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ENTREPRENEURSHIP

BUSINESS PLAN
HISTORY

We’re starting from scratch, we have no relevant basis of society. We have made a
good start in promotional activities. The first activity was used teaser campaign.
With the passage of time, we have moved away. We are launching the new product
in market, in starting we used equity in the business and contract some vendors
they agreed to sale our product on credit base. We have enough skills to run the
business in start and also have experience about market. We are clear about this
that all we are capable to take initiative to start our business. We have also advice
support.

Purpose of Business

Our purpose of business to identify the problem of customer need and solve their
problem. We introduce the ‘TYRE SEALENT’ in the marketing. We develop this
business plan and we also use the strategy of the business and market analysis with
the competitor and we promotion of the product and we compare the performance
of the product with other alternative product and we developed the budgets
calculation and also price and profit.
Vision

To create new value, excite and delight our customers through the best
automotive products and services.

MISSION

With passion, we actively communicate with our customers to deliver insightful


automotive products and services that exceed their expectations
PRODUCT & SERVICES

We are going to launch a new product in market; the product is Tyre sealant with
unique features.
Product Differentiation
Our product is different and unique, Tyre Sealant is an advance
of chemical solution specifically
designed and formulated to seal the
hole directly in the commercial area of
a tire rotating tires there for the
elimination of the problem of tyre
Deflation. Its helps the car driver they
don’t need to worry about the tyre
puncher and solving the problem of tyre
preacher. We also give other services, lineament of tyre and wheel balancing.

OBJECTIVE OF THE COMPANY

Our main objective is satisfy our customers


and giving the best quality product at
minimum price and helping to reduce the
percentage of the road accident. Product is
worked perfectly and guaranteed great
performance. Our operational goal is to
minimize the cost and maximum the profitability with no changing the quality.

 To give best quality product


 Customer safety
 Best guarantee
 To provide best services

LONG TERM AIMS OF BUSINESS

Our company is first one who introduce


this product in market, currently we
don’t have direct competitors who give
this product and service. Every business
Aims to run their business for long time
we have also same thought. We are not
making this product but we import is this product from other country currently
we bare the cost so after few years our objective to make this product which can
affect our cost and profit. As the technology change very fast so our objective to
upgrade our product.

SWOT ANALYSIS

SWOT analysis is an extremely useful tool for understanding and decision-making


for all sorts of situations in business and organizations. According to this analysis
we know what features to focus on market. Identify the weakness our business and
also know that how to compete the competitors, identify the opportunities and
potential of growth and identify the threats and helps to manage the company.
STRENGTHS

 Innovative product
 Unique features
 Solving the problem
 No direct competitors
 Product guaranteed
 Others services

WEAKNESS

 Import from other country


 Starting from low investment
 We are new in market and we don’t have strong links in markets.
 Multiple indirect competitors

OPPORTUNITIES

 Low cost and high benefit


 Marketing of the product can be use by cheap method
 No direct competitors
 Earn high profit
 Substitute of the product is not reliable

THREATS

 Company new in market


 Entering direct competitors
 Entering the new substitute
 Political and economic environment is unstable in Pakistan that can suffer
the company’s investment

LONG TERM PROSPECTS


As the increase in production and sales of automobile in Pakistan
which shows increase sales tyre, this indicate the profit of potential in the business
and also the future growth. Our product have new feature so people buy our
product, people don’t need to worry about the tyre puncher or flat.

INDUSTERY ANALYSIS

INDUSTRY PROFILE & ATTRAICTIVENESS

Tyre industry is key industry of Pakistan with total annual demand of


8.3mn tyres during 2012-13; out of which 1.65mn (20%) were produced locally,
3.9mn (47%) were imported and remaining 2.6mn (32%) tyres were smuggled.
Sharp increase in tyre smuggling from Afghanistan has hampered the local industry
production. Our automobile sector is growing in terms of production, which is good
omen for tyre demand. As per the recent PAMA data tractors sales has been
increased by 85% during 1QFY14 buses and tractor sales also increased by 64%. The
sale of tyres has direct proportion to automobile sales, and we see growth in
automobile sector.
Falling rubber prices have brought supplier into a position to desist its supply if
prices continuous to fall below $1.5/kg. Meanwhile Malaysian & Thai government
are making combine efforts to assist rubber industry from falling prices and advised
growers to hold on their stock. If growers stopped supplying rubber bellow $1.5/kg
then rubber prices are likely to move around $1.5/kg to $1.7/kg.

GROWTH RATE
Despite a strong industrial growth the tyre industry of Pakistan could
hardly meet 12 to 15 % demand and the shortfall paves the way for the
international tyre companies in Pakistan. Apart from vehicles population the
dilapidated condition of the roads stand was another reason for high incidence of
tyre consumption in Pakistan.
Tyre technology at international level has expand that not only for every nature of
vehicle a separate tyre is designed but also two to three kinds of tyre are designed
and manufactured for one nature of vehicle depending of its use. For one vehicle
two to three type of tyres are manufactured internationally which are
recommended for nature of use of vehicles.
There is no definite statistic of tyre consumption in Pakistan, a tyre importer said.
He said that there are many rough ideas about the import, local production, and
smuggled tyres. The government of Pakistan's department of statistic too has rough
ideas about the figures as tyre consumption increasing without any scientific
direction.

An importer said more than 50% tyres smuggled into the country. The smuggling
methods change according to situations at boarders. This must be a fact that why
no investors are establishing tyre manufacturing plants in our country although the
fact also remains on the record that Karachi, Lahore, and Rawalpindi are the part
of the country where more than six tyre manufacturing plants are badly required.

KEY SUCCESS FACTORS IN INDUSTRY


The key to success in the tyre industry is the ability to
move in to high quality markets. We introduce new product which is use in tyre and
we have a lot of opportune to fill the gap and give the comfort to the customer with
low cost and give the best technology. It is understood that sealant is not useful for
bike tyre because the bike tyre rim made with wires if there is no wire in the rim
the sealant can be use and we considered it will be profitable market, so larger
entities such as the bike riders are targeted as the key to success. These group will
have higher requirements for quality, but they will also be able to pay for the
quality improvements. As time passes, this industry will offer more opportunities.
Cost for parts will decrease, making lower cost markets more feasible. Additionally,
the technology in this field will continue to develop, allowing customers to update
to the most cutting edge systems.

TRAGET ATTRACTIVENESS
We included different market in our survey and focus on our
target market, in survey we introduce our product to target market and collect the
data after we analysis the data and measure the attractiveness of the product, 75%
target market shows positive response and 10% shows negative response, because
they don’t understand the product and not interest to give the time 15%
respondents give the response in form of may be. Our main target market are
sellers but they don’t take risk so they suggest us that we sale this product on credit
base.

PEST ANALYSIS

POLITICAL

This technical association gives us a major edge over all other local manufacturers
and unknown brands coming from China and India in terms of quality, consistency
and reliability.

General Tyre receives all its raw materials strictly in compliance with Continental’s
given parameters from approved sources and follows construction patterns
approved by them. Over the years, we have also mastered the art of making tyres
that suit local road conditions, providing unmatched durability, safety and value for
money, that no other tyre can claim. We are extremely proud of the fact that
statistics show that General Tyres has minimal or no record of tyre bursts on fast
tracks such as motorway and highways. We are the best for Pakistani roads and
that is the reason why all vehicle assemblers find us suitable.

The total consumption of tyres in Pakistan is approximately 6.5 million tyres. Of


these the auto industry consumes one million tyres. This figure does not include
motorcycle tyres consumed.

Improvement in auto industry sales has a direct positive impact on our sales as all
major vehicle assemblers buy from us. The rest of the local tyre industry has so far
not been able to benefit from the auto industry’s growth as their tyres have not
been patronized by vehicle assemblers due to the quality that is needed by the auto
industry.

The local tyre industry enjoys approximately one-third of the market share.
Smuggling and under-invoicing together account for approximately two-thirds of
the market share. This is a menace. Not only does this undermine the efforts of the
local industry to provide employment, save foreign exchange and improve local
investment, but is surely putting a huge dent in the national exchequer by way of
taxes and duties that are evaded. These evasions run into hundreds of millions of
rupees every year. Other local industries are also affected due to this uneven
playing field.

Investment in Pakistan by a foreign group or company is a complete no at this stage.


This is not because Pakistan doesn’t have the potential. This situation is primarily
owing to the environment that we are created. Forget foreign investment, now
even leading local investors are thinking of or have already acted upon the idea of
flight capital – establishing a second leg outside Pakistan. This is what I call a reverse
gear for any country.

Pakistan should be open to trade with India as long as there are rules pre-set
providing a level playing field. Like India, Pakistan too has a lot of products to offer.
Pakistan also has a clear advantage in this case as India’s population is five times
that of Pakistan – meaning more consumers on the buying front. Pakistan should
also capitalize on the areas where India has excelled. Using India as a training
ground could bring lots of benefits, particularly on the technical and innovation
front. The tyre industry in India is huge and advanced compared to the industry in
Pakistan, and a lot can be learnt with mutual cooperation. This type of cooperation
might also open doors for future investment in Pakistan in the long run.

ECONOMICAL

Pakistan is facing Economic challenges. It shows that our country is in the list of
under developed countries. In the last budget, the government gained 4.3 per cent
economic growth but with gas and load shedding problems they didn’t achieve the
targets. So due to lake of experience and knowledge they came of 2.2 per cent
growth which shows almost no growth in the current year. The major problem in
Pakistan is increase in population which is directly effecting our economic growth.
Of course, due to higher rate of population, we should increase our investments
but due to less financial reserves this investment is not possible. The present rate
of GDP is around 14 percent which is lower than the developing countries. If we
want to increase our investments for getting higher growth we should increase our
savings for GDP to at least 20 percent, especially when foreign investments are not
involved.
Another challenge is inflation. Inflation means increase in the prices of commodity.
It badly affects the salary based groups. This also shows our higher rate of taxes
because tax is part of the inflation. When inflation rate high in our country then it
generates the public debts, which is about 70 percent of the Gross Domestic
Product. This problem is increasing day by day. So how we can overcome this
problem? The answer is we have been producing less and consuming more. And if
investor wants to invest so they should invest on human developments.
The major problem is immediate change in the situation of regional and
international market. Utilities such as gas, electricity, water is another cause of a
problems because IMF forced to the under develop countries to enhance their
rates which is effecting the common man or salary based groups. They don’t save
much in fact they just fulfill their basic needs.

SOCIAL
Consumer behavior and life style are changing rapidly. The advancement of
technology and the wide spread of media has captured the mind of the people to
a great extent. More than half the Pakistani population is about a quarter of a
century old. It is now or never. We have such huge potential of energy at this point
that we need to take hold of and put to use for Pakistan’s prosperity. We talk about
the youth being Pakistan’s future however, they are not only the future they are
the present. We are now!
Sure, we need the proper infrastructure, electricity and support facilities to
accomplish our everyday goals and prosper. But the first thing all Pakistani’s need
to change is our attitude, towards hard work and in general towards each other.
The people of Pakistani is life style is very fast they adopted the culture and fashion.
There is a trend in Pakistan to purchase the new and unique product.

TECHNOLOGICAL
The technology in this field is very slow and process of tyre repair is old the world
is too fast and introduce new method. Create new product and method in Pakistan
some sector are too slow in technology.
PORTAL ANALYSIS

Buying power of suppliers


There is a perfect competition in market and many
suppliers they invest the amount which is easily convert in to cash and every
supplier want to increase the sales when we introduce our product they like our
product but not interested to purchase.

Buying power of Customers


We asked question to customers and they give very good
response and they are also interested to buy our product some customer giving his
number which shows that they are willing to buy our product.

Threat of New Entrance


We are launching the new product we may be face the
threat if someone else start that type of business if it’s happened we have to reduce
our margin and also try to reduce the cost, we can give some extra advantages to
the customer to fight with the competitor.

Threat of Substitute
We introduce innovative product, mothed of tyre repair is old if
someone introduce the substitute that can be very series problem so we can
offering the best deal like wheel balancing lineament, with minimum price we also
offering free service.
LONG TERM PROSPECTS
As the increase in production and sales of automobile in Pakistan
which shows increase sales tyre, this indicate the profit of potential in the business
and also the future growth. Our product have new feature so people buy our
product, people don’t need to worry about the tyre puncher or flat.

MARKET ANALYSIS

The market strategy analyzes the target market, market trends, market size,
advertising, and price. We give the brief description about market analysis.

DESCRIPTION OF MARKET SEGMENTATION / TARGET MARKET

Our target market is the group of customers that are car driver. We also aims to
sell the product to dealers and in tyre outlets. This product especially for car tyres
we targeted the drivers. We are also contact with the transport company to use
our product and give us the feedback. We focus different type of customers so it
helped to make the strong link in the market.

CUSTOMERS' MOTIVATION TO BUY

The customer will buy our product if he know about our product and also know
that if he use this product he can save the money and free tension. In begging we
use capitalize advertisement of our product in different places. Once they know
about the product they purchase the product.

MARKET TRENDS

This technology is new in market and does not have direct competitors in market.
It seems that there is high potential of profit in this market and a huge market for
upcoming competitors. In the induction of tyre sealant technology in the tyre
market, the growth rate seems to be increasing rapidly creating high profit margin.
It is very difficult to capture the market of tyre, it can affect our margin and also in
sales in beginning. So in starting we sale the product our relatives. We sale on credit
base so we can stabile in market.

BUYING BEHAVIOR

In buying intention survey, respondents show their interest in having tyre sealant
and shows satisfaction in our product. Tyre market trend increasing phase, it will
take time for absorbing tyre sealant technology. The research revealed that
respondents are willing the buy our product and appreciated the idea.
COMPATERNER ANALYSIS

Direct Competitor

Our direct competitor is local tyre shops they sale repair tyre and
55% customer purchase the tyres in local shops they also give the fecality to repair
the tyre so if they also introduce the tyre sealant it can be big threat for our
business.

Indirect Competitor

Our indirect competitor are outlet of tyre shop which deal direct
the companies and having strong links in the markets it can be threat for our
business.

Future Competitor

In future we can face multiple competitors so our first stagey is to


make strong links in market and also focus to introduce more product its helps our
business to survive in market.
MARKETING PLAN

Marketing plan is a strategy that articulates key information for a business to


attract and retain customers. When an entrepreneur to understand the customer's
needs, then you may well meet his client. In terms of marketing the product
contains only the features that attract the customer. If you do not deliver the right
product to the right customer, you will never survive in the market. Therefore, most
important to survive in the market is the product that you have offered to
customers. We are going to launch a new product in market. The product is ‘’Tyre
sealant’’ with unique features.

PRODUCT

Feasibility products include product design and delivery of their product .our
customer clearly defines that it is beneficial for those who drive the car. Tyre
sealant features solve the problem and according to customer need and there is no
product in the market which provide all features. Product feasibility includes these
following features which improves the product image among the customer.

Product Strategy

The desires of the customer, the product purchased are of better quality and
performance. So as an entrepreneur we provide innovative feature like, leaking,
puncher, flat, our product ‘’Tyre sealant’’ Tyre sealant is an advance chemical
solution specially formulated and designed to fill the hole quickly in the area where
the tyre got puncture. Product strategy includes following types.

 Product quality
 Brand name
 Product feature
 Services and warranties

We are providing the 1 month warranty which is claim we are serving the best
quality and service. Concept testing recognizes the importance of creativity,
research, and the concept of aging involved in developing the concept. We believe
our research philosophy concept of experimentation is what differentiates from
most other firm’s market research. These principles guide our development
projects, the concept of the study and experimentation.

Our main focus on customer safety so in this purpose we will use high class quality
of material because our main objective is to provide maximum safety to car drivers.
So we introduce this product to solve the problem.

PRODUCT PROCESS

We are not making the product we import the product and after the time pass we
make the feasibility to make this product so we can minimize the cost and increase
the revenue.

PRICE

We are offering the best price to the customer with low margin and give best
quality and service. Our product is different according to size of tyre the standard
tyre size 13’’ and price of sealant R.s 8000 for 4 tyre. The cost of sealant gallon R.s
24000 included all expenses, 1 gallon fill 16 tyres. The price will different for dealer
we offer R.s 28000 but they also give the customer in same price.

PROMOTIONS

Promotion is the element is an organization marketing mix that serves to inform


persuade and remind the market of a product or the organization selling it in hopes
of influencing the recipients feelings behavior and belief.
Promotional goals:

 To make the people aware about the alternative resources that they have.
 To position ‘’Tyre sealant’’ as the No.1 choice for all.
 To establish brand image and earn profit.

PLACE

We starting our operation from Fasial Town Lahore. The location of the business is
very favorable for us and here we can take many opportunities and benefit. We are
new in market and have no past history so there is no previous data available to
measure and to forecast the market trend or demand.

SALES STRATEGY

We sell products mainly from the release of the company and tyre dealer retailers.
There will be an online store page that presents the company's products and any
optional accessories. There will also be a page that describes the characteristics of
products and specific features. Our outlet located in Fasial Town Lahore. We import
the stock in warehouse and easy to keep.

PRODUCT SERVICES DESIGN AND DEVELOPMENT

DEVELOPMENT STATUS AND TASKS


First we are not making this product or manufacturing our business initial
stage and this product is not manufacturing in our homeland so we import the
product form other country, we also contact the different company to give us his
sample product if the quality is 100% accurate according to detail and if he offering
us best price we give the order this strategy we follow in starting and after time
pass we use different strategy.
CRITICAL RISK FACTORS
All businesses involving the risk factors that cannot be
eliminated, but can be reduced in size. The profitability of a business is beyond the
risk if used as an opportunity and if the risk is eliminated, there is no possibility of
profit. Market risk is economic instability due to which the prices of the large
increase in the production budget. Initially, we would really like have to focus on
our costs and maintain stability in the provision
of services so that there would be no additional
burden on investors.
There are many issues surrounding marketing
decisions and marketing, price are not stable
and high taxes which can be reduce our margin
we cannot increase the price if these risk
increase if we do that the number of customer
will be decrease.

 Market risk is the risk that the market will develop differently than expected.
Sometimes markets take too long to develop, and cash runs out while a
company is waiting for customers.
 If our company does not meet its target of the forecasted sales (services)
then it would increase the price of its services in order to reach its breakeven
at least.
 Financial risk is the risk that a company will run out of money or mismanage
their money in some way. Finance companies may have huge financial risk,
since bad lending policies combined with poor investment policies can sink
them.
 If all the business receives a big loss it will cover that lost by the help of all
the members combined effort.
INTELLECTUAL PROPERTY
We applied to all that is necessary for the intellectual property rights of patent and
trademark copying ' tire sealant ' in order to prevent bad intentions from copying
our ideas. Under the law of Pakistan no one is allowed to copy any of the
trademarks or illegally use our services In that case, we will be protecting our data
by taking protective measures.

OPERATIONAL PLAN

IMPORT FROM OTHER COUNTRY


We are not making this product we purchase form other
country like China because the relationship between China and Pakistan is very
strong and custom dusty of import is favorable, In China there is perfect
competition and many vendors so they give us best price with some other benefit
or privilege. We are try to make strong relationship with the vendors we use the
web links to communicate and giving
the order, we use the web because it’s
safe and full scoured.
http://www.alibaba.com/

BUSINESS LOCATION
All marketing operation is perfume by Mr.Umair Ch, we are not
hiring any sales marketing manager and he take order from different dealers and
deliver the order.
We select the location our outlet in market so the transport cost will be less and
saving the time.

FACILITIES AND EQUIPMENT


We are just need some equipment for office and store room,
tools. We don’t need raw materials and any machinery. We give the details of
equipment’s.

LIST OF ASSETS
S.NO ASSETS QUANTITY PRICE
1 BUILDING ADVANCE 80000
2 FURNITURE 35000
3 LCD 1 25000
4 SPILT AC 1 36000
5 LIGHTS 25 12000
6 FANS 3 10260
7 ADVERTISMENT 40000
8 CASH IN HAND 25000
9 STOCK 15 375000
10 SIGN BOARD 1 25000
11 UPS 1 23000
12 FLEXS 30 13500
13 TOOLS 12000
14 WATER COOLER 1 9000
15 AIR COMPRESSOR 1 25000
TOTAL 745760

MANAGEMENT TEAM

HUMAN RESOURCE PLANNING


The HR Plan is a key part of our HR framework.
Provides focus and
direction for our work in
HR.

 Diversity in work
force
 Health and safety
 Recruitment and resourcing
 Retention
 Development
 Leadership

WORKING OF HR DEPARTMENT
The HR department of our company will not be able to complete HR practices, the
human resources department would be a very important role in the recruitment,
remuneration and for our personal
health care play. Gradually, over time,
we shell be comfortable with the
formulating " environmental and HR
practices for our company.
A human resources department is a
critical component of employee well-
being in any business, no matter how
small. HR responsibilities include
payroll, benefits, hiring, firing, and
keeping up to date. The Department is
responsible for hiring members of staff; this will involve attracting employees,
keeping them in their positions and ensuring that they perform to expectation.
IMPROVEMENTS OF COMPENSATION PACKAGES
One of the main functions of the HR department is to
motivate employees. This can be done by rewards especially for those who have
done well. The Human Resources Department will be responsible for evaluating the
performance of employees and of those who have exceeded expectations be
compensated for their actions.

Our company will reward employees by the following Incentives.


 Every 6month bones
 Overtime package
 Award
 Training and development
 Salary Increments

BOARD OF DIRECTOR
Directors take care of business of the Company and are in a position of trust.
Therefore, the law provides a number of tasks, constraints and duties conferred
upon the directors to prevent abuse. Much of the company's law to manage the
balance between Directors of the company's business to make a profit, and keep
them, to prevent this freedom they are seen. The directors are responsible for
keeping the books of account are kept.
The board of directors' key purpose is to ensure the company's prosperity by
collectively directing the company's affairs, whilst meeting the appropriate
interests. In addition to business and financial issues, boards of directors must deal
with challenges and issues
COMPANY STRUCTURE

CEO/MD

HR / OPERATIONS FINANCE MRKETING


EXECUTIVE EXECUTIVE EXECUTIVE

SUPERVISOR

WORK FORCE
FINANCIAL PROJECTION

INITIAL’S CURRENT INVESTMENT


The amount of start the business 0.75 million. This amount will
be initially invested by directors and partners. This amount will be equally invested
by all four partners.

SOURCES AND USES OF FUNDS


We are not taking any loan and all investment invest by
partners. This fund will be used to purchase equipment, tools, stock, furniture and
for advertisement. In starting we pay the salaries to labor, rent etc.

OPERATION COST & EXPENCES


S.NO YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
1 RENT 300000 336000 376320 421478.4 742055.8

2 ELECTRICITY Bill 96000 107520 120422.4 134873.1 151057.9


3 CABLE CHARGES 6000 6270 7022.4 7865.088 8808.899
4 TELEPHONE & INTERNET 26400 29568 33116.16 37090.1 41540.91
5 SALARIES 324000 362880 406425.6 455196.7 509820.3
6 DEPERACTION 20060 22467.2 25163.26 28182.85 31564.79
TOTAL EXPENCE 772460 864705.2 968469.82 1084686.238 1484848.599
NET PROFIT & LOSS 3067540 3436094.8 3848426.18 4310237.762 4557466.401
TAX @ 11% 337429.4 377970.428 423326.8798 474126.1538 501321.3041
NET PROFIT AFTER TAX 2730110.6 3058124.372 3425099.3 3836111.608 4056145.097
PROJECTED PROFIT % LOSS STATEMENT
REVENUE
SALES YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

SEALENT 3840000 4300800 4816896 5394924 6042315

TOTAL 3840000 4300800 4816896 5394924 6042315

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5


NET PROFIT AFTER TAX 2730110.6 3058124.372 3425099.3 3836111.6 4056145.97
add DEPERACTION 20060 20060 20060 20060 20060
NET CASH FLOW 2750170.6 3078184.372 3445159.3 3856171.6 4076205.97
BALANCE SHEET

ASSETS AMOUNT LIABILITIES AMOUNT


CASH IN HAND 25000
BUILDING ADVANCE 80000 LIABILITIES 0
FURNITURE 35000 Equity 745760
LCD 25000
SPILT AC 36000
LIGHTS 12000
FANS 10260
ADVERTISMENT 40000
STOCK 375000
SIGN BOARD 25000
UPS 23000
FLEXS 13500
TOOLS 12000
WATER COOLER 9000
AIR COMPRESSOR 25000
TOTAL ASSETS 745760 745760