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Interior design is the process of shaping the experience of interior space, through the manipulation of spatial volume as well as surface treatment. Not to be confused with interior decoration, interior design draws on aspects of environmental psychology, architecture, product design and furniture design in addition to traditional decoration. An interior designer is a person who is considered a professional in the field of interior design or one who designs interiors as part of their job.
Mission We strive to help you identify your own style and make your own decorating decisions. Our aim is to offer you the supreme design and decorating ideas so that you can choose those details that best connect your personal desire.
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Entrepreneurship (BUSINESS PLAN)
SUBMITTED TO Sir Salman azhar
Group members Athar Waqas 05(group leader) Nazia Hameed 32 Fahad Sattar 18 Annum Safder 02 Zainab Ajmal 15 Somia Iqbal 36
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Project Introduction
Name of Venture: Insight !nstore Nature of Business: Services business
Interior designers r people wh r meant t mk r surrounding grg. Whether t home, hotel r corporate offices, th mk sure tht r corner f particular l mt reveal th beauty f tht l. Er l h t wn g nd requirements, nd therefore, interior designer hld meet those requirements. Fr occasion, whn interior designer designs home h needs t mk t cozy r per th owners need nd f h designing fr corporate offices thn design mt b sober nd hw th dedication f th office towards t work. Bt, m interior designers r experts n thr respective area f interior. Fr example thr r specialized hotel interior designer fr interiors f hotel r fr corporate interiors. Though, few designers r ll rounder.
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Executive Summary
The project is basically of the interior designing and business of home decor. As the interior designing describes aspects contribute in turning the interior space in to a setting that could be more commendably used. An interior designer is the one who deals with these sorts of projects, this profession comprise of conceptual development, coordinating with the customers linked with the task and then finally the design implementation. The industry of interior design is dependent upon creative ideas and multiple concepts while we may take the home designs, Professional or others. The future of interior designing business is very high, because we can analyze that at present there are no. of housing societies in Bahawalpur City, hundreds of houses are under construction and in future these houses would be decorated. There are one or two competitors in Bahawalpur City regarding interior designing business, but these competitors provide services of interior designing as secondary. Their primary businesses is something else, like constructing building JAM BUILDERS is a major competitors, but they have not specialized designer, or innovative thinkers, we have specialized designer and innovative and creative employee, thats why we can compete our competitors easily. Demand of interior designer in Bahawalpur is very high, because many housing societies are under construction, due to globalization our society has been changed, people living standard increase. They want beautiful and decorated houses. the income of people increases, so their purchasing power also increase and people spend on beautiful and stylish furniture, decorated rooms, increases in population can lead to increases in demand.
Insight instore provide most of the services of interior designing including residential and commercial services also. We will work one on one with you to make sure you are completely satisfied. We will provide u the best consultancy about our services. If you are decorating your interior for the very first time and uncertain about the services to take so insight instore is the perfect place for u to meet your internal ideas and merging it with creativeness with the 6 | P a g e
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guidance of our team to make you home look more beautiful. We provide you the platform to transform your ideas in to reality with uniqueness amazingly done. Further in this report its marketing and financial analysis is discussed. Its HRM strategies and the number of employees required, cost of project, equipment etc is also mentioned in detail.
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INDUSTRY ANALYSIS
Future outlook and trends:
If we compare past with present, we can analyze that in past years there is no concept of interior designing or designer. But now people are well aware regarding interior designing, and give more importance to decorate their houses, offices, by specialized designer. Due to globalization lifestyle of people has been changed. Increases in education level have great impact on people life, people want unique design in their bedrooms, drawing room, kitchen, child rooms, bathrooms, etc. Excess of internet, people are well aware about different and stylish design for their houses.
The future of interior designing business is very high, because we can analyze that at present there are no. of housing societies in Bahawalpur City, hundreds of houses are under construction and in future these houses would be decorated.
The concept of joint family system is decreasing day by day, everyone wants their separate house, and it would enhance interior design business in future.
The per capita income of people also increases, and people are willing to spend on stylish furniture, and beautiful decorated bedrooms, kitchen, etc
Increases in population means increases in number of houses can lead to increase in business of interior designing.
There is also a concept of showing his wealth in our environment, if u spend 100 rupees on decoration or anything else, the other person spend 200 rupees, 8 | P a g e
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Analysis of competitors:
There are one or two competitors in Bahawalpur City regarding interior designing business, but these competitors provide services of interior designing as secondary. Their primary businesses is something else, like constructing building JAM BUILDERS is a major competitors, but they have not specialized designer, or innovative thinkers, we have specialized designer and innovative and creative employee, thats why we can compete our competitors easily.
Five portal forces in analysis of competitors,
Threat of new entrance:
The entry barriers in this type of business are not very high, it is moderate, and any one with an aesthetic eye easily starts this business. Access to vendors in this business is not a big issue, because any one provides these services, but reality is that there is less chances of new entrance, because there is no other interior designer specialist in Bahawalpur. People have no focus regarding this type of businesses. We have a specialized designer, who has great innovative and creative ideas, we can provide services according to our clients personality, we use imported and good quality material.
Level of competition:
There is low competition in the market. Because there is no other full time interior designing business in the market, the existing designer provide simple focused services.but we provide unique and innovative design.we have contract with owners of housing societies and we can provide discount to customer of those societies.
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Bargaining power of customer:
Bargaining power of customer is moderate, because interior designing is not basic necessity of customer. People want to decorate their houses. And they are not willing to pay very huge amount on decoration. we can provide reasonable prices of middle class families, We used imported and high quality raw material and satisfied our customer.our targeted market is upper class families, who spend their life with luxuries and unique product.
Bargaining power of suppliers:
Bargaining power of supplier is very high, because we use imported material, and only few supplier provide this, that why they demand high prices,in start we purchased from suppliers but after few years we can import raw material directly to reduce our cost.
Threat of substitute:
There is no. of substitute available in the market regardless training,and certification.there is no. of small self made interior designer in our society. Who provide these services, but Insight !nstore provide quality products and unique design for their customer, these stylish and imported design and material can not be available in the market.
Demand and supply analysis:
Demand analysis: Demand of interior designer in Bahawalpur is very high, because many housing societies are under construction, due to globalization our society has been changed, people living standard increase. They want beautiful and decorated houses. the income of people increases, so their 10 | P a g e
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purchasing power also increase and people spend on beautiful and stylish furniture, decorated rooms, increases in population can lead to increases in demand,
Supply analysis:
According to demand of interior designing , supply is very low, only one or two local businesses provide interior designing services, but they have not specialized designer.industry size is very large and this size increase more in near future, because hundred of houses under construction and population growth ratio is high.
Market segmentation:
We can segmented our market on demographic basis, geographical basis. We segment the market on income and location basis, there are hundred of people who are educated and having handsome salary, thousand of people are business man and their income exceed 500,000 per month, there is also a landlord in Bahawalpur who are uneducated but they have well aware about lifestyle. they want interior design services to decorate their houses. we segment our market on location basis, Model town A, Hashmi guardan, commercial area, cantt, upper class families live their, their standard of living is very high, upper class families is our targeted market.
STRENGTHS Specialized designer Strong relationship with supplier Good relationship with architect Contract with owner of housing societies Highly qualified staff Little competition locally Provide discount to existing customer Excellent customer services Special product features or benefits 11 | P a g e
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Specialized knowledge and skills. Excess of capital
WEAKNESS
Not many samples to show clients No availability of website Not much publicity material Not established in the market where number of designer exist
OPPORTUNITIES
Have a website designed Learn to up-load own materials New clients in wider geographic area Increased demand in future Using the internet to reach new markets New technologies that allow us to improve product quality. Construction of new houses is opportunity to expand our business. Changes in design trend initiate home updating, generate sales.
THREATS
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New competitors A downturn in the economy, reducing overall demand More attractive or cheaper material available in the market Competitive industry Economic decline reduces disposable income.
Action plan for success
Communicate with our client through personalized communication techniques and websites. Retain client by providing discount offer to generate sales. To overcome our weakness, by making website, people can easily access of latest and uniques stylish design, We can differentiate between cheaper and quality product. Used day to day latest technology. Innovative design with minimum cost, By create positioning and goodwill in mind of customer
Business environment:
To successful understanding of interior design business, we should identify the threat and opportunities associated with interior design business. We did the pestle analysis of interior design business in our society. Political factors:
Political: (includes legal and regulatory): elections, employment law, consumer protection, environmental regulations, industry-specific regulations, competitive regulations, inter-country relationships/attitudes, war, terrorism, political trends, governmental leadership, taxes, and government structures
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Economical:: economic growth trends (various countries), taxation, government spending levels, disposable income, job growth/unemployment, exchange rates, tariffs, inflation, consumer confidence index, import/export ratios, and production levels.Economic: rising incomes and lower interest rates have meant that people have more disposable income to spend on luxuries like long distance air travel
Social: demographics (age, gender, race, family size, etc.), lifestyle changes, population shifts, education, trends, fads, diversity, immigration/emigration, health, living standards, housing trends, fashion, attitudes to work, leisure activities, occupations, and earning capacity
Social: increased popularity of holidays abroad has led to a boom in demand for air travel.
Technological: new discoveries and invention helpful for interior designing business.information technology like internet increase the living standard of people and people inventions, new discoveries, research, energy uses/sources/fuels, communications, rates of obsolescence, health (pharmaceutical, equipment, etc.),manufacturing advances, information technology, internet, transportation, bio-tech, genetics, agri-tech, waste removal/recycling, and so on
Threat of substitute product or services: Threat of substitute product or services is not so high in Interior Design Company because it is purely based on the taste and choice preferences. There are n numbers of substitute products available in the items of design part but the first preferences which are given to choice and quality. If both the things are available then there is no mean of getting into another interior design company.
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Description of venture The project is basically of the interior designing and business of home decor. As the interior designing describes aspects contribute in turning the interior space in to a setting that could be more commendably used. An interior designer is the one who deals with these sorts of projects, this profession comprise of conceptual development, coordinating with the customers linked with the task and then finally the design implementation. The industry of interior design is dependent upon creative ideas and multiple concepts while we may take the home designs, Professional or others. Insight instore is a place where you can find a way to uniquely identify your home, from simply an idea to the execution of it. Our interior decorators are the ultimate clarification for the questions arising in the customers mind. The first question arise are you decorating your new house or your office or redecorating It? Think of designers who do the whole work in the way u want and make you feel pleasant? So here is a way out the insight instore will do all this for you the situation of the customer will be understood according t their budget range and wants regarding the dcor meetings will be done, everything will be discussed in detail including the major aspects like space, the changes customer want so the everything myst be clear at both ends to give a satisfied output. Mission statement:
We strive to help you identify your own style and make your own decorating decisions. Our aim is to offer you the supreme design and decorating ideas so that you can choose those details that best connect your personal desire.
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Services: Insight instore provide most of the services of interior designing including residential and commercial services also. We will work one on one with you to make sure you are completely satisfied. We will provide u the best consultancy about our services. If you are decorating your interior for the very first time and uncertain about the services to take so insight instore is the perfect place for u to meet your internal ideas and merging it with creativeness with the guidance of our team to make you home look mire beautiful. We provide you the platform to transform your ideas in to reality with uniqueness amazingly done. If u wants to redecorate your interior and dont have such ideas or tricks in mind dont worry insight instore is now in Bahawalpur to facilitate you and reshape your life by giving a new look to your house or place. We will provide you the ideas and tricks and guide you to the direction which most suits your budget and demand,utilizing your less cost and making you free from frustration.
Insight instore had contracted with different top furniture manufacturing companies in Pakistan to provide the best of best product. Our services my include the wall ceilings, fancy lights, doors and much more.
The pleasant atmosphere always play a part in work being done over there so if you are bored or feeling some stress get up this is the time to redecorate or redesign your living space. Our collection of services in residential is consisting bedroom, living room, dining room, TV lounge and kitchen. Commercial sector and others.Insight insore will provide the customers unique and different ideas of home decor and interior designing. Different themes and designs are worked out to facilitate the needs and wants of our customers. Our target market is the upper class of Bahawalpur and army officers as they are much conscious to maintain or high light their status or living standard. The service includes all the interior designing of a room or a home comprising of painting the walls, curtains or furniture. 16 | P a g e
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Residential Residential design is the design of the interior of private residences. As this type design is very specific for individual situations the needs and wants of the individual are paramount in this area of Interior Design. We may work on the project from the initial planning stage or may work on the remodeling of an existing structure. Commercial Commercial design encompasses a wide range of sub specialties. Retail: includes malls and shopping centres, department stores, specialty stores, visual merchandising and showrooms. Visual and Spatial Branding: The use of space as a media to express the Corporate Brand Corporate: office design for any kind of business Healthcare: the design of hospitals, assisted living facilities, medical offices, dentist offices, psychiatric facilities, laboratories, medical specialist facilities Hospitality and Recreation: includes hotels, motels, resorts, cafes, bars, restaurants, health clubs and spas, etc Institutional: government offices, financial institutions (banks and credit unions), schools and universities, religious facilities, etc Industrial facilities: manufacturing and training facilities as well as import and export facilities. Other Other areas of specialization include museum and exhibition design, event design (including ceremonies, conventions and concerts), theatre and performance design, production design for film and television. 17 | P a g e
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We will enable our clients with delicately manufactured furniture that is worthy of becoming a part of your home. We will equip your home with affordable furniture according to your needs as Home furniture is an extension of your character, so it's very significant that you get the right furniture for your home and insight instore is the right place to achieve it. In home dcor our range includes crystal and antique lights, wall brackets, mirror lights, garden and outdoor lights, ceiling mounts, halogen lamps, lampshades, table lamps and pedestals .Beautiful Fancy Lights plays vital role in interior decoration. It enhances the view of the home. The simple act of changing can breathe new life into your home, so why not give it a try. Insight instore is perfect in the art of employing the change for achieving desire effects.
About entrepreneurs: Name Designation Qualification and educational background SomiaIqbal Managing Director MBA/ Interior Designer/ Photographer Nazia Hammed Project Manager Interior Designer, MBA, Masters in fine arts AtharWaqas Financial manager MBA(Finance),Interior Designer Annum Safder Gill Interior Designer Diploma in Interior Designing from Germany IrumAjmal Interior Designer Designer from NCA, Lahore FahadSattar Interior Designer/ Architect Architect and designing from Australian university of fine arts
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All the team of insight instore is having expertise in their own fields and they jointly work on a project to achieve growth and satisfy their customers. The designers play a significant role in a venture. Size and location: The proposed location of project is in Model Town in Bahawalpur. An office can be rented out in any of this location. The rent for an office in the proposed areas is estimated at Rs. 40,000 per month. The office would be designed with a view to getting business venture up and running in the shortest possible time and money, all the modern conveniences for working environment would be encompasses. These dedicated premises provide a comfortable working environment for whole team members.
Office equipments: The basic need in office equipments are laptops which will cost almost 3 lac, air conditioners, furniture and its setting will cost 5 lac. That is one time cost. Others include stationary.
Labor /work force Labor is variable (transportation, equipment and furniture carrying, painting, packing and unpacking, electrician and etc.) it vary with the project but weat least need five to fifteen workers to complete your project easily.
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Service plan Our Preferences In todays world, customers are looking for products that suit their purpose best in terms of price, features, quality and appearance. We will identify hidden values of our client and will think more accurately about their worth before signing a project. We will give our customers a value-added experience. In our business the preference is Customer First refers to making customers the central focus of all decision making, project design, and selection of themes, furniture, fabrics etc, and execution of project. We will provide products that best meet their needs in terms of price, features, quality and appearance. We remain consistently in touch with our customer till the project will complete. Know your customer and predict their needs before they ask the question. Different themes and products to meet different customer needs. We definitely will simplify the process for our customer. Add value through innovation and incentives. Such as use of existing material, etc.. We will deliver something which goes beyond the customers basic expectations. Our points of differentiation offer these qualities: A unique client experience from a trained and professional interior designer that is qualified and capable of meeting the needs of clients with high expectations. 20 | P a g e
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Access to a wide and unique selection of new and antique furniture, accessories, and special-order decorator fabrics. Personal assistance from a complementary product offering, including hard-covering window treatment, hardware, and home accessories that fit the look and objectives of each project. The culture of Cholistan and Bahawalpur will be promoted. How will we charge for our services? Flat Design Fee: We will charge depending on the layout plan, period necessary, and service scope. Price In addition Method: A set percentage upon almost all items bought and solutions delivered. Blended Technique: Your client pays equally a collection percentage upon buys and a foundation design fee for on an hourly basis fee Per sq . ft .: This method is utilized particularly in brand new construction.
Products available through Inside in store Interiors include:
Furniture available through special purchase arrangements with mentioned suppliers A selection of decorator fabrics Accessory and art pieces Window treatment products including a variety of hard window coverings. Interior shutters made of wood and a plastic/resin product called "polywood." Antiques acquired for specific client needs through an arrangement with a local antique buyer and through direct purchases through other sources. 21 | P a g e
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Areas of Services in Interior Design Projects Space Planning / Square Footage Optimization Color Analysis Design detailing Theme & Concept Development Image & Brand Identity Development Concept design Professional Project Management Budget Development Service process Our service process will be start with understanding customer need and requirement this will be done trough a meeting with customer and by guiding the customer towards the best solution of their problem if the customer does not exactly know himself that what suits her or him. After collecting all information regarding customer requirement the project will be discussed with the designers, project manager, and all members and it will be make sured that all the required inputs are available and within the time duration A final draft and project plan will be made which describes the timing of order releases and receipts of required material, schedule of all activities and procedure, the desired theme of the customer, the cost and proposed execution process..etc The draft will be discussed with the customer and desired changes will be made with mutual consent A Portfolio will be made which will include o First, established and agreed aims of the project - large or small - aims must be defined and agreed with the executive budget-holder o Needs and requirements of customer, o Nature of the client. 22 | P a g e
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o The timing and size of project. o The specific theme and customized changes if any required by customer.(vary project to project) o Determine a budget, and decided timescales and chief outcomes/results required. o Decide the level of innovation required o Write an outline or specification of project. Ensure interested affected people are aware and are in agreement. o Define a team or supplier specification - have a clear idea of the qualities and scale and style that will be appropriate for the project. o For all projects it will be ensured that proper legal documentation and processes are clear, agreement about the use of ideas, intellectual property and copyright ownership - clarify any areas of doubt and potential misunderstanding. o Mention all agreed responsibilities of peoples and partners include in the project , ask people what they are good at and what they prefer to be doing within the project o Develop and agree a detailed project plan - the plan includes the tools you will use for managing and communicating - the bigger the project, the more input is required o For all projects we must ensure connections and understanding between design and implementation, whatever that entails. Your job is to ensure that the connections between design and implementation. o The steps of execution of plan (vary project to project) o The payment process o Communicate and explain the plans to all involved and seek agreement - clarify expectations o Ensure plans and forecasts are kept up to date and communicated. Provide information and progress reports to all concerned peoples- do not wait to be asked 23 | P a g e
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o Finally, always remember to give good positive feedback and thanks to creative people and staff this provides the best platform for success. After that the plan will be executed. Some points describing execution process are: Finalize all schemes and decorative treatment Prepare design drawings needed for custom furniture and any interior details. Finalize and prepare specification of all approved selection. Prepare budget costs. During Progress of work Review all working drawings, specifications, and finished schedules. Supervise all decorative work in field. Inspect all installations at job site. For the facilitation of customer as well as for innovation we have many incentives such as use of old material in designing. (see annexure),less space techniques i.e. small rooms designing. We will maintain record of our clients so that it can be used in future for decision making. If more than one project will come at a time even then all designers will participate in designing and execution process as the quality will not be compromised. Things to inquire on the first meeting with client: In order to determine the inside designers portfolio, bear in mind that the designs reflect other peoples tastes, certainly not the decorators, we will schedule a meeting with the client and will inquire some questions To whom is the room getting designed? Just what activities is going to take devote the space? How long are you planning to occupy the space? What exactly is your time and effort framework regarding finishing the particular task? What exactly is your budget? 24 | P a g e
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Have you been moving or redesigning? Request a set of references. If any. What will be your payment pattern? Exactly what picture do you want to project? What colures, design, and also effects would you just like? What exactly are the goals and lifestyle needs? What is the approximate size being created?
Establish the aims of the design project Be clear first what is the aim and purpose of the design project? What are the outcomes required? It's all too easy to lose sight of the original purpose of any design project unless it is properly established, quantified, agreed and recorded. So we will use following criteria to decide the aim and purpose of project before starting it Specific (a clear written description of what is intended or required, the outcome needed - the basic aim of the exercise) Measurable (quantify every aspect that is fixed, especially budgets, scale of application, Agreed (with all and interested/affected parties) Realistic (even highly conceptual projects need to have a realistic intention or the project is inherently flawed) Time bound (proper start and finish timescales, ideally with milestones (check-points) and measures along the way) Ethical (if you build ethics in from the start you provide a valuable reference point to maintain integrity) Recorded (write everything down; it's essential for clarification, agreement, management and control) Space Plan Optimization 25 | P a g e
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We can help our customer in determining the appropriate square footage necessary to run their business. We can help you evaluate spaces you are considering leasing or purchasing for your business. A floor plan determines what size space you should be looking for before you begin your search for the right property. Color Scheme Development Color has a great impact on our emotions and our working habits. Colors are extremely important in a hospitality, office or retail setting. Determining the best color scheme for you business is not an easy task. We also have separate charges for each individual aspect of the design process. Giving the client the flexibility to select which services are most appropriate and affordable. MARKETING PLAN
Vision In our upscale market we have chosen a path to become an interior designer of choice! Our vision is to improve our business at every level of providing best services to our customers. Satisfaction of customer is our prior goal.
Purpose One of the tough businesses is interior designing that has many unkept promises. We will turn out to be identified, the most principled service contributors in our industry and in business. All pronouncements we formulate will be infused with our core ethics.
Core Strategy 26 | P a g e
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We want to be considered as the most exclusive options, but also worth it. We will be at top row of interior designer contractors in town, who are competing for prestigious work and reputation.
Positioning Goal We intend to be the observable interior designers preference for high class homeowners who value that as we cost extra than others, we're worth it .
Core Branding Elements We have professionally designed logo. Our brand identity walks a fine line between rich and sensible, Expensive but valuable. Logo Our Logo propels the message of luxury & colors of life people may have.
Market Needs Insight !nstore provides its clients the opportunity to create a home environment to express who they are. They have a choice to actively participate in the design, feel and look of their home. They desire their home to be personal, unique and tasteful as well as communicate a message what is important to them. 27 | P a g e
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Target Market The target market is separated into four segments: high class house owners of Model town, Cant area, Hashmi Garden & surrounding and business class (banks, shopping malls, offices etc). The primary marketing opportunity is selling to these well defined and accessible target market segments that focuses on investing discretionary income in these areas
Positioning Customers will be impressed with, and return for, the great in-stock selection, value-oriented pricing, For the person creating a modified and unique impression of her home, Insight !nstore is the best local source for selection and price points of the fabric, customer-oriented design services, and a variety of other home accessory and furniture products and excellent customer service. Insight !nstore is a pleasant and tasteful resource that encourages everyone in the process of decorating their home. Unlike employing an interior decorator, Interior Views allows the individual to participate in their design choices to the extent they choose, and realize greater value for the money they invest. Price Pricing is based on offering high value to our customers compared to most price points in the market. Value is determined based on the best quality available, convenience, and timeliness in acquiring the products that we used in designing. We will consistently be below the price points offered through interior designers and consistently above prices offered through the warehouse/seconds retail stores, but we will offer better quality and selection. Promotion The most successful advertising and promotion has been through the following: Newspaper Advertisements : Local news papers are one of the source used for advertising, it will help to convey our message to most of the local society. Television Advertisements : Promotion advertisements are run on Local cabel network. The purpose of using this source is that people are mostly attracted towards television and 28 | P a g e
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Bill boards Due to low investment at initial stage we have acquire a single bill board but at a most commercial place. Pamphlets A huge amount of pamphlets are circulated throughout the town. Social Networking We will initiate several helpful community features. We will host a interior designing forum on our site where readers can come and ask questions and receive designing advice. We will also create a customer-only section of our website where customer projects will be featured along with the ability to network with other customers Distribution Our primary method of distribution is trough direct sale basis for each individual and client
Marketing budget Our goal is to spend approximately 1% of our forecast sales revenue in marketing expenses. This is perhaps optimistic. The following table shows a general listing of anticipated recurring expenses. Additional funds are earmarked for special events, unspecified activities and new strategies and tactics. Initial cost of marketing is estimated to be Rs.200,000 Bill board Rs.100,000 Television Advertisement Rs.500,00 Pamphlets Rs.30,000 News paper Rs. 20,000 Total Rs. 200,000
Marketing Organization
Our marketing organization starts with our VP of marketing. This function is the central hub of all marketing activity and lead funneling. She fields all inquiries and assigns leads to designers. 29 | P a g e
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Designers convert leads and determine the scope of the project with project managers and act as single sales contact throughout the project. Weekly marketing meetings assess progress on all leads and projects. Monthly marketing meetings function as training and education on all marketing initiative opportunities.
Form of ownership Ather Waqas, Fahad Sattar, Annum Gill, Nazia Hameed, Somia Iqbal and Irum Ajmal are the initiators and proprietors of insight !nstrore. Ather waqas did MBA (Finance) from the Islamia University of Bahawalpur, Fahad Sattar did Architect and designing from Australian university of fine arts, Annum Gill did Diploma in Interior Designing from Germany, After working for three years at a prestigious interior design firm in Portland, she moved to Lahore in 2010 and began working with TALENT AND TASTE, a well-established interior designing firm, Irum Ajmal Designer from NCA, Lahore, worked with the architects in the interior design needs for their projects in Islamabad and Somia Iqbal did MBA, Interior Designer, Photography diplomas. During this time, she has developed relationships with a number of community, professional, and supplier contacts. Anum plans to leave the firm on favorable terms at the end of the year. With her new role at TALENT AND TASTE Interiors, later on she met with her old fellows and peers and suggested to start a partnership business where they all oversee all aspects of the 30 | P a g e
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design process and all business operations. Their responsibilities include all aspects of establishing the business, marketing, buying, bookkeeping and financial dealings for designing interior of Bahawalpur community. All these six partners have equal share in business and have equal profit sharing ratios as well as equal rights in decision making.
Organizational Structure The structure of the organization is uni-dimensional. Six partners, all employees and professional contacts, and will be interfacing with all these activities. Anum Gill, Fahad Sattar and Irum Ajmal will determine project planning of interior decoration with project manager Nazia Hameed and Ather Waqas will focus resources requirements and monitor expenses for all aspects of the firm. Somia Iqbal will focus promotion of business and monitor whole business activities.
Personnel Plan Above mentioned six partners will work without employees in existing stage. Office boy at Rs. 7000 per month will be hired. Contract labor will be require for carriage, fabrication and paint purposes, some skilled labor may also required like plumber, carpenter and electrician but that will be integrated in the cost of good for each client's plan.
Roles and responsibilities of members of organization Managing Director: (Somia Iqbal) Placement The Managing Director is accountable for increasing and preserves a profitable office. This consist of organizing the finance, design, human resources and technical functions of the office in a way that is consistent with organizational broad standards and objectives, as well as contributing to both office and organizational broad promotion and business expansion goals. Prolonged evidence in interior design is required. 31 | P a g e
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Roles & Responsibilities Design: Provides design direction. Financial: Monitors financial performance and makes required adjustments to meet or exceed profit goals for the office. Establishes short and long term objectives for sales, profit, productivity and expense reduction. Ensures that objectives are consistent with corporate goals and priorities. Human Resources: Determines staffing requirements and ensures the proper utilization of staff. Hires, trains, develop and manage staff. Develops and communicates a vision for the office. Fosters an environment of open communication and mutual respect. Develops and promotes strong relationships within the office and throughout the firm. Marketing/Business Development: Directs the business development activities of the office by staying abreast of current trends and practices in the marketplace. Increases the firm's profile and develops marketing and business development opportunities by participating in and assuming leadership roles in industry and community organizations. Expands and nurtures long-term client associations. Financial manager: (Ather Waqas) Role and Responsibilities Ensure all current finance systems are appropriate for the business to facilitate detailed analysis of revenues and costs. Develop new systems and procedures where necessary. Prepare and report monthly results to the Management Team, weekly to the MD, with annotations and analysis on variations to budget and projections Act as the main point of contact to external auditors and provide all required information. Monitor work-in-progress and proposals and contracts to ensure appropriate margin levels 32 | P a g e
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Recommend changes that will improve the company's financial performance and financial controls. Prepare annual budgets and plans With support from the MD, devise and implement a regular (at least weekly) reporting system for members of staff (designers, project managers). Present financial data clearly, to improve the staffs understanding of divisional, project and individual performance, thereby helping them to gain a better understanding of the issues they face and help ensure jobs are delivered to budget and schedule supervise posting of all purchase invoices to the sales ledger Ensure that approved client costs are invoiced punctually and the relevant deposit is obtained Maintain fixed asset register Maintain Stock register Cash flow forecast and reporting to MD weekly Monitor all job costs while the work is in progress and alert appropriate person if costs are running over Project Manager: (Nazia Hameed) Interior design is a multifaceted occupation in which innovative and technical solutions are applied within a structure to achieve a built environment. These solutions are functional, enhance the quality of life and culture of the dwellers, and are aesthetically attractive. merely put, an interior design project manager is one who is hired either by a client or architecture firm that meet the customers needs and budgets in a functional and aesthetically pleasing manner. Ultimate goals of interior design for an interior design project manager Ensure the health, safety, and welfare of all of those who will or may occupy the space, so the services offered all revolve around the mission of the interior design practice itself. 33 | P a g e
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Such services or responsibilities and duties include defining the scope of work desired by the client: planning and design working through programming: workflow, strategic plan, schedule, budget schematic services: dialogue of design solutions including drawings, material samples, budgets, and product mock-up design development: finalizing drawings and specifications of architectural plans construction documents: interface with other trade professionals and consultants construction administration: ensuring asbuilt or as recorded design and specifications are documented, punch lists are completed and final authorization of payments are administered (Other duties may be assigned due to situational impacts) Interior Designers: (Annum Gill, Irum Ajmal and Fahad Sattar) Roles and Duties: Interior Designers improve interior spaces to meet the needs and preferences of those spaces' inhabitants. While Interior Designers may work on a wide variety of buildings, their job duties are usually the same. They analyze clients' needs, create plans and specifications and make sure that a project is finished in accordance with the timeline and budget. Interior Designers improve the look, usage and safety of interior spaces. Their main purpose is to meet the needs of the occupants by enhancing all aspects of the space, including color, lighting, textures, furniture and the spatial relationships. Interior Designers work on the interior spaces of all kinds of buildings, including homes, offices, hospitals, shopping malls, restaurants and theaters. However, their duties are similar from project to project. 34 | P a g e
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Assessing a Client's Need: Interior Designers meet with their client to examine the space and understand the client's preferences and budget constraints.
Creating a Plan and Specifications: Interior Designer creates a design plan, often using computer-aided design (CAD) software. This plan is usually developed in conjunction with the client, who is shown drawings and product samples for approval. After a rough design is agreed upon, the Interior Designer estimates the costs, and specifications are drawn for the required furniture, flooring, artwork and lighting. A project timeline is also created at this point. Ensuring that the Work is completed on Time and On Budget: Finally, an Interior Designer oversees the implementation of the design, making sure that the timeline is met and costs are kept within budget. After the project is finished, the Interior Designer meets with the clients to make sure that they are happy with the work or need some amendments. Three typical stages of the design process explained All of the above duties, responsibilities, and services are summed up into four specific aspects that include detailing of design intent, constraints, constuctionability, and function and are incorporated into three typical stages of the design process. The first phase previously summarized is the preproduction design. This phase is inclusive of the initial planning by the interior design project manager to review and analyze the design goals of the client. Much research and development goes into this phase for the project manager of successful and similar past projects, specification creation, risk solving, and presentation of design solutions. The second phase is design during production. This phase encompasses the executing and monitoring of the project management processes. Here is where the interior design project 35 | P a g e
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manager bases design goals with continuation for improvement of proposed designed solutions and testing them for accuracy of safety, health, and welfare in accordance with function, aesthetics, and constuctionability. The third and final phase is postproduction design. This phase is comprehensive of the monitoring and closing processes of project management. The design solution is introduced to the environment and the interior design project manager improves or changes the design solution if required, to meet or exceed the client expectations. In this stage, the project manager also makes a summary of the processes in an evaluation and develops a conclusion of the results of the projects completion and duration. Performance Dimensions: Task performance is the Activity that performs raw materials into the goods and services that are produced by the organization. It may the help with the transformation process by refilling the supply of raw materials, distributing its finished products, or providing important planning, coordination, supervising, or staff functions that enable it to function effectively and efficiently. Contextual performance is defined as those behaviors that contribute to the organizations effectiveness by providing a good environment in which task performance can occur. Persisting with enthusiasm and exerting extra effort as necessary to complete ones own task activities successfully. Volunteering carry out task activities that are not formally part of job. Helping and cooperating with others. Following organizational rules and procedures. Endorsing, supporting, defending organizational objectives. Both will be considered. These two approaches well use as the performance evaluation. Trait approaches: Emphasize the individual performer and ignores the specific situation, behaviors, and results. These can include abilities such as cognitive abilities or personality. Results approach: Workers are skilled in the needed behaviors. Behaviors and results are obviously related. Results show consistent improvement over time. There are many ways to do the job right. While the feedback system that we will adopt is 360-degree feedback system has become a preferred tool for helping employees, particularly those in supervisory role. These systems are 36 | P a g e
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called 360-degree because information is gathered from individuals all around the employee. 360-degree feedback system report usually includes information on dimensions for which there is agreement that further development is needed. 360-degree feedback system is most helpful when it is used for developmental purposes only and not for administrative purpose. Advantages of 360-degree feedback reduce options of biases Increased awareness of expectations Increased commitment to improve Improve self-perceptions of performance Improvement of performance Reduction of un discussable help employees take control of their careers Management team All team members must evaluate one anothers performance as well as the performance of the team overall. Peer evaluations are a key component of the assessment stage because they lead to higher levels of workload sharing, cooperation, and performance. Team performance as a whole can be measured using the following four performance dimensions: Effectiveness Efficiency Learning and growth Team member satisfaction
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PROJECT PROFILE
Land Requirement It is recommended to start project in a rented place. The approximately covered area required 2000 sq/ft. This space should be available in Model town at around Rs.40, 000 per month. Division of area will be as:
Area Requirements Detail Area in Sq. Yd MD office 400 Hall 700 Reception area 300 38 | P a g e
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Meeting Room 400 Ancillaries 200
Recommended mode One recommendation is to acquire office on rent.
Utilities Requirements Water Commercial connection Telephone-2 lines, one for fax, one for internet and for telephone usage Electricity 3 phase commercial connection Internet facilit
Time Schedule Time required for establishing a set up is two to three months. Project could be started immediately by taking a single project in beginning. Afterwards a team can be developed and more projects can be targeted and achieved.
Suitable Location Well developed or under developed new societies in big cities would be suitable choice for setting up an office due to greater potential of getting clients. Raw material, infrastructure facilities, etc. would also be easily available in new housing societies. The project location is an important element for the viability of the project and must have the following silent features. Considerable area availability 39 | P a g e
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Easy excess to roads Availability of raw material Infrastructure facilities Availability of labor force Close to existing firms Near new societies
HUMAN RESOURCE REQUIREMENT Availability & Management of Human Resource The chief executive officer (CEO) shall formulate the long-term policies and take strategic decisions. A team of professionals shall be engaged in order to manage the operational affairs of this project under the supervision of CEO. Technical Know-How Staff required with appropriate experience should have creative ability and aesthetic sense. Training facility for fresh qualified persons will help to fulfill human capital needs.
FINANCIAL PROJECTIONS
Project Cost
Description PKR Furniture & Fixture 500,000 Office Equipment 300,000 Pre-operating Expenses 10, 00,000 Initial Working Capital 200,000 Total Project Cost 20, 00,000
FINANCIAL PLAN Capital 60.00% 12, 00,000 Long term loan 40.00% 800,000 Total Funds 20, 00,000
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FINANCIAL ANALYSIS Payback Period 3.61Years IRR 34.49%
Projected Income Statement
YEAR 1 2 3
Revenue 925000 1010000 11,11 000 Less Cost of Services 480000 480000 470000 Gross Profit / (Loss) 445000 530000 641000 Operating Expenses Admin& Selling Expenses 200000 30000 100000 Financial Charges 112000 88000 60000 Total Expenses 312000 118000 100000 Profit before Taxation 133000 412000 541000 Income tax 26600 82400 108200 Net Profit after Tax 106400 329600 432000
Balance Sheet
CAPITAL & LIABILITIES Year 1 2 3 4 5 Paid up Capital Retained Earning Total Equity Long Term Loan Current Liabilities Creditors And Other Liabilities Fees received in advance Tax payable Total Current Liabilities Total Capital And Liabilities 41 | P a g e
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ASSETS Fixed Assets Less Depreciation Net Fixed Assets Pre-operating Expenses Current Assets Trade Debtors Security deposit against office Cash And Bank Balances Total Current Assets Total Assets
KEY ASSUMPTIONS
Capacity Utilization Assumptions No. Of projects in a year 20 Starting Capacity Utilization 60% Annual Growth Rate in Capacity Utilization 10% Maximum Capacity Utilization for the Project 90% Fee Based on budget of project @ 11% of Budget Designing & Planning Fees @ 4% of Budget
Financial Projections Debt 40% Equity 60% Interest on Long term Loan 14% Debt tenure (Years) 5 Years No. Of instalments per year 2 Net Present Value rate 14% Income Tax Rate 20%
Product Mix 2250 sq ft (10 Marla) House 25% 4500 sq ft (1 Kanal) House 15% 9000 sq ft (2 Kanal) House (Single Storey) 10% 9000 sq ft (2 Kanal) House (Double Storey) 10% 18000 sq ft (4 Kanal) House 5% 36000 sq ft (8 Kanal) Farm House 5% Banks/Offices 30% Big projects at least 7 Small projects at least 13 42 | P a g e
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Operating Assumptions Days Operational/Year 300 Days Operational/Month 25
Cash Flow Related Assumptions Accounts Receivables (days) 75 day Creditors 45 days Cash in Bank 30 days Fee received in advance (% of Revenue) 20%
Depreciation Assumptions Depreciation Method WDV Furniture and Fixture 10%