FINANCIAL ASSIGNMENT

PROJECT
SUBMITTED BY: ERUM NAZIR
SHAHERYAR AHMED KHAN

SUBMITTED TO:

SIR AHMER KHAN

DATE:

8TH DECEMBER 2015

FINANCIAL MANAGEMENT

BUSINESS PLAN

BASIC INFORMATION:

Business:

Lavina Boutique

Location:

shop 33 at Gulistan-e-Jauhar near Aladin Park, Karachi.

Timing:

Monday to Friday from 10 am to 12 pm night

Type of Business:

Partnership.

Owners of the business:

Erum Nazir and Sheryar Ahmed.

Contact Information:

03428896524.

Website

www.lavina.bt.com.pk

INTRODUCTION:
We are going to start a new business which is a Boutique business for females only with a capital
of 500,000 and a loan investment of 250,000 borrow from our friends. It is a partnership business
and we are launching it at Gulistan-e- Jauhar near Aladin Park, Karachi. We choose this business
because in todays fast growing world everybody is very much aware about their wearing and
outlook as they are recognize by their wearing and we are providing all affordable services which
our customers might be expecting from us with quality products and timely services to make the
customer satisfied with our product its distribution isOnline. We have also the knowledge about
new trends of fashion and their latest designs and having the skills to make up best web
designing for our online boutique to make the customer attractive. We have targeted young girls
and working women for our boutique and the place which we have targeted is also a competitive
advantage for us because there is no boutique in gulistan-e-jauhar and we are confident to
capture the market there.

PRODUCT DESCRIPTION:
We have a varieties of dresses in our boutique which are as follows:

Lawn suits
Religious dresses
Frocks with fine Nets
Cotton suits
Traditional dresses (karahi suits)

DETAILS OF THE PRODUCT:

Our main focus is to provide quality dresses which fulfills our customers expectations and
providing the best customer value service in relation with cost against benefits which makes our
customer satisfy with our products(huge varieties of stylish dresses) with best quality services
which will create a good image of our boutique in the minds of customers. So that they will be
considered asour boutiques loyal customers.
TARGET MARKET:
We are generally targeting the urban areas where the new trends of fashion are the main focus of
the people. The location of the boutique is in Gulistan-e-Jauhar which is our target market. Our
main customers are the young girls especially working women age between (20 to 35 years).
SELLS AND MARKETING
The advertising is online through kaymu.pk. The production of dresses is out source we are
buying readymade clothes directly from Zainab Market, Tariq road and lawn suits from Khaadi
cloth markets. The dresses are latest and new fashion design and with the buying of 5 suits there
is 5% off as a sale with an attractive packaging service.
PRICE DETAILS:
We selling our product with an Affordable price. Each dresses have a different range of prices
and there is a special discount also and both cash and credit card payments are accepted. There is
also online Advertising of new offers of our boutique to maintain good relation with our
customers.
SWOT ANALYSIS OF LAVINA BOUTIQUE:

STENGTH
Quality product
No competitor
Latest and new print designs
Attractive web designing

OPPURTUNITY
New Innovations
Product Enlargement
New technology

WEAKENESS
Targets a niche market
Small product range
Low advertising
Low familiarity due online business

THREAT
Change in customer choices
Unstable cost

Distribution plan:
Mostly people will buy directly from the shop. But we have also selling our products online
therefore when any purchases online we will supply them through riders which we will hire.

Capital structure
Shop rent: 22000

Decoration: 50000
Boutique suits/inventory: 250000
Security camera: 50000
Office furnitures: 150000
Total: 522000
BALANCE SHEET

BALANCE SHEET
For the year ended of December 2014
ASSETS

EQUITY

Current assets

Current liabilities

Cash at bank

350,000

Loan

250,000

Inventory

250,000

Owners equity 500,000

Office furniture

150,000

Total

750,000

Total

750,000

INCOME STATEMENT
For the year ended December 2014
Sales
Less: sales discount (200,000*5%)
Net sales
Less: Operating Expense
Rent expense

200,000
(10,000)
190,000
22,000

Other expenses
Total operating expense
Gross Profit

100,000
122,000
68,000