A DV A NCE D A CCOUNT I NG 5 4 A

2014
BUSINESS PLAN
Create Employment opportunities for
Highland Women through Making Brocade
Products
NGO THANH HA
NGUYEN THI THUY DIEP
DO THI KIM NGAN
TRAN BICH PHUONG
THAN THI BICH HANG
FUTURE SOCIETY COMPANY
1

Table of Contents
I. Executive Summary ........................................................................................................ 3
II. Organization Overview ................................................................................................... 3
1. Problems and Solutions ............................................................................................... 3
2. Vision .......................................................................................................................... 4
3. Mission ........................................................................................................................ 4
4. Objectives ................................................................................................................... 5
5. Market Analysis .......................................................................................................... 5
III. Products and Services ..................................................................................................... 6
1. Business idea ............................................................................................................... 6
2. Markets and Sales ....................................................................................................... 6
3. Product Description..................................................................................................... 6
4. Service Description ..................................................................................................... 7
a. Production and Distribution Process ....................................................................... 7
b. Chain of Souvenir Shops ......................................................................................... 7
c. Exportation .............................................................................................................. 7
5. Additional Services ..................................................................................................... 8
a. Shopping Online ..................................................................................................... 9
b. On-the-job Training Program .................................................................................. 9
IV. Market Analysis .......................................................................................................... 9
1. SWOT Analysis .......................................................................................................... 9
2. Competitive Advantages ........................................................................................... 10
V. Business Model ............................................................................................................. 11
1. Target Subjects .......................................................................................................... 11
2

2. Business Registration ................................................................................................ 11
VI. Social Impact ............................................................................................................ 11
VII. Marketing Plan .......................................................................................................... 12
1. Competition ............................................................................................................... 12
2. Targeting and Position Strategy ................................................................................ 13
3. Pricing ....................................................................................................................... 13
VIII. Operational Plan ........................................................................................................ 14
1. Partners ..................................................................................................................... 14
2. Legal Environment .................................................................................................... 14
IX. Management and Personnel ...................................................................................... 15
1. Manager Summary .................................................................................................... 15
2. Human Resources Plan ............................................................................................. 15
X. Funding and Finance ..................................................................................................... 16
1. Supporting Agencies ................................................................................................. 16
2. Finances .................................................................................................................... 17
3. Sales Forecasting....................................................................................................... 17
4. Cash flow projections................................................................................................ 17
5. Income Statement ...................................................................................................... 18



3

I. Executive Summary
Future Society Company (FSC) was started as an endeavor to connect poor artisans
with their customers by promoting their unique, beautiful handicraft products.
Our objective is to find the markets for products made by ethnic artisans in
mountainous areas in Northern Vietnam such as Bac Giang provinces. We focus on providing
brocade products (clothes, accessories, home decoration)
We came to realize that we are not just a handicraft supplier, nor a souvenir shop.
Our work is to maximize our resources and potentials in helping to improve the life of
unfortunate women, working towards a better and more equal society for all.
FSC is designed and organized to become part of an ecosystem of other Vietnamese
social enterprises operating in the handicraft sector. FSC will differentiate its value
proposition with respect to these organizations, but will have the possibility to leverage their
available production capacity in case of high demand.
FSC is committed to re-invest the profit of its operations within the enterprise, in
production groups (for activities like training or product development) and in projects aimed
to ease the integration of disadvantaged people in the society.
Son Dong lies in a beautiful, peaceful valley where a group of women developed
and use their talents to create unique handicrafts typical of the area.Though these women are
disadvantaged in some aspects of life, their zeal for their creations mirrors the beauty of the
various flowers that blossoming spring.The mix of nature, people and tradition is evident in
the handicrafts created by the women of Son Dong and inspires visitors.
Let your values bloom with us.
II. Organization Overview
1. Problems and Solutions
Son Dong is either of two poorest districts in Bac Giang, where many ethnic
minorities have been gathered together. Furthermore, it has rugged mountainous terrain and
scarcity of resources. In addition, citizens live depends on tilling the fields on the mountain
slopesup and forests. When being interviewed, all of women claims that they did not have
enough money to pay off either every day needs or their childrens tutor fees. While men are
4

the major labors in the families; women just stay at home and do nothing. Because of having
low standard of living and unlearned, women here do not have ability to help their families
and create livelihoods. Concurrently, their families income under the nationwide average
earnings requires a timely tool for improving this situation.
Hence, our company is established to create employment opportunities for highland
women and launch traditional culture of ethnic minority all over the world.
2. Vision
Poor women are incapable of looking for a mean of subsistence in the mountainous
region. However, they have traditional brocade textile industry, but do not utilize that skill as
a source of revenue.
FSC believes in the possibility of achieving a world where people have authentic
equal social opportunities, regardless their physical condition, gender, ethnicity and economic
means. FSC is determined to give a tangible contribution to this objective through its
operations in Vietnam, helping disadvantaged individuals to improve their living conditions
in the local community.
3. Mission
Make a better life for the poor women by offering job opportunities. We not only
create a space where stores longstanding culture of ethnic minorities but promote the beauty
of Vietnamese culture over the world.
FSC proves that poor women can create values with their passion and dedication
through involving them in our supply chain of handicrafts products.
FSC is committed to operate its business:
- Creating social opportunities and employment for disadvantaged people
- Fulfilling the customer requirements
- Managing its organization in a transparent and accountable way
- Providing a fair remuneration to its suppliers and workers
- Ensuring safe and healthy working conditions for its employees
- Preventing child labor and exploitation
- Complying with fair trade principles
- Maintaining a low financial risk profile, key for a sustainable and steady growth
5

- Minimizing the environmental impact of the enterprise
4. Objectives
- Long-term: In next 3 years, FSC will create an environment where disadvantaged
ethnic people can work independently and generate income as well as protect their
traditional culture. FSC will not only do business in Hanoi and Bac Giang but
expand to other area to help poor female in Vietnam.
- Short-term: In the next year, 70% of women can improve economic conditions.
At the same time, the percentage of new female employees raises up to 40%.
5. Market Analysis
To recognize opportunities for the company, we conduct market research and market
analysis based on the following questions:
- Who are the target customers?
Foreign tourists
Foreigners and Vietnamese expatriates living in the countries which have
strong commercial relations with Vietnam
- Why this market is potential and attractive?
Brocade is beautiful and duarable as well a expressing particular
characteristics of the region. When tourists visit, they want to retain the
beauty, distinction of each place by purchasing something as a memorial
gift. Therefore, catching tourists preference, FSC will do business plan
with the brocade products linking with the chain of souvenir shops. Surely,
with the excellent skilful hands of craftsmen, brocade products express
unique and special characteristics of people in Son Dong, Bac Giang.
Vietnam Tourism Industry is developing strongly and the number of
travellers goes up considerably.
- What the different features and benefits are the company provide in
comparison with other social enterprises?
There are three main lines of product including clothes, accessories and
decoration.
Invite experienced people to train new employees
Each of women will weave at home
6

Volunteers will take responsibility for designs to ensure the renewal of
products
III. Products and Services
1. Business idea
Line of business: brocade products including clothes, handkerchief, scarf, tablecloth,
handbag, carpet, window drape, gasket for glass or cup, etc.
Business forms:
- Sold products directly in the souvenir shops which are located in the tourist
attraction in Bac Giang and Hanoi.
- Sold products indirectly in the souvenir shops in abroad or in the fairs.
2. Markets and Sales
Domestic market, specifically at tourist places in Bac Giang and Hanoi: through
advertising papers, through introduction of tour guides- volunteers from UNV, registering to
broadcast on the Vietnam Travel Book.
International markets: display products in the International Fairs, hold auction sales
high value and sophisticated products with high prices, set up a website by English to
commend products (applications of products, ways to mix and match brocade clothes or
handbags with other kinds of clothes, samples of patterns so that customers can order directly
by one clicking).
3. Product Description
Future Society Company exists to create the jobs for women who are incapable of
looking for a means of subsistence to enhance economic conditions for their families and
support long-standing culture of ethnic minority people in Son Dong Bac Giang.
FSC is where sells and distributes brocade products for the tourist and foreign
companies intending to commercialize these commodities. The main products could be
broken down into three groups: clothes such as skirts or overcoats, accessories such as
handbags, scarfs and handkerchief and decoration including tablecloth, carpet, window drape,
gasket for glass or cup, etc. Of these, all of items are made by women from Thai, Dao, Tay
who are familiar with traditional brocade textile industry.
7

Furthermore, FSC will recruit volunteers who have ability in the design area so as to
create the models, shapes and patterns for our products. Some of them are mass-produced and
some are limited items. The decisive style of our product is classical and fashionable; each of
handicrafts expresses the diversification in Vietnamese culture as well as Vietnamese people.
4. Service Description
a. Production and Distribution Process
Firstly, our volunteers will design the patterns of products. After that, these designs
will be sent to the employees. The employees here are women living in Son Dong, they will
carry out weaving follow those designs at their home.
At the same time, we establish two shops, one in Bac Giang which purchases the
products from these female employees and the other in Hanoi. The shop in Bac Giang plays a
role of not only freight forwarder, but souvenir shop also. A particular character of these
stores is that the only product they trade in is brocade. After Bac Giang store receives the
products from employees, they will retain a part of products and the remaining will be
transported to Hanoi store.
b. Chain of Souvenir Shops
- Here are where put up for sale and present products.
- Decoration of stores space:
Each store is divided into three areas in proportion to three groups of
products so that the customers could go shopping for convenience.
There are changing rooms and mirrors like every clothes stores.
Each store will be equipped the Computer systems in order to save the
codes of products and be ease of control between two stores.
- They are located in the places which are near the tourist areas to attract the
travellers.
c. Exportation
With the support from Vietnamese embassies in abroad, FSC will sell and display
brocade products in International Craft Fairs. Because of where many kinds of handicrafts all
over the world have been gathered together, our company gets an opportunity to establish
international economic relations with fellow traders in abroad. Brocade departments provide
a link between FSC and foreign companies interested in handicraft market in Vietnam.
8

In this business contract, FSC is the supplier while foreign partners are allocated
correspondents. Other than playing a licensed dealer for FSCs mass-produced items, foreign
companies can still order many types of different commodities which are appropriate to
aliens taste.
- Export
FSC was founded as a social enterprise and export of Vietnam ethnic handicrafts is
one of items noted in our business registration. So, we absolutely have legal status to export
directly to foreign customers. However, in order to bear the fee of customs procedures and
local charges regarding exporting our products overseas, the order must be US$ 3,000 at the
minimum value.
- Steps for export order
Selection of the products via our website or directly to our email
Once we have received your selection we will analyze it and send you the
quote, lead time and policies
Once you agree with the quote and lead time we can move on and finalize
the invoice with all the specification as sizes, colors and any special
requirements.
To start the production we require a deposit of 50% by bank transfer.
We start the production and we will keep you update of the process. If it
appears that we cannot produce some items based on the specifications of
the invoice we will inform you by email so we can take appropriate action.
(Replacement or cancellation).
Once the production is finished we will inform you about the real
shipping.
Balance payment of the order
Shipping and process of all the required export / import documents.
Delivery
Shipment Follow-up
5. Additional Services
Our customers always want to know how they can help us to build a better future.
There are many ways for you to become a vital part of FSC. The following suggestions will
9

show you how to join the thousands of volunteers, businesspeople and customers who
enthusiastically contribute their time, money, effort, and vision to FSC mission.
a. Shopping Online
FSC deploys E-commerce Service in order to serve customers quickly and
conveniently. FSC will set up a website by both Vietnamese and English to commend
products. In this website, we will make introductions about the applications of products and
supply the articles teaching how to mix and match brocade clothes or handbags with other
kinds of clothes. Moreover, we will display the samples of patterns on it so that customers
can order directly by one clicking. The system of online central will be available 24/7, we are
willing to consult and accept online requests from the customers.
Shop at a FSC stores near you, or online. You can find amazing, handcrafted gifts,
personal accessories, home decor, textiles and other incredible finds from FSC shops. Your
purchases give disadvantaged artisans in Son Dong opportunities to earn a stable income.
Your support helps sustain longstanding trading relationships-relationships that empower our
artisans, support thriving businesses and strengthen communities. Initial purchases are made
using credit card, cashiers check or money order. All prices listed in the online catalog are
suggested retail.
b. On-the-job Training Program
In the process of production, FSC will also train new employees who have no idea
about brocade textile. Teaching staff of our company is the ethnic women who are well-
informed about brocade weaving. New employees go to the teachers houses to be the
apprentices. After amount of time, they will be assigned tasked and become official weaving
employees in our organization.
IV. Market Analysis
1. SWOT Analysis
To recognize opportunities for the company, we conduct market research and market
analysis based on the following questions:
- Who are the target customers?
Foreign tourists
10

Foreigners and Vietnamese expatriates living in the countries which have
strong commercial relations with Vietnam
- Why this market is potential and attractive?
Brocade is beautiful and duarable as well a expressing particular
characteristics of the region. When tourists visit, they want to retain the
beauty, distinction of each place by purchasing something as a memorial
gift. Therefore, catching tourists preference, FSC will do business plan
with the brocade products linking with the chain of souvenir shops. Surely,
with the excellent skilful hands of craftsmen, brocade products express
unique and special characteristics of people in Son Dong, Bac Giang.
Vietnam Tourism Industry is developing strongly and the number of
travellers goes up considerably.
- What the different features and benefits are the company provide in
comparison with other social enterprises?
There are three main lines of product including clothes, accessories and
decoration.
Invite experienced people to train new employees
Each of women will weave at home
Volunteers will take responsibility for designs to ensure the renewal of
products
2. Competitive Advantages
The very first advantage is that all of female employees coming from Dao, Thai and
Tay ethnics have good experiences at traditional brocade textile industry; hence, FSC could
cut down the time and the cost of the vocational training stage. In other words, FSC could
economize a part of capital which Financial Organizations support us.
The second competence is that goods resources are very diversified and abundant
involving clothes, handkerchief, scarf, tablecloth, handbag, carpet, window drape, gasket for
glass or cup, etc. which are divided into two produced segmentations : mass-produced and
limited items.
FSC gaining the upper hand over other social enterprises is because of the lowest
price.
11

Moreover, FSC set up a website to go on E-commercial service where people not
only go window-shopping or order commodities by one click, but recommend about our
products also - the fundamental element makes difference with other competitor.
Finally, as FSCs products reflect the beauty of Bac Giang and display Thai, Dao
and Tay traditions and the diligence of disadvantaged ethnic women, they are specially
superior and sophisticated that are suitable for different customers
V. Business Model
1. Target Subjects
Future Society Company is social enterprise that has two main target subjects
consisting of customers and beneficiaries:
FSCs customers: Customers can purchase traditional brocade products which are
very skillful and beautiful with the reasonable prices. FSC brings customers satisfaction not
sympathy and we think of customers benefits as we make products. Going to FSC, customers
seem to lose in the space of traditional culture. Via our products, customer will have a deeply
understanding about the core values of textile industry.
FSCs beneficiaries: Firstly, the social enterprise supports for the low-income
employees who are incapable of looking for a mean of subsistence in the mountainous region
so that they could earn more money paying for everyday needs. Secondly, social enterprise
could improve reputation and image as well as the profit for paying staffs, maintaining online
website, and expanding the system of souvenir shops.
2. Business Registration
The Future Society Company is registered in the type of Social Enterprise.
VI. Social Impact
Future Society Company was founded to revive ethnic traditional villages and
enable poor women belonging to ethnic minorities in Vietnam to have better livelihoods
through marketing their ethnic handicrafts.
We are neither like a manufacturer nor a trader. We playes to 2 key roles:
1. Providing local ethnic people production orientation through
12

Forming and consolidating ethnic group of production
regarding this role, we initially go to ethnic areas with the piority in northwest of Vietnam,
implement the research on their capability and their contemporary difficulties to evaluate if
their status match with our target of products and requirements of production organization.
The most important key in our selection of the production group is that we found a local
leader that we can trust and he/she is willing to dedicate their time to our business. The leader
will be shareholder in our social enterprise. If the leader has not yet found, nothing will go
further. After a leader is appointed or invited, we will work together on process of producing
and selling their products. The group we work with may be a formerly founded or new one.
Our production orientation lies in following activities:
Forming or re-structuring local ethnic production groups (with the appointed
leaders)
Researching on the strength of each production groups
Designing products that match with the market demand
Training group of production to work on new products
2. Finding the market for their products
We run business development activities to find the market for our group's products
through
Exbibiting our products in Domestic and International Gift Fairs.
Promoting on ecomerce websites (Alibaba, Etsy, Global Sources, Dawanda)
Doing the customer care
How do we evaluate our soical impacts?
We measure our social impacts through following indicators
- The number of ethnic poor women get involved with us every year
- The income rate of our beneficiaries
VII. Marketing Plan
1. Competition
Factor T he company C2I commerce and development
company
Product _ Clothing (major for children)
_ Accessories
_ Clothing
_ Accessories
13

_ Home- ware
_ Stationary
_Kids toy
_ Stationary

Price 35 000- 1 000 000 VND 100.000VND- 3 000 000 VND
Quality Good Luxury
Service Online store and In-store
Plenty of medium-price products,
major in products for kids
Online and In-store
Plenty of products, major in clothing
Reliability Quite long Quite Long
Stability Strong reputation Strong Reputation
Location T Ngc Vn street, Ha Noi 12 Nh Tho street, Ha Noi
33 Hang Hom street, Ha Noi
Appearance Unique Luxury
Advertising Souvenir shop; exhibition;
newspapers; social network
Souvenir shop; social network; Fair

2. Targeting and Position Strategy
The selected market segments are foreign tourist, Vietnamese expatriates living in
the countries which have strong commercial relations with Vietnam, individual and
organizations want to do social work. We provide a plenty of product with a range of price
from 50.000VND to 2 000 000 VND that suitable with pockets of everyone.
FSC positioned as company manufacturing craft products including clothing, such
as: skirts, overcoats; accessory such as: handbags, scarf, handkerchief; decoration including
tablecloth, carpet, window crape, gasket for cup, glasses. Our design is unique, and easy to
use. Foreigners can choose accessories to give for their friend as a meaningful souvenir gifts.
Students can find something nice and unique to decorate their house
3. Pricing
Since we have skillful maker, use high quality material, investing in modern
facilities, renting shop in center of city, having unique designs, and the major target
customer is foreigner tourist and export, as well as we analysis market carefully, we
would definitely price a little bit higher than our competitors. Our prices will be based
primarily on cost-based. We are willing to give special discounts to those who are
Vietnamese students, or buy our products in a large number or company and
14

organization use our products for a long period in advance to maintain loyal customers
and their membership: 10% discount to those who buy much and company and
organization; 20% discount to those who are Vietnamese students. We see that our
competitors dont have this discount strategy.
We expect the price of our products as flow:

Kind of products Price
Clothing 200.000- 2 000 000 vnd
Accessory 50 000- 1 000 000 vnd
Decoration 50 000- 1 500 000 vnd

VIII. Operational Plan
FSC is a social enterprise that can have independent finance system.
However, we will try to get sponsored by investors and other funds so that FSC can
help more poor and ethnic women and can provide high quality products and
introduce Vietnamese culture to foreigners.
To facilitate FSC, we hire 2 main offices in Old Square Streets and 1 office in
Ha Giang. All will be equipped necessary facilities and we also hire shopkeepers to
run the shops.
1. Partners
- The parks, museums in the city. In order to organize exhibitions to introduce
and sell the products
- Souvenir shops in sight-seeing that attracts tourist. We can display our
products on a corner of the shop and hire staff to introduce our products to the
tourists.
- Chef, restaurant, offices, and companies: Provides facilities such as: stationary
(glass, cup...) or small gifts (handkerchief, scarf...) that company uses to give
to their partners.
- Fair organizers. We can contact Fair organizers to be allowed to display our
products at their Fair, such as: International Fair.
- Export Department: help us to export products overseas.

2. Legal Environment
- Have licenses from local authorities and government.
15

- Fully comply with the provisions of the law on business


IX. Management and Personnel
1. Manager Summary
Nguyen Mai Lan has been a CEO for 3 years at her own business in Bac Giang. She
actually experienced numerous of positions after graduating FTU in 2008 including both
marketing and managing positions. After researching and analyzing social environment, she
finds out in her province, especially in remote area, many women have no jobs, living in poor
condition. She came out many ideals to solve this problem. Finally, she decided to invest in
this field with the ideal: Creating employment opportunities for highland women through
making brocade products.
2. Human Resources Plan

FSC
Ethnic
Women:can have
a permanent job
and a good
income
target custumers:
foreigner tourist,
company and
organisation,
export
FSC Staff:
Mostly ethnic
women that
don't have work
are trained and
staff at FSC
Sponsors/
Investors:
Provide money,
equipments and
support FSC in
solving the
problems of
making jobs for
ethnic women.
16

No Position No. of people Salary per month Working time
1 General Manager 1 10.000.000
(VN)
Fulltime job
2 Production Manager 1 8.000.000 (VN) Fulltime job
3 Business Development
Executive
1 8.000.000 (VN) Fulltime job
4 Account cum
Administrator
1 8.000.000 (VN) Fulltime job
5 Web- manager 2 5.000.000 (VN) Fulltime job
6 Store- managers 2 5.000.000
(VN)
Fulltime job
7 Seller 4 4.000.000 (VN) Fulltime job
8 Security 2 4.000.000 (VN) Fulltime job
9 Sweeper 1 4.000.000 (VN) Fulltime job

- Director should be well-qualified. He is in charge of planning the strategies,
recruiting, and managing. At least 1 year experienced.
- Accounting, marketing, and finance staffs must be at least 1 year experienced and
well-cooperating.
- Supervisors will monitor all activities of staffs. Furthermore, they are responsible for
recruiting volunteers, donors
- Web- manager will monitor activities on website of company, receive orders from
customers
- Sellers will sell products in 2 stores in Ha Noi and Bac Giang
- Securities must be staying alert all the time and must be responsive.
X. Funding and Finance
1. Supporting Agencies
- Vietnam Womens Union
- United Nations Entity for Gender Equality and the Empowerment of Women
- Ministry of Labor, War Invalids and Social Welfare
- Department of Treasury
17

- Bac Giang peoples committee
- United Nations Volunteers (UNV)
- Center for Social Initiatives Promotion (CSIP)
- Vietnam Inspire
2. Finances
- World bank in VN
- Unilever Vietnam
- The Australian Agency for International Development
- The US Agency for International Development
- International Fund for Agricultural Development
3. Sales Forecasting
- For the beginning (first 6-month) of operation, some longstanding career has been
eroded will be restored developed, that bring the total number of craft villages in the
province increased from 23 villages (2000) to 33 villages (2008). Particularly, Bac
Giang has formed a new professional career is split and woven silk screens, is
currently creating 400 permanent jobs for the social workers to donate money (Viet
Yen district), Tan My commune (Yen Dung) and a number of neighboring
communes, with average income 700000-800000 / person / month. The province also
introduce additional embroidery exported in Lang Giang district, bamboo and rattan
in Hiep Hoa and Son Dong district has been incorporated as rattan export goods
associated with consumer demand locally.
- Labor force increase will lead quantity of products rise steadily day by day (about 5-
10 persons take part in per quarter). We expect that about 600 visitors to Khe Ro and
Dong Thong stay at households (an increase of 10% over the same period last year).
Each year, community tourism brings income from 7 to 10 million / 1 households that
joined this model.
4. Cash flow projections
- The cash flow projections for year 1 show that after the owner has put in 400.000.000
VN, the business will need additional short-term financing of about 80.000.000
VN. We are forecasting a positive cumulative cash flow from month 5
th
. However,
because of the renting expense that has to pay every 6 months, the cash flow of month
12
th
is negative.
18

- In Our cash flow projection, we have assumed that the whole 700.000.000 VN has
come from the investment of donors. In practice, we would hope to finance part of
this at least by a line of credit equal to the money actually required. In this way we
believe we have made a prudent, conservative provision.
5. Income Statement
We expect to make a small loss of 160.000.000 VN in Year 1. This is before the
than that expected in the Plan. owners drawings. Any owners drawings will be contingent
on performance being better