Project Brief

PROJECT TITLE: PROFESSIONAL LABOR SERVICES

(PLS)

PROFESSIONALS AT WORK

OBJECTIVE: Improving entrepreneurial skills

SUPERVISED BY:

UNDERTAKEN BY:

SESSION:

PROGRAMME:
EXECUTIVE SUMMARY
 Business description

Skimming through the news papers reveals the condition of the kind of labor services
are in the current markets and we all in our houses and offices know the situation of
nature of labor market and we all face a lot many problems concerning this area. So
here we provide the solutions to all those problems. Our core area of business is to
provide a link between the demand and supply of the labor (as being provided by our
firm).

Although this kind of work is being done and successfully accomplishing its fruitful
results in foreign nations but in Pakistan no successful private work of this kind has
started yet. So we decided to boost the morale of students by introducing a new labor
providing firm.

This firm represents the efforts of those students who want to bring about a change in
the society by thinking different. We would have to work by few resources but we are
sure that one day this firm will serve to the direst need of the country. Marketing
department, that control and coordinate activities, present the real picture to the
interested clients. Hence a proper system is there to perform every task efficiently by
complete coordination among them.

It is basically the vision and creativity of the students and young professionals which
can drive them towards success and prosperity through the tool of Entrepreneurship.
 Company structure
Professional Labor Service as its name suggests is a service firm and deals in the
matters for providing labor services to households and businesses. Its structure is
simple and starts with an idea by some students and then perpetuated with confidence
in their abilities. Led by couple of students its an entrepreneurial firm being operated by
a partnership deed among them.

Partnership initiated by collecting initial investment from every member in equal ratio
and then spending it by the logistic head in the manner they all agreed to. The costs are
to be endured by members and that the profit would also be distributed in similar
proportion. Hiring of experts and costs for arranging interview sessions, with the
entertaining of clients are subjected to the same action.

Intellectual property

Idea to cater to the demands of the household and businesses in the outlined labor
fields is the trademark of this firm.

Whatever we do has imprinted our effort on it and we have a copy right of it as a diverse
and innovative profit firm entailing the rights of students and disclosing their untapped
opportunities in the market. Information being passed down and shared by our experts
is purely formulated and devised one, on which extensive work has already been
conducted.

Additionally trade secrets like the knowledge being devised for carving a niche in the
market for students and young professionals, are serving as the most important
knowledge bearing IP.
Introduction:

Business Situation
Our business is to provide services to homes and offices with household labor which
will perform cleaning, cooking, washing, driving etc. on regular and temporary
basis. As in our area, i.e. Southern Punjab there is no such firm which provides such
services. Multan is developing day by day and making its way to be one of the
busiest cities of Pakistan as Lahore, Karachi etc. Due to the recent development
projects it has become an eye candy for the businesses and new investments as
well. People are becoming busier with their jobs and the trend of dual income family
is also increasing. Thus in order to cope up with the present needs of labor for
household and office works, we are going to provide, we are making this firm and
we believe it has a great scope ahead.

Slogan; Professionals at work

Objective
 Company Hierarchy

The CEO of the PLS

Head of marketing department

Head of Human Resource department

Head of Finance Department

 CEO

EXECUTIVE
BODY

Head of HUMAN HEAD OF

HEAD Of
RESOURCE MARKETING
FINANCE
DPARTMENT DEPARTMENT
DEPARTMENT

SERVICE
CONTROL
/FIELD OFFICER

EMPLOYEE
S
 Experts
Of
PROFESSIONAL LABOR SERVICE (PLS)
Psychologist Team
Union partners SMEDA
3-E BUSINESS SOLUTIONS (LAHORE)
 The Marketing Plan
Market Analysis:
In order to find out how much our business will be successful, there was a need of
doing a complete analysis of our target market. So, in order to analyse the target
market, we conducted a marketing research. The market research that was
performed to support both the business plan as well as this marketing plan was
based on,

Comprehensive Questionnaire

Interviews

Informal meetings

By using our knowledge of marketing and consulting with some professional

marketers, we designed a comprehensive questionnaire and filled it out from the
target market in order to find the anticipated need of trustable servants. We visited
the offices of various companies and interviewed with many key persons. The
interviews provided us with valuable insight into the companies perceived future
needs of trustable, trained and registered workers. We also made some informal
meetings with our friends and relatives. After doing the research, we found that
there is a very high demand of trustable and registered workers and servants in our
target market.

Marketing Objectives:
The main objectives of PLS marketing strategy are,

The marketing and other strategies will be customer oriented

 Maintenance of positive, steady growth.

Increase the number of repeat customers 10% annually.

Market Strategy:
PLS market strategy is the main part of its marketing plan. Our marketing strategy
involves careful scanning of the internal and external environments. Internal
environmental factors include the marketing mix, plus performance analysis and
strategic constraints. External environmental factors include customer analysis,
competitor analysis, target market analysis, as well as evaluation of any elements
of the technological, economic, cultural or political/legal environment likely to
impact success.

The various elements of marketing strategy are,

Segmentation

Targeting

Positioning

Differentiation

Target Market:
A target market is a group of customers that the business has decided to aim its
marketing efforts and ultimately its merchandise. A well-defined target market is
the first element to a marketing strategy. The target market and the marketing mix
variables of product, place(distribution), promotion and price are the four elements
of a marketing mix strategy that determine the success of a product in the
marketplace.

Our target market includes the houses from the middle class to the upper class plus
offices of certain multinationals, nationals, local firms as well as the SMEs. But our
main target market are those houses in which both male and females are doing jobs
and they strongly in need of some trustable servants to perform household works in
their absence.

Market Segmentation:
 Segmenting the markets on the basis of various factors (geography, income,
gender, age etc) into group of customers who share a similar set of needs and
wants is called market segmentation

We segmented our market on the basis of two factors,

Geographical factor

Income factor

Size of the company

Geographical segmentation:

On geographical basis we will divide Multan in three zones.

Cantt Zone Cantt. ,Abdali road, Nishter area.

Gulgasht zone Gulgasht, Neelkoat, University area, Bypass area, Officers

colony.

New Multan Zone New Multan, Shah rukneAlam, Lorry Adda

(All kinds of household and firms in these area).

Income basis segmentation:

On income basis we have divided our customers in two groups.

Average Income Customers 40,000 to 100,000 Rs

High Income Customers Above 100,000

Marketing Mix:
Marketing mix means 4Ps which are Product, Price, Place and Promotion. The
marketing mix of our business is given below as,

Product:
We will provide certain services such as:

Cleaning,

Washing,

Cooking,
 Driving,

Gardening,

Peons.

Price:
We will take 5% of commission from the households every month and 10% from the
firms.

Service Household (Rs.) Firms (Rs.)

Cleaning 2000-5000 3000-12000

Washing 1000-3000 -

Cooking 5000-10,000 5000-12,000

Driving 5000-10000 7000-15000

Gardening 2000-4000 2000-4000

Peons - 5000-10000

Promotion:
Personal contacts,

Advertisements through newspaper

Banners,

Flyers,

Posters.

Website

PLS pages on social websites (Face book)

Commercials on cable

Outdoor media:

One hoarding of 10 x 20 feet at each of the following Locations:

 university
gulgasht
cantt
industrial state
These hoardings would be in place for 3 months after Launch, and there would be
two designs of the hoardings and these designs would be interchanged after 6
weeks of Opening day, so that the customer would not get bored by seeing the
same hoardings for the complete months.

Place:
We will established main office in gulgasht colony near golbagh and two sub-offices
in new multan and nishter area after our business is established.

SWOT Analysis:
SWOT analysis is astrategic planning method used to evaluate the Strengths,
Weaknesses/Limitations, Opportunities, and Threats involved in a project or in a
business venture.

The SWOT analysis of PLS is given as,

Strengths:

New idea in the region,

No capital investment.

Weaknesses:

Have no previous experience

Opportunities:

No such firms in the market thus opportunity for expansion of business

No competitive firm.

Threats:

Local household labor as the competitor for the household sector.

Lack of awareness.
HR plan:
The HR department of our organization will perform following functions:

Hiring of employees,
Pay plans,
Investigating about the previous records of employees,
Solving certain conflicts between the employees and the customers.
Insurance plans

The hiring of employees will be done through personal contacts. We, the
partners, belong to certain regions as D.G Khan, Khanewal, Ali pur etc. They
have people in contact that belong to certain villages etc. First through the
collaboration of these people we will make a pool of candidates that want to
work with us. Moreover we will investigate if they have any criminal record
through their local police stations. The candidates with proper eligibility that
is proper grip over cooking, driving, gardening etc. plus the appropriate
people for housekeeping will be registered to our organization. As per
demand we will increase our employees from the same areas described
above. Moreover children will not be hired.

As per described in the product mix of our marketing plan, we have

suggested certain pay ranges of our employees which after a little
negotiation with the marketing manager have been set as flexible pay rates.

The conflicts between the employees and the customers will also be solved
by the HR department. Certain problems as mental and physical torture of
employees by the customers will be tackled by the same department. The
clause against torturing our employees will be added while making
agreement with them. Moreover Health insurance of employees will also be
done by registering them to the Punjab employees Social Security Institute
as well once we have start making profit to a certain level.
 Financial Plan

Financial Plan includes:

Budgeting report
Break-even report
Performa Income Statement and Balance Sheet for first quarter

Budgeting Report
Start Up Cost

To start our Business we require followings:

Vehicle

Two Motor bikes required for the inspection purpose worth Rs. 50000 each, so total amount is
100000

Office Furniture

Furniture is require like tables chairs etc to establish well professional office .Its cost is Rs.
40000

Fixtures

For the office it is require tube lights, fans, bulbs etc .Overall estimation is Rs. 10000

Office Supplies

Stationery items like pens, files, pages etc are required; its estimation is Rs. 10000

Advertisements
A big budget is required for advertisement. It is estimated Rs 40000

Computer Equipments and photocopier

Our three partners use their personal laptops for business use. Their share is adjusted. Other
computer related equipment like printer its value is estimated 10000 rs.Morever for the business
photo copier is required. Its value is estimated RS 30000.

Other operating Costs

It is randomly estimated .50000 Rs is given for initial operating costs.

Financing

In our Business we used both type of financing

1 Debt Financing
2 Equity Financing

Debt Financing

We used SME personal loans from Bank Alfalah amounted 200000.Interst cost is 18% for the
three years of tenure.

Equity Financing

Partners participate financing 60000 each. The details are as under:

Partner Participation in the form Participation in the form

Fixed Assets Cash
Ahmed Bin Sohail 48000 12000
Ahsan Bajwa 60000 0
Mustansar Shah 0 60000
Zulifqar Ali Zaidi 0 60000
M.Arif 0 60000
Arsalan Khan 54000 6000

Break-even Analysis
Total Fixed Cost

Items Cost
Salaries 75000
Depreciation 17700
Office Supplies 10000
Rent 10000
Telephone and Internet 20000
Mobile Charges 20000
Vehicle expenses 20000
Other Expenses 9000

Total Fixed Cost=181700

Selling price per unit/client

Average Selling Price=7000 per unit(client)

Variable cost

Variable Cost=0.75 7000=5250 per unit (client)

Calculation

Break Even= TFC

S.P - V.C/unit

=104 units or Client

Performa Income statement

Rs.

Service Revenue 1610000

Expenses

Wages 1207500

Salaries 75000

Electricity 40000

Telephone and Internet 20000

Mobile Charges 20000

Rent 10000
 Advertisements 30000

Petrol and Vehicle maintenance 20000

Depreciation 17700

Office Supplies 10000

Other Expenses 9000

Total Expenses (1459200)

EBIT 150800

Finance Cost (30431)

EBT 120369

Tax(40 %) (48147.7)

Net Income 72221.4

Performa Balance Sheet

Assets

Current Assets

Cash 379700

Account Receivable 200000

Office Supplies 15000

Total Current Assets 414700

Fixed Assets

Computer Equipments 182000

Depreciation (9500)

172500

Vehicle 100000
 Depreciation (6000)

94000

Furniture and Fixture 50000

Depreciation (1200)

48800

Photocopier 30000

Depreciation (900)

29100

Total Fixed Assets 344400

Total Assets 759100

Liabilities

Current Liabilities

Accounts Payable 60000

Unearned Revenue 66878

Total Current Liabilities 126878

Non-Current Liabilities

Bank Loan 200000

Total Non-Current Liabilities 200000

Total Liabilities 326878

Capital
Partners Capital 360000

Net Income 72222

Total Capital and Liabilities 759100

 Exit strategy

A good entrepreneur enters market with both alternatives as his options available on the
table. So while taking on the market we the members of the executive body think the
other way round. But as we are the first of any private body to be executing this
business to work on this project, so PLS is depicting much better results than
expected. Still PLS has carved an exit strategy as a part of the natural entrepreneurial
action.

1 Liquidation; this is the first and foremost easier strategy that any business can be
subjected to. By this any entrepreneur can pack his things up and leave the
business without any complex proceedings. Moreover the remainder through the
sale of assets is divided between shareholders.

2 Acquisition; Acquisition is one of the most common exit strategies: You find
another business that wants to buy yours and sell, sell, sell. This process helps
the acquirer to attain the income he spends at the establishment of the firm,
because here public markets the value of our assets according to the market. But
as no similar private body working on the project so the acquisition would
preferably be done by comparison with the only competitor government of
Pakistan.

3 Merge; this is the last option available for the positive approach towards the
society. PLS considers 3E business solution as the viable option to get merge
with.
Conclusion