Escolar Documentos
Profissional Documentos
Cultura Documentos
BUSINESS PLAN
Submitted By:
ANUM ZULFIQAR
2014\COMP\BS.SE\16859
KANZA ASIF
2014\COMP\BS(SE)\16877
MARYUM BATOOL
2014\COMP\BS(SE)\16788
Business Plan
OWNERS
Kanza Asif
Mariam Batool
Anum Zulfiqar
03341120488
EMai: craftasticcrochet@gmail.com
Table Of Content
I. Table of Contents ................................................................................................. 3
II. Executive Summary............................................................................................. 4
III. General Company Description.......................................................................... 5
IV. Products and Services......................................................................................... 8
V. Marketing Plan...................................................................................................10
VI. Operational Plan................................................................................................15
VII. Management and Organization....................................................................... 20
VIII. Personal Financial Statement..........................................................................22
IX. Startup Expenses and Capitalization ...............................................................24
X. Financial Plan ....................................................................................................27
XI. Appendices.......................................................................................................30
XII. Refining the Plan..............................................................................................32
Chapter II
Executive Summary
Under this, at first I generated the product idea of handmade crochet items, matching with my
profile (as every item will be made by me). The main object of the study is to analysis the
crochet manufacturing plant. After the idea generation, the industry analysis at both the global
and domestic level was done to understand the market trends and other factors. Then the market
analysis was done through the survey in the form of questionnaires. After this through the
statistical techniques we did the demand analysis.
After completing the demand analysis we did the financial analysis to check the financial
feasibility of the project. It involves the balance sheet statement and cash flow statement. And at
last we did the risk analysis to estimate the risk involved in this project. We did these analyses to
gather all possible information related to our type of product.
At first we have decided to do our business only at national level and then gradually we will
extend it to international level.
On the whole it was a wonderful experience and a great learning opportunity. The complete
project was an eye opener which added to my theoretical knowledge. There were times when I
was disheartened and disappointed b/c I was not able to manage my orders but gradually
everything become fine and in the end it made me feel proud.
Success does not come at once; one has to start right from the scratch and struggle his way
through all hardships with courage and determination.
Chapter III
General Company Description
Company:
Craftastic Crochet is an online store of handmade crochet items that includes crochet purses,
crochet clutches, crochet bags, crochet mobile covers crochet key chains and crochet bangles.
Our initial goal is to provide handmade crochet items to everyone living around Pakistan as
crochet items are very unique and it cant easily be found. For future we have planed to expand
our business by opening a permanent meaning point or you can say crochet store at good
location. And further more we have decided to take orders globally around the world.
Our each and every product is made by us, so we can give Garnett of the quality of our products.
Mission Statement:
To act as a single point of contact for all crochet items in international level.
Our goal is to create attractive handmade crochet items so that we could gather more
business internationally.
After some time or when more and more people will start interacting with us we will
expand our business physically.
Business Philosophy:
5
We put our Customers first and strive to secure their loyalty through top quality service.
Handicraft Industry:
Crochet comes in the handicraft industry. As we all know that handmade things are very unique
and expensive and anyone can earn a lot if they know the worth of their handicraft.
Crochet, knitting, and other handcrafts have enjoyed a surge in popularity in recent years. The
Craft and Hobby Association 2010 Attitudes & Usage Survey reported that the U.S. craft and
hobby industry had $29.2 billion in sales in 2010, of which $1.062billion was specific to crochet.
Their survey covered 114 million U.S. households and reported that 17.4 million reported that
they had engaged in crocheting in the last year, ranking it third among the crafts and hobbies
profiled in the survey, and above other needle crafts such as knitting and cross-stitch (Craft and
Hobby Association, 2011).
Our biggest strength of our business is that our each and every product is made by us, so
Keys to Success:
1. While have a good location in future.
2. Quality product and good relationships with vendors
3. Outstanding customer service.
Company Ownership:
Kanza Asif , Anum Zulfiqar, and Mariam Batool, we the are the owners of Craftastic Crochet or
you can say we fours are the partners. We are having partnership of 50%, 25% & 25% each
partner, as Anum and Mariam are ther invertors + my (Kanza) partners. I (Kanza) am the only
one who use to make our crochet items and Anum and Mariam and plus I (Kanza) have invested
on the items through with I use to make crochet products. If the business dissolves in future
because of some reason so we will equally contribute the items b/w us.
Chapter IV
Products and Service
What is crochet?
Crocheting is a pastime which has been enjoyed for many years by our mothers and
grandmothers alike. And, it has been popular for good reasons. Crocheting not only allows you to
make something wonderful garments and household decorative items, but it also allows you to
create while you relax and watch television or listen to music as well.
Crochet gives you an amazing sense of accomplishment when you are finished with a project.
Whether you are making a blanket, sweater or even a simple scarf, you will be proud to show off
your handiwork work when you have finished it
.
Business Poster:
Chapter V
Marketing Plan
Marketing:
We consider marketing as the important process of communicating the value of our
products and / or service to potential customers, for the purpose of selling product or
service. The marketing mix is the combination of product, price, place and promotion for
any Crochet Business.
The marketing mix and the 4 Ps of marketing are often used as synonyms for each other.
In fact, they are not necessarily the same thing.
"Marketing mix" is a general phrase used to describe the different kinds of choices
Crochet Businesses have to make in the whole process of bringing a product or service to
market. The 4Ps is one way probably the best-known way of defining the marketing
mix, and was first expressed in 1960 by E J McCarthy.
Place.
Price.
Promotion.
Marketing Objectives:
Our marketing objectives are as follows:
Increase product awareness among our target audience, and keep them aware of our
Economics:
Economic condition of Pakistan related to crochet is not really very well but still it stands among
the crochet exporters especially yarn exporters and other threads. Pakistan exported US$ 1.65
million worth of textile thread in the year 2007, most of which comprised of cotton thread. Our
exports to China for the same year were only US$ 0.25 million.
Target markets:
The following table shows the target areas that our business will focus on during the first three
years of its operation.
Year
1st Year
2nd Year
3rd Year
Target Areas
North Nazimabad
Nazimabad
Defense
Barriers we faced:
The only barrier we face was the Consumer acceptance and brand recognition. And we will
overcome this barrier by good marketing and by promotions.
Product / Services:
11
We have shown a brief description about our product and service in the product and service
chapter and now we will describe it in detail.
The most important feature of Craftastic Crochet is that we also provide crochet key
chains that are rarely found.
The most important benefit of Craftastic Crochet is that customers can easily reach us
through social media that is internet. As we have started our business as online business.
Customers:
Basically crochet is a girly thing and according to our product list mostly women and girls will
be our customers with no age limitation.
Competitive Risks:
As such we dont have any competitive risk as crochet items are rarely found in the local market.
But in social media or you can say on internet may other online companies are providing crochet
items but their prices are too high that we expect that our product can easily make its place in the
market.
Marketing Strategy:
Marketing strategy provides the critical link between what your business will provide, and
how you will create revenue. So at the current motion we have just started our new business
so at the moment our marketing strategy is creating posters, brochures and business cards so
that people could start knowing our product. We also have planned to provide budget
12
packages to attract people As we all know that for good business we always need a good
marketing strategy so that we could get successful.
Promotion:
We will provide sample pieces of our product to the people so that they could take interest in our
product. As soon as more will start taking interest in our product we will soon launch new
products in the market.
Promotional Budget
We will try our best to spend less on promotion and gather more people.
Pricing:
As we have started a new business so for good market response it is necessary or very important for
us to keep the prices of our product low according to the market so that people could get attracted by
our product.
S. No.
Items
1
2
3
4
Crochet Purses
Crochet Bangles
Crochet Key Chains
Crochet Mobile
Craftastic Crochet
Other Online
Price Range
Companies Price
500 2000 Rs
100 250 Rs
80 175 Rs
250 400 Rs
Range
1000 3000 Rs
120 300 Rs
120 200 Rs
300 500 Rs
Covers
Distribution Channels
As our Business in only online business so firstly we take orders throught social media that is:
Web side
Facebook page
13
Delivery Timings:
We use to take at least take 7 days time for small orders and for big orders we take at least
15 days of time to prepare it and then deliver it.
Chapter VI
OPERATIONAL PLAN
14
In this section we discuss about the operation we used in our business clearly. We define all the
stages that will make our business successful.
PRODUCTION:
Craftastic crochet is the idea which is reveal according to the needs of our society especially for
women and girls we are giving them branded and keychain, purses which is in fashion and
artificial who looks elegant.
Quality control:
It is a process by which entities review the quality of all factors involved in production. Quality
control emphasizes testing of our products to uncover defects and reporting to management who
make the decision to allow or deny product release, whereas quality assurance attempts to
improve and stabilize production (and associated processes) to avoid, or at least minimize,
issues which led to the defect(s) in the first place.
Customer service:
Your employees will need other skills -- organizing inventory, operating the register, handling
paperwork -- but if they don't send your customers away happy, none of that will matter.
According to the firm Only Garment Racks, when customers describe a positive key chains and
purses experience, good customer service is what they mention first.
15
Inventory control:
The most vital asset to a small clothing and jewelry business is its inventory. Accordingly,
effective inventory management is critical to managing costs, measuring shrinkage and
improving the customer shopping experience. Thus, our management can implement various
inventory management practices.
1. Location:
Someone say that the three most important considerations in business is location. If you're
starting a new business that operates primarily offline, location is still critical. But is it critical for
online businesses, too? Yes, but in a different way. Online location is akin to having the right
URL and the right keywords and the right text-based advertising (like Google Ad Words).so we
make over website easy to find our website is fully secure we also focused to reply of our
customers mail. The website is:
Portable
Secure
Fact
Easy to use
Search capability
Speed
Email response system
Structure and organization of information
16
We are delivered the product on order by shipping through the services of TCS,
LEOPARD and FEDIX.
We are selling our product through website mean craftastic crochet is e-commerce
business but if our business grow successfully we will construct craftastic crochet stores
in our country in the best areas of country where our customer feel easy to come in our
stores.
2. Legal Environment:
Craftastic crochet have many support from our product brands, so we have a copyright
to sell heir products.
3. Personnel:
Numbers of Employees:
Type of labor:
Pay Structure:
17
Staff members
Year 1
Marketing/Website
Director
Design Director
Year 2
Year 3
10,000 rs
55,000 rs
60,000 rs
10,000 rs
55,000 rs
60,000 rs
Designers
2,000 rs
90,000 rs
94,000 rs
Web Administrator
3,000 rs
52,000 rs
56,000 rs
Office Manager
3,000 rs
39,000 rs
42,000 rs
Marketing Staff
8,000 rs
84,000 rs
90,000 rs
Accountant
3,000 rs
44,000 rs
48,000 rs
others
3,600 rs
44,000 rs
46,200 rs
Total people
Total payroll
42,000rupees
463000 rs
496200 rs
address
Phone number
Naseem
0900-78601
Umair
Cap ount,st-115
112-44-662
Ali
Liyaar,bandra road,st-18
111-222-105
We are the first time inventors, so we need guidance experience people guide us that
how to run this business. We invest 50,000 rupees each month.
Chapter VII
19
20,000
Current
10,000
30 Days
60 Days
90 Days
Over
90 days
25,000
45,000
85,000
95,000
we make a call to over customer if payment is not come in our account after 1 day.
If customer not responding continuously four time than we send them letter
Accounts
Receivable
Aging
Total
Current
10,000
9,000
30 Days
60 Days
90 Days
Over
90 days
20,000
25,000
28,000
95s,000
20
Organizational Management:
Firstly I will tell what is organizational management? The organizational management of
a business needs to be able to make decisions and resolve issues in order to be both effective and
beneficial. So as we have started our business in a small plat form and as we make our product
by our ownself so therefore each and every thing is managed and organized by ourself.
Chapter VIII
21
COSTS
100
200
100
100
85
250
1500,1800,150,200,400,350
150
200
2 Bangles
Doll Key chains
Heart Key Chain
Purse key chain
Alphabet key chain
Mobile Covers
Purses
4 Bangels
6 Bangels
Customer Services:
Products
2 Bangles
Doll Key chains
Purse key chain
Heart Key Chain
Alphabet key chain
Mobile Covers
Purses
4 Bangels
6 Bangels
Orignal Price
100
200
100
100
85
250
1500,1800,150,200,400,350
150
250
22
Discount
80
185
80
100
75
200
140
200
23
Chapter IX
Startup Expenses and capitalization
FUNDIND
ESTIMATED
ACTUAL
UNDER(OVER)
OWNER_1
2,500
2,000
500
OWNER_2
2,500
2,000
500
OWNER_3
2,500
2,000
500
TOTAL
7,500
6,000
1,500
BANK LOAN_1
___
___
___
BANK LOAN_2
___
___
___
BANK LOAN_3
___
___
___
___
___
___
GRANT _1
___
___
___
GRANT _2
___
___
___
GRANT _3
___
___
___
TOTAL OTHER
FUNDING
___
___
___
TOTAL LOAN
24
TOTAL FUNDING
7,500
COST
ESTIMATED
ACTUAL
UNDER(OVER)
EXPENSES
Salary of management
___
___
___
___
___
___
Rents
250
250
___
Delivery expenses
250
250
___
Advertising
650
600
50
Telephone
200
200
___
Insurance
___
___
___
Taxes
___
___
___
Interest
___
___
___
Decorating
600
600
___
stationary
150
150
___
Other expenses
300
300
___
TOTAL EXPENSES
2,350
25
COST
ESTIMATED
ACTUAL
UNDER(OVER)
ASSETS
Land
___
___
___
Building
___
___
___
Equipment
___
___
___
Other
___
___
___
Total Assets
___
___
___
TOTAL ASSETS
2,350
26
Chapter X
Financial Planning
How our Financial Planning Process is Different
Traditional financial planning focuses on capital needs analysis, where advisors create a detailed
cash flow for their clients based on assumptions of income, expenses and taxes over the next 20
years. The only thing we know for sure is most of these assumptions will be wrong. No one can
predict that level of detail so many years into the future.
Next, lets consider rates of return. In retirement, over a period of 30 to 40 years, small changes
in rates of return can have a huge impact on a clients plan. The best we can do is to construct a
portfolio and make some estimates about how it will perform. If we predict an annual return of
8%, and the clients receive an overall return close to 8%, were doing great. Instead, advisors
often input every stock, every mutual fund, and every bond, and predict the return for each of
these securities over 30 years including growth rates, dividend yields, tax treatment, tax rates,
and other complex calculations. Thats a different level of detail. It actually makes the end result
of the plan LESS meaningful because weve created even more assumptions, which will most
likely prove to be inaccurate.
More data does not make a plan more certain or more accurate. More data, more assumptions,
and more moving parts in a financial forecast dont create more useful results.Think about a 30year plan. We can assure you almost every assumption included will be inaccurate by the end of
the plan. This doesnt mean the assumptions are bad, or you should not make assumptions. It
means we should make as few assumptions as possible, and focus on what really matters.
Our financial plans focus on the most significant factors. Since no one can guarantee the
accuracy of any assumption, we limit the assumptions to those most reasonable to predict. With
returns, for example, we believe is the long-term return on a portfolio, re-balanced annually is
much more meaningful than trying to predict the performance of individual holdings.Focusing
on clients savings and its relation to their current lifestyle is more reasonable than trying to
predict their actual income and expenses for the next 30 years. Many people cannot budget for a
year, or manage their life to a budget. Its better to focus on what they save. Look at clients
income this year, and see what theyre saving and/or contributing to a 401(k) or IRA. Then, if the
clients arent saving enough or dont know how theyre spending their money, they may need to
create a budget. The difference, with us, is you didnt start with the budget.
Financial planning is an ongoing process. We want to show clients a plan is a range of
possibilities and needs to be frequently updated. A plan helps clients make more appropriate
decisions, because they have better information. When a client is focused only on short-term
returns, they miss the big picture. If you can instead show them how a loss impacts a 30-year
plan, the effect is dampened.
27
One of the worst things advisors have done is to focus clients on a quarterly statement of
portfolio performance. When returns go down in a quarter or for a year, the clients see they lost
money. When discussing progress towards their goals with clients, its important to provide the
context of a long-term plan, not to sell quarterly returns.
Cash Flow
Beginning Cash
Sales Income
Sales of Assets
Loans
Capital
Total Cash In
Cash Outflow
Salaries
Other Operating
expenses
Loan payment
Capital Expanses
Tax Payments
Total Cash out
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
4,000
0
0
4,000
0
4,000
0
0
4,000
0
4,250
0
0
4,250
July
August
8,500
13,500
0
0
0
22,000
8,500
13,500
0
0
0
22,000
Septemb
er
9,000
14,500
0
0
0
23,500
Octobe
r
9,000
14,500
0
0
0
23,500
Novemb
er
9,000
14,500
0
0
0
23,500
Decemb
er
10,000
16,500
0
0
0
26,500
0
4,250
0
0
0
4,250
0
0
0
5,000
0
0
0
5,000
0
0
0
5,000
0
0
0
5,000
0
0
28
4,250
4,250
5,000
5,000
5,000
5,000
April to June
July to
September
October to
December
Cash inflows
70,000
67,500
73,500
Wages
25,000
22,000
26,000
20,000
18,000
20,000
Opening Balance
1700
11,300
15,600
Closing Balance
1700
11,300
58,000
29
Chapter XI
Appendices
30
Pena Flax
No concern
No concern
No concern
31
Chapter XII
Refining the Plan:
Craftastic Crochet a successful name in the arena of competitive business.
Certain productive measures would be taken prior;
To raise capital, loan amount would be required Rs 5,000,000/- .
Hence the funds will be used as investment to buy shop in mall for stronger financial development of
business.
Our investment would surely multiply the investment in no time.
From our shop, we would have the authenticated & popularity among the people.
This setup will ensure the customer about our business & certain business activities could be made over
there.
The repayment to bank could also be covered with shops profit
Business will tends to grow when certain investment made year to year but only if not covered with our
profit.
We have plan to work for certain multiple companies as their vendor as well & utilize the business credit
to invest more and more.
The earning profit to be shared in partners is so nominal that once business would get settle the profit
margin would be raised.
Our business positive point indicates our individuality of artistic working with no more additional cost
which depends moreover the market needs & trends. Variety of choices, double the customers interest to
select either whereas product line is self-supported with low investment with high earning.
Price of products is not fixed, as more creative & trendy will simultaneously add the high profit whereas
no risk factor of expiry or defect lies with this product line.
Strategy will be kept crystal clean & clear among partners & with clients as well
32
Innovational development along with customer service will only serve our business stronger.
Promotional activities in market & online intellectual with people will make business popular & to grow
sale thus the working policies is not limited to shop only.
Hence, with above all Craftastic Crochet is ready to launched.
33