ENTREPRENEUR

BUSINESS PLAN

3nd Semester B.S. (SE) 2014

Submitted By:

ANUM ZULFIQAR

2014\COMP\BS.SE\16859

KANZA ASIF

2014\COMP\BS(SE)\16877

MARYUM BATOOL

2014\COMP\BS(SE)\16788

Submitted to: MISS NAZISH

23 April 2015

DEPARTMENT OF COMPUTER SCIENCE AND INFORMATION TECHNOLOGY

JINNAH UNIVERSITY FOR WOMEN
5-C NAZIMABAD, KARACHI 74600

Business Plan

OWNERS

Kanza Asif
Mariam Batool
Anum Zulfiqar

Your Business Name

Craftastic Crochet (Online Business)
Page link:
Karachi, Pakistan
Telephone

03341120488

EMai: craftasticcrochet@gmail.com

Table Of Content
I. Table of Contents ................................................................................................. 3
II. Executive Summary............................................................................................. 4
III. General Company Description.......................................................................... 5
IV. Products and Services......................................................................................... 8
V. Marketing Plan...................................................................................................10
VI. Operational Plan................................................................................................15
VII. Management and Organization....................................................................... 20
VIII. Personal Financial Statement..........................................................................22
IX. Startup Expenses and Capitalization ...............................................................24
X. Financial Plan ....................................................................................................27
XI. Appendices.......................................................................................................30
XII. Refining the Plan..............................................................................................32

Chapter II
Executive Summary
Under this, at first I generated the product idea of handmade crochet items, matching with my
profile (as every item will be made by me). The main object of the study is to analysis the
crochet manufacturing plant. After the idea generation, the industry analysis at both the global
and domestic level was done to understand the market trends and other factors. Then the market
analysis was done through the survey in the form of questionnaires. After this through the
statistical techniques we did the demand analysis.
After completing the demand analysis we did the financial analysis to check the financial
feasibility of the project. It involves the balance sheet statement and cash flow statement. And at
last we did the risk analysis to estimate the risk involved in this project. We did these analyses to
gather all possible information related to our type of product.
At first we have decided to do our business only at national level and then gradually we will
extend it to international level.
On the whole it was a wonderful experience and a great learning opportunity. The complete
project was an eye opener which added to my theoretical knowledge. There were times when I
was disheartened and disappointed b/c I was not able to manage my orders but gradually
everything become fine and in the end it made me feel proud.
Success does not come at once; one has to start right from the scratch and struggle his way
through all hardships with courage and determination.

Chapter III
General Company Description
Company:
Craftastic Crochet is an online store of handmade crochet items that includes crochet purses,
crochet clutches, crochet bags, crochet mobile covers crochet key chains and crochet bangles.
Our initial goal is to provide handmade crochet items to everyone living around Pakistan as
crochet items are very unique and it cant easily be found. For future we have planed to expand
our business by opening a permanent meaning point or you can say crochet store at good
location. And further more we have decided to take orders globally around the world.
Our each and every product is made by us, so we can give Garnett of the quality of our products.
Mission Statement:
To act as a single point of contact for all crochet items in international level.

Company Goals and Objectives:

Our goals and objects are listed below:

Our goal is to create attractive handmade crochet items so that we could gather more

customers throughout the world.

At first our business will be only an online business. We will take orders online and then

deliver them on time.

We will work very hard to gather more orders and to deliver them on time.
Firstly we will take orders at national level only and then gradually we will expand our

business internationally.
After some time or when more and more people will start interacting with us we will
expand our business physically.

Business Philosophy:
5

We put our Customers first and strive to secure their loyalty through top quality service.

We embrace Professionalism and seek Excellence in everything we do.

Product Mercerization:
At initial we will market our product to the local people. So that people could get
acknowledgement about our new product in the market.

Handicraft Industry:
Crochet comes in the handicraft industry. As we all know that handmade things are very unique
and expensive and anyone can earn a lot if they know the worth of their handicraft.
Crochet, knitting, and other handcrafts have enjoyed a surge in popularity in recent years. The
Craft and Hobby Association 2010 Attitudes & Usage Survey reported that the U.S. craft and
hobby industry had $29.2 billion in sales in 2010, of which $1.062billion was specific to crochet.
Their survey covered 114 million U.S. households and reported that 17.4 million reported that
they had engaged in crocheting in the last year, ranking it third among the crafts and hobbies
profiled in the survey, and above other needle crafts such as knitting and cross-stitch (Craft and
Hobby Association, 2011).

Business strength and core competencies:

Our biggest strength of our business is that our each and every product is made by us, so

we can give Garnett of the quality of our products.

In beginning we have decided to take fewer amounts from my customers and give them
high quality product.

Keys to Success:
1. While have a good location in future.
2. Quality product and good relationships with vendors
3. Outstanding customer service.

Company Ownership:
Kanza Asif , Anum Zulfiqar, and Mariam Batool, we the are the owners of Craftastic Crochet or
you can say we fours are the partners. We are having partnership of 50%, 25% & 25% each
partner, as Anum and Mariam are ther invertors + my (Kanza) partners. I (Kanza) am the only
one who use to make our crochet items and Anum and Mariam and plus I (Kanza) have invested
on the items through with I use to make crochet products. If the business dissolves in future
because of some reason so we will equally contribute the items b/w us.

Chapter IV
Products and Service
What is crochet?
Crocheting is a pastime which has been enjoyed for many years by our mothers and
grandmothers alike. And, it has been popular for good reasons. Crocheting not only allows you to
make something wonderful garments and household decorative items, but it also allows you to
create while you relax and watch television or listen to music as well.
Crochet gives you an amazing sense of accomplishment when you are finished with a project.
Whether you are making a blanket, sweater or even a simple scarf, you will be proud to show off
your handiwork work when you have finished it
.

Crochet products included in Craftastic Crochet:

Crochet purses and clutches. (Price Range: 200 - 3000 Rs)

Crochet Key chains ( Price Range: 80 200 Rs)
Crochet Bangles ( Price Range: 10 250 Rs)
Crochet Mobile Covers. ( Price Range: 200 400 Rs)

Business Poster:

Chapter V
Marketing Plan
Marketing:
We consider marketing as the important process of communicating the value of our
products and / or service to potential customers, for the purpose of selling product or
service. The marketing mix is the combination of product, price, place and promotion for
any Crochet Business.
The marketing mix and the 4 Ps of marketing are often used as synonyms for each other.
In fact, they are not necessarily the same thing.
"Marketing mix" is a general phrase used to describe the different kinds of choices
Crochet Businesses have to make in the whole process of bringing a product or service to
market. The 4Ps is one way probably the best-known way of defining the marketing
mix, and was first expressed in 1960 by E J McCarthy.

The 4Ps are:

Product (or Service).

Place.

Price.

Promotion.

Marketing Objectives:
Our marketing objectives are as follows:

Increase product awareness among our target audience, and keep them aware of our

products is the first main objective.

We will inform our target audience about features and benefits of the Craftastic
Crochet and also its competitive advantage in the future.
10

By increasing product awareness to our target audience, we want to increase there

interest with our product so that they would be interested to buy our products.

Economics:
Economic condition of Pakistan related to crochet is not really very well but still it stands among
the crochet exporters especially yarn exporters and other threads. Pakistan exported US$ 1.65
million worth of textile thread in the year 2007, most of which comprised of cotton thread. Our
exports to China for the same year were only US$ 0.25 million.

Trade Area Analysis

As Craftastic Crochet is currently a web-based business located in Karachi,Pakistan, the physical
trade area will not constructed or established until year three when our storefront opens. We plan
to open in Haidry, which is the heart of the citys unique and shopping district. Tariq Road draws
people from all over the city due to its quality restaurants and shopping.

Target markets:
The following table shows the target areas that our business will focus on during the first three
years of its operation.
Year
1st Year
2nd Year
3rd Year

Target Areas
North Nazimabad
Nazimabad
Defense

Barriers we faced:
The only barrier we face was the Consumer acceptance and brand recognition. And we will
overcome this barrier by good marketing and by promotions.

Product / Services:
11

We have shown a brief description about our product and service in the product and service
chapter and now we will describe it in detail.

Features and Benefits:

Each and every part of our business is very important but yet we have some important features,
which are:

The most important feature of Craftastic Crochet is that we also provide crochet key
chains that are rarely found.

The most important benefit of Craftastic Crochet is that customers can easily reach us
through social media that is internet. As we have started our business as online business.

Customers:
Basically crochet is a girly thing and according to our product list mostly women and girls will
be our customers with no age limitation.

Competitive Risks:
As such we dont have any competitive risk as crochet items are rarely found in the local market.
But in social media or you can say on internet may other online companies are providing crochet
items but their prices are too high that we expect that our product can easily make its place in the
market.

Marketing Strategy:
Marketing strategy provides the critical link between what your business will provide, and
how you will create revenue. So at the current motion we have just started our new business
so at the moment our marketing strategy is creating posters, brochures and business cards so
that people could start knowing our product. We also have planned to provide budget

12

packages to attract people As we all know that for good business we always need a good
marketing strategy so that we could get successful.

Promotion:
We will provide sample pieces of our product to the people so that they could take interest in our
product. As soon as more will start taking interest in our product we will soon launch new
products in the market.

Promotional Budget
We will try our best to spend less on promotion and gather more people.

Pricing:
As we have started a new business so for good market response it is necessary or very important for
us to keep the prices of our product low according to the market so that people could get attracted by
our product.
S. No.

Items

1
2
3
4

Crochet Purses
Crochet Bangles
Crochet Key Chains
Crochet Mobile

Craftastic Crochet

Other Online

Price Range

Companies Price

500 2000 Rs
100 250 Rs
80 175 Rs
250 400 Rs

Range
1000 3000 Rs
120 300 Rs
120 200 Rs
300 500 Rs

Covers

Distribution Channels
As our Business in only online business so firstly we take orders throught social media that is:

Web side
Facebook page

13

Delivery Timings:
We use to take at least take 7 days time for small orders and for big orders we take at least
15 days of time to prepare it and then deliver it.

Chapter VI
OPERATIONAL PLAN
14

In this section we discuss about the operation we used in our business clearly. We define all the
stages that will make our business successful.

PRODUCTION:
Craftastic crochet is the idea which is reveal according to the needs of our society especially for
women and girls we are giving them branded and keychain, purses which is in fashion and
artificial who looks elegant.

Production techniques and costs:

We use special techniques for the sake of the attention of our customer by presenting new,
stylish, trendy and fashionable keychain and purses. We use the strategy of offering deals in
which we give discount for our beloved customers.
We set the pricing which is not much high that cannot afford by common men.

Quality control:
It is a process by which entities review the quality of all factors involved in production. Quality
control emphasizes testing of our products to uncover defects and reporting to management who
make the decision to allow or deny product release, whereas quality assurance attempts to
improve and stabilize production (and associated processes) to avoid, or at least minimize,
issues which led to the defect(s) in the first place.

Customer service:
Your employees will need other skills -- organizing inventory, operating the register, handling
paperwork -- but if they don't send your customers away happy, none of that will matter.
According to the firm Only Garment Racks, when customers describe a positive key chains and
purses experience, good customer service is what they mention first.

15

 Inventory control:
The most vital asset to a small clothing and jewelry business is its inventory. Accordingly,
effective inventory management is critical to managing costs, measuring shrinkage and
improving the customer shopping experience. Thus, our management can implement various
inventory management practices.

1. Location:
Someone say that the three most important considerations in business is location. If you're
starting a new business that operates primarily offline, location is still critical. But is it critical for
online businesses, too? Yes, but in a different way. Online location is akin to having the right
URL and the right keywords and the right text-based advertising (like Google Ad Words).so we
make over website easy to find our website is fully secure we also focused to reply of our
customers mail. The website is:

Portable
Secure
Fact
Easy to use
Search capability
Speed
Email response system
Structure and organization of information
16

We are delivered the product on order by shipping through the services of TCS,
LEOPARD and FEDIX.
We are selling our product through website mean craftastic crochet is e-commerce
business but if our business grow successfully we will construct craftastic crochet stores
in our country in the best areas of country where our customer feel easy to come in our
stores.

2. Legal Environment:

There are following legal environment for e-commerce business:

Licensing and bonding requirements:

Business is making with some rules and with some circumstance but in e-commerce
there is not hard and fast bonding. We need the license of our beloved customer that they
believed on Craftastic crochet.

Trademarks, copyrights, or patents (pending, existing, or

purchased):

Craftastic crochet have many support from our product brands, so we have a copyright
to sell heir products.

3. Personnel:
Numbers of Employees:

Three member Craftastic crochet team.

Web administrator.
Two member marketing team.
Office manager.

Type of labor:

Two are skill full.

One is unskilled.
One is professional.

Pay Structure:
17

Staff members

Year 1

Marketing/Website
Director
Design Director

Year 2

Year 3

10,000 rs

55,000 rs

60,000 rs

10,000 rs

55,000 rs

60,000 rs

Designers

2,000 rs

90,000 rs

94,000 rs

Web Administrator

3,000 rs

52,000 rs

56,000 rs

Office Manager

3,000 rs

39,000 rs

42,000 rs

Marketing Staff

8,000 rs

84,000 rs

90,000 rs

Accountant

3,000 rs

44,000 rs

48,000 rs

others

3,600 rs

44,000 rs

46,200 rs

Total people

Total payroll

42,000rupees

463000 rs

496200 rs

Identify key suppliers:

Name and address:
Name

address

Phone number

Naseem

Nazim chowk,st -13

0900-78601

Umair

Cap ount,st-115

112-44-662

Ali

Liyaar,bandra road,st-18

111-222-105

Type and amount of inventory furnished:

18

We are the first time inventors, so we need guidance experience people guide us that
how to run this business. We invest 50,000 rupees each month.

History and reliability:

Craftastic crochet is an e-commerce startup with an aim to mimic Amazons success

by delivering a wide range of items, Shortly after the startup of the business in city
Karachi.
We have more than one supplier for critical items as backup.
We planned for the future, we arranged our stock before the end of the month.

Chapter VII
19

Management and Organization

Managing Accounts Receivable:
Total
Accounts
Receivable
Aging

20,000

Current

10,000

30 Days

60 Days

90 Days

Over
90 days

25,000

45,000

85,000

95,000

we make a call to over customer if payment is not come in our account after 1 day.
If customer not responding continuously four time than we send them letter

Managing Your Accounts Payable:

Accounts Payable (AP) is an important factor in a companys working capital, and a key
indicator of overall operational effectiveness. An accounts payable aging is simply a listing
of the bills that a company owes, broken down by due date in selected date ranges, typically
in 30-day increments.
Do your proposed vendors offer prompt payment discounts?
Usually invoices will come with Net 30, Net 60, 2%10 Net 30, etc. Regardless of the terms
given, you can call your vendors and negotiate terms for your own company. Vendors will often
give discounts or special terms to customers that purchase large volumes and on a regular basis.
Even if the normal terms cant be changed, if you run into an issue and must pay late, its best to
call and discuss it with your vendor rather than avoiding them.

Accounts
Receivable
Aging

Total

Current

10,000

9,000

30 Days

60 Days

90 Days

Over
90 days

20,000

25,000

28,000

95s,000

20

Organizational Management:
Firstly I will tell what is organizational management? The organizational management of
a business needs to be able to make decisions and resolve issues in order to be both effective and
beneficial. So as we have started our business in a small plat form and as we make our product
by our ownself so therefore each and every thing is managed and organized by ourself.

Chapter VIII
21

Personal Financial plan:

Products And Costs:
PRODUTS

COSTS
100
200
100
100
85
250
1500,1800,150,200,400,350
150
200

2 Bangles
Doll Key chains
Heart Key Chain
Purse key chain
Alphabet key chain
Mobile Covers
Purses
4 Bangels
6 Bangels
Customer Services:
Products
2 Bangles
Doll Key chains
Purse key chain
Heart Key Chain
Alphabet key chain
Mobile Covers
Purses
4 Bangels
6 Bangels

Orignal Price
100
200
100
100
85
250
1500,1800,150,200,400,350
150
250

22

Discount
80
185
80
100
75
200
140
200

23

Chapter IX
Startup Expenses and capitalization

FUNDIND

ESTIMATED

ACTUAL

UNDER(OVER)

OWNER_1

2,500

2,000

500

OWNER_2

2,500

2,000

500

OWNER_3

2,500

2,000

500

TOTAL

7,500

6,000

1,500

BANK LOAN_1

___

___

___

BANK LOAN_2

___

___

___

BANK LOAN_3

___

___

___

___

___

___

GRANT _1

___

___

___

GRANT _2

___

___

___

GRANT _3

___

___

___

TOTAL OTHER
FUNDING

___

___

___

TOTAL LOAN

24

TOTAL FUNDING

7,500

COST

ESTIMATED

ACTUAL

UNDER(OVER)

EXPENSES
Salary of management

___

___

___

All salaries and wages

___

___

___

Rents

250

250

___

Delivery expenses

250

250

___

Advertising

650

600

50

Telephone

200

200

___

Insurance

___

___

___

Taxes

___

___

___

Interest

___

___

___

Decorating

600

600

___

stationary

150

150

___

Other expenses

300

300

___

TOTAL EXPENSES

2,350

25

COST

ESTIMATED

ACTUAL

UNDER(OVER)

ASSETS
Land

___

___

___

Building

___

___

___

Equipment

___

___

___

Other

___

___

___

Total Assets

___

___

___

TOTAL ASSETS

2,350

26

Chapter X

Financial Planning
How our Financial Planning Process is Different
Traditional financial planning focuses on capital needs analysis, where advisors create a detailed
cash flow for their clients based on assumptions of income, expenses and taxes over the next 20
years. The only thing we know for sure is most of these assumptions will be wrong. No one can
predict that level of detail so many years into the future.
Next, lets consider rates of return. In retirement, over a period of 30 to 40 years, small changes
in rates of return can have a huge impact on a clients plan. The best we can do is to construct a
portfolio and make some estimates about how it will perform. If we predict an annual return of
8%, and the clients receive an overall return close to 8%, were doing great. Instead, advisors
often input every stock, every mutual fund, and every bond, and predict the return for each of
these securities over 30 years including growth rates, dividend yields, tax treatment, tax rates,
and other complex calculations. Thats a different level of detail. It actually makes the end result
of the plan LESS meaningful because weve created even more assumptions, which will most
likely prove to be inaccurate.
More data does not make a plan more certain or more accurate. More data, more assumptions,
and more moving parts in a financial forecast dont create more useful results.Think about a 30year plan. We can assure you almost every assumption included will be inaccurate by the end of
the plan. This doesnt mean the assumptions are bad, or you should not make assumptions. It
means we should make as few assumptions as possible, and focus on what really matters.
Our financial plans focus on the most significant factors. Since no one can guarantee the
accuracy of any assumption, we limit the assumptions to those most reasonable to predict. With
returns, for example, we believe is the long-term return on a portfolio, re-balanced annually is
much more meaningful than trying to predict the performance of individual holdings.Focusing
on clients savings and its relation to their current lifestyle is more reasonable than trying to
predict their actual income and expenses for the next 30 years. Many people cannot budget for a
year, or manage their life to a budget. Its better to focus on what they save. Look at clients
income this year, and see what theyre saving and/or contributing to a 401(k) or IRA. Then, if the
clients arent saving enough or dont know how theyre spending their money, they may need to
create a budget. The difference, with us, is you didnt start with the budget.
Financial planning is an ongoing process. We want to show clients a plan is a range of
possibilities and needs to be frequently updated. A plan helps clients make more appropriate
decisions, because they have better information. When a client is focused only on short-term
returns, they miss the big picture. If you can instead show them how a loss impacts a 30-year
plan, the effect is dampened.

27

One of the worst things advisors have done is to focus clients on a quarterly statement of
portfolio performance. When returns go down in a quarter or for a year, the clients see they lost
money. When discussing progress towards their goals with clients, its important to provide the
context of a long-term plan, not to sell quarterly returns.

12-Month Profit Projection

Cash Flow
Beginning Cash
Sales Income
Sales of Assets
Loans
Capital
Total Cash In
Cash Outflow
Salaries
Other Operating
expenses
Loan payment
Capital Expanses
Tax Payments
Total Cash out
Net Cash Flow

Cash Flow
Beginning Cash
Sales Income
Sales of Assets
Loans
Capital
Total Cash In
Cash Outflow
Salaries
Other Operating
expenses
Loan payment
Capital Expanses
Tax Payments
Total Cash out

Januar Februar March

April
May
June
y
y
0
0
0
8,000
8,000
8,500
0
0
0 12,500
12,500
13,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
7,500
0
0
28,000
20,500
21,500

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

0
4,000
0
0
4,000

0
4,000
0
0
4,000

0
4,250
0
0
4,250

July

August

8,500
13,500
0
0
0
22,000

8,500
13,500
0
0
0
22,000

Septemb
er
9,000
14,500
0
0
0
23,500

Octobe
r
9,000
14,500
0
0
0
23,500

Novemb
er
9,000
14,500
0
0
0
23,500

Decemb
er
10,000
16,500
0
0
0
26,500

0
4,250
0
0

0
4,250
0
0

0
5,000
0
0

0
5,000
0
0

0
5,000
0
0

0
5,000
0
0

28

Net Cash Flow

4,250

4,250

5,000

5,000

5,000

5,000

Projected Cash Flow

January to
March

April to June

July to
September

October to
December

Cash inflows

70,000

67,500

73,500

Wages

Martial & cost

25,000

22,000

26,000

Net Cash Flows

20,000

18,000

20,000

Opening Balance

1700

11,300

15,600

Closing Balance

1700

11,300

58,000

29

Chapter XI
Appendices

Brochures and advertising materials

30

Pena Flax

Copies of leases and contracts

-

No concern

Letters of support from future customers

-

No concern

Any other materials needed to support the assumptions in this plan

-

No concern

31

Chapter XII
Refining the Plan:
Craftastic Crochet a successful name in the arena of competitive business.
Certain productive measures would be taken prior;
To raise capital, loan amount would be required Rs 5,000,000/- .
Hence the funds will be used as investment to buy shop in mall for stronger financial development of
business.
Our investment would surely multiply the investment in no time.
From our shop, we would have the authenticated & popularity among the people.
This setup will ensure the customer about our business & certain business activities could be made over
there.
The repayment to bank could also be covered with shops profit
Business will tends to grow when certain investment made year to year but only if not covered with our
profit.
We have plan to work for certain multiple companies as their vendor as well & utilize the business credit
to invest more and more.
The earning profit to be shared in partners is so nominal that once business would get settle the profit
margin would be raised.
Our business positive point indicates our individuality of artistic working with no more additional cost
which depends moreover the market needs & trends. Variety of choices, double the customers interest to
select either whereas product line is self-supported with low investment with high earning.
Price of products is not fixed, as more creative & trendy will simultaneously add the high profit whereas
no risk factor of expiry or defect lies with this product line.
Strategy will be kept crystal clean & clear among partners & with clients as well

32

Innovational development along with customer service will only serve our business stronger.
Promotional activities in market & online intellectual with people will make business popular & to grow
sale thus the working policies is not limited to shop only.
Hence, with above all Craftastic Crochet is ready to launched.

33