Group Introduction

Members
Arshad Hayat
Zohaib Ahmed
Bilal Leghari
Ali Raza
Laila Noor
PROJECT NAME

YOUTH FUN LAND

NATURE OF BUSINESS:
This is the partnership business. We will provide
services to the people. There is no other person
or company to provide such refreshment facilities
to the people of Multan and Southern Punjab.
 VISION:
“To establish a market that would promote technical activities
in the public and lead that market with our long term
strategies”
 MISSION:

“Our mission is to make accessible various games to the

customers of various ages groups, in a sociable environment,

even in the smaller cities, by using latest technology, so as to

ensure a stable growth of our business, that would ensure that

the company’s philosophy and core competencies are aligned

with our vision and eventually, our firm projecting a positive

image, not only for its own employees, but for our city.
 LOGO:

SOLOGAN:

“THE LAND OF ENTERTAINMENT”

 OBJECTIVES

LONG TERM OBJECTIVES:

•To generate the loyal customer ship.

•To create a positive Image and good will of

business

•Encourage the investors to invest in our

similar future projects.

•To expand business, by increasing the Product

line.
SHORT TERM OBJECTIVES:
•To cover the short term expenses

•To reduce the cost, by critically analyzing the operations

of the business

•To provide friendly environment to customers

•To fulfill the need of customers from various classes of

the society
 COMPETITIVE ADVANTAGE:

We are going to provide a completely friendly environment to

our customers

•We are going to provide different suitable packages for

everyone.

•The location is very attractive, so as to facilitate each segment

of our target market.

•The projected cash flows support our idea of expansion.

 OPPORTUNITY ASSESSMENT:

As we know games are a healthy activity for people

also like to play games in their idle time. So we can

take the benefit of that opportunity by opening a

Gaming Zone in our city. This opportunity can give us

healthy profits and can prove beneficial for us as a

long run business.

 RISK AND RETURNS OF OPPORTUNITY:

RISK:

We will have to build a building to open Gaming Zone in Multan. But

•After conducting survey in Multan we found that more than 70% people
are willing to have a Gaming Zone here.

•Someone else takes initiative for opening gaming zone before us and take
advantage of opportunity is also a risk for us.

•Another risk we are considering is availability of finance.

•In this modern world, the technology is rapidly changing because of that
the risk of existing technology becoming outdated is constantly there.

•Risk of new competitors is always there.

RETURNS:
We expect to receive return in following ways:

•We will be able to earn lot of profits because of our monopoly.

•We can earn by organizing events in our gaming zone.

•Gaming Zone is a passion for us. So internal satisfaction is the

highest return for us.
 PEST ANALYSIS

1: POLITICAL CONDITION:

For the starting of any business, the investor should analysis the political

condition of specific country. If the policies of Govt. are stable then it is

favorable for business. The tax rate is reasonable, provide rebate in

excise duty, security to wealth, no chances of war, no tight rules and

regulation then a business will efficiently operate in the country. But

unfortunately in Pakistan the political condition is not good so we have

threat from the increase rate of tax and insecurity. And also there is no

peace in Pakistan.
 2:ECONOMIC CONDITION:

The YFL will play its minor role in the improvement of economic

conditions. This new business will provide the employment

opportunities to the people of Multan. In this way the

unemployment rate will reduce in this area. Government will get the

taxes as a result of business not only from our business but also

from the other sectors connected with us. Per captia income of

employees will increase and as a result of these the lifestyle of

city’s people also increases.

 3:SOCIAL CONDITION:

These days guys and girls both love to play games especially online multiplayer

games. Gone are the days of playing arcade games on computer – now it’s the

online networking games’ culture. But to enjoy all these games not everyone has

broadband connection at home. So, teens turn to gaming zones, the breeding

place of future pro-gamers. Gaming zone is like a paradise for teens. Dimly light

room filled with neon lights is what teens love. Trance background music and

soothing environment, a dream place to enjoy free time. People want places

where they can enjoy and release their mind from tensions of daily work load.

Social condition is favorable for our business. Our business will also take the

Ethical Rules into the considerations.

4:TECHNOLOGICAL CONDITIONS:

Due to the introducing of new technology in games, our business has consistent

threat from changes in technology. It also increases the cost of our business. For

new technology understanding we need skilled and trained persons who are the

expert in IT field. Games companies are introducing new games with good

stories, action, graphics, 3D effects and lot more every day. IN Pakistan

technology is introduced step by step. The technological conditions are becoming

favorable for the business of gaming zone. So we should hold up to date

technology for providing good and quality services. Because the people are well

aware from new technology. The technology which we have for our YFL is

computers, LCD’s, video games etc.

 COMPETITOR ANALYSIS:

DIRECT COMPETITORS:

As we are starting YFL in Multan and there is no such type of

Gaming Zone for youth in this area. So we don’t think we have

any direct competitor in that location where our business exists.

But Outside the city there are few shops of games containing:
•Snooker

•Hand ball

•Tennis Table

As our target market is youth. So we can treat then as our direct competitors
because these are attracting the attention of youth.
INDIRECT COMPETITORS:

YFL also have some indirect competitor which are given below:

•Parks

•Joy land

Refreshment Point
Arshad Hayat
 MARKET SEGMENTATION:

We can decide to select the IT industry for the staring of our new venture .We start the

new YFL in Multan. We will divide our market into small groups on the base of our

targeted customer’s characteristics.

GEOGRAPHIC:

Our targeted customers are of different cities of Pakistan, These cities are

Muzaffargrah,

Vehari,

Khanewal, and so on……..

 DEMOGRAPHIC:

Our target customers are youngsters with the age of 15 to 35. There is no

gender differentiation

We will also divide our targeted market into small segment on the base of buying

situation. Our customers prefer which product or service’s features most and like to

buy that product or services. The usage rate of (how many time product or services

customers buy). There is no more awareness of games in Pakistan so we should use

those promotional tools which create awareness about games in people. Our target

location where we start our business is Multan.

 TARGET MARKET:

“A group of people for whom the marketer designs the marketing mix is

called the target market. Our target market is Children, youth Adults and

anyone who is interested in games. We will Target (2, 75,000) people per

year.
 MARKETING PLAN:
SITUATION ANALYSIS BACK GROUND OF VENTURE:

We are the student of AU as such we have no back ground in business

field and no experience in this field but as a student of business

administration we identify the business opportunity in Multan for gaming

zone.

All partners of this business are educated and have degree of MBA.
Zohaib Ahmed
Arshad Hayat
Bilal Leghari
Ali Raza
 Strengths:
Monopoly in Gaming Zone in
Multan.

Big Target market.

New Computer Games

Good Location

Interest
of teenagers in Games
Easy Promotion

Lower Cost than comparable

Competitors
 Weaknesses:

Small Place of Business

Lack of technical how know

Lackof skilled and trained

employees

Access to Resources

Expensive Games and Hardware

 OPPORTUNITY
Expansion of Business
Adding Conference Room

Adding fast food or mini mart in

Gaming zone

A new emerging or developing

market(niche product, place, less
competition)
New Technology

Increasing the purchasing power of

customer.
 Threats:
Lack of energy resources

Rapidly changes in technology

New competition in the market,

possibly with new products or services

Availability of resources

Change in Political and Economic

condition

Taxation
 Market OBJECTIVES
To increase the sales
To increase the profit margin
To reduce the cost of services
To charge reasonable prices which is
affordable for all people.
To use no distribution channels,
directly deal to our customers
To establish customers service center
for improving our services quality
To use such type of cheap promotional
tools which is promote our product’s on
wide areas
To maintain and increase the brand
image
MARKETING STRATEGIES AND ACTION PROGRAMS:
After defining the marketing objectives and goals now we make market

strategies and action programs to achieve these goals. These decision

effects marketing mix of our business.

MARKETING MIX:

It is a combination of 4p’s. Product, price, place, promotion and

other marketing activities needed to meet marketing objectives.

We design marketing mix plan for the marketing of our business

gaming zone.
 MARKETING MIX FOR GAMING ZONE

PRODUCT:

The products which we offer in our business are following:

•Table tennis

•Hand ball

•Snooker

•Computer games

•Shooting

•3D Computer games

And so many others games

PRICE:
Price is a component of an exchange or transaction that takes place

between two parties and refers to what must be given up by one party (i.e.,

buyer) in order to obtain something offered by another party (i.e., seller).

We will charge fee according to game.

PRICING STRATEGY

The pricing strategy which we will use according to the

research and data gathered and the situation prevailing

in our target market is value based pricing strategy.

PLACE:
We started our business in Shershah near Bily-Da-Dera(Multan). It is

access able for all people easily in free time. Our all products or

services are available in gaming zone.

The distribution channel which we select for our gaming zone services

is one level channel distributions involve company and consumers.

PROMOTION:

After starting business and providing our product or

services in the market and getting place in the market

our next step is to promote our product through thick

or thin. In order to get high market share and loyalty

of customers. We use two types of advertisements in

order to promote our services

Print Media
Electronic media
Other Sources
PROMOTIONAL TOOLS

Pamphlet
Radio

Official page on Facebook

Banners

Press media

Electronic Media

Social Media
 BUDGETS:
This is our advertising budget. We use two types of media. The allocation of cost is as follow:

MEDIA OBJECTIVES 1ST YEAR 2ND YEAR AMOUNT

ELECTRONIC
50% 35% 15% 25000
MEDIA

PRINT MEDIA 10% 10% 0% 10000

OTHER
60% 50% 10% 15000
SOURCES
Ali Raza
 ORGANIZATIONAL PLAN:
LEGAL FORM OF BUSINESS:

Our business is partnership of four partners. The partnership is Limited

Liability Partnership (LLP), it is controlled by Partnership Act 1932 0f

Pakistan. According to this act LLC has following features,

One or more partners are with limited liability

The firm must be registered

Thecapital of limited partner is not returned to him till he

remains a partner in the firm

There is at least one partner with unlimited liability

The limited partner can inspect the book of firm any time
A new partner can be admitted to the partnership firm
without the consent of limited partners.
 OWNERSHIP

Arshad Hayat ( General Manager)

Bilal Leghari ( Manager of Computer games)

Ali Raza ( Manager of mutual games)

Zohaib Ahmed( Manager of Marketing & Account)

LIABILITY OF OWNER
Our partnership is limited liability partnership (LLP). According to limited
liability partnership our partners are liable only that part which they
contribute in business. Their personal property is not liable.

COSTS OF STARTING A BUSINESS:

Registration of firm name in industry

Need license for using technology

Agreement with legal advisor

Partnership deed for the conveying responsibilities, rights and duties of

partners
 CAPITAL REQUIRMENT

Banks loan

Additional capital contributed to each partner

New partnership agreement

 DISTRIBUTION OF PROFIT AND LOSS

50, 50 profit/loss margin

On the contributed part of capital

On the base of skills (may be not contribute capital but his
skills are very beneficial for the firm)
HIERARCHY:
 OPERATIONAL PLAN:
The operational plan includes all processes, activities and
operations that are necessary to run a business. The
operational plan of our Gaming Zone Business includes the
following activates.

PURCHASING:
We first of all have to purchase the following assets for the
operations of our business from different suppliers.
 STAFF FOR OPERATIONS OF BUSINESS

One of us will be General Manager.

One in the computer games area.

One of us check Accounts.

One will see the snooker, hand ball and shooting game and other games.
 PRODUCTION PLAN:

SERVICE CREATION:
•This means that how we can produce services
and how we will deliver the services to our
customers in business.

SNOOKER:
TABLE TENNIS:
CAROM, CHESS, PUZZLE AND MONOPOLY
COMPUTER & PLAYSTATION WITH 3D GAMES:
GUN SHOOTING:
HAND BALL:
OTHER GAMES
 Breakeven
In the end of 1st years we are taken breakeven. It means no profit and no
loss. But the land which we are taking on lease payment its breakeven occur
after 10 years according to our lease payment per month.
Bilal Leghari
 FINANCIAL PLAN:
SOURCES AND USES OF FUNDS

The ratio of the partners is as follow:

Partners Contribution Ratio 25%

Our total capital will be Rs. 57,875,774 out of this capital the partners will

contribute round about 15,000,000 and the remains will be raised from

financial institutes like: smeda, and banks etc.

Capital to be Brought in by Partners = Rs. 57,875,774

Borrowed Amount (Loan) = Rs. 15,000,000
Total Initial Investment Rs. 72,875,774
 KEY ASSUMPTIONS

Revenue is Increased @ 20% per Year

Cost of Services is Increased @ 15% per Year

Salaries are Increased @ 5% each Year

Repair and Maintenance Expenses are Increased @ 20% each Year

Fuel and Utilities Expenses are Increased @ 10% per year

Retained Earnings are 75% of the Net Income

Interest Rate on Loan is 14%

Rental value of tender increased annually by 10%.

Other assumptions are further mention in the notes to these projected
financial statements.
 YOUTH FUN LAND INCOME STATMENT
FOR THE YEAR ENDED
DISCRIPTION RS.
NET REVENUE 31,656,800

Salaries 1852,000
Stationary Expense 1,000
Rent Expense 1200,000
Marketing and Promotion 16,000
Repairs and Maintenance 250,000
Electricity Expense 500,000
Phone and Internet 96,000
Misc Utilities 50,000
Depreciation Expense 195100
Total Expenses 3760100
OPERATING PROFIT 2136700
EBIT 22936700
Interest on Loan Expense 1400000
Profit before Tax 21536700
Tax (5%) of N.I 2153670
NET INCOME 19383030

Retained Earnings 75% OF N.I 14537273

 YOUTH FUN LAND BALANCE SHEET
AT THE YEAR ENDED 2014 .
ASSETS RS
FIXED ASSETS
Snooker 100,000
Carom 2000
Computers 5,00,000
Swimming 1,00,000
Hockey 62,500
Play Stations 62,500
Basket Ball 30,000
LCD’s 250,000
Valley Ball 30,000
Sound System 50,000
Furniture & Fixture 300,000
Projectors 50,000
Archery 10,000
Office Equipment 10,000
Security Cameras 15,000
Badminton 15.000
A.C.s 100,000
Generator 200,000
Lights fans And Décor 50,000
Table Tennis 25,000
Shooting Gun 25,000
NET FIXED ASSETS 19,87,000

CURRENT ASSET
Cash in Hand 3,00,000
Cash at Bank 5,10,000

TOTAL CURRENT ASSETS 8,10,000

TOTAL 27,970,000
LIABILITIES RS.
Loan 15,000,000
Profit Payable to Partners 200,000

TOTAL LIABILITIES 15,200,000

EQUITY
Capital 57,875,774
Retained Earnings 14,537,273

TOTAL 72413047
 NOTES:
NOTE # 1

TOTAL ANNUAL REVENUE

Year 1 (Rs)
Total Annual Revenue from Games 31,656,800

TOTAL REVENUE 31,656,800

It is assumed that:

There are 360 working days in a Year

NOTE # 2

SALARY:
Year 1
DESIGNATION SALARY/MONTH RS
(RS.)

General Manager 30,000 360,,000

Manager Operations (Computer Games ) 23,000 276,000
Manager Marketing & Promotions 23,000 276,000
Manager Operations (Manual Games) 23,000 276,000
IT Specialist 20,000 240,000
Sweeper 3,000 36,000
Sweeper 3,000 36,000
Office Peon 3,334 40,000
Office Peon 3,334 40,000
Office Peon 3,334 40,000
Security Guard 8,000 96,000
Security Guard 8,000 96,000

Total 154334 1,852,000

Note # 3
TENDER LEASE MONTHLY:
The building is acquired on lease
and as per agreement the monthly
lease payment for the building is Rs.
480000 for the first 10 years. The
lease payment for the First year is to
be paid in advance
Monthly Lease = Rs. 480000
Annual Lease = Rs. 480000 x
12 = Rs.5760000
NOTE # 4
MARKETING AND PROMOTIONS:

Annual Cost

Rs

Banner (Flex) 25,000

Brochures 10,000

Other Sources 15,000

Total 50,000
 NOTE # 5
DEPRECIATION

ASSETS COST RESIDUA BOOK DEPRECIATI ANNUA

L VALUE VALUE ON RATE% L DEP

Snooker 100,000 20,000 80000 15 12000

Carom 2000 500 1500 10 150

Computer 500,000 75000 425000 10 42,500
s
Play 62,500 15000 55000 15 8,200
Stations
LCD’s 250,000 30000 220000 10 22,000
Sound 50,000 5000 45000 15 6,750
System

Furniture 300,000 50000 250000 15 37,500

& Fixture
Furniture & 300,000 50000 250000 15 37,500
Fixture
Projectors 50,000 10000 35000 10 3,500
Basket Ball 30,000 10000 20000 10 2,000

Office 10,000 500 9500 10 950

Equipment
Weightliftin 30,000 10000 20000 15 3000
g
Security 15,000 2000 13000 10 1300
Cameras
A.C.s 100,000 20000 80000 15 12,000
Hockey 62,500 15000 50000 15 7,500
Generator 200,000 40000 160000 15 24000
Lights fans 50,000 2000 48000 10 4,800
And Décor
Badminton 15000 5000 10000 15 1500
Table 25,000 3000 22000 10 2200
Tennis

Shooting 25,000 3000 22000 10 2200

Gun
Total 2087000 195100
Any Question