bookFi: Business Plan for Online Used Book Marketplace in Bangladesh

This business plan outlines the launch of bookFi, an online platform designed to facilitate the buying and selling of used books in Bangladesh. The plan details the company's business model, focusing on an application-based service that connects buyers and sellers, particularly targeting students and those seeking affordable reading materials. It includes a comprehensive market analysis, highlighting the demand for used books and the convenience of an online marketplace. The plan covers marketing strategies, including social media promotion and competitive analysis, and operational procedures. The management structure, financial projections, and potential risks are also assessed, projecting profitability within the second year of operation. The document includes operational procedures, management structure, and financial information with profit estimations and break-even analysis. The business plan also highlights the unique aspects of bookFi, such as its focus on the local market and its potential to address the needs of students seeking affordable textbooks. The plan emphasizes the importance of online advertising and satisfactory service to ensure customer satisfaction and positive word-of-mouth marketing.

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Business plan of bookFi
Company logo

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Executive summery
The proposed venture bookFi is a service providing private limited company. This service
providing organization will provide used books to its customers for buying and selling.
It’s totally an online based service providing company. This venture will use application
based software which will be available at google play store. The demand for used book
buying and selling is huge in Bangladesh because the country has a large number of students in
the country. Used books are available only in Nilkhet Bazar but the main fact is that it’s
not possible for everyone to go there for buying and selling used books because of time
and transportation constraints. That’s why the entrepreneur comes up with this idea to offer
used books for both buying and selling. This service venture will surely have huge demand for its
offering service. The initial investment is not high enough so it seems very practical to start a
new venture with this initiative idea. The analysis team has successfully made a research about
the profitability of this venture. The analysis result indicates that this venture will reach to break-
even point in its second year of business with some additional profit amount. From the third year
this venture will makes profit like a gazelle organization. This venture requires only a
limited number of employees to run its daily activities swiftly. Its operating costs are relatively
low and will not increase at a higher rate for upcoming years. Because it is a private
limited company the entrepreneur and the management will enjoy superiority power to
take any organizational decision. The entrepreneur ad the management will have excessive
control to this organization. Another great advantage is that this venture does not require less
advertising and promotional activities. Social media advertising is enough to get popularity
among targeted customers. By providing satisfactory service, this service providing company
will also be able to get positive word of mouth from customers that mean the customers will
promote and recommend our service to another potential customer. This is a great
advantage for any business organization because it requires no cost with higher sales.
bookFi can be great opportunity for a potential investor to get higher profit margin in a short
period of time. This proposed service providing organization has great opportunity in
Bangladesh.

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Table of contents
Contents
Business description........................................................................................................................ 5
Marketing........................................................................................................................................ 6
Operations....................................................................................................................................... 8
Management.................................................................................................................................... 8
Financial information.................................................................................................................... 10
Critical Risks................................................................................................................................. 17
Harvest Strategy............................................................................................................................ 19
Milestone schedule........................................................................................................................ 20
References..................................................................................................................................... 21

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Business description
General description
bookFi is an application based program to make interaction between the buyer and seller. It is an
online based application used to exchange book from one individual to another in terms
of money or another book. The interesting fact about this service is that it let people to sell and
buy used books without any hassle. The main purpose of this service is to provide used
books at reasonable price to everyone so that interested people can utilize those used books. By
this one can easily sells the book copies he/she does not need anymore and can have
some value by selling this. Usually used books are not sold to any bookshop except Nilkhet
Bazar. The main reason is that both local and local shopkeepers are not willing to sell used books
because by this they can’t have larger profit. Many times we required books for academic or
personal reason for a short period of time. After this the usefulness of those books becomes less.
We have to put those books on a corner in our residence. So, our service idea will prevent these
books turning to value nothing to value something. The book owners can sell their books by
using our app and can get some good amount of money in every transaction. The cost of new
books is very high compared to use books although used books are usable enough. This app will
be solution to those who wants to have books at a reasonable price and no issue with whether the
book is new or used. This app will also save time and money for them. They can sell their books
again by using our app if the books conditions are enough to read and use. We will also offer new
books to our customers but the main focus is on used book selling and making profit by
commission from both buyer and seller.
Goals
The main goal of this business plan is to make profit by commission from a book selling and
buying transition. Later this service will add some new service according to market demand. This
service can draw more profit option by showing advertisement on our sites.
Uniqueness
This concept is unique in Bangladesh. Especially university level students have to bear huge cost
for buying academic books at a higher price. Used books are available only in Nilket Bazar and
many people faced difficulties to go there for lack of time and transportation cost and forced to

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buy new book copies that needed only for a short period of time. Their need is not satisfied by
anyone in Bangladesh that’s why this service will eventually satisfy their needs. Many people
love to read novel, thriller, and drama series books. But buying all the preferred books is
not possible for everyone because these books associated with high purchasing cost. So
one can easily sell any book after reading and can have good amount of money. Then he/she can
use this money to purchase new one by using our application. This service proved to be a
great opportunity for book readers.
Marketing
Research and analysis
Selling used books through online is a new concept in Bangladesh perspective. But this business
idea has related existing service. Rokomari.com, Eboighor and BD bookstall are some
online based book shop. They are doing great in Bangladesh market. The main reason
behind the success of these ventures is consumers are not willing now to visit bookshop because
are having lack of time. Consumers are not willing also to go in Nilkhet Bazar though they can
get less price for desired books. Online book purchasing trend is getting popular day by
day and that’s the thing motivate our team to came up with this similar but different idea.
Target market
The target customers are all adult aged people including teenage, university going students and
senior citizens. Especially the post graduate, undergraduate and degree college going students is
the main target customer of this service. These students often need book for a certain period of
time and after that doesn’t need those anymore. So, they can buy and sell their unneeded used
book through our application.
Market size
The market size is huge here. Academic Students from graduate and undrgraduate level
are considered the potential customers of this service. Also non-academic book readers are also
our customer. In last, the number of possible customers is huge enough.

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Competition
This service has no competitors yet. Because our service is a new concept in
Bangladesh so currently the completion level is zero here. No such organization is offering used
book for selling and buying except Nilkhet Bazar local bookshops.
Estimated market share: For online platform, used books buying and selling market share will be
fully captured by bookFi. Nilkhet Bazar book vendors might have some market share of used
books selling and buying hence it’s applicable for physical purchase not for online. So, bookFi
can have more than 90% market share of used books buying and selling.
Marketing plan
Marketing strategy-sales and distribution
The sale or deliver of our service will be provided by online application that will be on google
play store. If any seller wants to sell books through us that person need to register the books on
our app including book name, edition and author name with some clear pictures as the evidence
of the book’s good condition. He/she also has to mention the location. The buyer on our app will
search his/her desired book using searching option and filter features. If the buyer wants to buy
any particular book he/she has to take part in auction sale. Any book seller will can keep his/her
book on auction sale for bidding. The person who will bid the highest amount will get the book if
the seller wants to sell it. The buyer has to pay security money of 20 BDT through online method
like bKash. The delivery service provider will pick the book from seller and deliver the book to
buyer within three working days. Buyer can makes payment by cash or using mobile banking
system.
Pricing
The delivery cost is BDT 50 within Dhaka metropolitan and BDT 100 for outside Dhaka. The
delivery cost has bear by the buyer. Our service will make profit from buyer BDT 10 and from
seller BDT 20. Overall this venture will make profit of BDT 30 per transaction.

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Advertising-promotion
This venture team will use social media boost option for advertisement and for promotion. The
public relation team will share our service information to every university and college student’s
social media community group (Like faceboook community group of East West
University students) and book reader’s popular group like thriller pathokder ashor. Social media
platform is enough for our venture’s promotion.
Operations
Location
Our business will be fully online based so there is no need for having physical location
advantage. The service operation is fully application based but for having trade license
and official office space the venture team choose Aftabnagar, Juhurul Islam City, Dhaka. The
reason for selecting this area is the office rent of this area is comparatively less. This
location will reduce the operational cost.
Specific operational procedures
Because this venture is application based online service, the operations are fully online based.
Customers are not required to have face to face interaction with the venture team except delivery
person.
Proximity to suppliers
Supplies are available for this venture. Computers and other it related equipments are available
within the market. Suppliers bargaining power is low here.
Management
Management team
Because this venture’s operations are online based that’s why it needs only few human
workforces. It’s a great advantage for this business because it will lower the operational
cost. Only few IT professionals are needed to operate this business service. The delivery
personals

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will he hired from third party organization so delivery persons are not the direct employee of this
venture.
Top level management
The chief executive officer (CEO) and board of members are the part of this level. The
idea maker is the CEO of this venture. There are three board of members in this venture.
Mid level management
The managers who will monitor and control the IT officials are the mid level manager of this
service venture. The accountant who is responsible for preparing and maintaining financial
information is also belongs to mid level management.
Lower/bottom level management
The Information Technology (IT) officials are the lower management people of this venture.
Non-management people
The delivery personas are the non-management people here, because they are not directly
associated with the company booKfi. The creditors are also non management people.
Top level
Middle level
Bottom level
CEO, Board of
directors
Office manager,
accountant
IT officials

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Legal structure
The owner is the idea maker or the entrepreneur itself. Rest of the people associated with the
organization is employee. This venture is a private limited company and at starting time it will
not issue stock in money market. Only the owner will have the right in this organization. After
that the creditors will have the right over this organization.
Financial information
Profit estimation
Our main focus is the students for making profit. The venture team has made an estimation of
profitability for this venture. The team has made some mathematical calculation to have a look
what can be the minimum profit level. Let’s overview our profit estimation calculation.
For public universities
There are 46 University Grants Commission (UGC) approved public educational institutions in
Bangladesh (UniversityGrantCommission, 2020). The total number of students enrolled
with these institutions including both graduate and undergraduate programs surely exceeds 1500.
But our analysis team has taken the possible minimum enrolled students is 1000. For avoiding
any unrealistic profit calculation the analysis team has considered only 300 students per
institution as the venture’s potential customer. The public institutions follow two semester
system.

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Number of
public
university
Approximate
students
number ( Per
institution
1500 student)
Minimum
students
number (
Per
institution
1000
student)
Considered
minimum
customers
number ( Per
institution
300 student)
Number of
Semesters
(Per semester
06 month)
Total sales
(BDT)
Per unit sales
BDT 30
46 (1500*46)
=69000
46 (1500*46)
=69000
(1000*46)
=46000
(1000*46)
=46000
(300*46)
=13800
(300*46)
=13800
Semester 01 (13800*30)
= 414000 (BDT)
Semester 02 (13800*30)
= 414000 (BDT)
Total (Per year)
(414000+414000)
=828000 BDT
For private universities
There are 107 University Grants Commission (UGC) approved public educational institutions in
Bangladesh (UniversityGrantCommission, www.ugc-universities.gov.bd/private-universities,
2020). The total number of students enrolled with these institutions including both graduate and
undergraduate programs varies differently. Maximum of these surely exceeds 2500. The analysis
team has considered on average minimum 1500 students per institution. For avoiding any
unrealistic profit calculation the analysis team has considered only 450 students per institution as
the venture’s potential customer. The public institutions follow tri semester system.

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Number of
Private
university
Minimum
students
number ( Per
institution 1500
student)
Considered
minimum
customers number (
Per institution 450
students)
Number of
Semesters (03
semesters per
year)
Total sale (BDT)
Per unit sales BDT
30
107 (1500*107)
= 160500
107 (1500*107)
= 160500
(450*107)
= 48150
(450*107)
= 48150
Semester 01 (48150*30)
= 1444500 (BDT)
Semester 02 (48150*30)
= 1444500 (BDT)
107 (1500*107)
= 160500
(450*107)
= 48150
Semester 03 (48150*30)
= 1444500 (BDT)
Total (Per year)
(1444500*3)
= 4333500 (BDT)
For international universities in Bangladesh
There are only three foreign universities in Bangladesh. They are Islamic University of
Technology, Asian University for Women and South Asian University.
(UniversityGrantCommission, www.ugc-universities.gov.bd/international-universities, 2020).

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Number of
foreign
university
Considered minimum
customers number ( Per
institution 100 students)
Number of Semesters
(03 semesters per year)
Total sales (BDT)
Per unit sales BDT 30
03 (100*03)= 300 Semester 01 (300*30)= 9000 (BDT)
03 (100*03)= 300 Semester 02 (300*30)= 9000 (BDT)
03 (100*03)= 300 Semester 03 (300*30)= 9000 (BDT)
Total (Per year)
= 27000 (BDT)
Others
It includes degree college students and non academic customers.
Number of customers Sales for 01 month Total sales for 01 year
100 (Non academic) (100*30)= 3000 (BDT) (3000*12)= 36000 (BDT)
3000 (Students from
other
educational institutions)
- (3000*30)= 90000 (BDT)
Total approximate sale per year (2021) = 5314500 (BDT).

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Income Statement
Particulars 2021 (BDT) 2022 (BDT) 2023 (BDT)
Sales
Deductions:
Cost of goods sold
Salaries of IT officials and software
(25000*12)= 300000*12= 3600000
Salary of manager (30000*12)= 360000
Salary of delivery boys (28000*12)= 336000
Total COGS
Gross income/profit
Operating expenses
Storage rent (20000*12)= 240000
Utility expenses (10000*12)= 120000
Administrative expenses (20000*12)= 240000
Depreciation expenses ( 05% of 460000)=
(23000*12)= 276000
Total operating expenses
Operating income/profit
7515000
3600000
360000
336000
(4296000)
1018500
240000
120000
240000
276000
(876000)
142500
5845950
(4510800)
1335150
(919800)
415350
7015140
(4736340)
2278800
(965790)
1313010

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Income from other sources
N/A
Expenses from other sources
Interest expenses (5% of
600000)= (30000*12)= 360000
Income before tax
Tax 35%
Net Profit/loss
-
(360000)
(217500)
(217500)
200000
(360000)
255350
(89372)
165978
300000
(360000)
1253010
(438554)
814456

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Balance sheet of bookFi
For the year ended 2021
Assets BDT Liabilities BDT
Current asset
Cash
Inventory
Totalcurr
ent assets
Long term assets
Equipment’
computer
(30000*6)
Software
Vehicle
100000
100000
200000
180000
100000
400000
880000
Capital
Current liabilities
Creditor Expenses
payable Accounts
payable Interest
payable
Long term liabiliti
Bank loans
Total liabilities
700000
30000
15000
50000
15000
130000
230000
730000

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Break-even analysis
This venture will able to make profit from second operating year and will have boom growth in
following upcoming years.
Critical Risks
Potential problems
There are some potential problems this business might face while operating or in future.
Any person may face problem to use a new application or to adopt a new technology.
Obstacles and other risks
Uncertain situation like Covid-19
There are many obstacles for this business from internal and external environment.
Covid-19 pandemic is a practical example for this type of service. The educational institutions are
closed for one year and there is no sale of academic books. Any kinds of situation just like
Covid-19 can greatly hampered this business.

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Risks from internet service providers
Few months ago broadband internet service providers went on strike for opposing City
Corporation’s movement to remove internet cables on roadside. They had stopped
providing internet service to providers. Because our business is focus on online based
transactions so interruption on internet service surely will have negative consequences on our
future service.
Risks from third party’s activity
Another risk this venture has its dependency on third party for logistics support. Having
own delivery persons will gradually increase the labor cost of this venture that’s why the
management has decided to rely on third party for delivering products to the customers.
Any fraudulent or unlawful activities from them will hamper bookFi’s goodwill.
Solutions for future potential risks
To avoid these potential risks described above, the analysis team has made out some effective
solutions. This are-
Diversification
This venture should have more diversified service line to minimize risk or losses in any uncertain
situation. This company may start a new service of providing online educational courses through
online like Udemy, bitdegree etc.
Several logistics provider
This venture should not rely on only for one logistic provider rather it should have
several logistic partners. Customers should have notified clearly the third parties
organizations of our service company and bookFi will not be responsible for any unlawful
activities for its third party partners.
Diversified technology options
This venture should have other diversified option for technological support. Strike from internet
service providers can greatly affect this service organization’s performances. Satellite
internet

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might be a solution for this risk. This company should have several options to continue
its technical support to its customers.
Harvest Strategy
Liquidity Event (IPO)
In starting period the entrepreneur has no willingness to register in stock exchange
market to offer stocks. If the company able to draw tremendous profit margin continuously and
if think it should expand then the management might turn it to a public limited company
by offering stocks. Until then, it will remain as a private limited company.
Continuity of business strategy
All the analysis the analysis team has built up is based on assumption or by considering other
similar organizations activity. After starting its operation if needed this company will adopt new
business strategy to cope up with situation.
Successor
The entrepreneur’s nominated person will have the ownership of this organization after
the current owner. For the management, the board members will decide the
successors for management with mutual agreement.

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Milestone schedule
Timing and objectives
Year Objective
2021 Has to start the service business without
any interruption. First priority is to make sales
and reach to the break-even point.
2022 Main priority is to reach the break-even point
and to make profit at least at the end of
the year. This year the marketing team will
focus on getting customer attraction
through promotional activities.
2023 Main priority will be making maximum profit
and identifying new customer segment and
introducing new product line.

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References
University Grant Commission. (2020, December 31). www.ugc-universities.gov.bd/international-
universities. Retrieved December 31, 2020, from www.ugc.gov.bd: http://www.ugc-
universities.gov.bd/international-universities
University Grant Commission. (2020, December 31).
www.ugc-universities.gov.bd/private- universities. Retrieved December 31, 2020, from
www.ugc.gov.bd: http://www.ugc- universities.gov.bd/private-universities
University Grant Commission. (2020, December 31).
www.ugc-universities.gov.bd/public- universities. Retrieved December 31, 2020, from
www.ugc.gov.bd: http://www.ugc- universities.gov.bd/public-universities