ENTREPRENURSHIP

INDUS INSTITUTE OF HIGHER EDUCATION (IIHE)

SUBMITTED TO:

Advisor: Sir Qamar Ali Zaidi

SUBMITTED BY:

Sher Muhammad
Syed Faisal Hussain

DATE: July 15, 2010

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Acknowledgement

My all acknowledgments and regards to MERCIFUL ALLAH, Who blesses us with

courage and enhances our skills in formation of the report also in all works of life.

we show homage and all gratitude to our honorable teacher Mr. Qamaar Ali Zaidi who
supported and shared his great professional experience and knowledge with us.
For our whole gang: Sher Muhammad, Syed Faisal Hussain and Dear friends and
business pioneers who helped us in this project.

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TABLE OF CONTENTS

PARTICULARS PAGE
S. NO. NO.
1 Introduction 4

2 Objective, Vision, Mission, Scope 5.6

Business Type
3 Executive Summary 6

Location 6

4 Entrepreneur back ground 7.8

5 Entrepreneur Process 8.11

6 Business Principles 11

7 Marketing Plan, Marketing Objectives, Target market 11.12

8 13.15
Product, Pricing, Promotion
9 The SWOT Analysis 16

10 Purposed Company Profile and Structure 16.17

12 Key Success Factors 17

13 Strategic Recommendations 18

14 Future Up gradation 18.19

15 20
Financial Analysis
16 20
Market Response

17 21
Conclusion

INTRODUCTION

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In the new century more skills will be needed if a person is to survive

economically. In the past we tended to think of successful people as only those who had
gained qualifications, power and money. In the past decade leadership and
communicative and creative skills have become of the utmost importance. It is also
essential in the world and especially in our Pakistan to develop an entrepreneurial spirit to
exploit new business ventures.
Entrepreneurship is to get an idea or see an opportunity and build a business,
Concept or venture out of nothing. It required mental energy and lifelong commitment to
the long term idea. It also Include the motivation of others as a team to commit
themselves to the same objective without forcing and paying them.

This report describes the incorporation of our new business. Nature of our business is
Common for the reason that this is widely done in Pakistan specially Karachi. Our
business is to Garments Making and distribution in different Tara Terrie in Punjab.

This report also describes the whole process like availability of raw material ,
processing, Costing, Consumption, packaging of the product. Our product’s price is a
normal as compared to the market price because of packaging-handling and distribution
is similar to each other but entrepreneurs are changes.

This report covers the scope and limitations of our business, as every thing in this world
is limited and has boundaries.

OBJECTIVE

Our report has the following objectives:

• To explore our business possibility in volatile market of Pakistan.

• To establish a market of our product by optimal benefit awareness about our

services in the population.

• To describe and establish the further markets for the product.

• To identify the opportunities for expansion of business market share.

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VISION STATEMENT

First choice of every customer.

MISSION STATEMENT

To meet the basic requirements of customers through reliable, Increase Credibility

friendly and sustainable supply and distribution, while conducting company business
professionally, efficiently and ethically to all our community and the nation.

SCOPE OF THE BUSINESS

Our motive is to establish market for ready to use petrol available everywhere at every
time and become the market leader. The proposed business has a vast scope to flourish in
some areas, as there is no competitor in the market.

Proposed business can have government aids and subsidies to establish and boost that
kind of enterprises.

BUSINESS TYPE:

There are number choices. Each has advantages and disadvantages that should be
weighed based upon many factors, the main factor being the solution that is most
advantageous for your specific business.

The basic business entity types:

• Sole Proprietorship
• General Partnership
• Limited Partnership

That why we are choosing general partnership because a partnership is an association of

two or more people sharing ownership and control over the business.
In simplest terms we say that a partnership is like a marriage, and like a marriage, many
aspects should be considered, discussed and resolved before forming a partnership.

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Our partnership agreement should cover:

• how decisions are to be made (Individual or Group wise)

• How and when the profits should be distributed (% define of profit and profit
distributing in every transaction/per month/ Quarterly basis etc.)
• how disputes will be resolved(through mediator or conciliator or mutual
understanding )
• how new partners might be admitted(In order to cover Supplier and Distributor)
• amount of capital each partner is expected to contribute initially(Depending upon
Order)
• rights, duties, responsibilities of each of the partners(Area to cover individually)
• method for sharing profits and losses
• authorization process for cash withdrawals and salaries (One or Group account)
• how existing partners can exit (% shearing benefit till they sold all his shares )

Upside of a partnership:

• easy formation
• profits flow directly to the partners
• more than one person operating the business
• increased chance of raising capital

Downside of a partnership:

• liability of all of the partners in event of legal judgment against the business
• partners are liable for the other partners' actions
• profits of the business have to be shared with other people
• disagreements could occur between partners
• partnership may dissolve on death or withdrawal of one of the partners
• Help inspire innovative thoughts in relation to ways of forming businesses
• Work with Accountants and Attorneys in drafting better agreements
• Troubleshoot agreements
• Help create businesses that function better

The reason to adopt partnership is that partnerships can work as long as the
responsibilities of each of the partners is clearly spelled out and understood, and the
partners have assessed all of their personal and professional interests. It's a critical
component often overlooked, and a leading cause of business failure. Therefore its help
us for

• Help inspire innovative thoughts in relation to ways of forming businesses

• Work with Accountants and Attorneys in drafting better agreements
• Troubleshoot agreements
• Help create businesses that function better

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Ideally you want between two and four founders. It would be hard to start with just one.
One person would find the moral weight of starting a company hard to bear. Even Bill
Gates, who seems to be able to bear a good deal of moral weight, had to have a co-
founder. But you don't want so many founders that the company starts to look like a
group photo. Partly because you don't need a lot of people at first, but mainly because the
more founders you have, the worse disagreements you'll have. When there are just two or
three founders, you know you have to resolve disputes immediately or perish. If there are
seven or eight, disagreements can linger and harden into factions. You don't want mere
voting; you need unanimity.

EXECUTIVE SUMMARY

Our strategies are to cover all garment market distribution area in azad Kashmir. In future
we will plan to cover all Punjab and Tara Terries.
Now we struggle to reduce expenses and increase profit with high potential.
We cover all sizes of Baba and Baby item.
Cover all gents’ items like pants, Shirts, Jeans, Cargo Jeans, Suits, Ties under garments.
In Future we will planning to cover some ladies items like Bayls, Dopatta, Fabrics and
etc.

LOCATION

Selecting the right location for our future business is one of the most important decisions.
Our business is in an initial stage. In future we will need to buy a inventory houses or
ware houses which is easily available in over area with normal cost

ENTERPRENEUR BACKGROUND

1.Education: Education is important in the upbringing of the entrepreneur. Its

importance is reflected not only in the level of education obtain but also in the fact that it
continues to play a major role in helping entrepreneurs cope with the problems.
Our group have a master’s degree in business that helps us to make strategy of an
initiative business.

2.Personal Values:
Personal values are also important factor of entrepreneur. It includes:
Intense Commitment
Perseverance
Integrity
Wanting to win
Competing with themselves
Seen failure as a tool of learning

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Taking responsibility for all mistakes
Will appreciate other people’s skills
Choosing business before pleasure
Possessing people’s skills

3. Age:
The relationship of age of the entrepreneurial career process also has played a major role.
Most entrepreneurial careers between the ages of 22 and 45.A career can be initiated
before and after these ages, as long as the entrepreneur has the necessary experience and
financial support and the high energy level needed to launch and manage a new business
successfully. Our criteria match with it.

Work History:
Work history plays a role in the growth and eventual success of the new business. For
launching of a new business, previous technical and industry experience is important
once the decision to launch has been made.
Our group has a huge textile experience with excellent decision making quality who help
us to understand the choice of customer.

ENTERPRENEUR PROCESS

Entrepreneurship process are contain following steps.

1. Identify and evaluate opportunity:

Opportunity identification and evaluation is a very difficult task. In Pakistan most good
business opportunities do not suddenly appear but rather result from an entrepreneur’s
alertness to possibilities to determine potential Also Opportunity assessment is also a
difficult task. We take garment business as our first priority because his quantum of
business is very high. Garment industries are very stable and a lot of business and
opportunity provider in Pakistan especially Karachi.
Many industries like Soorty, Rujby, Eastern garments, Artistic apparels, Rauf apparels
are providing opportunity to increase the market share through local entrepreneur.
Basically they are export oriented companies but they want to capture hold local markets
through entrepreneurs.

Risk and returns level for this opportunity are low in market. And have a competitive
environment.

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2. Develop Business plan:

Our business plans are blueprints that assess everything, no stone unturned.
Like an architect, the more detail you include in the 'blueprint' and all of the pre-
construction thinking, the fewer 'surprises' i.e. chances for failure you have when actual
construction begins. A business plan is like an 'argument' for your business, and like a
'blueprint'.
The 'argument' is to completely convince another (and yourself) that your business will
succeed. The 'blueprint' indicates that you know your business and have thought it
through in such detail that, by following the 'blueprint' exactly - or close - your plan will
result in success. A study mentioned in "Business Plans for Dummies" by Paul Tiffany
states that companies with a business plan have 50% more profits and revenue than non-
planning businesses. Writing a business plan just makes good business sense.

Our business plan includes:

1- Maximum penetration in azad Kashmir and surrounding tare Terries.
2-Capture main Islamabad areas till 2011.
3- Purchase or rent Inventory/Ware houses with in 1.5 year.
4-Establish small unit of stitching & packing with in 2 years.
5-Purchase or hire a transport for on time delivery to the customer.
6-Establish relationship with a local companies for cost cutting.
7-Buy local factory to fulfill customer order quickly.
8-Expend our business throughout Asia and Europe.

Measuring plan progress:

We decided to measure our plan through:

1. Inventory Control
2. Quality Control (Short term plan)
3. Production Control (Long term plan)
4. Sales control (Long term plan)
5. Disbursements (Control the amount of money)

3. Environmental and Industry Analysis:

It is important to put the new business in a proper context by first conducting an

environmental Analysis to identify trends and changes occurring on a national and
international level that may impact the new business. These environment factors are:

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1. Economy:
Economy analysis contains Gross National product (GNP), Unemployment by
geographic area, Disposable income and so on.
Our businesses are in introductory stage and we have done four transactions now. We
believe in quality products with low prices. Also we provide some benefits of our
customer like:
1. for first transaction 70% pay back period with in 15-25 days.
2. for second transaction 50% pay back period with in 20 days.
3. For above one lack transactions we give 20% discount with are minimum 5-10
thousand rupees.
4. Price of all products is design to the willingness of purchasing power of the customer.
4. We also motivate and support new entrepreneur to develop and stable his garment
business. It is help to reduce the unemployment of the country and also increase the GNP.

2. Technology:
Advances of technology are difficult to predict. However, we should consider potential
technological development determine from resources committed by major industries.
Being a marketer That is rapidly changing due to technological development will require
us to make careful short term marketing designs as well as to be prepared with
contingency plans given any new technological developments that may affect our product
or services.

3. Legal Concerns:
There are many important legal issues in starting new business. We are prepared for any
future legislation that may affect the or service or product, Channel or distribution, Pice
or promotion strategy.

And Industry factors are:

1. Industry demand:
Demand as it relates to the industry is often available from published and internet
resources. knowledge of whether the market is growing or declining, the number of new
competitor and possible changes in consumer needs are all important issues in trying to
ascertain the potential business that might achieved by the new business.

2. Competition:

We general face potential threats from larger corporations. Our first priority is not
disturbing him in our initial stage. We only study and aware of who the competitor are
and what their strengths and weaknesses are so that an effective marketing plan can be
implemented.

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4. Financing:
Our financing totally depend upon personal funds. In future loon bank.

5. Market strategies:

Our strategy reflects our vision of being the champions of growth, Productivity,
responsibility and a wining organization.

BUSINESS PRINCIPLES:

Our small company follows three fundamental business principles:

1. Mutual Benefit
2. Responsible Product Quality
3. Good corporate conduct

1. Mutual Benefit:

The principle of mutual benefit is the basic on which we build our relationship with our
stakeholder. We are primarily in business to build ling term shareholder valve and we
believe the best way to do this is to understand and take account of the needs and desires
of all over stakeholders..

2. Responsible product quality:

We meet customer demand for a large product that, but have a quality. Our products
should be developed, manufactured and marketed in a responsible manner.

3. Good Corporate conduct:

The principle of good conduct is the basis of which all our business should be managed.
Business success brings with it an obligation for high standards of behavior and integrity
in everything we do and wherever we operate.

MARKETING PLAN

We have selected new garment products. This garments products are not new for the
customer or for the people in our country. In the market we have many strong
competitors like,
Jamaldeen sons, SBG, new era, in interior Punjab. We are trying to differentiate this
product with the other product in the shape of pricing, quality and quick delivery.

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Marketing Objectives

Our marketing objectives for the first three years of operation include:

• Grow total sales by 10% annually.

• Build customer loyalty through awareness campaigns.
• Build the brand to the point where it becomes a recommended brand for
routine users.
• Our objective is fully professionalized and we have the target to provide
service in a familiar atmosphere.

Financial Objectives

The goal of this marketing plan is to outline the marketing strategies, tactics, and
programs that will make the vision outlined in the business plan a reality in the year 2011.
The vision outlined in the business plan includes sales of roughly Rs. 1,00,000 in the first
year with that figure increasing 10% annually.

Target Marketing:

Our primary target markets include:

1. New Generation Youth

2. Business people: Industrial/Commercial areas can play important role to

promote our product.
3. Students: The large student population will become an important part of our
target market in sense of uniform making.

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Products:

Our products includes are:

1-FOR JUNIOR KIDS AND TODDLERS:

Under developing

2-FOR BABA & BABEES: (2 years to 4 years)

Shirts, T shirts, Neaker and frocks
Cover 30% area of our business.

3-FOR MANS:
Polo shirts, half sleeve T Shirts, Office shirts, Casual shirts, Seasonal cloths, Jeans,
Trousers, Paints, waist coat, Inners wear.
Shirts Sizes: Regular (15’ -18’), Small (14.5’-15’), Medium (15’-16’), Large (17’-18’)
Pants Waste: Regular (28’-32’), Small (28-30), Medium (30-40), Large (40’-44’)
Cover 60% area of our business.

4-FOR STUDENT:
All kinds of uniforms.
Cover 2% area of business.

5-OTHER ACCERIERS FOR MAN:

Belts, Tyes, Socks, Towel, under garments etc.

Cover 6% area of business.

6-LADIES ITEMS:
Lacces, Under Garments.
Cover 2% area of over business

Pricing:

Our product will be introduce with different pricing. Pricing change product to product to
marketing intermediaries (wholesalers, Distributors etc).We expect success of this
product initially.

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The following factors determine the price of the product:
• Positioning of the product.
• Cost of developing and manufacturing the product.
• Cost of competitive products.
• Condition of the economy.

For example pricing of our one product is given below.

Product: MANS BASIC FIVE PANT

Fabric: 100% cotton twill 21x21/108x58 6.5 oz

Gray@Rs45/mtr and dyeing @Rs 25/mtr.

1-Fabric Cost:
2.@Rs:
2.@Rs: 70 per/meter Rs : 140/Meter

2-Accessories Cost:

Type: Qty Cost

Zipper 7.5” Antique Brass 1 Rs: 8.00

Button 26-L Antique Silver 1 Rs: 1.00
Rivets 14- L Antique Silver 5 Rs: 2.00
Leather Patch Rs: 3.50
M/L-----H/T Rs: 2.00
Thread Rs: 3.50
Poly Beg/Carton Rs: 3.00
Etc. Rs: 1.00

TOTAL Rs: 24.00

3-Manufacturing Cost:

Type:

Cutting Rs: 2.50

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Stitching Rs: 16.00
Cropping Rs: 1.60
Checking Rs: 2.50
Pressing Rs: 1.50
Packing Rs: 3.00
Special Machine: Rs: 3.0
a-Bar Take
b-Rivit
c-Button
etc Rs: 1.0

TOTAL Rs: 31.10

Now

1-Fabric Cost Rs: 140

2-Accossires Cost Rs: 24
3-Manufacturing Cost Rs: 31.10

Actual Cost Rs: 195.10

Over Head Cost Rs: 05.00
Total Cost Rs: 200.00
Sales Cost Rs: 230.00

Promotion:

A Few Specific Marketing Efforts

• Local distribution

• Print Materials

• Local Newspapers

• Internet marketing

• Music Concerts

• Contests

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Marketing Research

A market survey was conducted to help evaluate the business viability prior to its
inception. The survey was a valuable resource for establishing pricing and market needs.
We will continue to conduct a survey of our customers and potential customers on an
annual basis. Survey results will be used to create new marketing programs and monitor
the performance of current marketing programs.

SWOT ANALYSIS:
STRENGTH: OPPORTUNITIES:
Product Image Growing Number of Customers
Innovative Product Increasing Customers’ Awareness
Cost Advantages
Pricing

WEAKNESS: THREATS:
Lack of our Product awareness Growing Number of Competitors
Unavailability of financial resources Downward Price Pressure
Indirect Competitors
Unawareness of our business

PRESENT STATUS

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Present status of project is that it is just only in the initial stage. Research is going on to
analyze the market response and tendency to buy our garments. Were houses can be
purchased easily because there is no issue of delivery of the same. All other formalities
are of normal nature, which could be completed without any problem. Main issue is to
obtain the distributors from different Tara tarries specially in Panjab and Aza Jamu
Khashmir also. Because our main target are these areas.

We have received a positive response from the buyers, which gives us a hope to execute
the project.

PROPOSED COMPANY PROFILE AND STRUCTURE:

Company Name: Vision trading House

Company Nature: Distribution and whole seller.

In future we will plan to expand our business in this scenario.

• Board of Directors: Company’s Director is the owner of the business and is

responsible for every thing. Director will initially provide the financing for the
proposed business and will be the signing authority for all the operations. Director
will look after the contracts of bulk purchasing, Manufacturing, Arranging
required fabric and corporate clients.

• Manager Operations will look after the operations like distribution-sales-

procurement of necessary items etc.

• Assistant Accountant will look after the accounting procedures and bookkeeping
like General Journal and Ledgers under the supervision of Director.

• Junior Staff includes office assistant and peon. Office assistant will assist
Manager Operations and Assistant Accountant as well.

FACTORS IN DECISION MAKING FOR INVESTMENT

• Number of customers to the garments will determine the financial success of the
project. In order to do this, the entrepreneur should analyze existing competing
garments business businesses in the target city.
• Selection of right location for an outlet is an important factor in the undeveloped
areas and more distance between shops.. Initially outlet is planned and in future
new outlets will be added to capture the desired targeted population. In such a
case, it is recommended to study in detail the market situation, consumer

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behaviors and growing trends of disposables items. Middle class and lower
middle class areas are hot sale points.

Key Success Factors/Practical Tips for Success

Some of the Key Success factors that will determine the success of this project include:

• Products range selection and introduction of sitting areas.

• Quality and Innovation in products.
• Selection of location.
• Pricing strategy.
• Understanding of target customers, alternative availability (product
differentiation).
• Launching time.

Strategic Recommendations

Marketing
Marketing and branding of garments will play a key role in the mobilization of targeted
number of customers. Major marketing options include, site advertisement, cable ads and
handbills among other traditional marketing channels. Before launch of the project, it is
recommended that a research for understanding the dynamics of the targeted market
should also be carried out, to design the products as well as the promotional strategy.
The basic principle of marketing is to sell the right product, at the right price and promote
it in the right place to the right people. The job of the marketer is to control these 4Ps.
However, there are other socioeconomic factors, which also affect the production, selling
and consumption of fuel. The success of marketing is often determined by the extent to
which various socio-economic factors are considered. Market research is a useful tool for
assessing the attitudes and behavior of potential consumers.

Machinery Requirement

Future machinery requirements are:

---------------------------------------------------------------------------------------------------------
Machinery Brand No of Per Unit Total
Pcs Cost Cost
---------------------------------------------------------------------------------------------------------
Over Lock Machines Local 1 40,000 40,000
Stitching threads Local 1 80,000 80,000
Single Niddle Machines Local 2 25,000 50,000
Electric Motors Local 150 65 9,750

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Tables Local 1 100,000 100,000
Sample Patterns Local 1 15,000 15,000
Packing machine Local 1 15,000 15,000
Rolling and fixed racks Local 5 6,000 30,000
Trays Local 150 35 5,250
Weighing Scale Local 1 4,000 8,000
----------------------------------------------------------------------------------------------------------
Total 418,000
---------------------------------------------------------------------------------------------------------
20% depreciation will be charged after completing the life and life is 50 years.

Furniture and fixture

---------------------------------------------------------------------------------------------------------
Item No of Per Unit Total
Pcs Cost Cost
---------------------------------------------------------------------------------------------------------
Chairs table and other furniture 4 2,000 8,000
Air-conditions 1 10,000 10,000
Electric installation and other utilities 1 20,000 20,000
Stationary 1 15,000 15,000
Interior designing 1 100,000 100,000
Sign board 1 10,000 10,000
----------------------------------------------------------------------------------------------------------
Total 163,000
----------------------------------------------------------------------------------------------------------

20% of the depreciation on furniture and fixture will be charged to administrative and
selling expenses and life is 25 years.

Manpower Requirement

---------------------------------------------------------------------------------------------------------
Designation No of Monthly Total
Emp Salary/Emp Cost
---------------------------------------------------------------------------------------------------------
Production In charge 1 12,000 12,000
Accountant 1 8,000 8,000

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Sales men 4 6,000 24,000
Mechanic 2Visits 1,500/Visit 3,000
Security Guard 1 5,000 5,000
Drivers 1 4,000
4,000
Helpers 8 5,000 40,000
Sweeper 1 3,000 3,000
----------------------------------------------------------------------------------------------------------
Total 44,500 99,000
----------------------------------------------------------------------------------------------------------

Financial Analysis

Project Cost:
Land 1,500,000.00
Plant and Machinery 430,000.00
Erection, Installation, & commissioning charges 20,000.00
Furniture, Fixture and office equipment 163,000.00
Motor vehicles (pick up & motorcycle) 440,000.00
Sub -Total 2,113,000.00

Market Response:

ALLHAMDULLAH

Conclusion:

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