Tonme Enterprise

Abstract

TONME ENTERPRISE is a service business which is operated in a traditional way and the traditional informal market to gain benefits for their single owner, Taharima Kabir Tonme. The company's goal is to enter the transport service market in a new way with new route on January 1, 2021 at its place, located in the city of Mymensingh, Bangladesh. The mission of the company is to give high quality transport service for its customers. Over the next 10 years, it will be the largest Transport service company and market leader in terms of competitiveness. The favorable geographical position of the transport industry and the large discrepancy between the service and demand of transportation in the formal and informal market of the local market has given TONME ENTERPRISE companies a great opportunity. The continued growth in demand has also shown a promising future for operations. In the real scenario, there is currently no competition in the Transport service market and the reference between markets is close away from the company. TONME ENTERPRISE had already started its operation with 10 Busses 30 years back and the number will be increased from year to year by keeping old busses and raising new Busses. In the future they can grow up to 100 Busses. The company will be in their land and in their own Garage. Materials and other instruments are sourced from external suppliers. There are 20 full-time employees, 10 part-time workers, 2 Managers and the owner who are caring out the daily activities of this Transport Business. The company will start in its new way with new busses which will need BDT 100,000,000 in initial capital to start its new operations. The main cost targets are 10 new busses, Garage, land and other equipment used in a Transport business. The capital will come, for example, from three different sources: the owner's capital is BDT 60,000,000, the private investor's investment will be BDT 20,000,000, and the rest of BDT 20,000,000 will be taken up by the commercial bank. Sales forecasts show that the business will achieve sales of 4,099,708 BDT and a net profit of 3,019,000 BDT in the first year. Sales volume in the second and third years will increase with increasing Busses and services. The second and third annual income will be BDT 4,921,520 and 7,163,476 and the net profit for those years will be BDT 1,074,061 and BDT 1,887,329. The budget forecasts show that the company's assets will be at the end of the first year: BDT 7,038,904, BDT 7,904,179 (2nd year) and BDT 10,957,838 (3rd year). Activities will increase due to the increasing size of the company, and all loans will be repaid starting from the fourth year. The cash flow forecast showed that the business can still pay its current debts. The river will always be positive.