfil Miah 2022025 Executive Summary + Financial Assessment

+ Report Organizer

Jannati Ferdous 2220223 Business Description + Product/Services

Md Asif 2130079 Implementation Timeline + Conclusion

Mohona Akter Sweety 2111579 Ratio Analysis + Risk Management

Eidmam Rahman 2130076 Financial plan + Funding Methods + Menu

design and logo
Contents
Contents................................................................................................................... 2
Executive Summary: ....................................................................................................... 3
Business Description: ...................................................................................................... 3
Market analysis: ............................................................................................................. 6
Trends: ...................................................................................................................... 6
Products/Services ........................................................................................................... 8
Marketing and Sales Strategy ........................................................................................... 9
Sales strategy: .......................................................................................................... 10
Financial plan .............................................................................................................. 12
Funding Methods ......................................................................................................... 13
Food panda revenue (monthly) .................................................................................... 13
Financial Assessment .................................................................................................... 15
Pro Forma Balance sheet ............................................................................................... 17
Return on Assets (ROA): ............................................................................................ 18
Financial risk assessment business risk and contingency plans ............................................ 21
Implementation Timeline: .............................................................................................. 22
Maturity and Sustainability (Year 4 and beyond): ........................................................... 23
Conclusion: ................................................................................................................. 23
References:.................................................................................................................. 24
Executive Summary:
Click A Bowl is an innovative online restaurant who delivers food through Food Panda and operate
the business from panda kitchen which are placed Dhaka’s most popular place such as Banani,
Dhanmondi, Mirpur, Khilgaon, and Uttara. Our mission is to provide a selection of delicious meals
from our cloud restaurant, which are all conveniently accessible through our user-friendly website
and mobile app. We prioritize convenience, quality, and variety, ensuring that every customer
enjoys a delightful meal experience with just a click either from our website or Foodpanda app.

The online food industry in Bangladesh has a beneficial financial impact, providing jobs and
contributing to economic prosperity. Click A Bowl plans to capitalize on this trend by providing
quality food at affordable prices while effectively managing operational costs.

To reach out to our target audience efficiently, we use content marketing, social media marketing,
and search engine optimization. We prioritize customer acquisition through differentiated selling
points, an online presence, appealing promotions, and optimized sales techniques. We recognized
market, credit, liquidity, and financial leverage concerns and established effective mitigation
strategies. Our financial objectives are to achieve long-term revenue growth, improve profit
margins, and diversify income streams.

Business Description:

Introduction
Welcome to Click A Bowl, your ultimate destination for a culinary journey right at your fingertips.
At Click A Bowl, we're not just about delivering food; we're about delivering experiences. With a
passion for flavors and a commitment to convenience, we bring a world of culinary delights
directly to your doorstep.
Mission Statement
Our mission at Click A Bowl is to redefine the online food delivery experience by offering a
curated selection of delicious meals from top-rated restaurants and eateries, all conveniently
accessible through our user-friendly platform. We strive to delight our customers with exceptional
service, diverse cuisine options, and the convenience of ordering with just a click.

Services Offered
• Easy Ordering Platform: Our intuitive website and mobile app make ordering your favorite
meals a breeze. Simply browse through our diverse menu options, select your desired
dishes, customize to your liking, and with just a few clicks, your order is on its way.

• Fast and Reliable Delivery: We understand the importance of timely delivery, which is why
we have a dedicated team committed to ensuring your order reaches you promptly and in
perfect condition. Whether it's lunch at the office or dinner at home, you can rely on Click
A Bowl to deliver your meals fresh and hot.

• Curated Culinary Partnerships: We've partnered with a handpicked selection of local

restaurants, chefs, and culinary artisans renowned for their exceptional quality and
innovative cuisine. From classic comfort foods to exotic international flavors, our curated
partnerships ensure a diverse range of options to suit every taste bud.

• Specialty Menus and Dietary Options: At Click A Bowl, we believe that everyone has
access to delicious food that caters to their dietary preferences and restrictions. That's why
we offer a variety of specialty menus, including vegetarian, vegan, gluten-free, and keto-
friendly options, ensuring there's something for everyone to enjoy.

• Exceptional Customer Support: Your satisfaction is our top priority. Our friendly and
knowledgeable customer support team is available to assist you with any questions,
concerns, or special requests you may have, ensuring a seamless and enjoyable ordering
experience from start to finish.

• Target Market: Click A Bowl caters to busy professionals, students, families, and anyone
looking for convenient and delicious meal options without compromising on quality or
flavor. Whether you're a working professional craving a quick lunch, a busy parent in need
of dinner solutions, or a student studying late into the night, Click A Bowl is here to satisfy
your cravings with ease.

Value Proposition
• Convenience: Enjoy the convenience of ordering your favorite meals with just a click, and
have them delivered straight to your doorstep, saving you time and effort.
 • Quality: We're committed to sourcing the finest ingredients and partnering with top rated
restaurants to ensure that every dish delivered to you is of the highest quality and flavour
and Variety: With a diverse selection of cuisines and menu options to choose from, you'll
never run out of delicious meal ideas to satisfy your cravings.

• Reliability: Count on Click A Bowl for fast, reliable delivery and exceptional customer
service, every time you order.

Market analysis:

Market analysis of the online food industry: The Bangladeshi online food industry presents
a promising picture. Foodpanda, having the most extensive network across the country, serves
roughly two-thirds of the market, while Pathao Foods supplies the remainder. Hungrynaki, one of
Bangladesh's most well-known and commonly utilized online meal delivery services, shut down
in late 2023. The internet food delivery business in Bangladesh is rapidly expanding, driven by
rising demand for convenience and the availability of a diverse range of cuisine alternatives. The
predicted revenue for Bangladesh's Online Food Delivery market in 2024 is $1,256.00 million.
(Statista, 2023)
Trends: The most common reason people purchase food online is convenience. It also eliminates
the inconvenience of cooking or going out. In addition, you will receive amazing offers such as
buy one get one, discounts, no delivery charge, and rewards on electronic and card purchases.
Nowadays, people prefer convenience and time-saving solutions, thus it's a trendy approach.

Competitors: The online food business in Bangladesh is booming, with a growing number of
people turning to delivery apps for their meals.
 • Pathao Food: This ride-sharing company has successfully expanded into food delivery,
leveraging its existing network of riders and local partnerships. They focus on offering
exclusive deals with high-end restaurants.
• HungryNaki: One of the first movers in the Bangladeshi online food delivery scene, it has
faced challenges in recent years. Though they currently don’t give any service. However,
they are still a contender, especially for customers seeking a familiar and reliable option.
• Munchies: In Bangladesh, "munchies" most likely refers to a late-night delivery service
called Munchies. They are the first delivery service in Dhaka to deliver food and other
essential items at night, specifically from 8 pm to 6 am.

Financial impact: The online food business in Bangladesh is having a positive financial
impact, both for businesses and the economy. Here's a breakdown of the key points:

As a benefit for businesses, firstly online platforms are so large that allow food businesses to reach
a wider customer base compared to traditional brick-and-mortar restaurants. This is especially true
for cloud kitchens which can operate with lower overhead costs by focusing solely on delivery.
After that sales will increase by the convenience of online ordering leading to a rise in food
delivery orders, boosting sales for restaurants. Lastly, reduced online businesses can potentially
save on rent, staff (for dine-in services), and other operational costs compared to traditional
restaurants.
As a benefit for the economy, we can see job creation which means the online food industry creates
jobs in various sectors like delivery personnel, customer service, food preparation (for cloud
kitchens), and marketing. Then entrepreneurship the low barrier to entry for online food businesses
encourages entrepreneurship and innovation in the food industry. Lastly, the Economic growth of
the online food sector contributes to the overall growth of the e-commerce industry in Bangladesh,
which is a positive indicator for the economy. There are also some challenges to consider which
are competition, delivery cost, technological advancement, and paying extreme VAT or
commission.
Overall, the online food business in Bangladesh has a significant positive financial impact. As
internet penetration and smartphone usage grow, this trend will likely continue. However,
businesses need to be aware of the challenges and adapt their strategies accordingly.
Products/Services
Pricing Strategy
In the vibrant and varied marketplace of Bangladesh, our culinary business employs a range of
pricing strategies to captivate and involve our valued customers. Our menu features a wide
selection of bowls, shakes, and breakfast items carefully tailored to suit various tastes and
budgetary preferences. Embracing the philosophy of penetration pricing, we showcase an enticing
selection of bowl options, exemplified by the robust and flavorsome "Beefy Affair" priced
competitively at 399tk, inviting patrons to indulge in hearty culinary experiences without breaking
the bank. Conversely, employing a skimming pricing strategy, our seafood offerings, epitomized
by the exquisite "Fish Fiesta" priced at 349tk, cater to discerning connoisseurs seeking elevated
dining experiences and premium quality fare.

To cater to the diverse spectrum of price sensitivities among consumers, our poultry selections,
typified by the delectable "Crunchy Chicken," are presented at 219tk or 309tk, contingent upon
portion size, embodying a value-centric pricing ethos without compromising on taste or quality.
Furthermore, our uniform pricing strategy ensures consistency and affordability across our meat
bowl options, all available at a standardized rate of 289tk, providing reassurance to customers
seeking both value and reliability in their dining choices.

For families and those seeking convenience, we implement a bundle pricing strategy with our
"Kids Meal" offerings, featuring the delightful "Tiny Tummy Treat" available at either 279tk or
399tk, catering to parents' desires for economical yet satisfying dining solutions for their children.
In the realm of shakes, our pricing matrix spans the gamut from premium selections such as the
luscious "Strawberry Swirl" priced at 269tk to more budget-friendly options like the "Cocoa
Crush" available at 209tk, ensuring inclusivity and accessibility for patrons of varying financial
means.

Moreover, our breakfast menu, comprising nourishing options like the "Sunrise Bowl" and the
hearty "Toast Buster Sandwich," is priced at a modest 279tk each, embodying a commitment to
delivering wholesome morning sustenance at affordable rates. Through the meticulous calibration
and implementation of these diverse pricing strategies, we endeavor to cater to the nuanced tastes
and financial constraints of the Bangladeshi market while simultaneously fostering enduring value
and satisfaction for our esteemed clientele.
Cost Strategy
Between the comprehensive cost analysis conducted on the menu items in the Bangladesh market
and the subsequent profitability evaluation lies a critical understanding of pricing dynamics and
operational viability. The analysis delves into the intricate components shaping the pricing
structure and profit margins of three key offerings: the Slender Bowl, Mighty Bowl, and Shakes.
Initially, the base prices are established, with the Slender Bowl priced at 279 Bangladeshi Taka
(BDT), the Mighty Bowl at 329 BDT, and the Shakes at 259 BDT. These base prices serve as the
foundation, representing 100% of the total cost. However, a deeper examination reveals the
multifaceted nature of costs, including raw materials and manufacturing (R&M), expenses
associated with food delivery platforms like FoodPanda, and overheads like gas and electricity.
For instance, R&M costs, constituting 30% of the base price, amount to 83.7 BDT for the Slender
Bowl, 82.25 BDT for the Mighty Bowl, and 77.7 BDT for the Shakes. Similarly, expenses linked
to food delivery platforms and overheads are factored in, each accounting for 30% and 15% of the
base price, respectively. These detailed breakdowns culminate in the determination of total costs
for each item: 209.25 BDT for the Slender Bowl, 230.3 BDT for the Mighty Bowl, and 194.25
BDT for the Shakes. With total costs elucidated, the average profit per item is derived by
subtracting the total cost from the base price, revealing profits of 69.75 BDT for the Slender Bowl,
98.7 BDT for the Mighty Bowl, and 64.75 BDT for the Shakes. Such meticulous analysis offers
invaluable insights into the intricacies of pricing strategy and profitability within the Bangladesh
market, equipping businesses with the knowledge needed for informed decision-making and
strategic planning.

Marketing and Sales Strategy

Marketing tactics: Marketing tactics are the specific actions we can take to achieve our broader
marketing goals. Our initial marketing budget is 1 lac. We can use the following ways:
• Content marketing: This involves creating and sharing valuable content that attracts our
target audience. This could include our own Facebook and Instagram I’d, and from there
we will post, videos, articles, and infographics, social media influencers or content creators
are a great way to reach our customers. We will invite some of the most popular
Bangladeshi food content creators across various platforms such as Facebook, and
Instagram.
➢ Provaeats
➢ Too halal for food
➢ Foodieshe
➢ Eatzu
➢ Iffat Chowdhury
Here are our chosen 5 influencers for our marketing. The number of their followers is a great
source for reaching our customers effectively.
• Social media marketing: Using social media platforms to connect with our target
audience and promote our brand. This could include creating engaging content, running
social media ads, or participating in social media conversations.
• Search engine optimization (SEO): This involves optimizing our website and content to
rank higher in search engine results pages (SERPs). This can help us attract more organic
traffic to the website.
• Packaging material: We can transform our packaging material from a cost center to a
strategic marketing tool such as adding a hotline number or web address that drives sales
and brand advocacy.
Sales strategy: Some sales strategies we can follow are given below:
• Unique selling propositions: such as mean marketing.
• Online presence: such as website, ordering system, social media.
• Attract customers: by doing promotions and discounts, loyalty programs, and
collaborations.
• Optimizing sales: Unique menu, delivery efficiency.
• Building trust: positive reviews, transparency, customer service.

Customer acquisition cost: It is key for businesses that show us how much it costs to acquire
a new customer. It factors in all the expenses you incur in marketing and sales activities that convert
a potential customer into a paying one.
Supply chain management: In the restaurant industry, having a strong supply chain
management system is crucial for success. It's essentially the lifeline that keeps the kitchen running
smoothly and ensures we have what we need to satisfy customers.
We are going to use software named 3S which is one of the best software suites that helps
businesses manage all their core activities in one place. 3S software offers an ERP system called
3S ERP that is designed specifically for small and medium-sized manufacturing companies. ERP
stands for Enterprise Resource Planning.
Operational costs: Running an online food business involves several operational costs that can
be broken down into two main categories: fixed and variable.
Fixed Costs:
• Food Panda sign-up cost: Food Panda likely makes money through commission fees on
each order placed through their platform.
• Kitchen cost: This is the cost of leasing or owning the kitchen space we use to prepare the
food.
• Equipment & Maintenance: This includes ovens, refrigerators, prep surfaces, and other
essential tools for food preparation. We'll also need to factor in maintenance costs.
• Insurance: General liability and foodborne illness insurance are crucial for online food
businesses.
• Marketing & Advertising: Attracting customers requires marketing efforts, whether
through social media, online ads, or local partnerships.
 • Technology & Software: We'll need a user-friendly online ordering system and potentially
delivery management software.
• Staff Salaries (Base): This includes cooks, prep staff, and potentially some customer
service representatives, depending on your model.
Variable Costs:
• Food Cost: This is typically the biggest variable cost, encompassing ingredients, recipe
portions, and managing food waste.
• Packaging Supplies: Boxes, bags, containers, and utensils are all essential for delivering
food safely and attractively.
• Delivery Fees (if applicable): As we don't handle deliveries ourselves, We'll have to pay
commission fees per order using a third-party delivery service.
• Payment Processing Fees: Credit card companies and online payment platforms charge
fees for every transaction.

Financial plan
Revenue Projections:
Food panda sales projection (For 1 month)
➢ Banani - 40 units
➢ Dhanmondi - 30 units
➢ Mirpur -35 units
➢ Khilgaon -25 units
➢ Uttara - 30 units

Cost analysis

For food panda orders For Direct and website orders

Funding Methods
Funding needs assessments:
Costs Each Total

Food panda sign up

cost 3500 17500

Kitchen setup 150000 750000

Adv salary 20000 100000

Packaging 25tk 75000 375000

Others 25000 125000

Inventory 75000 375000

Marketing 100000

Website development 30000

Total 1872500

Total investment for this business idea will be BDT1872500. We plan to take a loan of 600,000 tk
from bank or any financial institution at a yearly interest of 10%. the remaining amount to be
equally divided between 6 partners.
Funding sources:

each partner 212083.3333

bank loan (10% yearly) 600000

Food panda revenue (monthly)

Revenue from Website and hotline is 40% of food panda orders.

Banani Dhanmondi Mirpur Khilgaon Uttara

Sales 334800 251100 292950 209250 251100

Commission (30%) 100440 75330 87885 62775 75330

Revenue 234360 175770 205065 146475 175770

 Banani Dhanmondi Mirpur Khilgaon Uttara

Food panda
revenue 234360 175770 205065 146475 175770

Revenue 93744 70308 82026 58590 70308

Total revenue 328104 246078 287091 205065 246078

Cogs 147646.8 110735.1 129190.95 92279.25 110735.1

Gross profit 180457.2 135342.9 157900.05 112785.75 135342.9

Salary 48000 48000 48000 48000 48000

Loan interest 1200 1200 1200 1200 1200

Dep 10% 1250 1250 1250 1250 1250

Net income 130007.2 84892.9 107450.05 62335.75 84892.9

Total 469578.8

We expect a growth of 5% increase in revenue each month as a result of our marketing which
would result in a 7.68% increase in our monthly profit.
Financial goals:
We aim to achieve a 5% increase in revenue with a mix of cost control measure and marketing
strategy and efficient operation. our goal is to expand our customer base and enhance our customer
retention strategies.
Financial Assessment
Financial Feasibility Assessment:
1. Cost Analysis:
Food panda Sign-Up Cost, Kitchen Setup, Advance Salary, Packaging, Others cost,
Inventory, Marketing, Website Development.
Equally Total Initial Investment is 1,872,500 TK

2. Total Revenue projections from Food panda and Hotline Order Sales:

Food panda sales projection (For 1 month)

➢ Banani - 40 units * 30 days
➢ Dhanmondi - 30 units * 30 days
➢ Mirpur -35 units * 30 days
➢ Khilgaon -25 units * 30 days
➢ Uttara - 30 units* 30 days

Total selling = 4800 units

➢ Banani: 328,104 TK
➢ Dhanmondi: 246,078 TK
➢ Mirpur: 287,091 TK
➢ Khilgaon: 205,065 TK
➢ Uttara: 246,078 TK

3. Profitability Analysis:
Total revenue is calculated 1,312,416 where we have net income of BDT 469,579. Achieve
a 5% increase in revenue through a mix of cost-control measures and marketing strategies.
Expand the customer base and enhance customer retention strategies.

4. Risk Assessment:
Fluctuations in operating costs, interest rates, or access to financing could impact the
business's financial performance and sustainability.
External factors such as political instability, environmental disasters, could disrupt business
operations and revenue generation.
Breakeven Point Analysis
Breakeven Point analysis is a financial technique used to determine the level of sales at which total
revenue equals total costs, resulting in neither profit nor loss. It's a critical tool for businesses to
understand cost structure and assess the minimum level of sales needed to cover expenses.
The BEP is calculated using the following formula:
Total revenue after food panda commission = Total Sales= 1312416
Per unit selling price (1312416 /4800) = BDT 273.42
Cost of goods sold = Total variable cost= BDT 590587.2
Per unit VC= (590587.2/4800) = BDT 123
Fixed Cost = BDT 246000

BEP = Fixed Cost / (selling price – variable Cost)

BEP = 246000/ (273.42-123)
BEP = 1640 units

BEP in Taka = (1640 units * SP 273.41) = BDT 448409

Fixed Costs represent the costs that do not vary with the level of production or sales. As we are
using Panda Kitchen, we do not require a huge amount of fixed cost. So, the FC amount is quite
less as compared to our total business model. These costs remain constant regardless of the volume
of output.
Selling Price per Unit is the price at which each unit of the product or service is sold. We have
various of food items to sell. So, equally all of them are not possible to include here. For instant
we choose the average selling price per unit.
Variable Cost per unit represents the costs that vary with the level of production or sales. These
costs increase as the volume of output increases. We took the average variable cost per unit to
calculate BEP.
Return on Investment (ROI):
The Return-on-Investment analysis calculates the profitability of an investment relative to its cost.
In this case, the ROI is calculated based on the net income generated from the initial investment.
Here's the calculation:
Net income 469578.8
Initial Investment 1872500

ROI= Net Income/ Initial Investment

ROI= 469578.8 / 1872500
ROI= 0.250776*100%
ROI= 25.0776 %
Therefore, the Return on Investment (ROI) for the given scenario is approximately 25.08%. This
indicates that for every Taka invested, the business generates approximately BDT .25 in profit. A
positive ROI signifies that the investment is profitable. In this case, a 25.08% ROI suggests a
favorable return on the initial investment.

Pro Forma Balance sheet

Assets Liabilities and equity

Cash 10000 Current Debt 158270.520

Current Assets 385000 Long term debt 441729.479

Fixed Assets 750000 Total debt 600000

Total Asset 1135000 Owner’s equity 1272500

Total 1872500

Ratio Analysis:
Ratio analysis is a method of evaluating a company's financial performance by examining the
relationship between various financial variables, typically expressed as ratios. These ratios will
provide insights into aspects of our business such as
profitability, liquidity, efficiency, and solvency, aiding in decision-making for investors, creditors,
and management.
Liquidity ratios:
Liquidity Ratios shows our firm's ability to pay its bills over the short run. It focuses on current
assets and current liabilities.

Current Ratio = Current Asset/ Current Liabilities = 385000 / 158278.4885 =2.43 times

So, we could say that our firm has 2.369 tk in current assets for every 1 tk current liabilities.

Quick Ratio= (Current assets - Inventories) / Current liabilities = (385000 - 375000) /

158278.4885 = 0.631 times.
A Quick Ratio of 0.631 indicates that the company's quick assets are sufficient to cover
approximately 63.1% of its current liabilities.
Profitability Ratios:
Profitability ratios are financial metrics used to assess a company's ability to generate profits
relative to its revenue, assets, equity, or other financial measures. These ratios provide insights into
the efficiency and effectiveness of a company's operations and management in generating profits.

Profit Margin: This ratio measures the percentage of sales revenue that remains as net income
after deducting all expenses, including taxes. It indicates the overall profitability of a company's
operations.

Profit Margin = Net Income / Sales = 469579/1312416 = 0.3578 or 35.78 %

A profit margin of 35.78 % indicates that the company is generating a profit equal to
approximately 35.78 % of its total revenue.

Return on Assets (ROA): This ratio evaluates how efficiently a company utilizes its assets to
generate profits. It measures the percentage of net income relative to total assets.

ROA = Net income / Total assets = 469579 / 1135000 =0.41373 or 41.37 %

A Return on Assets (ROA) of 41.37 % indicates that the company is generating a profit equal to
approximately 41.37 % of its total assets.

Leverage Ratio:
Leverage ratios, also known as solvency ratios or gearing ratios, measure the extent to which a
company utilizes debt financing in its capital structure. These ratios help assess a company's ability
to meet its financial obligations and the level of risk associated with its debt.

Total Debt Ratio: The total debt ratio measures the proportion of a company's assets financed by
debt. It provides insight into the extent to which a company relies on debt to finance its operations.

Total Debt Ratio: (total Asset - total equity) / Total assets

= (1135000 - 1272500) / 1135000 =-0.121 times

Debt Equity Ratio: Total debt / Total Equity

= 600000 / 1272500 =0.472 times

Equity Multiplier = total assets/ total equity

= 1135000/ 1272500 =0.891 times

Times interest earned = EBIT / Interest = 464578.8 / 60000 =7.743 times.

So, the interest bill is covered 7.743 times over.

Financial Health assessment:

Financial health refers to the overall well-being of a company’s financial position. It considers
various aspects, such as the company’s profitability, liquidity, debt levels, and cash flow. By
evaluating these factors, we can get a comprehensive picture of the company’s financial strength
and stability.

Financial statements are essential tools for evaluating a company’s financial health.

Balance Sheet Analysis:

The Balance Sheet provides a snapshot of a company’s financial position at a specific point in
time. It lists the company’s assets, liabilities, and shareholders’ equity. Analyzing the Balance
Sheet reveals important information, such as the company’s liquidity, debt levels, and net worth.
We can assess our company’s health by analyzing the Liquidity ratios:

A current ratio of 2.43 times indicates that the company has current assets equivalent to
approximately 2.43 times its current liabilities. And it indicates that the company has a comfortable
margin of liquidity, as it has more than double the current assets compared to its current liabilities.
A higher current ratio generally indicates greater financial stability and solvency. A current ratio
above 1 also suggests effective working capital management, as the company has enough current
assets to fund its day-to-day operations and cover short-term expenses.

A Quick Ratio of 0.631 indicates that the company's quick assets are sufficient to cover
approximately 63.1% of its current liabilities. A Quick Ratio above 1 is generally considered
favorable as it indicates that the company's quick assets. While a Quick Ratio of 0.631 is below 1,
it still suggests a moderate level of liquidity.

Income Statement Analysis:

The Income Statement, also known as the Profit and Loss Statement, shows a company’s revenues,
expenses, and net income over a specific period. Analyzing the Income Statement helps evaluate
a company’s profitability, growth, and ability to generate consistent earnings. Positive net income
and increasing revenues are signs of a financially healthy company. We can assess our company’s
health by profitability Ratio.

A profit margin of 35.1% is considered relatively high and reflects strong profitability. It indicates
that the company is efficiently managing its costs and generating a significant return on its sales.
It allows the company to reinvest in growth initiatives, pay dividends to shareholders, or build
reserves for future investments. While a high profit margin is desirable, it's essential for our
company to maintain and sustain this level of profitability over the long term.

A ROA of 41.8% is exceptionally high and indicates that the company is generating significant
profits relative to its total assets. This suggests strong efficiency and profitability in utilizing its
resources to generate income. It suggests financial strength, investor confidence, and a competitive
advantage in the marketplace.

Total Debt Ratio: The negative value (-0.121 times) obtained for the total debt ratio indicates that
the company's total liabilities exceed its total assets, which is an unusual scenario. It could
potentially indicate financial distress or misreporting of financial data.

Debt Equity Ratio: A debt-to-equity ratio of 0.472 times suggests that the company's total debt is
approximately 47.2% of its total equity. A moderate debt-to-equity ratio can be healthy.

Equity Multiplier: An equity multiplier of 0.891 times indicates that the company's total assets
are approximately 0.891 times its total equity. While lower leverage can reduce financial risk, it
may also limit potential returns on equity.
Times Interest Earned: A times interest earned ratio of 7.743 times indicates that the company's
earnings before interest and taxes (EBIT) are sufficient to cover its interest expense approximately
7.743 times over.

Financial risk assessment business risk and contingency plans

Market Risk: Given the negative Total Debt Ratio and relatively high Debt Equity Ratio, the
business may be susceptible to market risks such as interest rate fluctuations and economic
downturns. A sudden increase in interest rates could significantly increase debt servicing costs and
negatively impact profitability.

Credit Risk: With a Debt Equity Ratio of 0.472 times, the business may have moderate levels of
debt compared to equity.

Liquidity Risk: The negative Total Debt Ratio suggests that the company's total liabilities exceed
its total assets, which could pose significant liquidity challenges. Inadequate liquidity may hinder
the company's ability to meet short-term obligations, pay suppliers, or invest in growth
opportunities.

Financial Leverage Risk: The relatively low Equity Multiplier indicates lower financial leverage,
which may mitigate financial leverage risk to some extent. However, the negative Total Debt Ratio
complicates the interpretation of leverage risk, and it's essential to monitor debt levels and interest
expenses closely.

Business Risks:
Liquidity Challenges: Inadequate liquidity and negative equity position may lead to difficulties
in meeting short-term obligations, paying suppliers, or funding operations, increasing the risk of
insolvency.

Operational Disruptions: Operational risks, such as supply chain disruptions or production

delays, could impact revenue generation and profitability, especially considering the company's
negative financial position.
Contingency Plans:
Cost Reduction Measures: Implement cost-saving initiatives to reduce expenses and improve
operational efficiency. Identify opportunities for streamlining operations, optimizing inventory
management, and reducing overhead costs to conserve cash flow.

Asset Liquidation: Consider liquidating non-core assets or inventory to generate cash and
improve liquidity. Evaluate the feasibility of selling underperforming assets or excess inventory to
reduce debt levels and strengthen the balance sheet.

Emergency Funding: Establish emergency funding sources, such as lines of credit or working
capital loans, to provide financial flexibility during crises or unforeseen events. Maintain
relationships with lenders and explore options for securing emergency financing if needed.

Business Restructuring: Assess the viability of restructuring the business, such as divesting non-
core business segments or restructuring debt obligations, to improve financial stability and
streamline operations.

Reputation Management: Proactively manage the company's reputation through transparent

communication, ethical conduct.

By addressing these financial risks, identifying business risks, and implementing contingency
plans, the company can enhance its resilience, mitigate potential challenges, and position itself for
long-term success. However, it's crucial to regularly monitor and reassess risks, adapt contingency
plans as needed, and maintain a proactive approach to risk management to navigate uncertainties
effectively.

Implementation Timeline:
Funding acquisition timeline, Financial Milestones
In our business, the funding acquisition timeline and financial milestones can vary.
widely depending on factors such as the business model, growth strategy, and market
conditions. However, here's the generalized outline for our business:
Initial Investment (Month 1-3):
➢ Determine startup costs including website development, equipment, initial inventory, and
marketing.
➢ Secure initial funding through personal savings, family, friends, or small business loans.
Launch and Early Operations (Month 4-6):
➢ Launch the online food platform and start marketing efforts.
➢ Track revenue and expenses closely to monitor cash flow.
➢ Aim to break even on operating costs.
Growth Phase (Month 7-12):
➢ Evaluate customer feedback and make necessary adjustments to the menu, website, and
operations.
➢ Expand marketing efforts to reach a wider audience.
➢ Consider hiring additional staff or outsourcing certain tasks.
➢ Aim for steady revenue growth and achieving profitability.
Scaling Up (Year 2-3):
➢ Explore opportunities for partnerships or collaborations to expand reach.
➢ Invest in technology upgrades or automation to improve efficiency.
➢ Consider opening additional locations or diversifying product offerings.
➢ Seek additional funding to support expansion plans, potentially through venture capital or
business loans.
Maturity and Sustainability (Year 4 and beyond):
➢ Focus on maintaining customer satisfaction and loyalty.
➢ Continuously innovate to stay ahead of competitors and adapt to changing market trends.
➢ Monitor financial performance closely and adjust strategies as needed to ensure long-term
sustainability.
➢ Explore options for exit strategies such as selling the business or franchising if desired.

Conclusion: The Organic Kitchen is an online food business that aims to meet the growing
demand for healthy and organic food. Concerns about the environment and health are anticipated.
to fuel the market's rapid growth. The financial projections for the organic were positive. The
company's high current and fast ratios suggest that it is in a positive liquidity position. It is
projected that break-even sales volume will reach BDT 448409.
Future Financial Objectives Achieve sustainable revenue growth through effective marketing,
expanded food offerings, and targeting new customer segments. Increase profit margins by
optimizing pricing strategies, reducing operational costs, and minimizing supply chain wastage.
Diversify revenue streams with additional products/services like meal kits, subscriptions, or
catering to broaden the market and reduce dependency on single income sources. Expand into new
markets leveraging digital channels and partnerships to tap into untapped demand. Prioritize
customer retention through personalized promotions, loyalty programs, and excellent service to
maximize lifetime value. Invest in technology upgrades and innovative solutions to enhance
customer experience and operational efficiency. Maintain financial stability by managing working
capital, maintaining cash reserves, and prudent debt management. Strengthen brand awareness
through targeted advertising, social media engagement, and influencer partnerships. Foster a
culture of continuous improvement and innovation to stay competitive and adapt to market
changes. Embrace sustainable practices in packaging, ingredient sourcing, and waste management
to appeal to eco-conscious consumers and ensure long-term business sustainability.

References:
1. Saad, A. T. (2021). Factors affecting online food delivery service in Bangladesh: an
empirical study. British Food Journal, 123(2), 535-550.
2. Ahmed, J. U. (2017). HungryNaki: Challenges of an emerging online food delivery
service in Bangladesh. SAGE Publications: SAGE Business Cases Originals.
3. Ali, M. J., Rahaman, M. A., Latif, W. B., Ahammad, I., & Karim, M. M. (2023).
Determinants of consumer motivation to use online food delivery apps: An
empirical investigation of Bangladesh. Innovative Marketing, 19(2), 63.
4. Abdullah, O. N., Likhon, F. A., Parvez, A. A., & Ishtiaque, I. PATHAO: A tech start-
up that shook Bangladesh. North South Business Review, 11.
5. Hassan, M. (2018). Effect of rebranding on the customer satisfaction of Foodpanda
Bangladesh Limited.
6. Statista. (2023, November). Statista prices and access. Retrieved from Statista web
site: https://www.statista.com/outlook/dmo/online-food-delivery/bangladesh.