CLASSIC GIFT SHOP

Gifts with Grace

Company:
CLASSIC GIFT SHOP

Jinnah Market, Rehman Shaheed

Road, Gujrat.

Tel: +92-322-5581375, +92-333-8186629.

Website:www.showpanmohsin.blogspot.com.

Contact: Muhammad Kamran

CLASSIC GIFT SHOP

 EXECUTIVE SUMMARY

Company: CLASSIC GIFT SHOP

Jinnah Market,Rehman Shaheed

Road, Gujrat.

Tel: +92-322-5581375,+92-333-8186629.

Website: www.showpanmohsin.blogspot.com.

Contact: Muhammad Kamran

Type of Business: CLASSIC GIFT SHOP will be a trading concern business,

because the management of CLASSIC GIFT SHOP will makes contract with
Holiday Gifts, Classic cards and Sajid flowers. Management will buy these things
on contract basis and used cost based price strategy.

Management: CLASSIC GIFT SHOP leading by Muhammad Kamran, who is

graduate in Master of Business Administration and he also have three
experience in Qmart shopping mall Gujranwala and other four members of
Management team are also fresh graduates in the same area. Management
team is equipped with Specialize knowledge of Finance, Marketing and Human
Resource Management.

Product and Competition: CLASSIC GIFT SHOP will provide combination of

different gifts like fresh flowers, sweets and fruits at single place. Local
competitors in Gujrat are Japan gift shop at Jinnah road & Star gift shop in
muslim bazar Gujrat. Products advantages are its unique and creative packaging
and use of reusable baskets and boxes.
Funds Requested: Management team will invest in business and also borrow
some loan from banks in the form of business loan as well as student loan.
Use of Proceeds:

Start-up and operating expenses,includin sallaries,trasportation,deperciation,rent,

advertisment and utilities bills etc for sales and marketing,and …………….for the
purchases of computer and equipments for gift shop.

Exit:

Deal Structures:
BACKGROUND AND PURPOSE
History
The concept of exchanging gift has common for many years. This trend has increased for
last two decades and number of choices is provided to customers. Today choices exist
according to the requirement of the customers.From the beginning it is common tradition
to take only fruits and sweets when people go to their relatives and friends. With the
passage of time this trend changed day by day due to changes in the lifestyle of people.
Now they moved to the different variety of gifts and fresh flowers along with fruits and
sweets.

Gift is our cultural tradition when we go to our relatives, friends on any event. We buy
some sort of gifts, sweets, cards and fresh flowers for them.

Gift-giving is one of the good manners that maintains and strengthens relations between

the giver and the recipient. It is one of the acts that Prophet Muhammad

recommended us-Muslims-to do. (Al-Bukhaari)narrated that ‘Ayesha’ "The

Messenger of Allaah used to accept gifts and reward people for giving them."

The holy prophet Hazrat MUHAMMAD said that:

O! People provide gifts to each other it will create love between them.

In past, people visited more shops for purchasing a single gift. It was very time
consuming. So mostly people preferred to give money on different occasions such as
birth on baby, wedding ceremony and birthday and some other occasions. Now people
have changed their trend due to change in their social life. They shifted toward gifts and
fresh flowers this trend has made a separate business of gifts which provides gifts
according to the customer’s needs and requirements.
Our business CLASSIC GIFT SHOP will facilitate the customers to all traditional and
modern ranges of products such as gifts, sweets, cards, fruits, fresh flowers under one
roof. So that people not need to travel more to find different gifts as well as sweets or
fruits.

Benefits and Purposes:

 People have convenience to take all variety of gifts under one roof.
 People also have opportunity to save time in today fast era.
 Facilitate the customer’s modernize system of decoration with flowers and
attractive decoration pieces.
 Offering items of a high quality-value relationship which are not available
everywhere.

Competitive Edge:
Competitive edge is their ability to effectively serve both market segments at the same
time, a feat that no other gift shop has been able to do. Classic has accomplished this by
leveraging two competitive advantages’ the first element is a wide product selection that
appeal to target markets. While some of the products (five categories) come close to
pushing the limits of good taste, nothing is offensive or outrageously obscene. This
creates an atmosphere that has an edge, but one in which anyone would feel comfortable.
The classic concept is being led by customers as well as students. Our main features of
business as following:

 The five categories gifts, fruits, sweets, cards and flowers providing under one
roof.
 The display categories based upon demographic as well as religious, birthday,
wedding, different festivals and best wishes.
CURRENT SITUATION

The Product:
Classic Gift Shop’s products will be initially available in four to five varieties.
Uniqueness of our business as follow:

Firstly, it is not an ordinary gift shop it will also provide fruits, sweets and fresh flowers
for people.

Secondly, gifts will be provided in attractive packing. And fruits will be provided in
beautiful baskets.

Our products which we will offer use widely for parties, birthday, best wishes, and
marriage ceremony etc.Today people pay special attention on home decoration as well as
offices for charming purpose, so our product will facilitate the customers for such
purpose.

The Market:
Our target market will be all those people who want to purchase different iteams like
gifts ,flowers,sweets or fruits for their personal use and to give some one. It will initially
be available in a small outlet counter for each item further we will expand by large outlets
at different places.

Connivances: Time conscious people are more likely to buy different gifts from one place
rather than searching different shops for different gifts

Uniqueness: The fruits, sweets and flowers with attractive gifts providing under one roof
having unique packaging.

The Technology:
Our business nature is trading. So we have no need as such technology.
RESOURCES
Physical:

We will have the shop on rented basis at initially and then we will purchaseshop on self-
generated resources.we will outsource manufacturing.
Financial:
The founding partners will provide us equity or financial resources base on partnership
and also raise loan from banking sector as well as borrowing money from financial
institutions.
Human:
Our team has experience in each of primary functional areas which required for our
business like Marketing, sales and Finance.
Reputational:
Our reputational resources will be our unique identity. This identity is composed of our
distinctive logo, unique packaging and skills of our management team. Our message to
customers is that they can buy all gifts for different events at one place.
Organizational:
We will create a value by providing different products at a single location and provide in
the hand of customers by direct selling and sale person in attractive packaging.

Technological:
Initially we will provide our customer the facility of phone ordering and maintain a
database for customer’s information through computerized system. In long term, we will
develop website for online selling and facilitate the customers through online payment
system.
 1. OBJECTIVES

Short term:
Our Short term objective to introduce the outlet in Gujrat and also further move toward
big cities like Gujranwala, karian, Sialkot and wazirabad. We will educate our sale person
for selling product through personal selling.

Long term:
Our long term objectives are to gain commercial acceptance in Gujrat , Gujranwala and
Sialkot and second our long term objective is to prepare all sweets ourselves. By
developing and tracking progress toward the goals, the organization will push everyone
to perform their best.

2. MARKET ANALYSIS
Overall market:

Although the market of gift shop is already existed but even then it has potential to
growth. The CLASSIC GIFT SHOP will be successful in doing something that no other
retail card/gift store has been able to do because all these things are available in market
but at different places.

Our main competitors in the Gujrat market are:

1. Japan Corporation on Katchery Road

2. Cards Company
3. Saddique Corporation
Specific Market:

CLASSIC GIFTS is a gift store specializing in cards, sweets, flowers, fruits and
decoration pieces. These are five main segment of business. The gifts and fruits segment
that are currently provide more sale. On occasionally basis flowers category is a major
consumer hot button according market research. CLASSIC GIFT SHOP will provide all
these categories to facilitate their customers and create unique indemnity. We currently
has one location, that is located in Gujrat. CLASSIC GIFT SHOP' goal is to provide new
and exciting products in an environment that is fun and friendly for customer and staff
alike. Customer service is our no 1 priority. Our Business focal point on the students
that to make modern their lifestyle. They decorate their rooms according to their
requirement and satisfaction as well as study point of view.

 Female students, 53.6% of student population

o This group makes the most "lifestyle" purchases. They are either buying
for themselves to give their living space a personal touch, or buying items
as a gift for a friend or relative.
 Male students, 46.4% of student population
o Male students are known for their infrequent shopping habits. They make
occasional purchases. These occasional purchasers will need to be
converted into impulse buyers. This can be accomplished by offering more
items that appeal to their sense of independence.
 Teachers or employee
o This segment makes less frequent purchases than the students.
COMPETITIVE FACTORS

Porter’s model of competitive industry is a comprehensive analytical tool for determine

the attractiveness of the industry.

The Bargaining Power of Buyers:

Buyers have a power to bargain because there are number of gift shops exist in the
market, low price offered by the other shops is one of the reasons behind this. If the
selling firm wants to attain the attention of buyer it should communicate to the buyer that
its product has special features CLASSIC GIFT SHOP will differentiate its product on
the base of quality and services.

The Bargaing Power of Suppliers:

Suppliers in flowers, fruits and artificial gifts are not that powerful because there are
many suppliers exist in the market.

The Threat of Relevant Substitutes:

Our competitors are:

Gifts and decoration pieces:

 Japan Gift Shop at Jinnah Road Gujrat
 Al Noor Gift Shop at Muslin Bazaar Gujrat
 Star Gift Shop in Muslin Bazaar Gujrat

Sweets shops
 Gondal Sweets at Jalal Pur Jattan Road
 QandFishan Sweets at Chowk Pakistan
 Sialkot Sweets at Ramtalai Road Gujrat

And some other small competitors have large share in the market and provide our
substitute products.
The Threat of New Entrants:

The entry barriers are low but new entrants do not usually have the financial assets to
face large competitors. Structural barriers are also low because no tremendous financial
resources are required to launch a new venture, Due to this entrants focus in short run.

The Rivalry among Existing Firms:

CLASSIC GIFT SHOP provide quality services to its customers and distinguish its
product from others competitors. Because large suppliers are available in the market.
CLASSIC GIFT SHOP only achieve its goals by providing distinguish product from their
competitors.
MICROENVIRONMENT INFLUENCES:

Political:
If government ban on raw material like solid salt, iron, steel, glass used to make gift
items or Impose heavy penalty on to make it so it’s a big threat for our businessSome
heavy taxes impose on large gift centers.

Political instability is crucial threat for our business in Pakistan.

Economic:
 Employment level and per capita income, when the per capita income low of
people so their purchasing power also low.
 Cut though competition is found in gift business it’s depend upon quality, design,
taste etc.
 We require the safe environment for gifts and should be neat and clean
(hygienically) environment for sweets, and fruits and vice versa.
 This type of business requires more labor and also suffers labor cost.

Social:
Gifts are cultural activity if people change or shift any other trend therefore it’s socially
threat for our business. Religion emphasizes us about gift. If people follow idealism they
will be leave this activity. In modern era people change their life style they will move on
interior items. When the fashion & trend changed people will move that trend so it is
socially threat for our business.

Technological:
Research and development is necessary for our business as well as its threat for us. This
type of business requires modern technology to reduce the labor as well as in innovation
in the products.

Continuously reviewing our inventory and sales and adjusting our inventory levels
accordingly.
Ecological analysis:
 Our products are beneficent for society it creates and increase love and affection
between two lovers, relatives and friends.
 The sweets and fruits fulfill the colures in happiness
 A flower completes any relationship as well as any event.
 Our packing material like plastic boxes and cottons locally used in home

DEVELOPMENT AND PRODUCTION:

Manufacturing:

All products that CLASSIC GIFT SHOP will provide manufactured at a contract bases.
We have selected different contracted parties, for sweets with Qandfishan located in
Gujrat, flowers contracted with Sajid flower shop located in Gujrat and Artificial gifts
and cards contracted with Holiday gift industry located in Madni market Gujranwala and
Classic cards located in Urdu bazar Lahore.. Our all selected manufacturers are
experienced in their manufacturing fields. CLASSIC GIFT SHOP strives to provide best
products with best quality feature.

Advantage of Contract Manufacturing:

Contract manufacturing provide flexible production capability there is no need of

excessive amount of capital that is initially required for start up a business. As business
grow the cost of production decrease and increase the profit. It does not mean contract
manufacturing will eliminate guidance and ownership in production and quality process.
We select manufacturing facility nearer to our shop. So, we reduce transportation cost
and create close working relationship.
Selection Criteria:

All manufactures of sweets and gifts are selected on the basic of experience in their
production fields. This allows CLASSIC GIFT SHOP to bring innovation in their
products.
Measurement Control:

Our manufacture will ensure that all products are highest quality standards meet customer
requirements. Every products which customers buy from CLASSIC GIFT SHOP ever it
is sweets, flowers, gifts and fruits will provide customer same satisfaction each and every
time.

PRODUCTION:
Steps in the production process are described here that are including our trading concern:

Packing:
When sweets are prepared they are packed in large baskets and ready to ship. Flowers
after proper cutting are ready to ship. CLASSIC GIFT SHOP prepares flowers to sale
according to the customer’s requirements.

RESOURCES REQUIRMENTS:
Personal constitutes the primary asset of CLASSIC GIFT SHOP. We will strive to offer
unique and quality products in the marketplace. We will avail opportunities to expand our
business in two cities in future like Gujranwala and Sialkot to promote our brand. Further
in Gujrat we expand CLASSIC GIFT SHOP and convert it into a gift center.

As our business grows we will continue to develop new strategies to bring uniqueness
and will strive to hire people who also possess the drive to continue the CLASSIC GIFT
SHOP legacy to provide quality.
Opportunities:
We will avail opportunities to expand our business in two cities in future like Gujranwala
and Sialkot to promote our brand. Further in Gujrat we expand CLASSIC GIFT SHOP
and convert it into a gift center.

Quality assurance:

CLASSIC GIFT SHOP will strive to have highest quality standards in the manufacturing
of its products. This desire has already been evidenced by the selection of a high quality
manufacturing site. As CLASSIC GIFT SHOP will provide different products. We will
implement statistical sampling especially on sweets for its quality and taste
characteristics.

Ingredient Content:

This is to ensure that all sweets items contain the correct proportion of ingredients to
deliver a consistent flavor to customers.

Fill weight:

A scale system is included in the packing line to verify the sweets and fruits baskets
contain full weight.

Breakage:

Breakage is concerned with gifts. To check the breakage is predominantly a measure of

customer satisfaction. So for this purpose we will make check before and after shipment.
MARKETING ORIENTATION:
Marketing Segments:

Dual income family has less time to buy gifts from one place fruits, sweets and flowers
from other places. They are actively seeking all products that they want to get for others
at one place.
Now the trend has changed and a shift in consumer preferences occurs. Two decades ago,
Trend of exchanging of gifts is not as popular as now. It is one of the cultural tradition
that when someone go to the other’s home. He/she considers it is better to take something
like fruits, sweets, gifts or flowers according to the event. According to our survey,
consumers can be classified into four categories:

Social, Interior Designers and Entertainers and potential

Social: Social consumer include those people who go to other’s home and meet with
others and want to buy some fruits, sweets, or gifts to take for hosts along with them.

Interior designer: Tend to those people who have been interest to decorate their homes
with different decoration items like wall sceneries.

Entertainers: Entertainers are those who seek to attend parties like birthday parties and
marriage ceremonies. They have to purchase some gifts as well as sweets and flowers.

Potential customers: some customers prefer our products due to quality and service
and reasonable price.

Other key trends indicates that people, due to their busy schedules are seeking to buy
different things like gifts, fresh flowers, fruits and sweets at one place. Now a days, value
oriented people desire quality in fruits and sweets, strong packing and convenience.
In our project of gift shop that name is CLASSIC GIFT SHOP open in Gujrat city then
expanding it in other cities.
Marketing strategy:

The variety proportion is primary strengths of our products. Currently there is no

shop/business existing that to provide events basis gifts along with flowers ,fruits, and
sweets. Product lines exist separated for gifts, fruits, flowers and sweets. Our product in
contrast, offers all these things under one roof that consumer wants. Tracking consumer
trend will enable us to maintain up-to-date variety of gifts and also quality of fruits,
sweets and flowers, providing a competitive advantage. We will use our strengths such as
variety and marketing communications to build equity that will strong our competitive
advantage.

Product:
We will offer gifts, flowers, fruits, and sweets that can be used as both for our personal
use and as a gifts to others. Our competitive advantage will be providing a variety of gifts
along with fresh flowers, fruits and sweets, and also our ability to keep up all these things
according to market trends and customer requirements.

Pricing:
Researcher indicates that consumers wishes to pay the possible lowest price. After
comparison with other products initially we will use cost based price strategy. We will
use this strategy to capture the market and facilitate customers.
Average price of different items is provided:

Items Average Price

Gifts 50-500
Sweets 200-240
Fruits Price Set according to daily basic and according to market
condition
Flowers 20-200 (buke and
Cards 25-80
Distribution:

Classic gift shop will use direct selling strategy so there will be no need the distribution
channel. When we promote our business as website lunching or facilitate the customers
on telephone service so we will be need 1-3 distributor persons in near future.

Advertising:

Print (broachers, banners) and local TV channels advertising will be used to gain the
awareness of our product and encourage consumer to visit our outlet.
Its position as a combination of gifts, fresh flowers, fruits and sweets will be explained.
Our research indicate that people are comfortable with this positioning, Because when
they go to buy some sort of gifts or fresh flowers as well as some fruits or sweets they
have to stay at different places. We want consumer’s acceptance for this positioning and
build a brand image that reinforces variety of things and convenience.

Promotion:

We will use several promotion activities as part of our marketing concept. Cost of basket
for providing fruits are estimated Rs. 100. Further we will promote our products through
web pages, where people/customer can order for their required products. We estimate the
server costs and development costs to be “5000” for the first year. With the help of web
page catalog will be quickly updated. It will also provide feedback from the customers
through e-mail. We will offer a small gift if someone buy two gifts. As, it has been shown
that giving something free promote sales.

Product packaging:

CLASSIC GIFT SHOP will use boxes for gifts, tin boxes for sweets and baskets for fruits
packaging. It’s costing will be………………….There is some reason for this
packaging .it look attractive and unique, especially for fruits packaging. It is practical and
re-useable. We will encourage buyers to re-use the baskets and boxes for other purposes,
creating an environment friendly image.
Competitor’s Strengths
Our major competitors (Dubai collection, Siddique Corporation) have potential location
which is giving them the edge over other gift shops. They have captured the gift shop
market with attractive location but they are charging skimming prices as well. Although
they have threat to us in terms of gifts range but we will provide some extra features in
our business which never have been before in any business.

We will provide sweets and fresh flowers to customers in order to capitalize the
opportunity of attracting more customers’ then that of them. The main edge our
competitors have that they are operating for a long time and with attractive designs in
their products, but we will target a great deal of those gifts which will ethical and
religiously attract the customer as well can be used as decoration pieces.

We will provide our products in an outlet where different counters are provided for
different products. Fresh flower, fruits and sweets section of our business will be a unique
idea which is never been implemented by any of our competitors. It will be based on our
strategy to increase the profits of the business.

During our first 1,2 years we will be selling our products through our own shop but using
the two tiered market approach we will soon be reachable in high society areas where
rich people like to shop around the gifts and decorate their houses in order to show some
status symbols in the their societies.
FINANCIAL PLAN:

Our future estimations about financial plan are as under:

Estimated Sale and Cost of Goods Sold For Gifts:

Items Units Sale Price Cost Price
(Rs.P.unit) (Rs.P.unit)
Birthday gifts 150 200 150
Wedding gifts 100 300 225
Decoration pieces 50 500 375
Cards 50 30 15
Total 300 1030 765

Estimated Sale For Fruits, Flowers and Sweets:

Sweets, flowers and fruits are perishable goods and the demand and price are change
according to the market demand and environment situations. So, it is not possible for us
to provide the sale quantity in units and price of these goods. But according to our project
needs we provide estimated sale in the balance sheet and income statement.
 Production Budget or Manufacturing Budget:
Ja Ap Ju Au Oc
Particulars n Feb Mar r May n July g Sep t Nov Dec
Sale 350 375 390 400 405 200 300 300 300 320 300 300
Less Ending
Inventory 150 100 85 160 240 150 155 155 140 150 150 160
Units available
for sale 200 225 205 240 165 50 145 145 160 170 150 140
Add opening
inventory ---- 150 100 85 160 240 150 155 155 140 150 150
Units to be
sold 200 375 305 325 325 290 295 300 315 310 300 290

Operating Budget:
Particulars Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Total
Salaries 15000 15000 15000 15000 15000 15000 15000 15000 1500 15000 15000 15000 180000
Transportation
3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 36000
expenses
Rent 14000 14000 14000 14000 14000 14000 14000 14000 14000 14000 14000 14000 168000
Advertisement 20000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 75000
Utility bills 2500 2800 2400 2500 2200 2600 2600 2700 2200 2300 2000 1900 28700
Depreciation 1041 1042 1041 1042 1041 1042 1041 1042 1041 1042 1041 1041 12500
Total 55541 40842 40441 40542 40341 40642 40641 40742 40241 40342 40042 39041 500200
Administrative Expenses
Particulars Amount(Rs.)
Rent 168000
Depreciation 12500
Utility Bills 28700
Total 209200

Selling Expenses:
Particulars Amount(Rs.)
Salaries 180000
Transportation Expenses 36000
Advertisement 75000
Total 291000

Income Statement:
Pro forma income statement 1st year 2nd year 3rd year
in Rs(000) in Rs(000) in Rs(000)
Net sales 25000 32000 35000
cost of goods sold 15000 17500 19000
gross profit 10000 14500 16000
less operating expenses:
administrating expenses 2500 3000 4000
selling marketing expenses 5000 8000 8000
EBIT 2500 3500 4000
Less interest (10%) 1800 2000 2200
EBT 700 1500 1800
Less tax (10%) 85 150 180
Net income 615 1350 1620
Pro forma Balance Sheet 1st year 2nd year 3rd year
in Rs(000) in Rs(000) in Rs(000)
Tangible fixed assets 15000 20000 23000
current assets 10000 10000 14000
Total assets 25000 30000 37000
share capital 7000 10000 15000
outsider's debts 18000 20000 22000
Total liabilities 25000 30000 37000

Cash Flow Statement:

Pro forma cash flow
 Operating Activities 1st year 2ndyear 3rdyear
Operating income 665 1350 1620
Depreciation 300 350 380
965 1650 2000
changes in other assets &
Liabilities 135 350 200
net cash from operations 1100 2000 2200
net investing activities -200 -500 -600
900 1500 1600
net financing 50 250 200
net cash inflow 950 1750 1800

Break even analysis (in thousands)

1st year 2nd year

3rd year

Estimated Sales 16000 17000

18000

Major sources of funds

 All partners

They will provide initial capital of Rs.7 million and earnings will be retained in
business.

 Relatives and friends of Partners.

 Banks

Pro forma Cash Flow:

Net profit 665

Depreciation 300

Depreciation other adjustment of Current assets

(Stock, debtors, etc.) ` 200

 1165

OGRANIZATION AND MANAGEMENT:

Key Personal Resources:
Our business will be run by 5 members who include 3 males and two females. Iftikhar
Ahmad and Ammara Akbar will deal in the financial section of the business following by
Kamran Yaqoob, Zainab Rafique and Syed Haider Ali will assist the business in
marketing. All the financial activities will be handled by our member Iftikhar Ahmad and
Ammara who have finance background because they know the financial terms in depth
and they will handle the financial dealings with other businesses. Marketing section will
be seen by our other three members Kamran Yaqoob, Syed Haider Ali and Zainab Rafiq,
they will be doing the job to make sure that our products reach at the customer. They will
bring out the new and innovative ideas to capture the expansion opportunities and growth
of the organization through new product designs.

Human Resource Management Strategy:

Classic gift shop will run the business on n current team which have the skills in the
specific area of business which will drive our business at a rapid growth. In short term
while our business will be gaining acceptance in the local market, we will not hire any
single employee, but in the future while entering the mass market we will require some
talented sales and marketing persons to attract the customers to buy our products. We will
be closely watching their work and incentives will be provided to them on their efficient
performance.
OWNERSHIP:
Form of Business:
The business is a limited partnership. As, such each partner is liable only for the amount
of his/her personal investment in CLASSIC GIFT SHOP. No other legal liability exists.
The actual partnership agreement contains no special conditions or clauses.

Equity positions:
Owner’s Equity Positions

Partners Investment (Rs.)

M. Kamran Rs.100000

Iftikhar Ahmed Rs.100000

Ammara Akbar Rs.100000

Zainab Rafique Rs.100000

Haider Ali Rs.100000

Total Owner’s Equity Rs.500000

Deal Structure:

CLASSIC GIFT SHOP will require Rs.500000 to start up and grow at the rapid rate
necessary for the shop to achieve its potential.

CRITICAL RISK AND CONTINGENCIES:

We feel that our company will be a success. As with any new venture, certain risks exist:

 We will outsource our gifts, fresh flowers, fruits and sweets from famous
manufactures for sweets with Qandfishan located in Gujrat, flowers contracted
with Sajid flower shop located in Gujrat and Artificial gifts and cards contracted
with Holiday gift industry located in Madni market Gujranwala and Classic cards
located in Urdu bazar Lahore.Although we feel we can maintain a strong
 relationship with each contracted party, there is potential that they may choose to
manufacture our product for their own purposes, like they open their own outlet
and provide same things that we will provide.In addition, any manufacture cease
production of our products for any reason. This could cause a shortage in supply.
Inconsistent quality in the production of our products is possible because we can
not directly supervise its production.
 Our business is trading concern so; we don’t have any patent for our products.
 When we will go to the other cities for promotion, the people of these cities may
not accept our product as early time period.
 Sale may increase rapidly; it will require additional capital to meet these needs.
We hope our contracted parties will be able to provide products to handle increase
in demand.
 At the start, our sale may be less than expected. So, will reduce our profit margin,
and used cost based strategy. We also have potential team that will be helpful to
gain our desired sales.
 The concept of providing combination of gifts with fresh flowers, fruits and
sweets that is not already exist according to our survey this idea is acceptable
So, this is not a great threat.

Our business has no contingent liability. We will try to prevent from all these risk that we
described.

SUMMARY AND CONCLUSION:

We believe that our business idea will be accepted for the following reasons:
First, trends are changing and people want to get different things at one place due to their
busy schedule. Second, we will provide attractive and reusable packaging to our
customers. Third, our team has sales, marketing and finance skills that will be helpful for
our business success.