Business Plan for

Dazzle House

Presented to: sir rafique

Subject: Entrepreneurship

Presented by: Khuram Iqbal

Program MBA-4

Section A
Industry Analysis:

The lamp and lightingindustry in Pakistan is largely small scale and undocumented, although
there are companies which are doing this business at large scale. Talking about the global
perspective, the expansion of the global lighting product industry is forecast to reach 5.5% p.a. in
the coming years. Between 2008 and 2014 the market increased with an average annual growth
of 6.2%. Currently, electric ceiling and wall lighting fittings account for 20.2% of the global
demand while the remaining market share is divided between fluorescent lamps (hot cathode)
(9.4%), portable battery and magneto-electric lamps (5.3%), electric desk, table, floor and bed
side lamps

Industry key players:

Talking about the type of industry, lamps shops and retailers are dispersed throughout the city
Lahore.Talking and discussing with shop owners; they said yes they are able to overcome their
expenses accepting the fact that they are paying huge amount of rent. Mostly lamps are imported
from China, Dubai, and Thailand but there are a few shops that are locally manufacturing lamps
due to which their cost and quality, both is low.Another important point is that there are very few
shops that completely sell lamps, however mostly shops were equipped with all decoration
accessories and interior dcor for home decoration along with the lamps. The reason was told to
us that there is a small profit margin in lamps that do not even cover the expenses. The price
ranges start from

For importers: Rs. 7000 for single piece and Rs. 14000 for double piece.
For local manufacturer: Rs. 5000 for single piece and Rs. 10,000 for double pieces.

In addition to these facts, given below is the detail of other shops that deal with lamps and
lighting business.
 C M Golden Bajwas See and Fine Serendi Xcesso Go get Maharat
Selectio Light (Libert Select interior p by ries blue interiors
n y) (Liberty) s H.R.Bar fortres fortress
House fortress rys and s stadium
(Musli stadiu co stadiu
m m m
Town)
Sales M Hunain Khalid Shehzad muham H.r Shuja Hasan Amna
Executive/ Nadeem Ijaz (O) Bajwa Ashraf mad Barrys Ud din sheikh khan
Owner (SE) (O) (O) and co, interior
designer
Main Bedside Bedside Bedside Bedside Tbale Tbale Tbale Tbale
Items lamps Lamps Lamps, Lamps, Tbale lamps lamps lamps lamps and
(Lamps) (Price and Table Table lamps and and and other
and price range: Floor lamps, lamps, and other other other home
ranges in 850- lamps(1 Floor Floor other home home home interior60
PKR. 4500), 500- Lamps Lamps home interior6 interior interio 00-
Bathroo 23500), (1000- (3000- interior 000- 5000 7000- 150,000
m Table 10000) 15000) 3000 150,000 150,00 200000
Lamps lamps staring 0
(1200- (9500- price
4000), 25000) for
Floor local
lamps manufa
(3000- cture
8000), lamps
LED and for
light other
Lamps importe
(125- d lamps
15000) starting
price
is7000-
150,000
Local No No Yes Yes yes No they No No they No they
Products (They are they are are
also importin are importin importing
manufac g from importi g from from
ture china ng china china,Dub
lamps from ,Thailan ai
themsel china d ,Dubai
ves)
Handicraft No Yes Yes Yes Yes They use They They They
s (Mainly (mainly (They they stones in jus take just import all
made handicra have their have their differe importe kind of
from ft own their lamps nt type d lamps
asfur products manufact manufa of
and uring cturing lamps
savroski Designs facility facility which
stones mainly too. are
 from copied Welders importe
turkey) from are
america mainly
n males and
market) Designers
are
females
mostly
domestic)
Imported Yes- Yes Yes. Yes. Yes- Yes- Yes- Yes- Yes-100%
Products 100% 100% (Mainly (Chinese, 100% 100% 100% 100% (China,Du
(China) (Dubai, China) Thai, (China) (China) (China) (China) bai)
Iran, Turkish) Plus
Turkey) locally Yes
manufa 100%
cture (Dubai,
product Thialand
)
Main Anony Themsel Shahkar Themselv They imported importe importe imported
Suppliers mous ves. Lamps es. have d d
(No Mainly their
Brands from own
Ikea, facility
importin homece
g to nter in
Pakistan Dubais
by their
own
names)
If Online No. No. No. No. No. No. No. No. No.
lamp Because Because Because Because Because Because Becaus Because Because
Shops are there is there is there is there is there is there is e there there is there is
effecting hardly hardly hardly hardly hardly hardly is hardly hardly any
their sales any any any any trend any any hardly any trend of
trend of trend of trend of of online trend of trend of any trend of online
online online online shopping online online trend of online shopping
shoppin shoppin shoppin in shoppin shopping online shoppin in
g in g in g in Pakistan. g in in shoppi g in Pakistan
Pakistan Pakistan Pakistan Pakista Pakistan ng in Pakistan
. . . n Pakista
n
Characteristics of industry:

Lighting industry is fragmented industry; this industry contains different firms that are dispersed
all over the city Lahore. The main markets of lamps and lighting are located in:

Shahalmi
Al Fatah Liberty
Fortress Stadium
Defence Y- Block
Cavalry Ground Market
Muslim Town Market

According to this, the business we are going to do is in a fragmented industry that isattractive.
Lighting industry is growing;new and unique lamps and lightingcan be made by using new and
advance technology. A research article by Hajra Zafar on changing trends of youth explains that
now people are moving more towards home decorations and interior designingin Pakistan, as
these accessories shows lifestyle and social class. This industry has profitablebecause of
changing trends in consumer behavior and developing interest towards home interior.

Attractiveness of an industry can be determinedby using five forces model:

Threat of substitute:

There are no close substitutes of lamps and lighting available in the market; making threat of
substitutes very low. In the past, lanterns, candles and diyas were use but these were replaced by
lamps. Day by day lamps are being modified and advanced because of new technology.

Bargaining Power of suppliers:

Bargaining power of suppliers is very low because there are many suppliers of the raw material
that we require to make our product. In addition to this, the prices of waste and recycled material
are already low providing benefit to us.

Threat of new entrants:

Threat of new entrants is high because the type of business we are going to start do not require
heavy investment. People can enter in this field and can startsellinglamps by using
recycledmaterial or anything that can make their product a little different. To overcome this issue
we have register our idea and to get patent license that others cannot copy it

Bargaining power of buyers:

There is large number of buyers and their bargaining power is high because large number of
sellers. If a customer does not get the product at a price of his choice, firm may lose the
customer. But lamps are not daily routine product; customer has to buy after certain period and is
considered as luxury good.

Rivalry among existing firms:

There are a large number of firms in the market. The degree of difference in the product is not
high. Mostly firms are importing lamps that are made of China. There are very few firms that are
producing lamps in Pakistan. Some companies are importing lamp base from different countries
and making their own shades locally. Fixed cost includes the shop rent that varies depending
upon the area and size. For example the rent of shop in Shahalmi market is different from the
shop in DHA.

Competitive analysis:

Dazzle Housewill face a direct competitionin the industry because of similar products and
targeting same customers in the market. There are many firms who are in the business of lamps
and lighting. These firms are competing on the basis of prices and quality of product. Some are
importing from different countries where as others are producing locally. The firms that are
importing lamps are of high quality where are the firms that are producing in Pakistan are low in
prices. We are aiming to develop a product that is made in Pakistan, low in price and gives a
unique and different look attracting consumers attraction.
Management team and company structure:

Company name: Dazzle House

Dazzle House is a new business that aims to provide lamps and lighting trends in a new way to
Lahori consumers. The entrepreneurial team of Dazzle Houseconsists of 3 members. The
company is basically operating in the customizedlamps of glass jars and bottles. Customers will
be allowed to customize lighting of their choice, colors of paints, type of glass bottle and with
shade. We will take online orders through social media. Customers will be allowed to share their
ideas and give suggestions on blog and Facebook page. Our team will strive to provide stylish
lighting of high quality at reasonable prices. We want to make our customers to enjoy the high
quality lamps of their preferences.

Our Product:

Jars table lights

Wine bottles side table lamps
Stylish lights for lawns
Chandelier lamps
Corner lamps
Specialty Lamps (This category contains lamps with different quotes or with names on
them. In addition to this Christmas and Halloween special designs are also offered).
Accent Lamps no shades
Hanging lights

Objectives:

Environment friendly products

Customer satisfaction
Provide quality product

About Us:

Dazzle Houseis a platform that solves the problem of people who get confused,generally while
shopping. People prefer to buy something new and unique in limited time. However it is difficult
to search unique items is relatively difficult.Dazzle House tries to target such customers who
want something new in lamps category. Our idea is that recycled glass bottles can be use in
better ways. We will be using those bottles, and turning them into lamps.We will provide
customization of paints colors and lights in less time i.e. within 7 working days, therefore also
focusing on environment friendly products. We will have our ownblog and Facebook page to
reach to customers. People couldorderlamps while sitting in their homes. OurFacebook page will
containall the details of our products. Pictures will be displayed so that people can view and
search for products of their choice. They can also create their own lamps in our virtual shop.
Customers can also share their ideas and can give their feedback on the blog. The main
categories of customer preferences are:

Colors of paints
Glass type
Light bulbs
Price Range

Our core values:

Accountability Acknowledging and assuming responsibility for actions, products,

decisions, and policies. It can be applied to both individual accountability on the part of
employees and accountability of the company as a whole.
Balance Taking a proactive stand to create and maintain a healthy work-life balance for
workers.
Commitment Committing to great product, service, and other initiatives that impact
lives within and outside the organization.
Community Contributing to society and demonstrating corporate social responsibility.
Diversity respecting the diversity and giving the best of composition. Establishing an
employee equity program.
Empowerment Encouraging employees to take initiative and give the best. Adopting an
error-embracing environment to empower employees to lead and make decisions.
Innovation Pursuing new creative ideas that have the potential to change.
Integrity Acting with honesty and honor without compromising the truth
Ownership Taking care of the company and customers as they were ones own.
Safety ensuring the health and safety of employees and going beyond the legal
requirements to provide an accident-free workplace.
Company Hierarchy:

Dazzle

Company Dazzle House

Operational Marketing
Designer
Managers manager
Zaeem Saqif
Usama Khan
Manager
Aneeza Sarfraz

Material
employees Collector and
Delivery man
Electrician

Dazzle House have three members in management team. Its a business which is a kind of
partnership. Zaeem Saqif handles all the operations of the business, from collection of raw
material to creating the product and delivering to customers, everything is managed by him. He
has two employees under him, one is electrician who fit all the wiring of lamps and other is
delivery person who collects all the material and also delivers product to customers. Usama
Khan handle the designing of lamps and takes all the orders where as the marketing activities are
taken care by Aneeza Sarfraz. All the decisions are taken by mutual concern of team members.

Company name: Dazzle House

Initial investment:

We are planning to start business online that will reduce our cost to some extent but the detailed
breakup of onetime expenses is given below:

Startup Cost/ 1 time expenses in Rs.

Hot glue gun 1 600 per gun 600
Chairs 4 1700 per chair 6800
Printer (Hp) 1 8000 per printer 8000
Nokia phone for delivery boy 1 2500 2500
Bike (Honda) 1 35000 35000
Basket fixing on bike 1 1500 1500
Tables 2 4000 per table 8000
Patent 1 0
Tool Kit (Kaya International) 1 900 per kit 900
EVO device 1 3000 3000
Total 66300

Mission Statement:

To be an online platform for best customized lamps, by using wastage material, and giving it
flawless look, create experience for our customer in affordable prices.

The mission statement clearly talks about the commitment of the organization towards providing
an excellent experience of shopping consultancy with customization in lighting, paints and
online order facility if people do not have enough time to come for long time at outlet and also
share their priorities to us. This platform is unique in the market, as of now, this is because
companies do not offer customization in lighting and paints in lamps.

The future philosophy of us is reflected in the vision statement:

Vision Statement:

We want to be the foremost suppliers of innovative customized lighting lamps solution. Our
product creates a new aspect of lights without limits.
SWOT Analysis:

The main influencing factors for Dazzle House have been identified as:

Strengths Opportunities
Strong business team Infrastructure
Environmental friendly New trends in market
Less cost of raw material Emerging technology
Online updates To buy our own machinery
Creating unique lamps

Weaknesses Threats
Limited capacity Competitors
New/ unknown in the market Power crisis (load-shedding)
No mass production Stealing of idea

Market analysis:

Pakistan consists of 5 provinces, out of which we serve in Punjab since we have a

new startup. We currently do not have the capacity to analyze on provincial level, so we are
focusing in Lahore. As we all know that home dcor and interior designing is a department of
women mostly of middle age so we are focused on that. Butalso, we felt a need to incorporate a
factor of environmental friendliness. As young generation is becoming well educated and
feelconcerned about the way they present themselves, home decoration is turning into a trend in
upper middle class and middle class, who is trying to develop an image in society.Where
psychographics come into play, we are most concerned with innovators and achievers, those who
want to achieve certain life style and status. Today most of the trends are in favor of lifestyle, so
our product is such that it will help them to maintain a certain lifestyle according to their class in
a way that is friendly to the environment.

Segmentation by demographics:

The demographic segmentation is done on the basis of age, household type, education level and
level of income as far we are targeting the middle class our product is innovative the middle
class always try to maintain its status but upper class always have higher end product.so we
select on the basis of age we have selected the ages above 22 to 45 mostly a s far as the income
level is concerned above 100,000 Pakistan rupees monthly.
 Segmentation by psychographics:

Psychographic segmentation is mainly done on the basis of values, belief, and attitudes; we have
selected the middle class which has always the psyche to maintain the status. Most of themhave
showoff characteristics in them. They are very status conscious therefore buy such product which
is more stylish and help them to maintain their status.

Life style segmentation:

Life style segmentation is mostly done on the basis of hobbies, interest and other aspects. As far
as hobbies are concerned they show that they have interest in making things on their own. They
like handmade and innovative products. They are always in search to such items that can help
them todecorate their home with new and different things. So that is why this segmentation is
related to our products.

Target Market:

In order to properly comprehend the needs of our target market it is crucial that we define our
market segmentation. We intend to target specific groups of customers which include the middle
class families and this group includes both women and girls those are in order to establish
consistent revenue base that will ensure stability of the business it is essential to maintain
customer and community acquaintances that are extremely important to maintain long lasting
relations. Our online page provide platform for people to come to our page and have look on the
new innovative idea. We used recycled bottles, jars lamps and other decorated materials to give
the homes elegant.

Our target market is Lahore where demographics show a concentration of upper middle class,
middle class, middle age womens and young girls; those who have social life style and are
environmental friendly and are mainly interested in the decoration of their home in a way that
stands out. They are also environment conscious and do not want to harm the environment, as
other developed nations like US and UK have come so far by focusing on the environment unlike
Pakistan where this trend is emerging rather slowly.

Why we have selected this target market because our product is of especially related to home
decoration either lights for lawn decoration, side table lamps and chandelier so this department is
mostly handled by womens, also now a days social media has developed a trend that we have to
care about environment,also lamps are the things those are not basic necessity but it is used
instead as a trends and trend are followed by those have money so that is why we selected upper
middle class and middle class.

As far as a hobbies are concern their hobbies are buy innovative things they try to become
environmental friendly. Our Target market like decorating the homes, love the fashion, like
creative things and also to do some activities at home. This information is we conduct a survey
and we find these hobbies of lamps lover as far as trends are concerned they eat mostly food
those are healthy for their families and, also trendy food which is fast food because they move
with trends.
Marketing plan:

4Ps for Dazzle House:

Product

Our core product is customized lamps and lighting. The unique thing of our product is that lamps
are be made of recycles glass bottles like mason jars and wine bottles, which make them
environmental friendly. These lamps will be made on order of customers of their choices. The
categories that we offer are

Table lamps
Corner lamps
Wine Bottle Lamps
Liquor Bottle Lamps
Specialty Lamps (This category contains lamps with different quotes or with names on
them. In addition to this Christmas and Halloween special designs will also offered).
Accent Lamps no shades
Hanging lights

The beauty of our product lies in using old useless glass bottles and turning them into attractive
antique piece of art that will catch the attention of people.

Pricing

The prices of our products vary as there are different kinds of lamps that we offer. The range
starting from Rs. 4000 to Rs. 10,000 depending upon the type of lamp customer wants to
purchase. Our product is different from what local shops are selling but we are charging
reasonable prices.

Another pricing strategy that we follow is charging different pricing to different customers. We
will charge high prices when selling our product to interior designers i.e. for above Rs. 10,000 as
they will use these lamps for dcor different houses and offices, but relatively low to households
i.e. Rs 6000 - 8000, and even lower to students. The range for student will be from Rs. 4000 -
6000. These prices can vary if material used in these lamps will cost high.
But there will be no restriction for any customer to order an inexpensive lamp as long as he or
she is willing to pay higher price for that. Our aim is to provide high quality product at a
reasonable price that justify it and satisfy our customers.

Promotion

We will promote our product by using social media. Our company will be creating a Facebook
page because now days it is the best source to reach to our target market. As our target market is
young people, students, housewives, professionals and interior designers therefore, it is an easy
and inexpensive way to promote our product and make people aware or our business.

We will develop our own company blog in which every detail of our product will be mentioned.
It will help the customers in placing orders as every feature of the lamps will be discussed. In
addition to this, visual picture will also be displayed so customers can know how the lamp will
look which they are going to buy.

Broachers will be distributed at interior decor shops, different malls like Xinhua Mall, Mall of
Lahore, Siddique trade centre, City Towers, and Gulberg Galleria. We will try our best to reach
maximum customers through our advertisements and promotions. Our facebook page
ishttps://www.facebook.com/pages/Dazzle-House/699748490129861

Place

We will have a workshop along office in which glass jars and bottles will be wired, paint or
decorated with ribbons etc and converted into lamps. All the operations will be done in that
workshop. We developed our workshop in servant quarter of Zaeem Saqifs house as it was free
and can be used. Our customers will be more than welcome to visit our office and see how we
create lamps for them by maintaining high quality (if someone desires) because there are people
who are very choosy and caring about the products they are buying.

In addition to our office, our products will be available online. Our virtual store will be on our
Facebook page. Customers can choose product from our page and can place their order via
message or by calling us.

We want to be the best online lamps provider in Lahore. Therefore, its placement is importantly
done and is promoted through various methods.
Critical Risks for Dazzle House:

Legal formalities regarding startup and running of our business:

There are strict licensing requirements to start a small scale business in Pakistan. To start a new
small scale business, a person needs at least 7 to 8 permits to start a business which off course is
a tedious process. If the business fails to follow the legal requirements there is high penalty for it;
so, if we do not comply with the requirements it may result in shutting-down of our business. In
order to avoid this risk we will keep a proper check to ensure that all laws and guidelines are
being properly followed. We will make sure that we provide the best products to our customers
and complying with our notion of environment friendliness.

Staff hiring and ensuring quality:

It is a very challenging task to find high quality employees who are skilled in the art of
handicrafts. The success or survival of this venture depends on the quality of the staff it have
because being a quality oriented business, staff commitment and dedication towards their work is
necessary. Hiring qualified staff members ensures the product quality on our behalf. Trained
personnel are crucial for us because if not properly trained they will not be able to provide
quality output. Also we will have to strictly supervise them to ensure that our deadlines and
reputation is not compromised.

Maintaining Trustworthy Relationship:

It is extremely important for the survival of our business to maintain a trustworthy relationship
with our customers. In order to gain customers trust we need to ensure that products are
delivered at right time and at right place. This can be done by having communication and
feedbacks from our customers which will help in maintaining close and long term relationships.
Continuous interaction with our customers via blogs and online portals will be a regular feature
of our business.

Financial Risk:

One of the most critical risks when starting any business is the financial risk. This particular risk
is also involved in our venture. In the startups initially you do not have enough profitability to
cover the ongoing costs and keep the business running. In this case one might have to finance the
operations of business by taking loan from bank or from any other source. So in order to avoid
financial crisis we will calculate the overall startup cost before starting the operations. In
addition to this we will also develop a backup plan to avoid any sort of major shocks or in worst
case shutting down of business.

Product Plan

Types of bottles

The main base of the lamp will be made of glass jars and bottles. Bottles will be of different
types. The size, shape and type of glass vary which will change the look of lamps.

The types of bottles which we will use for our product will be of varying categories (e.g liquor
bottles, soda bottles, druggist bottles, perfume bottles etc). We are intending to collect it from
some recycle plant or get them from the venders who sell them in small towns and villages.

The real challenge for us will be to constantly keeping us well supplied with the specific type of
bottle we need at particular time corresponding with the online orders we are having. For that we
talked to four vendors who are selling the bottles of that specific type/category we need.
 Using stones

Different kind of stones will be used to decorate lamps. This will give a distinctive look.

Marble stones will be used for decorative purposes as it give a unique look to lamps. In
addition hardstone carving uses many types of gemstones. Think of such lamps on your dining
table or your side table.

What we are intending to do is the get hold of various types of decorative stones, and get the
personnel involved to stone engravings as well. This will help us in highlighting the distinctive
nature of our business model, by providing our customers with hand-made customized products.

Bulbs Colors
We are planning to introduce the thematic bulb color to our product. The small LED bulbs are
available in market easily. All we need is to focus on innovation here!

Adding laces and ribbons

To give a homemade look, option of adding laces will be offered to customers. For this, mason
jars will be used.

Using mason jars and glass bottles and covering them with pretty laces. And for that, all we need
is to have good aesthetics on our part in the selection of various ribbons and laces which are
already available in market. This will give a clean and sober look to lamps. These net laces will
be available in different colors.
 Paints

This category of lamps is the most crucial part in our business model, not in terms of getting hold
of glass paints, but in terms of having the required skills to come up with the finished products. It
is because; we are working on very organic basis and providing our customers with customized
products so we need to come up with unique ideas and meet the aesthetics and sensibilities of our
customers.

Hat

Lamps with shades are also available in our stores. These shades are optional part of our product.
Some customers like to have such lamps, how can we miss them. So heres for them.
 For Halloween

Keeping in mind, our Christian and those customers who love to celebrate different events like
Charismas and Halloween, we have:

Halloween celebration is a new trend in Pakistan, and we are planning to take this opportunity in
hand, and exploit it at its best. Furthermore, it will help us in the enhanced revenues during
seasonal/occasional festivities.

For Christmas
As mentioned earlier on, the seasonal/occasional factor is one of the most important element
which will contribute in the success of our venture. And how can we ignore the religious
festivals such as Christmas, Eid and Holi etc? Putting Christmas into our perspective, there are
literally thousands of Christmas related products that come out into the market during December.
However, the Santa themed lamps are not a norm in Pakistani market. So, we are planning to
step into the market introduce our customized Santa themed lamps in market. We are also
planning innovative designs for Eid and Holi themed lamps.

Hanging Chains

This is one the most innovative ideas, especially in the context of Pakistani lamps market. The
Chandeliers fusion with bottle lamp (as shown in the picture on left hand side) is still not a
prevalent idea in the lamp market of Pakistan, so we would like to exploit this opportunity.
Furthermore, this will also serve as the high end product on the part, which will enhance the
unique profile of our newly started venture.
Operational plan:

With the aim of our business we are going through online sources in which we use Google
Forms, Blogs and Facebook page for creating awareness of our product. Details were mention
directly on these sources along with the variety of the product in which we will also display the
pictures of entire product. Other details related to our product customer can directly contact us
with our given number on the online sources. We will be available every time to solve every kind
of customers query.

For manufacturing of the product,company needs such things in which (bottles, shades, wires,
lights, nuts, rods, cutters, and other tool kits etc). Lights bulb which we used of which Colors are
available in different shades in which yellow and white are main but customer can customize by
using wraps and convert it in other colors according to their choice and need. Now the process
for the manufacturing of the product took step from the bottle the main thing is that we use
different kind of bottles with different shapes as this is Islamic country and vine bottles are
available because lots of non-Muslim live here also visit in Pakistan so that vine bottles or
nonalcoholic bottles we needed to collect that we have to connect to some vendors which are
collecting recycled material for which we go to Jorapull market there we found 4 vendors
because the less bottles are available so we deal with them to collect bottles for us they agreed
and we provide them extra charges and now when customer demand we contact them if there is
any need. Now when we found bottle for this process we need a cutter to made bottle cut
according to our need. This is the main challenge for the company to cut the bottle because we
know that glass bottles are not easy to cut off. For this purpose we deal with the local shops in
Shalmi market which are cutting the glass, for this purpose we have to pay for the blade which is
used to cut, also they charge us services charges to make a hole or to cut round bottle. By cutting
the bottle from the bottom can help us to make it a lamp. Now the next step is to put a holder in
the bottle which is called lamp light kit,lamps power cord with inline switch, rubber Grommet
which is used which is we plugged into holes specially in the bottle lamp light kit to protect glass
from wiring the cap of the bottle because cap will help Lamp light Kit to hang in the middle of
the bottle. Two nuts used to hang this Rubber Grommet in between the middle of the cap one
side is upper case which contain lamp light kit and light, the other side will be inner side in
which wires are putted in the whole of the rod to give supply to the light. The wires put out from
the cut place of the bottle. After hanging the bulb or led attached with the lamp light kit and then
a shade will put on the rod and then stuff it with nuts. This is all process which is used to make a
simple lamp the other process in which decoration and painting are other features which are
made on the demand. A plug will help lamp to give little of happiness to the customer.

For every business there are some key players who make efforts to convert raw material in to
finish good. In which our suppliers have a big hand we have signed a contract with some major
bottle collectors to give us bottles as according to our need and they are agree with our contract
in which they are able to deliver us directly in our place and we will give them their handling and
delivering cost other than a simple raw bottle we know that this become expensive for us but that
agreement can help us to save our supply cost and this delivery from the supplies is reasonable to
bear for the company instead of make their own supply and search for a single bottle. There are
some operational expenses in which we show it with our distribution channel where supplier
directly involved with our demand of the product. Now how this idea works first of all we need
internet for this purpose and we are three investors so that for this purpose we divided work
between all that on which time one is present in over the internet. We put pictures of our samples
of lamps which are 20.and when customer visit the page then see it and then they talk to us about
the option because we change the colors of light or paints colors so that they call us for which we
have 2 numbers which are available every time. We confirmed customer can also talk on
Facebook. We will promise to deliver the product in 7 days because we need to compile. Then
we have bottles will cut the bottle accordingly and we will design by using paints laces marbles
and it take 5 hours to dry then our electrician will fixed the product, all the equipment is
purchased earlier according to forecasting ,the lamps is ready then we have formic sheets and
hard packs to pack the lamps in them we by our self also we put it invoice for lamps in pack , we
print out the order detail ,charge sand also orally we will tell the delivery man .for this we gave
him mobile phone in case of emergency he can contact to us and also to customer, he save the
number of required customer in dial and when the delivery an reach the customer area he will
contact with customer and then receive the cash ,and he will passed out cash to us then we
maintain the records and file this completion order in the files. Now here are some prices of the
equipment, tools which we have used.

Tools kit we used of 899 it is we purchased from the shops, the glue gun we used is of 990, lamp
light kit is of 300 per piece from Shahlmi market electric shops. We also purchased bulbs of
different types which is ranges between Rs. 150-250. bottle is cost of 30 rupees, we also pay to
labor we hired, suppliers of our raw materials to cut the bottles we will give charges of 50 rupees
per bottle to cut in round shapes, also 50 rupees per bottle to make hole in it.Wehave electrician
which we pay Rs. 15000 per month, and also to delivery man we will give Rs.10,000 per month
to him and the charges are separately for petrol and also we gave them one number, cell phone to
contact. We also purchased the paint, laces and marbles.we also pay bill of internet electricity,
we have also purchased a chairs or tables for office , also water cooler is provide to electrician
which have to stay their all the time.This is all how our operation will work.
Financial Projections:

Startup Cost/ 1 time expenses in Rs.

Hot glue gun 1 600 per gun 600
chairs 4 1700 per chair 6800
Printer (Hp) 1 8000 per printer 8000
Nokia phone for delivery boy 1 2500 2500
Bike (Honda) 1 35000 35000
Basket fixing on bike 1 1500 1500
tables 2 4000 per table 8000
Patent 1 0
Tool Kit (Kaya International) 1 900 per kit 900
EVO device 1 3000 3000
Total 66300

First year expenses:

Expenses per month

Prices
Quantity Rs. Rs.
Recycled Bottle 20 30 per bottle 600
Lamp power cord with inline switch 20 250 per cord 5000
Energy Saver bulb 5 150 per bulb 750
LED Bulb philpis 5 120 per bulb 600
Lamp Shade 20 200 per shade 4000
mini lights string 5 100 per string 500
Flat marbles 2 400 8 marbles 800
Lamp light kits 20 300 per kit 6000
Cutting out sourcing 20 50 per bottle 1000
Drilling hole 20 50 per bottle 1000
Cutter blade 1 2500 per blade 2500
printer ink ink cartridge 1 2000 per bottle 2000
Rubber Gourmet 4 400 per 6 rubber 1600
Paints (Rozita) 12 80 per bottle 960
Ribbons 15 35 per meter 525
Lasses 5 600 per meter 3000
Hanging chains 4 150 for 1 lamp 600
Transportation 1 10,000 per month 10000
Glass washing labor wage 1 3000 per month 3000
Electrician 1 15000 per month 15000
Tapes 2 200 per tape roll 400
Packing Material 20 300 per box 6000
Visiting cards printing 1 500 per 500 cards 500
 Telephone calls Mobilink postpaid 1 1500 per month 1500
Electricity bill 1 4000 per month 4000
Delivery man 1 10000 per month 10000
internet EVO wingle 1 1500 per month 1500
A4 size paper 1 550 per rim 550
Brochures 100 50 per brochure 5000
Spray paint 5 150 per spray 750
Total expense for 1st year 12 54165 1075620

Balance sheet:

Balance Sheet in Rs.

Year 2015 Year 2016 Year 2017
Current Assets
Cash 60,000 64,000 80,000
Inventory 415,620 424,348 433,259
Spare parts and tools 900 919 938
Long Term Assets
Fixed Assets 66,300 66,300 66,300
Depreciation 0 13260 26520
Patent 4,500
Total Assets 547,320 542,307 553,978

Liabilities
Current Liabilities
Current Payables 384,000 422,400 464,640
Total Liabilities 384,000 422,400 464,640

Equity
UsamaCapital 27,220 19,985 14,890
Zaeem Capital 27,220 19,985 14,890
Aneeza Capital 27,220 19,985 14,890
Retained Earnings 81,660 59,954 44,669
Total Liability and equity 547,320 542,307 553,978
*Depreciation is calculated by straight line method and estimated useful life of an asset is 5
years.

*Inflation Rate is increasing by approximately 2.10% in Pakistan.

*Equity is distributed equally among partners.

*Retained Earnings are taken to be 50%.

 Income Statement
In Rs.
Year 2015 Year 2016 Year 2017
Sales 1680000 1848000 2032800
COGS 1,195,620 1,257,350 1,347,942
Gross Profit 484,380 590,650 684,858

Wages expenses 228000 228000 228000

Transportation 120,000 122520 125092.92
Electricity bill 48000 49008 50037.168
Utility bills 5500 5615.5 5733.4255
Maintenance 10,000 10210 10424.41
Depreciation 13260 13538.46 13822.768
Net Income 59,620 161,758 251,747
Sales are expected to increase by 10% each year.
Costs and expenses are expected to be effected by inflation.
5 year contract is done with labor that their wages will be fixed.

Cash flow Statement:

Cash Flow Statement

Year 1 Year 2 Year 3
Cash flow from operating activities
Receipts From Customer 1680000 1848000 2032800
Payments to Supplier 445,620 454,978.02 464,532.56
Payments to Employees 228000 228000 228000
Depreciation 0 13,260 13,260
Net Cash inflow from operating activities 1,006,380 1,151,762 1,327,007

Cash Flow from investing Activities

Purchase of Equipment 66,300 0 0
Net Cash outflow from investing activates (66,300) - -

Cash Flow From Financing Activities

Dividends 81,660 59,954 44,669
Net Cash out flow from financing activates (81,660) (59,954) (44,669)

Net Increase or Decrease in the cash 858,420 1,091,808 1,282,338

Cash at the beginning of the period 0 60,000 64,000
Cash at the end of the period 60,000 64,000 80,000
Questionnaire Results:

Questionnaire was conducted to know the response of people and to know that weather this idea
is feasible of not. Questionnaire contains close ended questions and results are shown below:
The result shows that majority of people like our idea and they are willing to purchase such
products. Customers like to buy handmade lamps and it is a unique idea. Many people were
hearing about this idea for the first time. We get an idea of prices that people would like to pay.
In addition to this, we also get to know the purpose of buying such lamps. One thing that we
concluded is that more people focus on quality as compare to prices. In the end, result shows that
it is worth pursuing the idea and it is feasible idea for a business. Hence, we decided to continue
working on it.

References:

http://www.instructables.com/id/4-Easy-Steps-to-Creating-a-Unique-Wine-Bottle-Lamp/

http://www.bottle-lamp.com/resources/

http://www.dawn.com/news/1179920

http://www.pakistannewsday.com/budget-2014-15-minimum-wage-raised-to-rs-11000-pension-up-by-
10/