COMSATS University Islamabad

Sahiwal Campus
Department Of Electrical Engineering

Entrepreneurship Project Report

BARTER MARKET

Subject :-
Entrepreneurship

Submitted to :-
Mr. Suhail Afzal Qureshi

Submitted by :-

Skynet Joe FA17-BEE-B6A-005

 PART-I OPPROTUNITY RECOGNITION AND IDEA
GENERATION

CHAPTER 1: OPPORTUNITY RECOGNITION

BARTER MARKET

DEFINATION

Exchange (goods or services) for other goods or services without using money.

TYPE OF OPPUTUNITY RECOGNISED

What is opportunity?

“An opportunity is a favourable set of circumstances that creates a need for a new product ,
service or business”.

WAYS OF IDENTIFYING OPPURTUNITY

There are three ways to identify an opportunity

 Observing trend

 Solving a problem

 Gap in market place

TYPE OF OPPURTUNITY THAT I NEEDED :-

The type of opportunity that I identified is regarding

“ Gap in market place”

WHAT IS MARKET GAP?

A gap in the marketplace is often created when a product or service is needed by a specific group
of people but does not represent a large enough market to be of interest to mainstream retailers or
manufacturers.
IMPORTANCE OF BARTER MARKET

Barter market is base of any type of Trade.It is a early form of business. Barter can be
describes as an act of trading goods and services between two or more than two parties without
involving the use of money. Bartering is beneficial for a companies and countries that see a
mutual benefit in exchanging goods and services instead of cash.

A Barter System puts idle resources to work. ... For example, if a barter exchange member
sells $1000 worth of products to another member, they receive $1000 in Trade Dollars credited
to their barter exchange account. These Trade Dollars can then be used to purchase from the
other trading clients within the barter network.

With the passage of time bartering party started to involve precious metals which gain symbolic
as well as practical importance.In ancient around 100 - 110 CE Rome Trade took place in the
forum.At that time Rome has two forum

1.Forum Romanum

2.Trajan's Forum

Barter market is started in 550 and 350 BCE.The Greek stallholder clustered together according
the type of goods the carried.In this way barter market start.In early 90's much of trade done by
using this technique .In some backward area of Pakistan a very small barter market also exist .

FACTORS

In early 90's much of trade done by using this technique In some backward area of Pakistan a
very small barter market also exist .If some thing is not in your use but it will benefit to other and
the the that other person have is benefiting you than you can exchange your products with each
other and get thing of your interest

.It is also benefits for child also.For example if a child bought a toy and play with it but after
some days he bored with it now with the help of this Barter Website, he/she can exchange their
Toys and enjoy to play with different Toys, so they do not get bored Modern barter trade has
evolved considerably to become an effective method of increasing sale ,making use of excess
production capacity for businesses.

There are approximately 400 commercial and corporate companies serving all part of world. .So
there are many opportunity for Entrepreneur to start a barter exchange .
CAUSE OF FAILURE OF OTHER WEBSITES

After finding the causes of the failure of other websites, we tried to improve our website on the
base of experience that we get from failure of different Barter Websites.

For example,

i. Their reasons of failure…

ii. The negligence to check whether the product is legitimate or not…

iii. We need their CNIC, address and we will check the level of product personally then we will
upload them…

iv. We are just a bridge between two parties…

v. At start we will start this at no cost because we have to invest first then we will inspire
peoples and attract Traffic thus this will benefit us …

ADVANTAGE
Some of the advantages of Barter system are:
a. It is a simple system free from the complex problems of the modern monetary system.
b. The problems of international trade, like foreign exchange crisis and adverse balance of
payments, do not exist in the barter system.
c. Personal and natural resources are perfectly utilized to meet the requirements of the society
without involving any wastage.

HOW INDIVIDUALS BARTER

When two people each have items the other wants, both people can determine the values of the
items and provide the amount that results in an optimal allocation of resources. Therefore, if an
individual has 20 pounds of rice that he values at $10, he can exchange it with another individual
who needs rice and who has something that the individual wants that's valued at $10. A person
can also exchange an item for something that the individual does not need because there is a
ready market to dispose of that item.

CHAPTER 2: IDEA GENERATION

DEVELOPING THE IDEA

There are different ways to develop the idea but we prefer to choose the following:

 Internet and Library Search

 Brainstorming Session.
2.1 INTERNET AND LIBARARY SEARCH

Internet research plays an vital role in generation of our idea.Being as Student , we don’t have
much knowledge about Barter market, in order to complete we had to take help help form the
internet .As our aim is to Establish an BARTER web, so we faced many problems in order to
complete the idea.we read the different reports on barter market like

i. .report of Leo & Lucy

ii. .WIKIPEDIA (to get know the basic and origin of that trade)

iii. .QUORA(to know the views of different people about the barter market. what are the basic
reason of failure of different website).

iv. We search using GOOGLE engine …

In order to Design and create an Responsive website we search following websites:

v. Stack-overflow

vi. W3SCHOOL

vii. And many other.

viii. We set up a GOOGLE Email that provides us to a constant Trending stream of newspaper,
articles, blogs and new release about Barter System.

2.2 BRAINSTORMING SESSION

Brainstorming is the process of generating new idea and solution to problem very quickly.

In our Brainstorming session at first we include our Computer Science Seniors and Our batch
mates. We get maximum from them in order to create an Organized and Structural website.

We thoroughly follow the rules of Brainstorming Session like

1. No criticism.

2. Free wheeling is Encouraged.

3. leap forgaging is encouraged.

On the birthday party of Zahid Manzoor held on 5 January, We held an Brainstorming Session
with our Classmates and we discuss with Them about our Project details and we acquired their
feedback.
Main Person of Class is Our CR Ali Raza, he gave many suggestion in order to improve the
Trading because he has many experiences regarding Online Stores like OLX and DARAZ.

Malik sheraz at first appreciated our Idea and then told us how to advertise our website and to
make it popular in Social Media. They said that it is need of time to launch this website as if
someone had a Product that is not useful at this stage he can exchange the Product with other
Product/Service that is useful for him.

2.3 FEATURES OF PRODUCT/SERVICE

The features we add on our Website are:Well-structural security System.Registration form that
includes everything about the individuals that will help them to get betrayed.We different Portals
separately for Students, Common man etc.

In order to provide Secure Exchange, we required the Customers to Upload each and every
aspects of the specific Product and after complete verification, we then allowed to exchange the
Products..
 PART: II FEASIBILITY ANALYSIS

CHAPTER 3:

PRODUCT/SERVICE FEASIBILITY ANALYSIS

3.1 CONCEPT PAPER

BARTER MARKET

PRODUCT

We are making an Website in which anyone can exchange their Products/or can provide Services
in exchange with others Good or Services. It has Same features like other Trending websites like
OLX , Amazon and ALIBABA.com but these websites provides Services and Goods in
exchange with Money.

TARGET MARKET

In the beginning of our journey we first plan to make it attractive and responsive to the
Customers So that everyone can easily accessed it.We would like to share this Website with
customers through different Social Media Accounts.

WHY BARTER MARKET?

We are creating this because there are no such type of Trade going on in the Trending Websites
and we are enhancing the Old concept of Barter Through new Techniques. It would be customer
Friendly.

SPECIAL FEATURES: NO OTHER WEBSITE DOES THIS.

We are providing 24 hours call services that will Solve the issues of Customers and also our
Product Analysis Team will First Analyse the Product then After Complete Satisfaction, they
will pass this Product and then Published it.

MANAGEMENT TEAM

Barter Market website is led by Undergraduate Students studying Electrical Engineering and
have good Academic Record.
3.2 PRODUCT/SERVICE DESIRABILITY ANALYSIS

QUESTIONS YES NO

Does it make sense? yes

Is it reasonable? yes

Is it Something consumers yes

will get excited about?

Is this a good time to yes

introduce the product or
service to the

market?

Are there any fatal flaws Yes

in the product or service’s
basic design?

EXPLANATION OF ABOVE TABLE

DOES IT MAKE SENSE?

 Yes, because there is a huge Gap in our Existed Market in Pakistan And All
over the world.
IS IT REASONABLE?

 Yes, it is reasonable everything we used in this Website is authentic and helpful for
Customers.

IS IT SOMETHING CUSTOMERS WILL GET EXCITED?

 Yes, Because if someone had a Product that is not useful at this stage he can exchange the
Product with other Product/Service that is useful for him without any Cash.
IS THIS A GOOD TIME TO INTRODUCE YOUR PRODUCT/SERVICE?

 Yes, As there is a Big Trend and Gap in online Trending Website about Marketing So it is a
good time to introduce this Barter Market.

ARE THERE ANY FATAL FLAWS IN THE PRODUCT OR SERVICE BASIC’S

DESIGN?

 Yes, there could be Fatal Flaws because we don’t have such experience related to Website
Designing or any Functionality of Website, but Being as Entreprenure we can overcome all
the Flaws Time-toTime.

3.3 PRODUCT/SERVICE DEMAND ANALYSIS

There are two steps to assessing product/service demand.

STEP 1: Talking Face-to-Face with Potential Customers.

We Talk face-to-face with Different Students of Departments And Note the reactions that to
General concept of What you want to Sale revise and improve your Product on the base of
feedback. we Overall received an Positive Feedback from the Respective Students. But some of
them of Also Discouraged us.

STEP 2: Using Online Tools, Such as Google and Landing Pages, To Assess Demand.

In order to check the Demand analysis of Products we have searched many Websites like:

* QUORA

* W3School

* Stack-overflow

* Barter.com

CHAPTER 4: INDUSTRY/MARKET FEASIBILITY ANALYSIS

4.1 FEATURES OF INDUSTRY

According to the International Reciprocal Trade Association, the industry trade body, more than
450,000 businesses transacted $10 billion globally in 2008 – and officials expect trade volume to
grow by 15% in 2009.

It is estimated that over 450,000 businesses in the United States were involved in barter
exchange activities in 2010. There are approximately 400 commercial and corporate barter
companies serving all parts of the world. There are many opportunities for entrepreneurs to start
a barter exchange. Several major cities in the U.S. and Canada, Pakistan do not currently have a
local barter exchange.

4.2 INDUSTRY ATTRACTIVENESS ANALYSIS

ANNEXURE-I

DETERMINING THE ATTRACTIVENESS OF AN INDUSTRY USNG THE FIVE

FORCES MODEL

Marks of first choice= 1

Marks of second choice= 0

Marks of third choice= -1

Sub Factor under each Power First choice=1 Second Third Choice=-
Choice=0 1

Threat of Substitutes

 LOW= 1 marks

 Medium = 0 marks

 High= -1 marks

Number of the Substitutes to your 1 . .. .. . .. . .. .. . ..

product/service
Similarity to Substitutes to your 1 . .. .. . .. . .. .. . ..
product/service
Capability to differentiate your 1 . .. .. . .. . .. .. . ..
product or service in future
(Total Score/3)*0.2

 Total Score is: 0.13

Threat of New Entrants

Economies of Scale High Economies Medium Low/No

of Scale Economies of Economies of
Scale Scale
Branding 1 . .. .. . .. . .. .. . ..
Capital Requirement . .. .. . .. 0 . .. .. . ..
Degree of Cost Advantages . .. .. . .. 0 . .. .. . ..
Access to Distribution Channels . .. .. . .. . .. .. . .. -1
Government and Legal Barriers 1 . .. .. . .. . .. .. . ..
Strength of your management team . .. .. . .. 0 . .. .. . ..
First mover advantage in your case 1 . .. .. . .. . .. .. . ..
Passion of Management team and 1 . .. .. . .. . .. .. . ..
employees
Uniqueness of your business model 1 . .. .. . .. . .. .. . ..
Degree of Innovation in 1 . .. .. . .. . .. .. . ..
product/service
Degree of innovation in 1 . .. .. . .. . .. .. . ..
process/operations
Degree of any other feature that 1 . .. .. . .. . .. .. . ..
would create barriers for

(Total Score/13)*0.2

 Total score is = 0.0615

Rivalry among firms

Number and Balance of 1

Competitors
Degree of Difference between 1
product
Growth rate of and Industry 1
Level of Fixed Cost 0
(Total Score/4)*0.2

 Total Score is= 0.15

Bargaining Power of Suppliers

Concentration of Suppliers 0
Switching Cost 1
Attractiveness of input Substitutes 0
Threat of forward Integration 0
(Total Score/4)*0.2

 Total Score is= 0.05

Bargaining Power of Buyers

Buyer Group Concentration 0

Buyer’s costs 0
Degree of your Differentiation 1
Threat of backward Integration -1
(Total Score/3)*0.2

 Total Score is= 0.000

 Sum up the scores of all powers = 0.3915

1 < Net Score > 0 the industry is attractive

0 = Net Score Industry is Neither attractive nor in attractive

0 > Net Score > -1 Industry is not attractive

 As the net score is greater than 0 and less than 1, So Our Barter Market Industry is
Attractive.

ADVANTAGE
Some of the advantages of Barter system are:

1. It is a simple system free from the complex problems of the modern monetary system.

2. The problems of international trade, like foreign exchange crisis and adverse balance of
payments, do not exist in the barter system.
 3. Personal and natural resources are perfectly utilized to meet the requirements of the society
without involving any wastage.

4.3 TRAGET MARKET SELECTION AND ANALYSIS

Many websites are providing Online Services in return of cash but my Target Market Selection
Barter Market.

There are following Techniques Available to Assess Barter Market Industry Attractiveness

 Study Environmental and Business Trends

 The Five Competitive Forces Model

TARGET MARKET SELECTION

We studied Different Segments of our Barter Target Market like:

 Size of the segment (number of customers and/or number of units)

 Growth rate of the segment.
 Competition in the segment.
 Brand loyalty of existing customers in the segment.
 Attainable market share given promotional budget and competitors' expenditures.
 Required market share to break even.
Segments Positive Negative

 Size of the segment Yes

(number of customers
and/or number of units)

Growth rate of the segment Yes

 Competition in the
segment.
Yes
4.4 COMPETITORS’ ANALYSIS
Identifying your competitors and evaluating their strategies to determine their strengths and
weaknesses relative to those of your own product or service.

4.4.1 IDENTIFICATION OF COMPETITORS

We studies the given below factors and analyse our Competitive analysis Grid:

 Who are your competitors?

 What products or services do they sell?
 What is each competitor's market share?
 What are their past strategies?
 What are their current strategies?
 What type of media are used to market their products or services?
 How many hours per week do they purchase to advertise through the media used in this
market?
 What are each competitor's strengths and weaknesses?
 What potential threats do your competitors pose?
 What potential opportunities do they make available for you?

4.4.2 COMPARISON WITH COMPETITIONS

ANNEXURE – II

Name Competitor A Competitor B Competitor B

Barteronly.com
betterBarter.com IbeBarter.com

Shops Disadvantage Advantage Even

Calling Service Even Advantage Disadvantage

Website design Even Disadvantage Advantage

Strategic Options Disadvantage Even Advantage

Portal Advantage Even Disadvantage

Customer Friendly Disadvantage Advantage Even

Picture Quality Even Disadvantage Advantage

4.5 OVERALL INDUSTRY/TRAGET MARKET FEASIBILITY
ANALSYSIS

As Barter is an classical way of Trading and it has been eradicated by new ways of Trading but
now it with the passage of time it becomes necessary because the population is increasing and
Number of Goods and Services are increasing as well as their Prices.

Our BARTER market Is a new innovative idea and there is need for it because there is no such
competition. The Different websites working of BARTER have many flaws related to the
quality of product and Services.

OUR COMPETITOR’S ARE:

 Barteronly.com
 IbeBarter.com
 Better-Barter.com
We Analyse our Competitors above mentioned and we find that by Providing Free call Service
and Product Checkup Facility we are far better than Our competitors.

CHAPTER 5: FINANCIAL FEASIBILITY ANALYSIS

5.1 ASSETS REQUIRED ALONG WITH VALUE OF ASSETS FOR PRODUCTION

AND SALES
1. In financial accounting, an asset is any resource owned by the business. Anything tangible
or intangible that can be owned or controlled to produce value and that is held by a company
to produce positive economic value is an asset

2. As our Project include of Website so the below given table best describes it:

ASSETS VALUE

Domain 5$

Web-Hosting Server 15 $

Security-Certificate 6$

SEO Plugins etc 11$

Visa/Debit Card 10$

5.2 DISCUSSION MAXIMUM CAPACITY OF YOUR PRODUCTION UNIT

Overall the maximum capacity of our Production Unit like Barter Website depends upon the
following the factors:

 We can Earn from the Views and from the number of Peoples Entering our Website.

 When the Traffic increases, We can apply for GOOGLE advertisement Company
ADSENSE and from this we can Earn Handsome Amount Money.

 The advertisement of our Website in Different Social Media Trending Websites like
YOUTUBE, FACEBOOK etc can return an handsome amount.

 After attaching the Domain and Web-Hosting Server we Can Earn from our Website by its
Ranking Position and make it happens to come First on GOOGLE searching.

5.3 THREE YEARS FORECAST OF SALES

Amount in rupees

Name 1st Year 2nd Year 3rd Year

Website Traffic 15000 25000 50000

GOOGLE ADS 10000 30000 50000

Social Media 5000 10000 20000

5.4 THREE YEARS PROFORMA INCOME STATEMENT

Name 1st Year 2nd Year 3rd Year

Net sale 30000 65000 120000

Cost of Sales 6100 7200 rupees 10000 rupees

Gross Profit 23900 57800 rupees 110000 rupees

General and 3000 rupees 7000 rupees 12000 rupees

Administrative
Expenses

Depreciation 1000 rupees 2000 rupees 4000 rupees

Income Before Tax 19900 48800 rupees 94000

Net income Tax 500 3700 7100

Net Income 19400 45100 86900

5.5 THREE YEARS PROFFORMA BALANCE SHEET

Assets 1st Year 2nd Year 3rd Year

Cash and cash 8000 rupees 15500 rupees 24680 rupees

Equivalent

Accounts Receivable 1110 rupees 1200 rupees 1900 rupees

Inventories 600 rupees 820 rupees 950 rupees

Total Current Assets 9710 17520 27530

Property,land and
equipment

Domain 600 rupees 1100 rupees 1300 rupees

Web-Hosting Server 1950 rupees 2400 rupees 3100 rupees

Security-Certificate 600 rupees 1100 rupees 1600 rupees

SEO Plugins etc 1200 rupees 1700 rupees 2200rupees

Laptop 20000 30000 40000

Total Property,land 24350 36300 48200

and equipment

Total assets 34060 rupees 53820 rupees 75730 rupees

Liabilities

Account payable 4000 7000 13000

Accrued expenses 2000 3000 7000

Total current 6000 10000 20000

liabilities

Long term Liabilities

Long term liabilities 20000 30000 40 000

Long term debts 20000 30000 40 000

Total Liabilities 26000 40000 60000

Shareholder equity

Common stock 2000 4000 5000

Retained earning 6060 9820 10730

Total Shareholder 8060 13820 15730

equity

Total Liabilities 34060 53820 75730

&Shareholder equity

5.6 THREE RATIO ANALYSIS

Ratio 1st Year 2nd Year 3rd
Year

Profitability Ratio

Return on Assets 35.34% 72.76% 85.68%

Return on Equity 16.30% 37.9% 73.05%

Profit margin 25% 60.13% 75.89%

Liquidity Ratios
Current 1.61 1.752 1.37

Quick 1.05 1.13 1.2

Overall financial
stability ratios

Debt 58.7% 57.74% 52.8%

Debt to equity 24.81% 28.94% 38.14%

CHAPTER 6: ORGANIZATION’S FEASIBILITY ANALYSIS

6.1 ENLIST THE KEY AREAS OF YOUR ORGANIZATION

Some of the key areas of our barter website are:

 Young

 Motivated

 Inspiring

 Innovative

 Educated

 Talented

 Informative

6.2 TYPE OF FOUNDER MEMBERS REQUIRED FOR YOUR VENTURE

(Annexure-III)

Name Talented Innovati Consista Informat Executiv Motivate

ve ncy ive e d
Leadersh
ip

Saad    ×  ×
Masroor

Waseem    × × 
Nasir

Ahmad     × 
ch

Laraib  ×  ×  

Hamza  ×  ×  

Rana

6.3 MATRIX OF FOUNDER MEMBERS CAPABILITIES (Annexure-III)

Commu Inform Executi Accoun Store Supply Photogr Web

nity ation ve ting and Operati chain apher designe
relation systems Leaders Finance ons Manage r
s hip ment

Saad    × × ×  ×
Masroo
r

Wasee  ×  ×  × × ×
m Nasir

Ahmad ×   ×  × × 
Ammar

Laraib    ×  × ×

Hamza × ×  × × ×  

Rana
6.4 SOLUTION THAT HOW WOULD FIND REMAINING FOUNDER MEMBERS

The remaining Founding Members can found by checking the Passion Rate of any Person having
some information related To Barter Market System.Then Our Co-Founders Will Decide which
one to be selected.

They just need to be:

 Talented

 Self-confident

 Motivated

 Having no Criminal Record

We will select only those Persons that will match such characteristics.

6.5 ORGANIZATION’S FEASIBILITY ANALYSIS

The feasibility analysis of Our Barter Market Web gives us following facts about it:

 Our Founding Team is well Educated and Co-operative.

 They are well-motivated in order to achieve the Goal.

 Our website is customer Friendly and Responsive.

 The Goods and Services in Our Website are well arranged..they can be find Easily. We will
Provide Security Clearance of every Product and then Let the customers to Exchange it.

 For any Issues we are Providing 24 hours Help Line Free call Service.

 One of the most important is that this Exchange of Goods Is Free of Cost.

 People can find our Website Easily on GOOGLE search Engine.

CHAPTER 7: OVERALL FEASIBILITY AND DECISION OF STARTING
NEW VENTURE
Annexure IV

Low Potential (1) Moderate Potential (0) High Potential (1)

1. Extent to which the 0.25

idea

2. • Takes advantage
of an environmental 0.25
trend

3. • Solves a problem. 0.25

4. • Addresses an 0.25
unfilled gap in the
marketplace Total=1

2. Timeliness of entry 1
to market

3. Extent to which the 0

idea “adds value” for
its buyer or end user

4. Extent to which the 0

customer is satisfied
by competing
products that are
already available

5. Degree to which -1
the idea requires
customers to change
their basic practices or
behaviors
Part 2:Industry-Related Issues

Low Potential (1) Moderate Potential (0) High Potential (1)

1. Number of 1
competitor

2. Stage of industry 0
life cycle

3. Growth rate of -1
industry

4. Importance of 0
industry’s products
and/or services to
customers

5. Industry operating -1
margin

Part 3:Target Market and Customer-Related Issues

Low Potential (1) Moderate Potential (0) High Potential (1)

1. Identification of 1
target market for the
proposed new venture
2. Ability to create 1
“barriers to entry” for
potential competitors

3. Purchasing power -1
of customers

4. Ease of making
0
customers aware of
the new product or
service

5. Growth potential of 0
target market

Part 4:Founder- (or Founders-) Related Issues

Low Potential (1) Moderate Potential (0) High Potential (1)

1. Founder’s or -1
founders’ experience
in the industry

2. Founder’s or
founders’ skills as
they relate to the 0
proposed new
venture’s product or
service
3. Extent of the
founder’s or founders’
professional and 0
social networks in the
relevant industry

4. Extent to which the

proposed new venture
meets the founder’s or 1
founders’ personal
goals and aspirations

5. Likelihood that a
team can be put
together to launch and 1
grow the new venture

Part 5:Financial Issues

Low Potential (1) Moderate Potential (0) High Potential (1)

1. Initial capital 0
investment

2. Number of revenue
drivers (ways in
which the company 0
makes money)

3. Time to break even 1

4. Financial
performance of
similar businesses 1
5. Ability to fund
initial product (or
service) development
and/or initial start-up -1
expenses from
personal funds or via
bootstrapping

Overall Potential

Each part has five items. Scores will range from –5 to +5 for each part. The score is a guide—
there is no established rule of thumb for the numerical score that equates to high potential,
moderate potential, or low potential for each part. The ranking is a judgment call.

Score (5 to 1) Overall Potential of the Suggestions for Improving

Business Idea Based on the Potential
Each Part

Part 1: Can be improve with time.

Strength of Business 1
Idea

Part 2: 0 Can be solved with passage of

time.
Industry-Related Issues

Part 3: Issues can be improved time

to time.
Target Market and 0
Customer- Moderate
potential Related Issues

Part 4: No such Issues.but if than

we can easily overcome it.
Founder- (or Founders- 1
)Related Issues

Part 5: Not so much money is

required.but can be improved
Financial Issue 0 by funds.
Overall Assessment

Total Marks= 5