ENTREPRENEURSHIP PLAN

Submitted To: Haroon Rashid (Assistant Professor) Submitted By: Zulfqar Jahangeer Raza Ali Muhammad Sharif Zubair Rashid Umair Arshad MBA-FA09-022 MBA-FA09-026 MBA-FA09-034 MBA-FA09-036 MBA-FA09-082

COMSATS Institute of Information Technology Sahiwal

Table of Contents
COMSATS Institute of Information Technology Sahiwal..............................................1 Table of Contents....................................................................................................... 2 Executive Summary....................................................................................................4 Company Summary.................................................................................................... 6 2.1 The Opportunity:...............................................................................................6 2.2 Mission.............................................................................................................. 6 2.3 Competitive Advantages...................................................................................6 2.4 Start-up Summary.............................................................................................7 Management Summary..............................................................................................9 3.1 Legal Form of Business......................................................................................9 3.2 Intellectual Property..........................................................................................9 3.3 Organizational Structure.................................................................................10 3.4 Personnel Plan.................................................................................................11 Industry Analysis...................................................................................................... 12 4.1 Industry Description........................................................................................12 4.2 Target Market..................................................................................................13 4.2.1 Market Segmentation................................................................................14 4.3 Competitive position within target market......................................................16 5 Marketing Plan.......................................................................................................17 5.1 Product Description.........................................................................................17 5.3 Sales Literature...............................................................................................17 5.3 Future Products...............................................................................................17 5.4 Strategy and Implementation Summary..........................................................18 5.4.1 Strategy Pyramids.....................................................................................18 5.5 Marketing Strategy..........................................................................................18 5.5.1 Pricing Strategy.........................................................................................20 5.5.2 Promotion Strategy...................................................................................20 5.5.3 Distribution Strategy.................................................................................20 5.5.4 Sales Strategy...........................................................................................20 5.6 Sales Forecast.................................................................................................21 2

6 Operational Plan....................................................................................................22 6.1 Location of office.............................................................................................22 6.2 Product and Service Execution Model..............................................................22 6.3 Quality Control ...............................................................................................23 6.3.1 Product Differentiation..............................................................................23 ......................................................................................................................... 23 6.3.2 Services Differentiation.............................................................................23 6.4 Customer Support Obligations.........................................................................24 7 Financial Plan.........................................................................................................25 7.1 Income Statement...........................................................................................25 7.2 Capital Budget.................................................................................................26 7.3 Cash Flow........................................................................................................27 7.3 Balance Sheet................................................................................................. 28 7.4 Ratio Analysis..................................................................................................29 8 Critical Risk Factors...............................................................................................30 8.1 Management Risk............................................................................................30 8.2 Operational risks.............................................................................................31 8.3 Financial risks..................................................................................................31 8.4 Compliance risk...............................................................................................32 References...............................................................................................................33

Executive Summary

We are a high-powered team of creative individuals. The company creates an Internet environment attractive to bright kids, parents and students, and is planning to sell books, software and games to those kids, their parents, schools, colleges and universities in Sahiwal region. BuyBest starts company with five employees. The company has a single office in Sahiwal. Now a days people is facing a problem of buying books, softwares, and games directly from market because parents has no time to go in market to purchase these things for their children and some students have far away from the market to buy books like as BZU and COMSATS student face this problem and some have no registered softwares. So according to these problem we will offer the product and services at low cost with free home delivery services and our cost of product will not be higher then the market price. Our start-up costs will come to Rs 180000, because of our commitment to dominate the Internet market place. Our product market will expand exponentially with the advances of technology in the teaching sectors and the acceptance of technology as a teaching aid. In geographic segmentation division of markets is rural and urban areas. Rural and urban markets differ on a number of important parameters such as literacy levels, income, spending power, and availability of infrastructure such as electricity, telephone network, and roads. According to all these points we will target the Sahiwal urban area. In the demographic segmentation, we divide the market in to groups on the basis of variables such as age, family size, family life cycle, gender, income, occupation, education, religion, race, generation, nationality and social class. One reason demographic variable are often associated with consumer needs and wants. Our target market is child, young and old age people. In gender we target both male and female. In the income segmentation we shall target average income families or individuals. each generation is profoundly influenced by the times in which it grows up the music, movies, and games.
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We create structure that recognizes the need for a smooth flow of ideas and implementation between sales, marketing, and website development. We can't allow the team to think as if these were separate functions. we have the president dealing with three direct reports. Admin/finance, sales/marketing, and web development. In fact we are not going to manage with a strict hierarchy, because we need to emphasize the team On the basis of semiannual our sale will increase 20%.due to high fixed cost in the 1 st six month we have net loss of (9000) Rs but the next six month our revenue will increase at 20000 Rs. Because in July December period admission are opened. Now investor can easily judge our %change of Net income on sale. 2011 Jan-June Net Profit/Sales (1.8)% 2011 July-Dec 3.43% 2012 Jan-June 4.11% 2012 July-Dec 7.42%

Company Summary 2.1 The Opportunity:

Now a days people is facing a problem of buying books, softwares, and games directly from market because parents has no time to go in market to purchase these things for their children and some students have far away from the market to buy books like as BZU and COMSATS student face this problem and some have no registered softwares. So according to these problem we will offer the product and services at low cost with free home delivery services and our cost of product will not be higher then the market price. 2.2 Mission

BuyBest offers bright children an entertaining place to interact with each other, the Web, educators, and the world in general. It generates traffic first, valuation for investors, and eventually commerce and profits. It is a healthy place for kids to play, for parents and schools to buy, and a creative and fair work environment for employees

2.3 Competitive Advantages

We will Start-up Company with five full-time employees. The company has a single office in Sahiwal. We will launch the website soon. Our key competitive advantage is the in-house knowledge base we have developed. In Sahiwal there is no competitor of online selling these products. We do not do outsourcing to sell these products. We will develop the website by the SQL TM server, and we will be adding the Flash TM integration of these skills.
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BuyBest has competitive edges which are based on their core competencies, and have advantage of having established relationships with customers, wholesalers, business. BuyBest has received affirmation of the demand for their product in the form of requests from wholesalers. The main competitive advantage of BuyBest is free home delivery. The BuyBest.com e-commerce site will be built on a three-tier structure. Driven by SQL servers and an IIS Web server backed with bandwidth, the site will be coded mostly in ColdFusion and ASP. We will be taking our registration databases live to be able to email updates on products and the website to customers. We will offer customers the option to take themselves out of the list.

The information architecture will be based on four fundamental arenas the free valuable information arena, the product detail arena, the final purchasing arena, and the purchase administration area. The purchase arena will require a Verisign certificate and a Cybercash connection. That will begin immediately because dealing with Cybercash can sometimes be a lengthy process. 2.4 Start-up Summary

Our start-up costs come to Rs 180000, because of our commitment to dominate the Internet market place. Our development costs are high, due to some little bit high fixed cost. Our human resources costs are not as high as they might be particularly for the talented programmers that we need. Marketing expenses are also high, but spending on the costly development of this site without promoting it appropriately would make it difficult to gather together the traffic necessary to make this a success. Our location leverages our partner potential, even though we are paying a premium for space and for talent due to development costs. Table: 2.1 Start-up Requirements

Expenses Legal Software Design Work Programming Rent Other Total Start-up Expenses Start-up Assets Needed

Rs 5000 45000 15000 10000 5000 20000 100000

25,000 Cash Balance on hand Start-up Inventory Other Assets Total Assets 185000 Total Requirements 85000 60000

Management Summary 3.1 Legal Form of Business

Partnership remains a common mode of business enterprise in Pakistan for small to medium business set-ups. Partnerships are normally formed where there is a desire to have some structural flexibility along with some formality of relationship between partners. There is no compulsory requirement for registration of a partnership in Pakistan. Nonetheless some litigation and tax related consequences and advantages are linked to a registered partnership. A partnership may be registered with the Registrar of Firms of an area where the office of the firm is situated or proposed to be situated. A statement in prescribed form must be delivered to the relevant Registrar stating:

Firm name (BuyBest) Place or principal place of business of the firm (Sahiwal) Names of any other places where the firm carries on business (No) Date when each partner joined the firm (01-01-2011) Names in full and permanent addresses of the partners (BuyBest Saddar Bazar Sahiwal. Phone# 03136419285)

Duration of the firm (15 year)

BuyBest management consists of five full-time employees. Additional sale person will be acquired on a part-time basis.

3.2 Intellectual Property

To prevent the making, using or selling the products we take descriptive trademark of our business logo, because it become distinctive over a significant period of time and we gained customer recognition before it can be registered.

3.3 Organizational Structure

We need an agile organizational structure that recognizes the need for a smooth flow of ideas and implementation between sales, marketing, and website development. We can't allow the team to think as if these were separate functions. On the surface, however, we have the president dealing with three direct reports, Admin/finance, sales/marketing, and web development. In fact we are not going to manage with a strict hierarchy, because we need to emphasize the team. Still, particularly as we grow in size, structure is necessary. We will want to preserve decision-making power, and the ability to act, rather than trying to do everything by consensus.

Managing Director

Admin/Finance

Sale/Marketing

Web Development

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3.4 Personnel Plan

2011(Rs) Sales and Marketing Personnel Sales/Mktg. Other Sub Total General and Administrative Personnel Sub Total Web Development 288000 10000 298000 30000 30000 15000 312000 12000 324000 61000 61000 18000 504000 15000 519000 80000 80000 22000 2012(Rs) 2013(Rs)

Sub Total Total People Total Payroll

15000 5 343000

18000 5 403000

22000 6 621000

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Industry Analysis 4.1 Industry Description

In Pakistan online shopping trends have not flourished to the extent it has, in other parts of the world. Through much time has been passed since the introduction of computer and internet technology in Pakistan, yet the market has failed to develop to a larger level, as much as it has developed in other countries e.g. India. All reasons have their impact as a whole but trends towards trusting internet with money related issues and transactions is not much prevalent in online shopping in Pakistan. One of the major causes that contribute towards the slow evolution of online shopping industry and ecommerce-based businesses is that the unfair trends in the retail industry and no hard and fast implementation of consumer code which is experienced in the brick and mortar retail businesses. These scenarios have limited customers point of view to actually see and analyze the product and deal with naked eye. Also the uneven prices and demand supply cycles have made customer very insecure. The local customer thus, fears being robbed in market as there is a great mistrust between the two parties. The quality of products on the other hand is also a crucial issue for the retailers as well as customers. Due to these present scenarios in the physical markets, it is very difficult for the user to buy online. As trusting a picture, does not appear to be a wise idea, when the actual markets do not carry quality products and reliable transactions. The retailers therefore are reluctant to use this medium as a way to reach for their potential customers. They are aware of the customer insecurities. One more reason which contributes towards the slow pace of development of online shopping in Pakistan is the low income level. This trigger people to bargain more on the products and serves they want to avail. Pakistans IT industry has been rising steadily since the last three years. A marked increase in software export figures are an indication of this booming industrys potential. The total number of IT companies increased to 1306 and the total estimated size of IT industry is $2.8 billion. In 2007, Pakistan was for the first time featured in the Global Services Location Index by A.T. Kearney and was rated as the 30th best location for off shoring. By 2009, Pakistan had improved its rank by ten places to reach 20th.
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Number of Computer Users The main target market is Sahiwal division. In this division approximately 50% of total population which are computer users. The internet users in Sahiwal division are; 1) PTCL Broadband: total PTCL broadband connections are 10000 out of which 7500 are regular users and the remaining are temporary users. 2) Wateen: Wateen internet users are total 2560 only in Sahiwal. It includes outdoor, indoor and USB connections.

4.2 Target Market

While we have plans to expand into international territory, our initial launch will target our most important market the Sahiwalian upper class. We know that most of our clients have very good taste they spend money on their children because they can appreciate the technology that we have created. They also generally have high bandwidth connections. The market for games and softwares divided into two distinct segments:

Individual consumers: this group is parents or grandparents who are purchasing the toy for a specific child. Wholesale purchasers: this segment is schools, daycare centers, etc., commercial businesses that are buying the product for their clients to use.

BuyBest has decided to sell direct to the consumer instead of using the traditional layered distribution system that uses wholesalers to sell to retailers. While this creates more work for BuyBest in terms of generating sales, it provides better margins. Additionally, this process will be more costly for the first few years; however, once relationships are developed with individual consumers as well as the wholesale purchasers, the marketing cost per sale will dramatically decrease as the original
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customers become familiar with BuyBest's outstanding product line and continue to make purchases. 4.2.1 Market Segmentation As mentioned in the previous section BuyBest has segmented the market into two distinct customers, individuals and businesses.

Individuals: this segment is people buying a single product for their child or someone that they know. The demographics for this segment are a household income of >12000, have high aspirations for their children in terms of education and development and want to get started as soon as possible. Generally they have at least an undergraduate degree.

Businesses: this group is buying the books for children who are the business' clients. These organizations typically are either day care based, or school based such as nursery school or Pre School. The number of children that they care for generally ranges from seven to 25.

4.2.1.1Geographic Segmentation: Geographic Segmentation calls for division of the market into different geographical units such as nations, states, regions, countries, cities or neighborhoods. One of the major geographical segmentation variables relevant for marketers in Pakistan is the division of markets into rural and urban areas. Rural and urban markets differ on a number of important parameters such as literacy levels, income, spending power, and availability of infrastructure such as electricity, telephone network, and roads; as well as social and cultural orientations of people that affect the market potential, and buying patterns and habits. The size of the Geographical marketers is an important consideration while deciding the concentration of marketing efforts. Issues relating to logistics for serving the diverse geographical marketers segments also need attention from marketers. Geographical markets also vary in their product requirement. According to all these points we will target the Sahiwal urban area.

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4.2.1.2 Demographic Segmentation: In the demographic segmentation, we divide the market in to groups on the basis of variables such as age, family size, family life cycle, gender, income, occupation, education, religion, race, generation, nationality and social class. One reason demographic variable are so popular with marketers is that they are often associated with consumer needs and wants. Consumer wants and abilities change with age and life cycle. Our target market is child, young and old age people. In gender we target both male and female. In the income segmentation we shall target average income families or individuals. Each generation is profoundly influenced by the times in which it grows up the music, movies, games, and politics.

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4.3 Competitive position within target market

Our Business Competitor A Competitor A

Product or services High quality product Medium quality, no Medium quality, no strategies with customization, customization ordering ease, returns, free home delivery services Pricing Strategies Perceived-value pricing(Low) Distribution Strategies Promotion Strategies Strength Weakness Direct interact with Advertisement, customer, Ads, Banner Advertisement, Banner direct Excellent and stable with staff, offering Direct Medium(Value pricing) Indirect indirect High(Value pricing) customization

and Excellent and stable Not staff, customer offering communicate personalized Lack of experience.

customer, have a personalized customer service.

service. huge experience

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5 Marketing Plan
BuyBest will be offering a steadily increasing mix of three lines of products:

Books: there should be a selection of books that appeal specifically to the parents and educators of the target market, so that these interested adults can go to this site and order books about their children. In addition, of course there is also a selection of books to be ordered by and for the kids to read.

Software and games: carefully selected software to appeal to the target market and target parents and educators.

5.1 Product Description

In the plan this is a detailed description of the specific games, books, and software that are included on the website. Books: Educational, Religious, Technical, Sports, Magazine, Poetry, History. Software and Games: Registered Antivirus, Driver Utilities, Windows, Programming software and games (Cod4, CS source)

5.3 Sales Literature

Our answer to sales literature is the web. Within six months we should also have a printed catalog that we can send to people to go along with the web purchasing process, because some buyers will want to refer to a hard-copy catalog.

5.3 Future Products

The Internet reinvents itself every three months, or even faster. Our strategy for future development is to remain positioned with enough flexibility to adapt new technologies, and adapt to changes quickly. In the future we will try to offer new product which is not yet offered in Sahiwal market with the increasing of organizational structure. Now we
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purchase these products from local market but with the passage of time in expansion we will these things from whole seller due to which our cost will be low.

5.4 Strategy and Implementation Summary

BuyBest strategy is to expand in the variety of products in order to fulfill the requests of customers and wholesalers with whom we will deal for larger orders which we will unable to fulfill. In addition BuyBest seeks to establish additional contracts with wholesalers on the Sahiwal region and increase the volume of books, softwares and games sold on the market. We intend to first maximize quantity of softwares and games and also try to establish additional accounts through targeted marketing efforts. 5.4.1 Strategy Pyramids

Our main strategy is to communicate the unique and desired attributes of our larger segments of the Sahiwalian markets. We sell a superior product, yet one that can be considered a commodity. It is therefore important that we effectively communicate the unique aspects which make it ideally suited for a niche market. The unique aspects of our products include superior product selection and preparation, quality assurance, and efficient distribution. The tactics we will use to communicate these strengths include, personal selling, targeted print advertising, and improved communication capabilities via information system improvements and a sophisticated website. As tactics, we have identified three specialty publications in the Sahiwal in which we will run print ads. We also plan to increase personal selling efforts to additional Sahiwal wholesalers.

5.5 Marketing Strategy

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BuyBest marketing strategy will include the use of targeted print media advertising and direct selling to customers and wholesalers in the Sahiwal. We will capitalize on relationships with customers and wholesalers who have stated their willingness to contact us. We have positioned ourselves as a differentiated provider of the highest quality products. The primary goal of all marketing efforts will be to communicate this to potential customers. The marketing strategy will emphasize the fact that BuyBest's products are truly educational devices that are fun. This is an important message because parents will want their children to play with this type of toy. The element of "toy" in the product is used to keep the children engaged in the product, something often difficult to do with most educational devices. The marketing strategy will recognize and account for the fact that there are two distinct customer groups that must be attracted. To capture the awareness of both groups, BuyBest recognizes that the groups are very different regardless that they are buying the same product. BuyBest will use advertisements and direct mailings. The advertisements will be placed in magazines or journals chosen specifically recognizing who the target audience is. Magazines will be used for the individuals market and a combination of magazines and journals will be used for the businesses segment.

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5.5.1 Pricing Strategy

Because BuyBest adheres to higher quality standards, the price of our product is slightly varied than the market average, because we delivered the product according to customer demand. 5.5.2 Promotion Strategy

Relationships are key to success in the run business. In addition to personal selling BuyBest has identified several specialty publications within which print advertisements will run. Direct mail, in the form of personal letters will also be used to communicate with potential customers. Our budget for promotion activities is as follows:

Personal selling which includes phone expenses Rs 75000 annually Print Advertising in publications and direct mail Rs 50000 annually To upgrade website and maintain the site Rs 30000 annually

5.5.3 Distribution Strategy

Distribution is one of the greatest challenges will faced by BuyBest. The distribution system of Sahiwal is largely outdated and inefficient. Moreover, taxes, specifically excise taxes are high. Distribution costs for internal sales are absorbed by the customer due to which product price can be increase. Increasing the volume of our selling products makes us eligible to receive reduced fees and helps ensure that trucks and rail cars are running at maximum capacity. 5.5.4 Sales Strategy The sales strategy will be tailored for each customer group. The sales strategy for individuals is to create enough awareness of BuyBest so that customers are asking their retailers to carry BuyBest for them. To address the business segment, it is BuyBest's
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goal that the businesses are not just buying one or two of the products but that they are buying all of them addressing different skills, all of which are important. This is especially important as businesses are generally repeat customers, meaning that if the customer is happy with the product, it is more than likely that they will become a longterm customer and not look for new vendors.

5.6 Sales Forecast

The first three months will not see any sales as the organization will be ramping up production and establishing sales channels. The first year is forecasted to have a fairly slow sales forecast because of the fact that BuyBest is a start-up organization. Growth for year two and year three should be fairly steep. After year four it is forecasted that growth will continue, but at a more sustainable rate than during the second and third year.

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6 Operational Plan 6.1 Location of office

Our office is located at Saddar Bazar Sahiwal.

6.2 Product and Service Execution Model

Products and services can be delivered through following methods; Office: customers can order by visiting our office. Online: customers can order through our website and they can get services at their door step. Our product and services execution model for the 1st year is as follows; Figure 5.4.1 Year 2011 June July August Sep Dec Location Selection Office Development Online ordering to Jan May to

Delivery of Services Targeting new location

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6.3 Quality Control

6.3.1 Product Differentiation In the product differentiation we control the quality through the Form, Features, Customization and Performance quality of product. Form Many products can be differentiated in Form- the size, shape or physical structure of a product. Game and softwares can be differentiated in the form of size for-example it can be available on CD and DVD. Toys can be differentiated in the form of shape. Features Most products can be offered with varying features that supplement their basic function. According to customer demand we decide whether to offer features customization at a higher cost or a few standard packages at a lower cost. Customization We do Mass customization is the ability of a company to meet each customers requirement. To prepare on a mass basis individually designed products, services, programs and communications. Performance Quality Our some products are offered at one of four performance levels: low, average, High, or superior. Performance quality is the level at which the products primary characteristics. Quality is becoming an increasingly important dimension for differentiation as companies adopt a value model and provide higher quality for less money. 6.3.2 Services Differentiation In the services differentiation we provide the customer support through ordering ease, delivery, Installation. Ordering ease

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It refers to how easy it is for customer to place an order with the company. So due to this we take the order form customer through email and mobile message. Delivery It refers to how well the products or services are brought to the customer. It includes speed accuracy and care throughout the process. And we will deliver the products to customer on these fundamentals. Installation It refers to the work done to make a product operational in its planned location. Buyers of heavy equipment expect good installation. We offer these services in games and softwares products.

6.4 Customer Support Obligations

In addition, we focus on offering you professional customer support solutions (like as software installation and games)

Our sophisticated training programs in future will help ensure that we shall deliver you a world-class customer support solution that results in increased customer satisfaction with every interaction we have with your customers.

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7 Financial Plan

This is an Internet venture that, of course, depends on the developing financial prospects of the growing Internet world. To make it work financially, we need to increase valuation on schedule to bring in substantial additional capital. Additional technology will be primarily financed with cash-flow.

7.1 Income Statement

2011 Jan-June Sales Direct Cost of sale Gross Margin Gross Margin % Expenses Payroll 22500 22500 149000 39500 162000 39500 162000 500000 (325000) 175000 35% 2011 July-Dec 600000 (390000) 210000 35% 2012 Jan-June 720000 (468000) 252000 35% 2012 July-Dec 864000 (561600) 302400 35%

Sales and Marketing 149000 Expenses Utilities Total expenses 5000 176500

6000 176500 33500

6000 207500 44500

7000 207500 94900

Profit Before Interest (1500) and Taxes Interest Profit Before Taxes TAX 25% Net Profit Net Profit/Sales (7500) (9000) 0 (9000) (1.8)%

(6000) 27500 (6875) 20625 3.43%

(5000) 39500 (9875) 29625 4.11%

(4000) 90900 (22725) 68175 7.42%

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7.2 Capital Budget

2011 Jan-June Net Cash flow TAX 25% After tax (9000) 0 Net (9000)

2011 July-Dec 27500 (6875) 20625

2012 Jan-June 39500 (9875) 29625

2012 July-Dec 90900 (22725) 68175

cash flow Discount Factor 0.86 (15%) Present Value (7740) 15675 19553 38860 0.76 0.66 0.57

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7.3 Cash Flow

2011 Jan-June Cash Received Cash Sales Subtotal 500000 Cash 500000

2011 July-Dec

2012 Jan-June

2012 July-Dec

600000 600000

720000 720000

864000 864000

from Operations Current Borrowing Subtotal Received Expenditures Cash Spending Repayment Current Borrowing Long-term Assets Subtotal Spent Net Cash Flow 452500 542500 570500 704500 Cash 122500 117500 199500 199500 85000 85000 150000 150000 22500 of 15000 22500 10000 39500 10000 39500 10000 Cash 5750000 660000 770000 904000 75000 60000 50000 40000

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7.3 Balance Sheet

2011 Jan-June Assets Cash Long-term Assets Total Assets Liabilities Capital Current Borrowing Paid-in Capital Retained Earnings Net Profit (9000) 200000 (141000) 60000 and 110000 25,000 85000

2011 July-Dec

2012 Jan-June

2012 July-Dec

35000 85000

60000 150000

80000 150000

120000

210000

230000

50000

40000

30000

200000 (150625)

200000 (59265)

200000 (68175)

20625 120000

29625 210000

68175 230000

Total Liabilities 110000 and Capital

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7.4 Ratio Analysis

2011 Jan-June Net Profit/Sales Net with Sales Growth Current ratio Current Assets Dividend Payout 0.00 (1.8)% 35000 120% 0.33

2011 July-Dec 3.43% 60000 120% 0.58 0.5

2012 Jan-June 4.11% 160000 120% 1.2 0.24

2012 July-Dec 7.42% 190000 120% 2 0.17

Debt/Total 0.68

0.00

0.00

0.00

Figure 7.1

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Figure 7.2

8 Critical Risk Factors 8.1 Management Risk

Management Risk becomes even more important if our business decides to try something new, for example launch a new product or enter new markets. Competitors following us into these markets, or breakthroughs in technology which make our product redundant, are two risks you may want to consider in cases such as these.

Allows us to anticipate what may go wrong, minimizing the amount of fire-fighting we have to do or, in a worst-case scenario, preventing a disaster or serious financial loss

significantly improves the probability that we will deliver our business plan on time and to budget

helps us allocate capital and resources more efficiently

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8.2 Operational risks

Operational risks are associated with our business operational and administrative procedures. These include: supply chain transportation accounting controls IT systems regulations board composition

We should examine these operations in turn, priorities the risks and make necessary provisions. For example, if we rely on one IT systems for a key component then we could source experienced web developer to help us minimize the risk. If our business makes and receives regular deliveries, consider drawing up a continuity plan to help us maintain operations in the event of a fuel strike or shortage.

8.3 Financial risks

Financial risks are associated with our business' financial structure and systems and the transactions our business makes. Identifying financial risk involves examining our daily financial operations, especially cash flow. If our business is too dependent on a single customer and they became unable to pay us, this could have serious implications for our business' viability. How to identify potential cash flow problems. We might examine:

how we extend credit to customers who owes us money

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how we can recover it insurance to cover large or doubtful debts

Financial risk assessment should also take into account external factors such as interest rates. Rate changes will affect our debt repayments and the competitiveness of our goods and services.

8.4 Compliance risk

Compliance risks are those associated with the need to comply with laws and regulations. They also apply to the need to act in a manner which investors and customers expect, for example, by ensuring proper corporate governance and ethical issue and health and safety laws.

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References

http://tahseenbutt.com/business_formation_pakistan.html http://www.euromonitor.com/retailing-in-pakistan/report http://business.ezinemark.com/how-to-change-online-shopping-trends-inpakistan-7d2df459e0b6.html

http://en.wikipedia.org/wiki/Economy_of_Pakistan#IT_industry http://www.businesslink.gov.uk/bdotg/action/detail? itemId=1074405230&r.i=1074405670&r.l1=1074404796&r.l2=1079050214&r.l3= 1074404839&r.s=sc&r.t=RESOURCES&type=RESOURCES

http://www.bplans.com/financial_planning_business_plan/executive_summary_fc .php

http://mypersonalplanning.com/ http://personalstrategicplan.com/ Philips Kilter, principle of marketing http://tradeinservices.mofcom.gov.cn/en/i/2008-03-26/27258.shtml PTCL:Number of internet users [Interview] / interv. Sohail Mirza. - March 29, 2011.

WATEEN:Number of Internet Users [Interview] / interv. Umais. - March 29, 2011.

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