Business Plan for a Startup Business

The business plan consists of a narrative and several financial worksheets. The narrative template
is the body of the business plan. The real value of creating a business plan is not in having the
finished product in hand; rather, the value lies in the process of researching and thinking about
your business in a systematic way. The act of planning helps you to think things through
thoroughly, study and research if you are not sure of the facts, and look at your ideas critically. It
takes time now, but avoids costly, perhaps disastrous, mistakes later.
This business plan is a generic model suitable for all types of businesses. However, you should
modify it to suit your particular circumstances. It typically takes several weeks to complete a
good plan. Most of that time is spent in research and re-thinking your ideas and assumptions.
But then, thats the value of the process. So make time to do the job properly. Those who do
never regret the effort. And finally, be sure to keep detailed notes on your sources of information
and on the assumptions underlying your financial data.

Business Plan
OWNERS
Saad shahzad, Noman Zafar, Mian Mohiuddin, Muhammad Umar, Muttayab khan

Cultural wardrobe
G-7
Al
Hafeez
82
D-1,
Gulberg III, Lahore Pakistan, 54000
Telephone
03018443002
Fax 123-216-815
E-Mail: info@culturalwardrobe.com

Main

Shopping
Boulevard,

Mall

I.

Table of Contents

Executive Summary4
Company Description...........................5
Industry..........................6
Research Analysis. ...................6
Porter Model .........................6
SWOT Analysis. .......................7
PEST Analysis.......................8
KSFS.........10
Market Research............12
Operational Plan.....14
Marketing Plan.......16
Management and Organization......18
Human Resource Management.............18
Financial Projection19
Critical Risk........28
Conclusion .29
Appendices 30
References......31

Executive Summary
Bring different cultures of Pakistan like Sindhi, Baluchi, Punjabi and KPK at one place
with lots of variety, design, color, quality. We selected that bringing different cultures
together would be a better idea. We will be covering overall cultures and we just going to
explore the main culture of Pakistan with the beauty. Our aim is to represent these
cultures in our university. People dont too much know about these cultures of these
provinces, we will try to explore them. Pakistani culture is rich in variety of dresses. The
people of Punjab, NWFP, Sindh, Baluchi, people wear their own district dresses. These
dresses are very colorful, prominent and give attractive look during national fairs and
festivals. If we talk about our products that will be the specific dress of every culture that
mostly use on certain occasions. We will target both gender as well as every age group.
Specially the institutes where childrens are supposed to wear culture dresses when they
are going to perform some tablu in their schools. All those products will be available at
one place for the convenience of the consumer. We must cover all of the typical product
as well as new products. We will open a store at main boulevard gulberg that is obviously
a best place to start up with by providing clothes. We will try to sustain our business
because one task will be to attract them to make them habitual and to give them some
know how about culture dresses and for the sustainability we will provide some new
advance unique and innovative dresses regarding the culture perspective in our mind to
enhance and make it sustain. Our investment will be the limited that can be affordable by
our members initially and its also mentioned on excel sheet and we dont need to take a
loan from bank or any other source to start up. We have some authentic contact in every
area that will be responsible for delivering the relevant products to our workplace. For
sure it requires some extra effort and time to get the things done.

II.

Imprecise Company Description

Cultural Wardrobe is a local clothing based store fulfilling the needs of every gender that is
actually to buy some cultural dresses whether its Sindhi, Baluchi, and KPK. We will provide
people with well design, quality and variety with appropriate fabric that can also be provided on
demand and order quantity. Customers will come to our shop with the idea that we provide
variety of product at fair price.
Mission Statement:
We seek to be agent of change for our clients, our people and society broadly by creating and
building the standards

Creating competitive advantage through unique and different variety.

Driving sustainable impact

Providing customers with variety of dresses

Satisfying and fulfilling the requirement and demand of customers

Succeeding together with passion, trust, significant contribution and exquisite execution

Goals
Our goal is to be sustaining in market and be the first choice of contact for our customers.
Objective
Our objective is to grow by widening the scope of our services within a year by creating and
managing our portfolio of services more profitably, increasing our revenues by 30 percent
Business Philosophy:
Our Business philosophy is continuous improvement through consistent learning from the
mistakes and creating new challenges to pursue and excel in those areas.
Our target market would be very important and the essence of the business including residents,
small businesses.

Industry
We are in a clothing industry and there is a lot of potential in the market which is still need to be
unleashed. There is a higher potential because of change in the mindset, social values, structural
reforms in the culture due to economic development in the country.
In the long run, future seems even bright as these clothing dresses would be a common fashion
among everyone because of trend, quality, design, features.
Our Strengths are trained staff, faster execution, security measures.
Our major competitive strengths would be the way we will present ourselves in the market with
the research-based execution and providing the highly trained staff with higher ethical behaviors.
Legal status
We will start it as a partnership business.
Research analysis:
Porter five forces analysis is a framework to analyze the level of competition with in an
industry and business strategy development. It has drawn upon industrial organization economics
to derive five forces that determine the competitive intensity and therefore attractiveness of an
industry. Porters five forces include three forces from horizontal competition the threat of
substitutes product or service the threat of established rivals and two forces from vertical
competition: the bargaining power suppliers and the bargaining power of customers.

Bargaining power of supplier:

The presence of powerful suppliers reduces the profit potential in an industry supplier
increase competition with in as industry by threatening to raise prices or reduce the
quality of goods and services.
In our project the suppliers are not that much powerful although they will give us some
rate about product but that will be according to the cost not because of the monopoly
because we are going to be address supplier of that specific region like if we want to get
some dresses of Sindh we will not buy these dresses from local buyer we will address a
person of Sindh and ultimately we will have the price of Sindh we can say the whole sale
rate or bulk rate. Because buying the product from specific and specialized area is better
because competition in less out there and due to excess of supplier we will have
appropriate price.

 Bargaining power of buyers:

The presence of powerful buyers reduces the profit potential in an industry. Buyers
increase competition within an industry by forcing down prices bargaining for improved
quality or more services, and playing competitors against each other.
Bargaining power of buyers will be less here because buyers dont have in immense and
more competitive stores at the same place because people use to have culture clothes but
not of every culture at same place neither have depth in the dresses and not even long
product line. So if buyer will find single place to find the dresses they how come the will
be able to bargain that why there will be less bargaining power for buyers.
Threat of substitute
A substitute product is one that may offer the same or similar benefits to a company as a
product from another industry. The threat of a substitute is the level of risk that a
company faces from replacement by its substitution.
According to us anything can be copied in this world but to stay up you must need
innovate the new things like if we place every dresses on one place and that concept can
be copied easily by anyone but our idea is to build the store by placing all cultural dresses
at one place that is unique thing at this moment but if we start copying by someone then
till that time we will be able to increase our product line that will also be unique at that
time. So product even whole concept of business can be copied but if we keep on
thinking toward innovation that cant resist our success.
Threat of new entrants
Refers to the threat new competitors pose to existing competitors in an industry. A
profitable industry will attract more competitors looking to achieve profits. There are
always the threats of entrants because people have money but they dont have idea if
want some proceeding his business successfully so they can just copy the same concept
and just can come easily in the market.
Industry rivalry
Force used to determine the intensity of competition in an industry. Other factors in this
competitive analysis are barriers to entry, bargaining power of buyers. There is not as
such intense competition in the market because the competition is no very intense just
there is lack of concentration on the cultural dresses.
SWOT analysis
Strengths

Relationship selling
Location
Hit the trend styles
Affordability
Availability in clothes range

 Choice at multiple price point

Weakness:
Difficult to manage numerous type product
Store presentation
Less advertising focus
Price may be bit high
Opportunity
Targeting young consumer ( students )
Try to associate with celebrities
More chance to gain market share
Increase target market
Expand product line
Threats
Political instability
Economic instability
Limited retailing outlets
Threat to be copied very soon by competitor
PEST ANALYSIS OF CULTURALWARDROBE
Political Legal (Aspect)
A company will not be able to gain success, good reputation and trust if it will not consider legal
and political part of their strategy. Political and legal sectors include the needs of the company to
follow the given policies and regulations of the government in order to be considered as legal
and authorize business venture. In this way, cultural wardrobe will be able to consider political
and legal aspects.
Tax policy
Political instability in Pakistan
Trade and tariff restrictions
Terrorism and corruption

Political instability in Pakistan will have a greater impact on cultural wardrobe store and the risk
level will increases and policies are change and cost of production will be high because overall
our store will face trouble due to bad situation of country. Political situation is not satisfactory
due to rapid changes in government policies and every government including the current sets its
own trade policies, rules and law and different tax policies.
Economical Aspect
It is important that a certain store like cultural wardrobe must also give attention to economic
stability of Pakistan. The economic factor involves the context In which an industry or company
belongs.
Economic Stability
Economic Growth
Inflation rates
Amount of interest charged by government
Socio-Cultural Sector
Society and culture is very important factor that must be given full attention by any business
including cultural wardrobe.it is important that a store like cultural wardrobe must operate in
compliance with the social system in order to gain good reputation, and effective public image.
On the other hand, cultural aspects is equally essential, in order to understand the various needs
of different individuals that belongs to different cultures of Pakistan.
Population growth of Pakistan
Age distribution
Consumer Behavior
Religion and culture itself
Technological Aspects
The complexities of achieving success for our clothing store through increased efficiency,
effectiveness, and competiveness combined with innovative culture application of modern
trends. It is very important for our business store to give special consideration to the
technological aspects.
Distribution and communication channels of our store (Facebook, retailing etc.)

 Production level
Barriers to entry
Rate of technological change

Key Success Factors

The KSFS to our business would be:

Location
Variety and quality of product
Changing the trend
Customer relationship
Proper strategic planning
Connections with suppliers and retailers

III.

Products and Services

Our clothing store include array of products:

1) Sindhi
Sindhi Topi
Ajrak
Lungi/Dhoti
Sindhi Kurta
Sindhi Kancha
2) Punjabi
Multani Kurta
Punjabi Tamba and Kurta
Punjabi ghagra
Patiala Shalwar
Churidar Pajama
Mukstari Kurta
3) KPK

Karakul (Hat)
Khet Partug
Peshawari Cap
Turban
Firaq Partug
Burqa

4) Baluchi
Wide loose shalwar
Knee Long shirts
Big Doppata
Market research:
Primary research means gathering your own data. For example, you could do your own traffic
count at a proposed location, use the yellow pages to identify competitors, and do surveys or
focus-group interviews to learn about consumer preferences. Professional market research can
be very costly, but there are many books that show small business owners how to do effective
research themselves.

Primary research
Focus group:
In our project we did focus group discussion by those who are actually the consumer of the
product. Specially the parents of those students who find difficulty in getting clothes of different
cultures because whenever there is an function in school students needs such clothes to wear on.
So we gather many persons and conducted two focus group one focus group consist of 5 peoples
that means there were total 10 respondent who actually participated in focus group discussion
and one moderator.enviroment was quiet friendly and whole focus group was conducted in Urdu
language and every person respond well and that discussion was quite helpful to take the
initiative for our project.
Question
Do you ever think about to wear cultural clothes that represent specific culture?
How often do you wear cultural clothes?
How do you often buy culture clothes?
Do you think that cultural dresses need to be promoting in our country?
Do you find any difficulty in finding dresses for you own children?
How often do you need clothes?
To facilitate customer by providing them culture dresses at one place will make them
think on buying on every occasion?
Do you think that these dresses can be used in regular outfit?

Summary
The focus group we conducted was structured to some extent we just proposed relevant question
in the discussion to get the appropriate and relevant responses by the actual consumer of our
products. They think they find some kind of difficulty while buying because there are cultural
dresses in the market but very basic dresses are available if we ask them about same suit in
different color and sometime even in different sizes then we find them quiet and inconvincible
because usually the existing stores havent that much variety and to find it on one place will be
very convenient for the consumer to buy and that may enhance the sales for stores because
whenever they come to buy some clothes they needed when they will have a look on some other
clothes as well that may change their minds to purchase more than regular. People usually buy
these clothes occasionally most parents needs those clothes for their childrens on some school
functions and when some patriotic day comes then demand can be increased. Most of the
members were agree to wear these cultural dresses in a regular outfit but with some amendments
for example with usually cultural dresses are very heavy I mean very loaded with some work on
them and people cant carry those dresses all the time in regular fit but If these dresses made in a
way with some normal weight and work that can be carry and can be wear easily as a regular

outfit. This was basically an opinion by some members after initiative product line can be
increased regarding the perspective of culture. And at the end most of the members were in a
favor to start up because that can be a different and availability of every dress at one place will
be quite useful for the consumer and can be profitable for the owners.

IV.

Operational Plan

As we explained we are going to open our store in gulberg that one store will be consist of 2
shops total will be about 7 Marlas and there will be 8 total peoples who are going to run the
stores that includes one cashier one manager and remaining will be the worker and assistants.
The surrounding area will be rushed with some other shops specially Hafez center and pace so
more probability for irregular customers to be visited.
Production
We are not going to have any production department out there because we will import dresses
from specific area like we will get some Sindhi dresses from Sindh in bulk so we will not have
any production plant here in Lahore even we dont have any personal plant we will just order the
clothes from the specific area. There will be one godam whatever we will ordered in bulks we
will just put their and later in we will display everything to our store godam and shops will be on
one place that means all the our work place will on one place godam and area of store. So it will
be like bulks will be place in godam and later on will be displayed by unpacking in the store.
Location
The most rushy and work oriented area in Lahore is gulberg and we have greater advantage that
there is our personal land out there in gulberg so we find it more appropriate for us. And there is
much elite class lives out there so more probability of sales because they can even purchase
many things while just passing through so ultimately it is center of the Lahore city. And people
use to come to gulberg for shopping.
Physical requirements:

Space will be 7 Marlas

Triple story building with well-furnished and tiled floor this is the structure but we need
only three shops in that is fissile for us so we have three shops.

Zoning

Power and other utilities

Access:
The place is very convenient for our supplier because whenever they come to Lahore for
dropping our product they can easily dropout because it is on main roads.
Parking facility is availability out there

 We dont need to build a new building because it is already a triple story building we just
need to renovate it.
Cost will be estimated on other excel sheet that include everything rent and all that.
Legal Environment
Describe the following:

There are legal document we need to fill that is not a big issue.

Permits

Health, workplace, or environmental regulations

Zoning or building code requirements

Insurance coverage

Trademarks, copyrights, or patents (pending, existing, or purchased)

Personnel
There will be 8 total employee

Labor will be skilled and unskilled and one professional will be hired as manager.

We will find employee by giving ads in newspaper that wll be helpful and by using our
contacts.

There will be a proper dress of employee

There will be a training session for them

Task will be assigned to every individual according to their caliper

Initially employees will be hired on contract

Inventory
We will keep the inventory on finished goods because whatever we will order that will
come into finish good so we will keep the clothes in finish goods.

Inventory investment will not be larger because we will have our own area of storage so
we just need to put the bulks out there

Initially we will order in bulks to start up and some extra stuff and after that we will be
order regularly whenever we feel like shortage in our stock.

Suppliers
Identify key suppliers:

We have their names and contact so we can just involve them in our venture

Payments will always be done through draft that is quite safe way

we have some contacts to the supplier to issue of unreliability may be eliminated

We will also have some more supplier as a backup. Because sometime it cause problem that on
time delivery cant be easily done or some other problems occurs so we need to have some
backup. There is an another issue because sometime supplier change his price and they just
increase the prices and for that problem we will make sure by visiting personally to the
production department for check and balance we will deal this problem in a quite good way.
Credit policy
We will never sell or products on credit because we live in city where we dont know that who
will be our customer so our selling will be cash but if we talk about our supplier we will take
clothes on credit because this will be safer for us and as soon as we will earn the profit we will
satisfy our debt. This will be our strategy.
How we will make contact to our suppliers
Initially we will personally visit the specific area from wherever actually want to buy our
product. We will meet to our supplier personally we will select the design what we actually need
and what they will suggest to us because those related person will know better about those
dresses so will negotiate with them and order them to deliver the products on our place and later
on if we need more the same products as we selected previously then we will just make them a
call to order.
Marketing Plan
Market Segmentation
As we have decided to open one cultural clothing store in Gulberg, so there is no chances that we
will be doing segmentation depending upon the success of our business if in future our business
expands then we will be doing market segmentation in areas of Lahore. But till today, we are just

focusing on opening a small store. Market segmentation we know is very important for any kind
of business but we believe that our business is totally different.

Target Market/Selection
After carefully evaluating our business idea, we were in many thoughts of which place to choose
and if choose what are the benefits that we gone get. We as group members decided to open a
cultural wardrobe in G7 Al Hafeez Shopping Mall 82 D-1, Main Boulevard,
Gulberg III, and Lahore Pakistan. We choose this place because it is a center of Lahore, people
from areas of Lahore come to gulberg for shopping, and elite class people live there and come
for shopping. Location wise it is one of the best area of Lahore. There is a high chance that
people will attracted toward our shop. And when you bring quality, design, traditional clothing
together then people will be attractive toward your store.
Pricing Strategy
Cultural wardrobe will maintain a flexible pricing strategy. Most of our product line of
traditional clothing will come up with suggested retail price that we will follow. We will be
setting low price strategy market penetration. The main aim behind this is to attract customer at
low price with high quality traditional clothing. To maintain loyalty with customer we will also
be using loyalty pricing, offering a discount card that lower price for customers who will be
buying frequent clothes from us.
Sales and Distribution channels
We will be utilizing some software every time sale is done. With each purchase on our system
the software will record and maintain it in data base, customer name, address, purchases.
Cultural wardrobe will be offering a month return or exchange policy with customer to build
trust and maintain loyalty. The location of our store will be the foundation of building our
customer base. The distribution channel will be internet online making page by the name of
cultural wardrobe and then there will be retiling distribution; door ship distribution will also be
given by us.
Advertising and Promotion strategy
Cultural wardrobe will follow and implement a creative promotional plan. This plan will allow
us to focus directly on our target customers while being conservative with our advertising. A
page will be made on Facebook, twitter, blog etc. Physical selling will also be required so for
that we will make advertisement posters and place on near our store. Not only that in few months

we will making website in which access will be given to customer to easily purchase our
products.

V.

Management and Organization

We will run this business personally because we know how to manage all the things and our
actual interest will be involved in it we will check and balance on daily basis we will bring one
experience person to our business who will help us in managing all the thing and all the task will
be allocated and checked on daily basis. We dont need any hierarchy because usually hierarchy
made when there are more than 10 employee and employee have their define tasks its a store
there are limited employee so it can be explain easily by saying that there are only 8 employee
one cashier one manager remaining will be the worker and we group will look after financial
issue by our self. But still I am going to purpose the hierarchy. Total members will be almost 12
but those who are actually hired will be 8 employees.
Staffing
The selection and training of individual for the specific job function and charging them with
associated responsibilities. Obviously before we start we must need to make our employee and
trained them in way that they can easily grab our customers and make them convince to buy the
product these are some basic training that need to be done.
Organogram is needed when you are going to start a larger scale business because that involve
many other people to and many other defined seats you can you are going to make up an industry
a large scale set up. What we started we explained initially what we actually needed.
Job description
A broad, general, and written statement of a specific job, based on the findings of a job analysis.
It generally includes duties, purpose, responsibilities, scope, and working conditions of a job
along with the job's title, and the name or designation of the person to whom
the employee reports.
Job specification
Is an official document which describes the duties, required knowledge, skills and abilities, and
minimum qualifications of State jobs A specification is not a job announcement and the existence
of a specification does not imply that the State of Vermont is recruiting for that class. When we
are going to hire we just need to post job specification that what kind of person we want because
if we work on retail shop we need a person who is good at marketing so that is a job specification
actually what skills a person must possess.

Human Resource Management

List the following:

Owner ( partners )

Manager ( 1)

Accountant (1 )

Cashier ( 1)

Insurance agent (1)

Employees ( 4)

Financial Projection
Financial report is the process that shows the financial status of the business as far as my
business was concerned our idea is to promote the culture dresses and the availability of all
culture dresses of Pakistan in Lahore. Our target market is the children of the schools and
students of the collages because in every collage and school culture day is at least held once in a
year. Now comes to financial statement of our business the location of the shop is liberty market
because liberty market is famous in clothing. We took a shop on rent of 7 Marla whose rent is
about 80,000 per month with a basement store of 3 Marla whose rent is about 25,000. So it is a
small scale business just like partnership business thats why we cannot take loan from any bank
and start by our own investment so the equity is 100%.
When comes to the requirement of the working capital we purchase all the raw material from
local because it is a small scale business thats why we cannot import any kind of raw material
and the second reason is the dresses is about the culture of Pakistan so all the clothes are local
made and we purchase the material from every province for Rs 500000 initially to start this
business and stock. This type of business does not require large capital material so its cost is
about 5000 R.s. We hire 8 labors at the cost of 12000 R.s each. The shop electricity cost of
wiring and decoration of lighting is about 35000 R.s and a water cooler of R.s 5000. Furniture of
our shop includes 4 Air conditioner of one and half ton the cost of each A.C is 50000 Rs, and
furniture includes 5 tables included one large table and chair for counter of owner and 11 chairs
for labors which costs is shown in the table. A large size sofa for customer which is set on the
front of the counter to deal with the customers. Because this is a clothing shop so racks are very
important we set 20 racks in our shop to set and shown the design of our cloths to our customers
and one important thing that every cloth shop needs a lot of light because in the light it is easy

for customer to select the thing of his/her own choice and in more light the cloths looks more
graceful so we inserted 70 bulbs in the shop included large bulbs which costs about 28000 to
30000.
The step up expense to start the business is already shown and one more thing about the cost of
travelling expenses mean the expenses to receive the raw material from trucks and the cost of
each truck is 80000. The electronic equipment of our business includes a computer and a printer
it both costs 18000 the purpose is to take order and size of cloths include design of the customer
own choice. Today load shedding is a major issue so we purchase a generator to make sure the
availability of electricity in shop and it costs 85000. The man power costs is already shown there
are 8 labors in which 5 are sales man one is accountant who control all business transactions and
order, one security guard whose salary is about 10000.
At last the electricity cost of the shop which according to our estimation is about 25000 but in
table it is shown for six months which is round about 300000 at the rate of 7.8 and the current
rate of unit is 19 at Lahore. The further detail of all the business cost and financial statements are
shown given below:

Critical Risk
Potential Problem
When you start a new business there are some potential problems that you have to face:

 Bringing different cultures together is a bit risky and difficult.

Customer satisfaction (Requirements being fulfilled?)
Advertising and promotion may be problem.
Investment required
Production cost
Success factors (whether we will be able to achieve our goals)
Government policies and requirements.
Obstacles and Risk
These have been discussed on the above section. And we have highlighted major portion of this
PEST analysis.
Contingency plan
In our contingency plan we will be discussing the risk involved in our business and the outcome.
As I have mentioned that there many risk to our business, but this is one side. You have to look at
the other side also. If we look at the benefits than we will come to know that these types of stores
will bring culture variation in people. Now days we are not very much enthusiastic about our
culture dresses but we should know that they are our representation. Culture will be spread from
one city to another, and the people by looking at our store will have a great feeling. The Trend of
cultures will be spreading fast. We dont say that this is easy, but to start up a business you must
have the abilities to take risk and to do what you believe is best. The ideology and thinking
process of people will change. A sense of belief and recognition will be there. True
representations of culture dresses will be given to customers.
Conclusion
Starting up a new business is always tough and difficult, because it requires some extra effort
from us. Our business is also a type of risky and tough one to do. The reason behind this is there
is not too much awareness of cultures in people. Investment cost would be high, whether we will
be able to generate a profitable and successful business. These are all factors that come into our
mind. But when we thought about the benefits of it, then we start believing that we have a chance
of bringing cultures together, giving people awareness, changing the trend. Overall it is a great
Opportunity for us to define ourselves in the market. We will provide and fulfill every customer
Requirement according to what they need and want from us.

VI.

Appendices

Include details and studies used in your business plan; for example:

Blueprints and plans

Maps and photos of location

Magazine or other articles about cultural dresses

Copies of contracts

Letters of support from future customers

Market research studies

References
There is not too much to be given in references as this plan will show the originality of our
business.