Iqra IU

University
Islamabad Campus
December 15, 2009

Final Project
Subject: Introduction to Business

Business Plan

Submitted by

 Wajid Ali (11593)

 Imtiaz Ahmad (11488)
 Faisal Abbasi (11551)
 Moiz Zafar (11430)
 Muhammad Haroon (11446)
 Ahsan Ali (11323)
 Saiqa Yasin(11303)

Program: MBA Evening

Submitted to
Sir Shahzad Zeb

Department of Management Science

Iqra University Islamabad Campus

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 Table of Contents
Page No.
1.0 Executive Summary 3
1.1 Company Profile 3
1.2 Objectives 4
1.3 Vision 4
1.4 Mission 4
1.5 Keys to Success 4
2.0 Business Description 5
2.1 History 5
2.2 Company’s Ownership and Company’s Legal Form 5
2.3 Description- Initial Products/Services 5
2.4 Startup Summary 5
3.0 Market Analysis 6
3.1 Market Analysis Summary 6
3.2 Market Segmentation 7
3.3 Competition 8
3.4 Competitive Edge 8
4.0 Operations 9
4.1 Sales Strategy 9
4.2 Mile Stones (Time Lines of events) 10
4.3 Customer Support 11
4.4 Marketing Strategy 11
5.0 Organizational Structure & HR Plan 15
6.0 Critical Risks 17
6.1 Internal Risks 17
6.2 External Risks 17
7.0 Financial Projections 18
7.1 Expenses 18
7.2 Income 18
7.3 Income Statement 19
7.4 Balance Sheets 20

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1.0 Executive Summary

CONFIDENTIAL INFORMATION

The (Shaheen rental services) Strategic Business Plan is intended for use on a
confidential basis only. The use of the plan document for purposes other than the review
of the company’s proposed structure, operations and performance might involve serious
legal consequences.

This plan contains information that is proprietary and confidential to (Shaheen rental
services) this obligation of confidentiality shall apply until such time that (Shaheen rental
services) makes the information contained in this Business Plan available to the public, if
ever.

With receipt of this plan, recipient acknowledges and agrees that: In the event the
recipient does not wish to pursue this matter, this document will be returned to the
address listed above as soon as possible. The recipient will not copy, fax, reproduce,
divulge, or distribute this Plan, completely or in part, without the express written consent
of (Shaheen rental services). All of the information contained herein is to be treated as
confidential material with no less care than that afforded to your own company’s
confidential material.

1.1 Company Profile

There is a possibility for an exciting and profitable new business in the Federal capital,
Islamabad. Shaheen Rental Services will rent out 70cc motorbikes to the lower middle
class salaried persons and to the corporate in Islamabad who have Dispatch or delivery
services, There is currently no business like this, in Islamabad, which caters to this
market.

For slightly more than the cost of a monthly cellular phone bill, it is possible for an
individual to have their own mode of transportation to fulfill their daily obligations.
Motorbikes have many positive advantages over cars: lower operating costs, fuel
efficiency, parking ease, easy maneuverability in traffic jams and are less costly to
maintain. It is also possible to insure these vehicles at a very low cost.

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There are also thousands of people who are commuting daily from the Rawalpindi
suburban area. Parking in Blue Area is hard to find, and the bus offers few options. This
is where the economical Honda CD-70 comes into play.

With central office in Islamabad, Shaheen Rental Services provides superior motorbike
rental in the twin cities, serving both the salaried and the corporate sectors. Shaheen
Rental Services brings a fresh and innovative approach to motor bike rental. Our goal is
to exceed the expectations of every client by offering outstanding customer service,
increased flexibility, and greater value, thus improving operational efficiency. In order to
meet the individual needs of clients, Shaheen Rental Services maintains a wide range of
experience in the leasing field. Exceptionally well-designed and practical expertise
coupled with extensive business knowledge makes Shaheen Rental Services the ideal
choice for a rental firm to manage your personal requirements.

1.2 Objectives

Shaheen Rentals will be fully self-sufficient and profitable by the second year.

1.3 Vision Statement

To become leading name in rental services which can provide opportunities to individuals
as well as corporate clients to focus on their key functions. We also aim to explore
economical global markets through which we can service our clients in innovative and
economical ways.
1.4 Mission
At Shaheen Rental, we strive to provide quality transport rental services to low income
group of our population. We also try our best to enable our corporate clients to focus on
their core business functions. We consider our workforce as our valuable asset which can
bring prosperity of the firm
1.5 Keys to Success
Good customer service and value.
1. Affordable rental prices.
2. Reaching the target market.
3. Integrity in serving our customers; resulting in repeat hiring.

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2.0 Business Description
2.1 History

At Shaheen Rental we strive to service the corporate first as they could hire the bikes on
monthly basis for their delivery services. At Shaheen Rentals, clients will be able to rent
a quality means of transportation at a fair price. Shaheen Rentals will also be a profitable
business which will treat employees fairly and provide financial prosperity for its owners.

At Shaheen Rental, we strive to provide quality transport rental services to low income
group of our population. We also try our best to enable our corporate clients to focus on
their core business functions. We consider our workforce as our valuable asset which can
bring prosperity of the firm

2.2 Company’s Ownership and Company’s Legal Form

Shaheen Rental Services is a registered partnership firm owned by Mr. wajid ali,

Mr.Ahsan Ali, Mr.Imtiaz Ahmad, Mr.Faisal abbasi, M,Haroon , Mr.Moiz Zafar.and ms

saiqa yaseen

2.3 Description- Initial Products/Services

Shaheen Rental Services offers the following products:

Motorcycles:

These cycles have been inspected and occasionally reconditioned in order to offer
the customer the best value.

2.4 Startup Summary

Each above mentioned partner will invest Rs.250, 000/- in Shaheen Rental Services. The
focus of this inventory will be on purchasing second hand used motorbikes of 70 cc
Engine capacity bearing the brand name of HONDA. The sources of these bikes would
be the Weekly bazaars in Rawalpindi area.

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3.0 Market Analysis
3.1 Market Analysis Summary
The industry Worldwide has seen a tremendous growth in the past two years. Production
in 2005 has been estimated at 40.0 million units with China producing 17.0 million units.
This global surge in demand has also been felt in Pakistan where the industry in the
financial year ending June 2006 manufactured more than 750,000 units. There are
currently 43 Original Equipment Manufacturers (OEMs) in the Industry. These include 6
OEMs who are members of the Pakistan Automotive manufacturers Association (PAMA)
and 37 OEMs who are not PAMA members.
As compared to other industries in which competitiveness can only be achieved with high
levels of human capital, the motorcycle industry is more concerned with better
management of human resources and high levels of productivity at all levels, i.e. OEMs
as well as parts and component manufacturers. In Pakistan, motorcycle assembly started
in 1964 when the local Atlas Group started assembling Honda motorcycles in Karachi.
Currently in addition to Honda, the other Japanese brands being manufactured in Pakistan
include Yamaha and Suzuki. The most successful design among the Japanese brands has
been the Honda 70CC which enjoys tremendous popularity on account of its fuel
economy, resale and low maintenance features.
Table 1, shows the sales increases in the past 5 years.

Table - 1
Sales of Motorcycles in Pakistan
Year Production in Units % Growth
2001 – 02 120,627 11.00
2002 – 03 175,169 45.00
2003 – 04 371,007 112.00
2004 – 05 570,085 54.00
2005 – 06 751,667 32.00
Source: EDB

Figure -1
Growth in motorcycle sales in Pakistan

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Although the number of assemblers has increased from 3 to 43 the PAMA
(Pakistan Automotive Manufacturers Association)

members continue to hold the dominant market position with 79% of the market share
with Atlas Honda alone accounting for 55% of all new motorcycles sold in Pakistan.
Over the years, biking has developed an entirely new customer base among baby boomer
men, ages 40 to 65. Last year, motorcycle sales for this age group were twice that of
young men, ages 18 to 25. These two groups represent 80% of motorcycle sales.

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The demographics suggest that there is a large market for leasing used motorcycles,
especially among experienced bikers. This is particularly important because the
experienced customer will seek out an outlet where the owner has a reputation for quality
and service in the motorcycle community.

3.2 Market Segmentation

Shaheen rental services will be primarily focusing on the following two segments:
1. Salaried Individuals(1st Phase)

2. Corporate Sector(2nd Phase)

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3.3 Competition
There are a few unknown rental outlets which offer motorbike rental @ Rs. 60/hr in
Rawalpindi areas such as Mohenpura, Murree Road & Waris Khan with no insurance
coverage and also do not give the leverage of a few minutes when it comes to charging.
3.4 Competitive Edge
Shaheen Rental services shall be offering 24/7 customer support and replaceable policy
under which broken down bikes shall be replaced on immediate basis as we shall be
incurring the loss of maintenance and no burden shall be levied on the customer. Shaheen
Rental Services’ competitive edge is all team members’ visibility in the motorcycling
community.
Excellent word of mouth among motorcycle customers is the foundation of Shaheen
Rental Services.
Each satisfied customer of Shaheen Rental Services will bring in more business.

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4.0 Operations
4.1 Sales Strategy
When we realized that our marketing approach was concrete and accurate, we decided to
hire two sales representatives during the 4th month of our business.
With the grace of Almighty Allah, we could get two very energetic and creative sales
representatives. Each of them was appointed one city from the twin cities of
Rawalpindi/Islamabad.
Every sales representative is supposed to pursue the above mentioned marketing strategy
and take follow ups from all the mentioned segments of market. These sales people were
given certain targets to meet.
Initially, our target was to reach our breakeven. It is worth mentioning that due to
appropriate utilization of resources and hiting the right customer in the right way, we
were able to meet this target in the first 1 ½ months of our business.
Our sales staff also proposed a valuable strategy to offer a discount of amount equivalent
to 10 liters of petrol to the customers who will get our bikes on rent for 90 hours.
Through this strategy we were able to get customers with long term business relations
with us.

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4.2 milestone (Time Lines of events)

Milestone Startup Date End Date Manager/Department

Idea generation December All team members
Business plan 07-12-09 10-12-09 All team members
Firm registration 10-12-09 10-12-09 Muhammad Haroon
Site Acquisition 11-12-09 12-12-09 Ahsan ali /Wajid ali
Site preparation 12-12-09 13-12-09 Wajid ali
Procurement of Bikes 13-12-09 13-12-09 Ahsan ali/imtiaz/
Initial Maintenance 14-12-09 14-12-09 Wajid ali
Procurement of Furniture 15-12-09 16-12-09 Wajid ali/Saiqa Yaseen
Printing of Stationary 17-12-09 18-12-09 Faisal abbasi/Wajid ali
Printing/ Display of Banners 19-12-09 20-12-09 Moiz zafar/
Printing/distribution
Of information flier 21-12-09 21-12-09 All team members
First bike rented by a
Student searching for job 22-12-09 Moiz
First corporate customer 25-12-09 Moiz

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4.3 Customer Support:
We believe that getting only the customers is not a big challenge but the main challenge
is to sustain the customers. This sustainability ultimately wins the hearts of the
customers. Therefore we always try to win the hearts of our customers. This challenge is
achieved through a strong customer support.
We have hired a CS representative for this purpose. We provide a complete support to
our customers. Although we are very strict in maintaining our bikes through on time
servicing and problem solving but even then if a customer is facing any problem with our
bike. He just calls our office and provides us his location. Our support person either sends
another bike to that location or he even hires a bike from other companies as an interim
solution. We don’t charge for all this support activity to our customer.
Till now we didn’t get such complaints more than 1.
We also request our customers to fill in a feedback form upon delivery of the bike. This
form is very helpful for us to make our services better for our valuable customers.
In addition to this we also maintain a register to log the customer complaints. In our
weekly meeting we discuss every complaint. This way we have improved many
procedures accordingly.
4.4 Marketing Strategy:
We have identified following two major market segments:
• Salaried Individual
• Corporate Sector
Salaried Individuals:
Since most of the population of twin cities Rawalpindi/Islamabad consists of salaried
people therefore we found a big potential of our business in this segment. Due to worst
condition of local transport system, low salaried class people prefer to reach their
destinations by their own. At the same time buying of motorbike has become difficult for
a person whose monthly income is up to Rs. 12,000/
Sometimes such people come across the situations when they can’t afford hiring of taxi
for two people while situation of transport system prevents them to opt it. So such
circumstances create business opportunity for us.
We can provide them motorbike on very reasonable rates. We also provide motorbikes
just on a single telephone call. Although we charge Rs.100/ from residents of Rawalpindi
and Rs.150/ from those of Islamabad as home delivery charges.

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Till now our major revenue is coming from this segment. We have fixed our rental
charges at Rs. 60/hour. Since we have to keep us aligned with prevailing rates in market
therefore we had no other option to make any change in this rate.
Corporate Segment:
In twin cities of Rawalpindi/Islamabad there are many companies providing delivery of
products and services on the doorsteps of their customers. It includes Pizza shops, courier
services and maintenance services. In Pizza shops major stakeholders are Pizza Hutt,
Papasalis and Rahat Bakers. In Courier Services, TCS, OCS, Shaheen Courier, Cargo
Lines, DHL and TNT are the major providers. If we look at the maintenance services
sector, we find Dawlance, Waves, General Electric, LG and Sabro as major players.
Companies involved in these business are more interested to invest and focus on their
core business/services. While we take their worries about investing huge amounts in their
transportation function. This potential gave us an encouragement to pursue this business.
Till now 40% of our revenue is coming from this segment. There is still a big potential in
this segment due to the fact that we have no other major competitors in this area. This is
our estimate that we can take ratio to our revenue to 60% by adding 5 more bikes in our
fleet.
Recoveries from this segment is comparatively easy and less costly therefore we have
different rates with different corporate clients depending upon rented period. This is our
experience that transactional cost in this segment is much less than that in salaried
persons segment.
Advertisements:
We carried out advertisement by dividing this activity into following phases:
Initial penetration phase:
We used many ways for running an extensive advertisement campaign which includes
print media, electronic media and word of mouth.
In print media, we used distribution of flier with newspapers. Initially we circulated
100,000 flier through all main stream newspapers (major through Urdu newspapers) .
This activity proved to be a very helping tool for us in developing awareness in the
population. People were aware of their problem but they were not aware about the
solution to their problems. When we developed this idea in the population, we received a
very encouraging feedback.

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We also used Cable TV as our advertisement channel. We planned to run this activity
into 2 phases. First we ran stripes on all Cable TV channels of the twin cities through
which people became aware of their problem but at the same time suspense was created
among them that some company is being launched which will take care of their problem.
In the 2nd phase we ran stripes through which people came to know about us.
This is our experience that through this channel of advertisement, many students who
were unable to find their jobs only due to the fact that they were not having any transport,
they approached us and finally we were able to resolve their problems. This way we
received a very sound feedback.
Our initial phase was carried out for first 2 months. During these two months we were
able to create an excellent impact on market as well as we were successful in developing
awareness about the problem and solution to the problem among our target market.
Marketing visits:
The tremendous efforts put by Mr. Moiz brought fruits in getting business from corporate
clients. Here it is worth mentioning that most of our corporate clients were not aware of
the fact that they were compelled to invest in transportation function of their business
which is in fact not a core business activity for them. Mr. moiz made them realized
through frequent visits and meeting their decision makers and finally he was successful in
his challenge.
Information Seminars:
Mr. Wajid ali drew the attention of all managers to this new idea and he took this as
challenge. He planned to conduct at least one seminar daily in one university of the cities.
This helped us to draw attention of students of final year who were about to start their
career. This activity generated heavy revenues by the end of 3rd. month of our business.

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5.0 Organizational Structure & HR Plan
5.1.Organizational Structure:
Shaheen Rental Services will follow a functional structure. Initially, there will be 4
functions as under:
• Logistics
• Marketing
• Administration
• Recoveries
All functional managers will have a monthly meeting on agreed date. Every functional
manager will chair these meetings on rotational basis. Every meeting will have some
agenda and will end with some action items.
Actions will be taken on the agreed action items and performance on every item will be
discussed in the beginning of every monthly meeting.
Manager Administration will be responsible for keeping record of every meeting.
Initial work force:
Initially, all core team members will work to lay down the foundations of the firm.
Following are the major work areas:
Logistics (by Mr.Imtiaz Ahmad and Ms Saiqa yaseen):
Under this function, all logistics support will be provided to the firm. Which includes,
Site acquisition, site preparations, all work related to courts, vehicles maintenance,
insurance, printing of stationary, sale and purchase of firm’s assets, procurement and
auctions of motorbikes and all issues pertaining to vendors.
Marketing (by Mr. Moiz)
This function will provide marketing and sales related support to firm in order to achieve
its revenue targets. This function will focus on activities related to advertisements,
marketing campaign, marketing strategy, sales strategy and implementation of all
strategies approved for generating revenues. This team will be responsible for concept
building in the population, designing the right and profitable marketing channels,
approaching the right customer on right time.

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Administration (by Mr. Wajid ali):
This function will provide all administrative support to the firm which includes office
management, Customer Support Services, maintaining firm’s books of accounts and
maintenance of firm’s assets in coordination of Logistics team.

Recoveries (by Mr. Faisal Abbast):

This function will target to minimize firm’s internal and external risks. This team will be
responsible to recover firm’s credits well on time so that firm has no risk of shortage of
funds. This team will also comply with approved recoveries procedures. Litigations in
case of extreme cases will be also catered by this team.

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6.0 Critical Risks
We have categorized the critical risks as under:
• Internal Risks
• External Risks
6.1 Internal Risks:
Management realizes that we may come across many risks which will be of internal
nature e.g., funds pilferage and misappropriation of resources.
Every payment will be made through cheque. Every cheque will be signed by at least 2
functional members.
All payments will be recorded in books of accounts on regular basis.
A separate record will be maintained for service history of each bike. This will enable the
management to keep track record of service of every bike.
6.2 External Risk:
Following are some possible external risks:
• Theft
• Snatching
• Accidents
• Fire
To minimize loss of the firm from external risk, all bikes are insured comprehensively.

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 7.0 Financial Projections
7.1 Expenses

Allocation of Expenses for Year 2008/09

Fixed Expenses
Nov Dec Jan Feb Mar Apr Total
Rent 10000 10000 10000 10000 10000 10000 60000
Maintenance (Bikes+Office) 20000 20000 20000 20000 20000 20000 120000
Insurance @ 10 Bikes 45000 0 0 0 0 0 45000

Total fixed exp: 75000 30000 30000 30000 30000 30000 225000

Variable Expenses:

Salary 14000 14000 14000 14000 14000 14000 84000

Marketing Expenses (Banners + Cable Add) 64000 20000 10000 10000 10000 10000 124000
Telephone bills 500 400 490 480 350 600 2820
Electricity bills 500 500 600 700 460 850 3610
Miscellaneous expenses 7500 7500 7500 7500 7500 7500 45000
Depreciation Expense (Bikes) 3125 3125 3125 3125 3125 3125 18750

Total variable exp: 89625 45525 35715 35805 35435 36075 278180

Total Fixed Expenses for the Year 225000

Total Variable Expenses for the Year 278180

Total Expenses for the Year 503180

7.2 Income

Calculation of Income for 6 Months

November December January February March April Total Income

INCOME 2008/2009 72000 90000 114000 117000 138000 132000 663000

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7.3 Income Statements

INCOME STATEMENTS for Year 2008/09

Particulars\Years November December January Feburary March April

sales 72000 90000 114000 117000 138000 132000

Less Fixed expenses 75000 30000 30000 30000 30000 30000
87,00 108,00 102,00
Gross Profit (3,000) 60,000 84,000 0 0 0
Operating Expenses 89,625 45525 35715 35805 35435 36075

7,20 9,12 9,36 11,04 10,56

Tax Expense (@8%) deducted at source 5,760 0 0 0 0 0
(98,38 7,27 39,16 41,83 61,52 55,36
Net Profit/Loss 5) 5 5 5 5 5

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7.4 Balance Sheet

ASSETS LIABILITIES

Cash in hand 20000 Capital 1000000

Cash in Bank 443080
Furniture & Fixture 50000 Profit 106780
Elictrical Fan 3000
Computers 40000
Telephone Sets 1200
HP Office Jet 8000
Bikes (10) 500000
Office Stationary 4000
Tools+Spare 15000
Insurance Paid in Advance 22500

Total 1106780 Total 1106780

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