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Business Model of Chalao'

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Business model of ‘Chalao’

Our projected investment is around 3 crore taka and we have come up with a decision to make use of
equity funds and share our ownership with the equity holders. Following graphs indicating our
company’s business model:

Figure: ‘Chalao’ Business Model Canvas

Revenue Model

How ‘Chalao’ car sharing will make money?

We will collaborate with vehicle owners or drivers for sharing their cars and come up with a minimum
charge for them for serving as a partners of our company. We will provide them customers through
dynamic car sharing app and charge a particular amount of commission from them. The commission
could be 15% to 20% of the total amount charged from the customer. Besides, we will charge price on
the basis of per kilometer and time duration.

Fixed cost associated with our company

 Legal cost
 Technology
 Insurance cost
 Licensing fees
 Advertising and marketing
 Administrative cost
Operating cost associated with our company

 Purchase of ICT equipment


 Cost of refueling
 Repair and maintenance
 Cleaning

Financial Projection

Chalao Company

Projected Profit and Loss

(For 1 year)

Revenues :

Hiring of cars 159,120,000.00

Net revenue 159,120,000.00

Expenses:

Operating expenses 84,100,000.00

Purchase of ICT equipment 400,000.00

Cost of refueling 72,000,000.00

Repair and maintenance 9,000,000.00

Cleaning 2,700,000.00

Fixed expenses 6,500,000.00

Legal cost 700,000.00

Technology 2,000,000.00

Insurance cost 1,000,000.00

Licensing fees 800,000.00

Advertising and marketing 500,000.00

Administrative cost 1,500,000.00


Total expenses 90,600,000.00

Profit before Income tax 68,520,000.00

Taxation 23,982,000.00

Net profit after tax 44,538,000.00

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