Business Plan Dec 21-2013

Synergy
Business Plan
Entrepreneurship MGT-430
Partners
Ahmad Mehmood
Ansab Qureshi
Waqar Ahmad
Minha Malik
[Manager Organization]
[Manager Finance]
[Manager Marketing]
[Manager Operations]
COMSATS Institute of Information Technology

Management Sciences Department
Entrepreneurship MGT- 430

Business Plan, 2014
Table of Contents
Introductory Page.................................................................................................. 3
Business Name/Logo and Address......................................................................3
Partners Names and Addresses.........................................................................3
Nature of Business.............................................................................................. 3
Financing............................................................................................................ 4
Executive Summary............................................................................................... 5
Description of Venture........................................................................................... 6
Business Description.......................................................................................... 6
Mission Statement.............................................................................................. 6
Strategic Goals................................................................................................... 6
Product(s)........................................................................................................... 7
Size of Business.................................................................................................. 7
Office Equipment and Personnel.........................................................................7
Background of Entrepreneurs............................................................................. 7
Marketing Plan....................................................................................................... 8
Defining the Target Market................................................................................. 8
Opportunities...................................................................................................... 8
Threats............................................................................................................... 8
Strengths............................................................................................................ 8
Weaknesses........................................................................................................ 9
Marketing Mix..................................................................................................... 9
Product Strategy.............................................................................................. 9
Promotion Strategy.......................................................................................... 9
Distribution Strategy....................................................................................... 9
Pricing Strategy............................................................................................. 10
Control and Review Procedures........................................................................10
Marketing Budget............................................................................................. 10
Organizational Plan.............................................................................................. 11
Legal Structure................................................................................................. 11
Organizational Structure................................................................................... 11
Management Team........................................................................................... 12
Operational Strategy........................................................................................ 14
Expansion Strategy........................................................................................... 15
1 | Page

Business Plan, 2014
Exit Strategy..................................................................................................... 15
Operational Plan.................................................................................................. 16
Location............................................................................................................ 16
Procurement..................................................................................................... 16
Retailers........................................................................................................... 17
Equipment........................................................................................................ 17
Labor................................................................................................................ 17
Production / Service Process............................................................................. 18
Financial Plan....................................................................................................... 20
Capital Investment........................................................................................... 20
Operating Budget............................................................................................. 20
Budgeting......................................................................................................... 20
Manufacturing Budget (First 3 Months).........................................................20
Operating Budget (First 3 Months)................................................................21
Pro Forma Income Statement........................................................................... 21
Generation of Funds......................................................................................... 21
Appendix 1........................................................................................................... 23
2 | Page

Business Plan, 2014
Introductory Page
Business Name/Logo and Address
Synergy
193 E Block Nawab Town, Raiwind Road,
Lahore, Pakistan
Partners Names and Addresses

Name
Roll #
Address
Contact Number
Ahmad Mehmood
CIIT/DDP-FA10BBA-004
193 E-Block, Nawab

Town, Lahore
15/1-B, St. no. 49,
Samnabad, Lahore
15-A/4,Engineers
Town, Defense Road,
Lahore
218 A Madina Block,
Awan Town, Lahore
0333-9767-119
Minha Malik
Ansab Qureshi
Waqar Ahmad
0300-4001-184
0331-4080-193
0345-4282-229
Nature of Business
This business will provide ready-made, packaged, and branded
phenyl balls. Phenyl balls are used by various different customers,
including businesses as well as house hold consumers. Our services and
operations will include: procuring manufactured phenyl balls from Akbari
Mandi, which is a famous old hub for the raw materials near the Landa
3 | Page

Business Plan, 2014
Bazaar based in Lahore, transporting them to our business operations

base (see address above), packaging the phenyl balls into plastic
pouches, sealing the pouches with a sealing machine, branding the
packaged product with our brand stickers, packing the readied
merchandise in cartons bearing the business logo, and distributing the
product to local retail stores according to their demand.
Financing
Initial financing required for first three months is Rs. 79,584.00. This
financing (plus some additional sum) will be provided by the four partners.
These finances will cover rent, packaging, distribution, salaries, and other
fixed and variable costs.
This report is confidential and is the property of the co=owners

listed above. It is intended for use only by the persons to whom it is
transmitted, and any reproduction or divulgence of any of its contents
without the prior written consent of the company is prohibited.
4 | Page

Business Plan, 2014
Executive Summary
This business plan concerns the planning, birth, establishment, and
development of the partnership called Synergy and Synergys new
product offering called Hygen. The partnership is composed of four
members who have invested equally in the venture and will manage the
venture equally according to their respective specialized fields. The
product being sold under the brand name Hygen is phenyl balls.
The plan begins with an overview of our companys mission, goals,
and industry. It then takes an in-depth look at the best marketing,
operations, distribution, and packaging strategies.
Each of these strategies is addresses and explored in their own
respective plans, and the relevant budgets are also included to provide a
clear picture of the ventures future prospects. All the finances and
budgets are then merged cohesively and cogently in the finance plan,
which also explains the calculations and computations of all the costs,
revenues, and profits.
5 | Page

Business Plan, 2014
Description of Venture
Business Description
Synergy is a consumer based company that has been established
considering the vast market that exists in Pakistan for home care chemical
products. The focus of this company is the provision of quality and
affordable products, within arms reach, to its end users. The company will
focus on a multi-dimensional approach where our products will be made
available to end users (consumers) and also to other companies
(customers).
Following this B2C and B2B strategy simultaneously will allow for
quick returns. Considering the lack of sufficient data on demand trends
from private retail store for phenyl balls, it will be in the companys best
interest to keep a broad market focus; targeting consumers and
businesses alike.
The initial reach of our companys product will be limited to a few
selected areas in Lahore City. However, in the long run as the company
will establish and develop, further expansions into new towns and
societies, and even bordering cities, will be considered to increase the
companys profitability and market.
Should our company decide to engage in B2B dealings, bank loans
will then be considered as a source for financial support for bringing
operations at par with the partnering companys demand orders.
Mission Statement
Synergy aims to provide the best sanitary products within arms reach,
at competitive prices
Strategic Goals
Conveying our mission statement in our marketing campaign is
crucial for our brand image and reputation and our marketing mix will
embody this statement.
Financial Goals
6 | Page

Business Plan, 2014
Obtain financing to expand manufacturing capabilities, increase

distribution, and introduce new product lines such as liquid phenyl
products when business starts giving considerable returns.
To generate and increase revenue as per expectations of the
business plan.
Non-financial Goals
Enter new geographic markets outside Lahore.

Establish strong brand image and communication channels.
Product(s)
Initially, the product offering will primarily comprise of packaged and
branded phenyl balls. With time and experience, we will consider
expanding our product line by also including phenyl floor cleaning
chemicals as well.
Size of Business
For the first six months, the size of the business will be small. All the
operations will be managed and undertaken by the four partners. No
additional labor will be employed in the initial phases of the business. The
total projected productions required for the first three months will be
1,600 pouches of phenyl balls, each weighing 200 grams.
After the first six months, the projected sales is expected to increase
to higher levels, and to cope with this increase, the business will hire
additional labor. Distribution, procurement, and packaging will then be
completed by the additional labor.
Once the sales volume rises sufficiently high, Synergy will outsource
the distribution function to third party specialists. The loss of profit due to
outsourcing distribution will be offset by the increased sales volumes
which will only be possible if we employ large scale distribution.
Office Equipment and Personnel

Following will be the office equipment requirements:
Sealing machine (Quantity: 1)

Gloves (2 pairs)
Weighing machine (Quantity: 1)
Face masks (Quantity: 4)
No additional personnel required for initial stages (4 partners only)
7 | Page

Business Plan, 2014
Background of Entrepreneurs
The four entrepreneurs do not yet have any real hands on
experience of the real world market. However, each partner is skilled in
mutually exclusive specialized areas of business administration. According
to their skills, the partners have distributed the various tasks among
themselves.
Marketing Plan
Defining the Target Market
Opportunities
The target market of our product is both household consumers and

business customers such as small hotels and restaurants etc. in the
Lahore region.
One of our opportunities is the relatively small number of
competitive brands in this product category which will ease our
entrance into the market.
Once such a link gets established, opportunity exists for becoming
appealing to and, inevitably, supplying to larger business customers
with larger demand as well.
Expanding our target market beyond Lahore region after successful
establishment in Lahore area.
Directly target hospitals, clinics, restaurants and hotels etc.
Threats
Unstable economic environment.

Low demand.
Much older and well-established competitors.
Rising cost of petrol. Hence increase in transport expense.
Change in consumer trend can sap the demand of our product.
Lower purchase than anticipated in category C retail stores.
8 | Page

Business Plan, 2014
Strengths
Few brands are competing in this product category.

The experience gained in launching our product in current
geographical area will help us expand into other cities as well
with a better placement strategy.
Bringing the product within arms of our consumers.
The product is undifferentiated so the difference in product
pricing will not be far apart, thus providing us equal opportunity
to capture market.
Weaknesses
The limited distribution channel by using rented vehicle or

personal commute.
Limited availability of finance such as growth prospects.
Lack of experience and seasoning to operate in market.
Initial inability to target large scale whole sellers (e.g. Hyperstar)
Inability to gain good face value of brand over the period of time,
unable to retain the retailers due to unpredictability of market
demand or low demand. Also,
The
market
already
has
some
well-established
key
players/movers (e.g. Benz chemicals), who have linkages with
existing businesses.
Marketing Mix
Product Strategy
Our aim is to provide finished quality phenyl ball products at
competitive prices and good import quality material. The product will be in
the form of 200gm or 400gm plastic pouches with our brand logo on it.
Promotion Strategy
Our primary marketing objective is to establish a brand image and
secure retailers for first time entry into the market. In order to achieve this
objective, following courses of action regarding promotions can be taken
Make Brochures and Leaflets and distribute them to retail customers

in our geographical market (In Lahore i.e. Iqbal Town, Awan Town,
Samnabad, Nawab Town, Johar town etc.) to increase our brand
awareness.
9 | Page

Business Plan, 2014
Raise awareness and establish a communication platform via

Internet e.g. Facebook Page and E-mail. Also by making E-mail
catalogues for business customers.
Word of mouth, that is, spread the word personally about our brand.
Direct sales pitch to companies manufacturing phenyl balls and
persuade them that outsourcing this line of operations of the
company will reduce their costs significantly.(Considered as a
secondary marketing objective)
If the budget allows, probably make a small advertisement on local
cable provider channels such as gulf cable providers in Awan town
and Iqbal town region etc. The advertisements there are relatively
cost effective and economical.
Distribution Strategy
Since we are operating locally and the end product is light (125
packets of 200gm totaling 25kg), takes low volume, our end users are
concentrated (direct) in the market. We could distribute the packaged
goods with a small van on rent or via personal commute to further reduce
cost thus using one distribution channel to retailers for one or multiple
geographical market areas. In the beginning we could supply our product
to local general stores categorized as B stores and smaller anonymous
local shops categorized as C class stores.
Pricing Strategy
Suggested retail price for phenyl balls 200g pack will be Rs.80.
Retailers will be offered 10% margin which will be equivalent to Rs.8 per
200g pack.
Our aim is to offer highly competitive prices but not so low that it
implies a poor quality product, as we are just starting. We shall try to keep
our margin minimal as our primary focus right now is to build brand repute
and awareness by persuading people to buy our product and sales pitch.
Our product comes under the non-differentiated category where little
room for price variation is available and can be done so only either by
reducing our margins or our cost of production. We can offer discounts at
big orders. When we raise substantial brand awareness and a position by
proving the quality of our product in the market we can then raise our
prices accordingly.
10 | P a g e

Business Plan, 2014
Control and Review Procedures

In order to measure our performance some review procedures are
required to compare our progress vs. our plan. We can do periodic visits,
say once a week, to retailers in our allocated vicinities to get feedback
regarding our product sales and general product perception. Also new
consumption trends of end consumers if any, thereby reevaluating and restructuring are marketing activities accordingly.
Marketing Budget
Marketing Budget for first 3 months:
Promotional
Cost
Label
Rate
January
February
March
Rs.1.50
300Labels*Rs.
1.5= Rs. 450
500Labels*Rs.
1.5= Rs. 750
Brochures
5.00
Flex Posters
(Dimensions:
15x10)
Total Cost
8.00
1,000Brochure
s* Rs.5= Rs.
5,000
1,000
Posters*Rs.8.0
0=8,000
Rs. 13, 450
700Labels*Rs
.1.5= Rs.
1,050
0
Rs. 750
Rs. 1,050
Organizational Plan
Legal Structure
The legal structure of Synergy will be that of a partnership governed
under the partnership act, 1932 of Pakistan.
A partnership structure incurs limited establishment and registration
costs, has comparatively a smaller tax percentage to pay than a limited
company, the responsibilities can be better divided among partners;
reducing the burden of running an entire company from a single person.
Since each individual is an expert in his/her area of operations the
decision made will be quick and effective. Finally, a partnership has more
sources of capital where each partner contribute to the companys
11 | P a g e

Business Plan, 2014
operations and more partners can still be added to the company should
such a need for it be sensed.
Organizational Structure
Director
Organization:
Ahmad Mehmood
Manager
Marketing: Waqar
Ahmad
Manager
Operations: Minha
Malik
Manager Finance:
Ansab Qureshi
Worker Staff
Worker Staff
The organizational structure will be small as the company will only

be in its introductory stages. A worker staff will not be required during the
initial 6 months of operations, however, when our business will expand
more worker staff will be hired to look after distribution and packaging of
our product.
Management Team
The responsibilities assigned to each individual are soundly based
on their capability to manage the area of expertise in the best possible
fashion. A detailed description of the responsibilities each member has
been assigned are as follows:
Partner:
Ahmad Mehmood
Designation:
Director Organization
Responsibilities:
Arrange regular meetings with all group members.

12 | P a g e

Business Plan, 2014
Supervise production, financial and marketing activities.

Establish monthly sales and production targets based on previous
month performance.
Ensure favorable relations with retailers.
Ensuring the availability of secured storage space for stocks.
Cater to complaints received from retailers and consumers.
Integration of work tasks.
Approving financial plans and promotional activities.
Approve bonuses for extraordinary work.
Partner:
Waqar Ahmad
Designation:
Manager Marketing
Responsibilities:
Identifying and implementing viable marketing strategies and

developing an effective marketing mix.
Identify relative target markets.
Identify direct and indirect competitors along with consumer trends.
Budgeting for marketing activities.
Securing retailers for our product sales.
Product packaging and labeling designs.
Implementing product promotion techniques.
Ensure customer satisfaction and acquire feedback from customers
to ensure sales.
Partner:
Minha Malik
Designation:
Manager Operations
Responsibilities:
Improve the operational systems, processes and policies in support

of organization's mission -specifically, support better management
reporting, information flow and management, business process and
organizational planning.
13 | P a g e

Business Plan, 2014
Ensuring that business operations are efficient and effective;

Efficient in terms of using as few resources as needed, and effective
in terms of meeting customer requirements.
Managing the process that converts inputs (in the forms of
materials, labor, and energy) into outputs (in the form of goods
and/or services).
Managing and directing the physical and/or technical functions of
our organization, particularly those relating to production,
manufacturing and transport.
Play a significant role in long-term planning, including an initiative
geared toward operational excellence.
Maintaining favorable stock levels, sufficient to meet demands.
Making sure that stocks are purchased in the best of shape to
maintain quality standard.
Making sure the costs incurred in purchasing stocks is kept
minimum and maximum discounts are availed while purchasing
stocks and raw material.
Keep up-to-date information on raw material and market price
fluctuations for essential material required for production.
Ensuring production occurs with minimum wastage.
Partner:
Ansab Qureshi
Designation:
Manager Finance
Responsibilities:
Managing budgets.
Preparing and interpreting reports, budgets, accounts and financial
statements.
Controlling income, cash flows and expenditure.
Looking for cost reduction opportunities.
Calculating risk and analyzing market change.
Interpreting financial statements and predicting future trends.
Develop a comprehensive and detailed business plan.
Develop content themes based on the direction and creative brief
provided by our team members.
Contribute ideas on improving existing messaging and content.
Produce and edit documents using Word, including copy editing,
rewriting, revising, and formatting.
14 | P a g e

Business Plan, 2014
The duties and responsibilities of each member are interlinked with one
another. Ever decision regarding operations, productions and marketing
will need to be coordinated with the finance manager. Similarly the
production department will have to coordinate its production plans with
the marketing department, making cohesive plans on areas of interest in
Pakistan, where our product must reach the customers.
Director organization will be responsible for managing and coordinating
work activates among all departments. Also overlooking tax payments
and making sure each member performs his/her responsibilities and
receives rewards and bonuses accordingly.
Operational Strategy
Synergys aim will be the provision of quality packaged phenyl balls
to the local consumer market. The goal is to target retail store categorized
as A, B and C ensuring the easy availability of our product.
The operations during the introductory stage of our business will be
limited in terms of production capacity, distribution and reach. The focus
for initiating our business will be primarily on category A retail stores
with a secondary emphasis on category B retail stores. This will be done
to ensure that our product is delivered on cash bases, rather than on
credit terms. This will ensure timely recover of costs and minimize risks,
which for a new business is crucial. The procurement, packaging and
delivery will take place via personal transport means provided by
partners. No additional labor will be hire in the initial 6 month period of
operations.
Category B store will be secondary preference, since their small
operational capacity and limited revenue pool will restrict any on cash
transactions from being accepted. However, by implementing the
following strategy, we can increase on cash transactions with category B
stores. The strategy will be to offer an increase in the retailers margin,
there by giving them an added incentive to enter into an agreement. The
normal margin, which is 10%, will be increased to an incentivized 13% in
return for cash transaction.
Expansion Strategy
15 | P a g e

Business Plan, 2014
The expansion strategy for Synergy will be defined in 4 steps and will
be for the next 5-8 years:
1. The first step will be expanding our customer base from just
targeting retail stores to bring our product to hospitals, restaurants
and hotels.
2. The initial delivery requirement will be managed via personal
transport means and the occasional use of for-hire transport
vehicles. With the implementation of the first step procurement,
production and delivery requirements will increase, thus requiring
the hiring of additional labor force as well.
3. The third step will be expanding our operations to bordering cities.
This in turn will require outsourcing distribution to third part
specialists. Here distribution channels will be established. The loss in
profits due to outsourcing distribution (incentives to distributors) will
be off-set by the increase in unit sales by virtue of increase reach of
our product.
4. The final step will be becoming our own distributors and introducing
similar product lines.
Exit Strategy
The Partnership Agreement for Synergy will clearly state the procedure
for wrapping up the business. Should the business fail to continue
profitably, the following steps will be follows as guideline:
1. All company owned assets; raw material, finished goods, equipment
and other assets will be disposed of.
2. The resulting returns will be used to pay back debts and due owed
by the company.
3. Finally, in the event of any remaining capital, the sum will be
distributed between all legal partners equally.
The whole wrap-up procedure will be carried out and supervised by the
Manager Organization-Ahmad Mehmood.
16 | P a g e

Business Plan, 2014
Operational Plan
Location
Synergy is based in Lahore, Pakistan. The exact location from where
the operations would be based at is 193 E Block, Nawab Town, Lahore
(personal residence). The operations would commence from January 2014.
Procurement
Synergy is going to be procuring the phenyl balls from Akbari Mandi
which is a famous old hub for the raw materials near the Landa Bazaar
based in Lahore. To meet the projected sales for the first month of January
i.e 300 phenyl bags we need to purchase phenyl balls worth of Rs. 9000 in
January by purchasing 3 bags of raw material, 25 kg each. See table below
for the Feb and March.
Procurement
Projection
Projected
Production (units)
Raw Material
January
February
March
500
400
700
Rs.3000 x 4 bags
= Rs.12,000
Rs.3000 x 4 bags
= Rs. 12,000
Idle Raw Material
100 packets
worth Rs.2,400
Rs. 12,000
Rs. 3000 x 5 bags

= Rs.15,000 (Plus
75 packets
carried forward)
25 packets worth
Rs.600
Rs. 15,000
Total
Rs. 12,000
Production Cost
Note: 1 bag of raw material= 25kg = 125 packets 200g each.
The means to transport the raw material from Akbari Mandi to

desired location would include two suitable options. One means is to use
the personal transport that is the use of motorbikes this would be cost
effective. On the other hand Synergy could use the services of a local
transporter if required.
17 | P a g e

Business Plan, 2014
Retailers
The retailers that Synergy has identified are broadly divided in three
categories A, B and C.
Category A includes big stores like Alfatah and Jalal Sons.

Category B includes medium sized stores that are popular in
different societies for instance Al-Buraq in Samanabad Society, AlHamd in Nawab Town, Bhai Bhai Medical and General Store in Awan
Town and Rainbow Centre in Wapda Town.
Category C stores are the smaller anonymous stores located across
societies for the convenient availability of products for daily use.
Category B and C will require the product in 200 gm packets, delivery

of these packets is easier via motorbikes and hence helps reduce the
transport cost.
Category A will require the product in cartons (carton capacity 96 units
200 gm packets) hence for the transportation of these cartons proper
transport facilities need to be availed.
Equipment
The equipment that is required for the packaging and sealing of
these phenyl balls is a sealing machine, this sealing machine would cost
around Rs. 1500. Apart from this a weighing machine which costs Rs.
1200 is required. Also two sets of gloves that cost Rs. 50 each and masks
at Rs. 10 each are to be purchased.
Labor
Synergy does not require any technical skills in the packaging of the
phenyl balls hence any technical labor is not required for the business.
Synergy will procure, package and deliver the product on its own.
18 | P a g e

Business Plan, 2014
Production / Service Process

This process explains the whole procedure through which the raw
materials would be transformed into finished products.
Raw
Materi
al
Transportati
on
Packagi
ng
Retaile
rs
Raw material has to be purchased and then transported to the

location for further processing. Now the phenyl balls will be sealed
and packaged.
300 units is the production goal for the first month i.e. January.
The weight of these 300 packets would be 60kg.
Labeling
Phenyl balls that have been packaged need to be labeled now. For
the purpose of labeling stickers of the product namely Hygen are to be
purchased the price of this sticker is @ Rs. 1.5 / sticker. Hence a total of
Rs. 2250 would be invested to label the 1500 packets for the term of first
three months because the minimum order quantity for the stickers is
1000.
Production Material
Stickers @ Rs. 1.5 / sticker

Cartons @ Rs. 36.5/ carton
Inventory
19 | P a g e

Business Plan, 2014
The inventory will be managed by storing the packaged phenyl balls

in cartons. For Januarys purpose the 300 packets will be stored in 3
cartons which will be placed temporarily at personal residence (read:
financial plan).
Quality Assurance
Quantity:
This explains if the said quantity is being delivered i.e whether or
not a packet weighs 200gms.
Quality:
Since our product is not differentiated from other similar products;
maintenance and reliability of quality is difficult to achieve and of
secondary importance. However we will ensure that the packaged
balls are not crushed or cracked.
Waste Management:
We need to ensure that the waste material is stored and once it
reaches a certain amount of level we can sell if off. The waste
majorly would include powdered or crushed phenyl balls.
20 | P a g e

Business Plan, 2014
Financial Plan
The finance plan will begin with an overview of the total and per unit
costs of procurement, packaging, delivering, and other fixed costs. The
plan will then proceed to calculating budgets of marketing, operations,
and manufacturing. Capital investments of each partner, allocation, and
calculations of salaries will also be made. Finally, the plan will produce a
comprehensive Pro Forma Income statement.
Capital Investment
Following is a list of financial contributions from each partner of
Synergy. Equal contributions mean all profits and losses will be shared
equally by each partner.
Investors
Ahmad Mehmood
Ansab Qureshi
Waqar Ahmad
Minha Malik
Capital Investment
Rs.
Rs.
Rs.
Rs.
25,000
25,000
25,000
25,000
Operating Budget
*(Following calculations are the operational expenses for the first 3
months, starting Jan. 2014)
Refer to Appendix 1 for calculation details in Excel print.
Budgeting
Manufacturing Budget (First 3 Months)
January
February
Project Sales
300
500
(Units)
Desired Ending
200
100
Inventory
Available for Sale 500
600
Less: Beginning
0
200
March
700
100
800
100
21 | P a g e


Business Plan, 2014
Inventory
Total Production
Required
500
400
700
Operating Budget (First 3 Months)

Expenses
January
February
March
Salaries*
Rs. 2,835
Rs. 4,725
Rs. 6,615
Rent
1,000
1,000
1,000
Petrol
3,000
3,000
3,000
Utilities
1,400
1,400
1,400
(Electricity,
Cellular)
Advertising/Promot Rs. 13, 450
Rs. 750
Rs. 1,050
ion
Depreciation
250
250
250
Stationary
500
500
500
Total
22,435
11,625
13,815
*Salaries are allocated according to percentage (25% for each partner) of
capital invested by each member. Every month, 50% of overall profits will
be reinvested while remaining will be paid out as salaries to each member.
Pro Forma Income Statement

January
24,000
8,476.8
February
40,000
14,128
March
56,000
19,779.2
Sales
Less: Cost of
Goods Sold
Gross Profit
15,523.2
25,872
36,220.8
Operating
Expenses:
Salaries* Rs. 2,835
Rs. 4,725
Rs. 6,615
Rent 1,000
1,000
1,000
Petrol 3,000
3,000
3,000
Utilities 1,400
1,400
1,400
(Electricity,
Cellular)
Advertising/ Rs. 13, 450
Rs. 750
Rs. 1,050
Promotion
Depreciation 250
250
250
Stationary 500
500
500
Net Income
(6,911.8)
14,247
22,405.8
*Salaries are allocated according to percentage of capital invested by
each member. Every month, 50% of overall profits will be reinvested while
remaining will be paid out as salaries to each member.
22 | P a g e

Business Plan, 2014
Generation of Funds
Two avenues exist for generating additional funds. One route is to
opt for a personal loan, such as the Youth Loan Schemes being introduced
by the government of Pakistan. The proposed amount of said loan is Rs. 1
million, with a payback of 7 years along with 1 year grace period. This
loan scheme will be very beneficial for our business venture as its terms
are friendly.
The second avenue is to add another business partner, who will
contribute an estimated capital of Rs. 25,000.
23 | P a g e

Business Plan, 2014
Appendix 1
Excel File for Budgets, salaries, and breakeven analysis.
24 | P a g e

Business Plan, 2014
25 | P a g e

Business Plan, 2014
26 | P a g e

Business Plan, 2014
27 | P a g e

Business Plan Dec 21-2013

Cargado por

Información del documento

Título original

Derechos de autor

Formatos disponibles

Compartir este documento

Compartir o incrustar documentos

Opciones para compartir

¿Le pareció útil este documento?

¿Este contenido es inapropiado?

Copyright:

Formatos disponibles

Business Plan Dec 21-2013

Cargado por

Copyright:

Formatos disponibles

Synergy

COMSATS Institute of Information Technology

Entrepreneurship MGT- 430

Entrepreneurship MGT- 430

Entrepreneurship MGT- 430

Partners Names and Addresses

193 E-Block, Nawab

Entrepreneurship MGT- 430

Bazaar based in Lahore, transporting them to our business operations

This report is confidential and is the property of the co=owners

Entrepreneurship MGT- 430

Entrepreneurship MGT- 430

Entrepreneurship MGT- 430

Obtain financing to expand manufacturing capabilities, increase

Enter new geographic markets outside Lahore.

Office Equipment and Personnel

Sealing machine (Quantity: 1)

Entrepreneurship MGT- 430

The target market of our product is both household consumers and

Unstable economic environment.

Entrepreneurship MGT- 430

Few brands are competing in this product category.

The limited distribution channel by using rented vehicle or

Make Brochures and Leaflets and distribute them to retail customers

Entrepreneurship MGT- 430

Raise awareness and establish a communication platform via

Entrepreneurship MGT- 430

Control and Review Procedures

Entrepreneurship MGT- 430

The organizational structure will be small as the company will only

Arrange regular meetings with all group members.

Entrepreneurship MGT- 430

Supervise production, financial and marketing activities.

Identifying and implementing viable marketing strategies and

Improve the operational systems, processes and policies in support

Entrepreneurship MGT- 430

Ensuring that business operations are efficient and effective;

Entrepreneurship MGT- 430

Entrepreneurship MGT- 430

Entrepreneurship MGT- 430

Idle Raw Material

Rs. 3000 x 5 bags

The means to transport the raw material from Akbari Mandi to

Entrepreneurship MGT- 430

Category A includes big stores like Alfatah and Jalal Sons.

Category B and C will require the product in 200 gm packets, delivery

Entrepreneurship MGT- 430

Production / Service Process

Raw material has to be purchased and then transported to the

Stickers @ Rs. 1.5 / sticker

Entrepreneurship MGT- 430

The inventory will be managed by storing the packaged phenyl balls

Entrepreneurship MGT- 430

COMSATS Institute of Information Technology

Entrepreneurship MGT- 430

Operating Budget (First 3 Months)

Pro Forma Income Statement

Entrepreneurship MGT- 430

Entrepreneurship MGT- 430

Entrepreneurship MGT- 430

Entrepreneurship MGT- 430

Entrepreneurship MGT- 430

También podría gustarte