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Business Plan
Entrepreneurship

Group Members

Muhammad Ahmad (G.L) BBHM-F16-132

Rehan Saeed BBHM-F16-118
Muhammad Sufyan BBHM-F16-113
Muhammad Arsalan BBHM-F16.087

Under the Supervision

Ms. Toshiba Sarwar

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 Table of Content
Sr. No. Content Page No.
1. EXECUTIVE SUMMARY
2. BUSINESS DESCRIPTION
 Vision, Mission & Values
 Form of business
 Management structure

3. Industry and Market Analysis

a) Industry Analysis
 Market size
 Porter’s Five Forces Model
b) Market Analysis
SWOT Analysis
 Know Your Customers
 Know your product
 Know your competitors

4. ENTREPRENEURIAL MARKETING
c) Marketing Mix/ Marketing Strategies and Sales
 Market Segmentation & Targeting Strategy
 Unique Value Proposition (UVP) , Differentiation and positioning
 The Marketing Mix/4PS
5. FINANCIAL PLAN
a) Startup capital
b) Income Statement and Balance Sheet
c) Break Even Analysis
d) Ratio Analysis
e) Capital Budgeting Technique
6. Appendix

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 Acknowledgement

First of all we are thankful to ALLAH Almighty for giving us power to complete our
Entreprenureial project. After that we are most thankful to our respected instructor Ms. Humaira
Rahman and Our coach Amir Ilyas. There are no enough words to describe their interest
regarding our work. They always appreciated us and gave the best solution regarding
technological queries. They taught us in an excellent manner. The information about
Entrepreneur and other things were highly effective and surely career building.

We are committed to apply our knowledge practically. They guided us and taught us with
different techniques, which enabled us to complete this project, as well as for unconventional
style of teaching and maintaining very open and competitive atmosphere within the class, which
made the subject very interesting for us.

We are also thankful to our parents that due to their prayers we have succeeded in completing
our project. We are personally thankful to the friends that had helped us in fact co-operated with
us also those students who supported us in any respect during the completion of the project.
Thanks again Mam & Sir for your kind behavior through our whole project.

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 Executive summary
A Charger Cum Power Bank is a portable device that can be carried easily
anywhere, and designed for android users, and battery conscious people. The
Charger Cum Power Bank will equip with features like mobile charger, battery
saver, electricity saver and easy portability. This device in very light weight and
very useful for this modern time. We all get anxious when the battery level on our
phones get low. Dead batteries can lead to depression and withdrawal symptoms.

Do you know how much electricity (to the closest 10 kilowatt-hour) does it take to
power your iPhone or Android for a year? 1 kWh? 10 kWh? Or 100 kwh?

The answer 1 kWh. To be specific, your iPhone battery holds a charge of 1,440
mAh, or about 5.45 watt hours. If you fully drained and recharged your phone
everyday, then over the course of a year you would have to feed it about 2,000 watt
hours, or 2kWh. There are 151 millions mobile users in Pakistan. So the total
electricity required to all the mobiles accumulate to 302 MW per year. If 40% of
overcharging wastage is assumed it lost 120 MW per Annum. This device will help
to save this precious 120MW electricity.

We decided that we will monthly produce at least 1000 units. In the future we can
increase the production of our units the project price would be quite affordable. It
is designed for all kind of people who are using android cell phone. The cost of one
unit is 800, we are willing to sell it for 1200. The payback time for our investment
is 1 month & 30 days. Our annual revenue will be 34200000& annual profit will be
11400000.

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2. Business Description
Vision:
To become the leading Pakistani firm in providing multi-purpose electronic devices.

Mission:
To provide quality products and services to the complete satisfaction of our customers
and every android user enjoy our device.
Values:
 Excellence
 Innovation
 Electricity saver
 Easy portability
 High Product Quality
 Innovation and Creativity

Form of Business
Partnership
The form of our business will be partnership. We are choosing that type of business because this
type has limited liability. We are four partners involved in start and run that business.

Management Structure

MANAGEMENT TEAM OF THE COMPANY

Management functions would be handled by Mr. Usman Ali who is CEO (Chief Executive
Officer) and operational functions are handled by Mr. Hussnain Abid who is a operation manager
of our companies and also had worked in different electronics companies from more than 2 years.
And our marketing manager is Mr. Kamran He has good connections in market and also having
experience that how to deals with customers and channel members. Moreover the documentation
of day to day business is maintained by Mr. Muhammad Shahzad who is also a board member. He
has excellent skills in Microsoft Office regarding data preparing & maintaining in system.
Our management team and its hierarchy is as under:

 Project Leader/CEO

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  Marketing/Quality Manager
 Finance Head
 Operation manager

Hierarchy:

M.Ahmad
project leader/CEO

Rehan Saeed
M.Sufyan M.Arsalan
Marketing/Quality
Finance Head Operation Manager
Assurance Manager

f) Industry and Market Analysis

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Our Customer:

 Student
 Job Holders
 Life conscious
 Bike Racer
Our Competitor:

 Helmet Companies
Know Your Product:

 Smart Helmet
 Helmet With Night vision Mirror
 Clearly See at Time of night
 Light weight.
 Elegant Design.
 Affordable Price.
Unique Selling points:

 The helmet with night vision mirror.

 Lack of road accident
 Protect to Serious injury
 Time Saver
 Easy portability

a) Industry Analysis:

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  Porter’s Five Forces Model
High Medium Low
Threat of new
entrants 
Bargaining power of
customer 
Bargaining power of
suppliers 
Threat of substitute 

Customer Profile

Geographic
Region Pakistan
City Lahore, Islamabad, Gujranwala, Karachi, Sahiwal
Sialkot,,etc.
Rural and Semi urban areas Both
Demographic
Age 15 to 25,26 to 35 and above
Family Size Young, Single, married,
Gender Male, female
Income Up to 20000
Occupation All Applicable
Education ---------
Socio-Economic Classification A1, A2, B1, B2,
Psychographic
Lifestyle Students, Job Holders, Bike Ricer
Personality ---------
Behavioral
Occasions Randomly, Special
Benefits ---------
User Status Random Users
Usage rate Medium, Heavy
Loyalty Status Medium, Heavy
Readiness stage Aware
Attitude toward product Positive

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b) Market Analysis
 SWOT Analysis
Strength Weakness
 Helmet with Night vision  Expensive
mirror 
 Drive easily at night
 New Features
 Affordable
 Dual functions
Opportunities Threats
 Our industry to increase the  Competitors
production of our product so that
 Change in technology
products are available in every
market of Pakistan.  New innovation
 Our products price is afforded
that low income people can also
get benefits of our product.

g) ENTREPRENEURIAL MARKETING
d) Marketing Mix/ Marketing Strategies and Sales
Product:
 Design:
Our product design is very attractive. And use for both purpose drive day and
night time driving.
 Technology:
Our product technology is that in which we use night vision mirror which helps
us to easily drive at night time.

 Value:
Our product value is easy accessible. One thing use for two purpose and low
price for competitor to just one thing like simple Helmet.
 Packing:
Our Product packing is Good. Easily carried and move with one to another. And

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 strong packing that not damage in the packing.
 Accessories:
Our product accessories Helmets with Night vision Mirror.

 Warranties
Our product not have any warranty.
Place:
 Online selling
We are capture market online services we are selling the online on social media and
websites

 Bike Market
We provide our product in main all Bike market
 Wholesaler
We are giving our product to wholesaler
 Direct sell
We are directly selling our product to our customer by online websites.
Promotion:
 Special Offer
We are gives offers to our wholesalers and distributors that if they sell our product
and fulfill our targets we give them more relaxation on product price.
 Advertising
Our product advertisement will be through social media, public reference and word of
mouth

 The Marketing Mix/4PS

 Product/Service Strategy
If we receive any complain of our product that we are providing the free service for the customer
during the warranty of products. And we also provide service for repair the product.

 Pricing Strategy
We are providing the Multipurpose charger. And the cost is very low. And 2 in 1 function in
this charger. The price of one charger is Rs: 1200.

 Placing/Distribution Strategy
In the placing strategy we are sell in the Electronics Market, Online Selling and Wholesaler.
 Advertising/Promotional Strategy
In the placing strategy we are use the strategy of special offer for the retailer and customer. And we
are working on advertising. We are providing the sales promotion for the retailer. That is best

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strategy for the Promotional.

Firm Feasibility:

1) Capital Expenditures
Equipment’s
Sr. Description No. of units Per unit Total Cost
No. cost
1 Laptop 1 20000 20000
2 Printer 1 10000 10000
3 Furniture -- -- 150000
4 Manufacturing Toll kit 2 2500 5000
Total 255000

2) One-off Costs
Sr. Description Amount
No.
1 Internet Connection 3000
2 Place Security 40000
3 Place Maintenance 15000
4 Legal Fees 20000
5 Initial Marketing 30000
Total 143000

3) Running Capital
Sr. Description Amount
No.
1 Rent Expense 20000
2 Transport Expense 6000
3 Salaries Expense 20000
4 Utility Bills Expense 11000
5 Miscellaneous Expense 25000
Total 102000
Required Running Capital (102000*12) 12,24000

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 4) Startup Capital
Sr. Description Amount
No.
1 Capital Expenditure 255000
2 One-off Cost 143000
3 Running Capital 12,24000
Total 1622000

5) Capital Structure
Percentage Amount
Equity 100% 1622000
Debt 0% ---------

Financial Attractiveness:
Step 1: Describe the source of revenue
“Will be earned though selling our product”
Step 2: Decide Selling Price
Will be charging 1200 per product
Step 3: Prepare Sales Budget
Month No. of Products Selling Price Revenue
(No. of Product*Selling Price)
1 1000 1200 1200000
2 1250 1200 1500000
3 1500 1200 1800000
4 1750 1200 2100000
5 2000 1200 2400000
6 2250 1200 2700000
7 2500 1200 3000000
8 2750 1200 3300000
9 3000 1200 3600000
10 3250 1200 3900000
11 3500 1200 4200000
12 3750 1200 4500000
Total 34200000

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Step 4: Prepare Cost Budget
Every expense is a cost and costs are classified into two groups:-
 Fixed Cost does not change due to any reason i.e.: Rent, Bill etc.
 Variable Cost which vary due to output i.e.: Commission, Raw Material,
Packaging etc.
Annual Cost: 1224000
CGS/COS:
Charger cum power bank
Cost of Goods Sold Statement
For the year ended 31st January

Product Cost per unit No. of Units Amount

Material (500 per unit) 14250000
Labor (20 per unit) 28500 570000
Overhead (100 per unit) 2850000
Total 17670000

Total Cost per unit: 1200 per unit

Income Statement
Assuming 20% annual growth and 10% inflation in expense each year

Year 1 Year 2 Year 3 Year 4

Revenue 34200000 41040000 49248000 59097600
-:CGS (17670000) (19437000) (21380700) (23518770)
Gross Profit 16530000 21603000 27867300 35578830
-:Operating Expense (1224000) (1346400) (1481040) (1629144)
Profit before tax 15306000 20256600 26386260 33949686
-: Taxation (10%) (1530600) (2025660) (2638626) (3394969)
Profit after tax 13775400 18230940 23747634 30554717

Step 6: Preparing Balance Sheet:

Year 1 Year 2 Year 3 Year 4
Assets
Equipments 398000 398000 398000 398000
Debts 25000 25000 25000 25000

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 Cash 589600 1650852 3068701 4928999
Total 1012600 2073852 3491701 5351999
Equity + Liabilities
Equity
Opening Capital 234500 1009600 2070852 3488701
Profit 770100 1056252 1412849 1855298
Liabilities
Credit 8000 8000 8000 8000
Total 1012600 2073852 3491701 5351999

Step 7: Ratio Analysis:

Gross Profit Margin (GPM) = Gross Profit *100
Revenue
Net Profit Margin (NPM) = Net Profit *100
Revenue
Return on Equity (ROE) = Profit*100
Equity

Year 1 Year 2 Year 3 Year 4

GPM 48.34% 52.64% 56.58% 60.21%
NPM 40.27% 44.42% 48.22% 51.71%
ROE 1371.23% 882.58% 681.68% 571.76%

Step 8: Break Even Point

Break Even Point = Annual Operating Cost = 1622000 = 4634 units
Contribution per unit 350
Contribution per unit = Sales per unit – Product cost per unit
Contribution per unit = 1200– 850 = 350

Step 9: Payback Period

Payback period = No. of complete years + required amount
Next cash flow
Year Cash flow Cumulative Cash flows
0 (800000) (800000)
1 13775400 12975400
2 18230940
3 23747634
4 30554717

Payback Period = 0.55 years

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