BUSINESS PLAN

Names & Roll Numbers

Group Leader Rehman Shafiq 12472
Other Members Muhammad Arbab Ali 12483
Moin Yousaf 12487
Hamad Ahmad 12495
Class MBA-III (Evening)
Course Entrepreneurship
Submitted To Sir Adnan Iftikhar
Submission Date 01-12-2015

Department Of Management Sciences

National University of Modern Languages,
Islamabad
This document is copy righted©
Word count: 2572
 ACKNOWLEDGEMENT
All praise for ALMIGHTY ALLAH, All respects are for the Holy Prophet

HAZRAT MUHAMMAD (Peace Be Upon Him).

In the beginning, we would like to present acknowledgement of

gratefulness to our honorable teacher Sir Adnan Iftikhar for guiding us

through the formulation of this business plan.

No doubt, there had been a great learning phase, we made mistakes

and learnt from them and covered the milestones towards the

completion of this project step by step with key factors taken into

consideration, self-possession and patience.

 Declaration
We are all member agreed that this Business Plan is the end result of our efforts. It can be
judged management team in order to plagiarism detection, where will be checked and
compared work submitted by this University. We are also agreed this Business Plan is not
result of copy past from internet or any other source.

Group Member Names’ & Signatures:

1. Mr. Rehman Shafiq …………………………

2. Mr. Muhammad Arbab Ali …………………………..
3. Mr. Moin Yousaf ……………………………
4. Mr. Hamad Ahmad ……………………………..
 Executive Summary
We are four members Mr. Rehman Shafiq, Mr. Muhammad Arbab Ali, Mr. Hamad
Ahmad and Mr. Moin Yousaf are going to start a new business in two days
business activity of Entrepreneurship Week Market in National University of
Modern Languages (NUML) Islamabad. Entrepreneurship Week will held in the
3rd week of the month of December 2015. The name of business is STYLISH
JEWELRY & COSMETICS. The nature of business is Retail and type of business
is Partnership. We are all working as general Partners. Our primary products
are related to Jewelry and also some products of cosmetics will offers. We will
sale these kind of products to Female Students, Faculty and others staff of
NUML University. Some products are also offering for male. There is our two
others competitors in Entrepreneurship Week, one is offering Jewelry and other
is offering Cosmetics but we are offering both jewelry and cosmetics products
at same place at discount price. It is our competitive advantage.

We need Rs.40000 capital for this business. We will invest Rs.20000 by our own
resources including Rs.2000 by selling of tickets, each members’ investment is
Rs.5000. We will arrange Jewelry cost Rs.20000 on credit basis. Rs.10000 for
Cosmetics Products and remaining Rs.10000 for Advance Stall Rent and other
miscellaneous expenses. Our target is to meet breakeven point at the end of 1 st
day of business activity in Entrepreneurship Week. We will want to earn
Minimum 25% return on this investment. We will offer products at discount price
to create maximum market share due to this market share our profit
automatically maximized.

Our business is new and the current position is under establishing that’s no
major achievement in past but our aim to expand our business outside the NUML
University in local market in future. We will also learn business environment and
want to achieve business goals in future practical life.
Contents
Introduction............................................................................................................................................ 1

Business Descriptions ...................................................................................................................... 2

Business Goals and Objectives ............................................................................................... 2

Nature of Business ......................................................................................................................... 2

Product Line ....................................................................................................................................... 3

Competitive Edge and Differentiation .................................................................................. 3

How Can We Earn Profit .............................................................................................................. 3

Marketing Strategies......................................................................................................................... 4

Distribution Strategy ..................................................................................................................... 5

Promotion Strategy ........................................................................................................................ 5

Sales Potential ................................................................................................................................. 5

Competitive Analysis ........................................................................................................................ 7

Strength................................................................................................................................................ 7

Weakness ............................................................................................................................................ 7

Design and Development Plan...................................................................................................... 8

B. Development Plan ....................................................................................................................... 8

Operations and Management ........................................................................................................ 9

Operating Expenses and Cost of Goods ............................................................................. 9

Management and Organizational Structure ...................................................................... 9

Financial Section............................................................................................................................... 10

Investment Details of Capital ................................................................................................. 10

Return on Investment ................................................................................................................. 10

Expected Income Statement .................................................................................................. 10

Appendixes-A....................................................................................................................................... 11

Appendixes-B....................................................................................................................................... 12

Ticket’s Design ................................................................................................................................... 12

 1

Introduction
Business plan is a written description of our business future. This document that
describes what we plan to do and how we plan to do it. This document is also a
complete road map to achieve our goals and objectives. Our Business plan help
us in Entrepreneurship Week to minimize risks and loss. The purpose of
developing this business plan is to define the complete road map to perform the
two days Business Activity of Entrepreneurship Week regarding the Subject
Course ENTREPRENEURSHIP in MBA-III by National University of Modern
Languages, H-9 Islamabad.
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Business Descriptions
Name of Business
“STYLISH JEWELERS & COSMETICS”

Mission statement
“Your beauty look is our success.”

Vision
“Our aim to serve complete local market in five years after this business
activity.”

Business Goals and Objectives

Our goals and objectives are given below:
1. To earn maximum profit
2. To earn maximum market share
3. Customer Satisfaction
4. To create value for customer
5. To learn Business Environment
6. To provide best quality product at discount price

Type of Business
We are four members starting this business as a partnership Business. Names
of all members are given below;
1. Mr. Rehman Shafiq
2. Mr. Muhammad Arbab Ali
3. Mr. Hamad Ahamd
4. Mr. Moin Yousaf
All the members are general partners and liable equally for profit and loss in this
business activity.

Nature of Business
The nature of our business is retail. Our Business is Products business and we
will offer Jewelries and Cosmetics products for end customer/consumers. Our
 3

main products are related to Jewelries but some items of Cosmetics will also
offer for sale

Product Line
The List of Product Line related Jewelry and Cosmetics is given below:

Jewelry
1. Earing
2. Topes
3. Necklaces
4. Chains
5. Bangles
6. Bracelets
7. Lockets & etc.

Cosmetics
1. Body sprays
2. Face wash
3. Nail polish
4. Mehndi
5. Face powders
6. Kajal
7. Lotions
8. Creams & etc.

Competitive Edge and Differentiation

There is our two others competitors in Entrepreneurship Week, one is offering
Jewelry and other is offering Cosmetics but we are offering both jewelry and
cosmetics products at same place at discount price. It is our competitive edge.
Due this our business will different from other competitors.

How Can We Earn Profit

We will offer products at discount price to create maximum market share due to
this market share our profit automatically maximized.
 4

Marketing Strategies
Our marketing strategies divided parts give below:

Where is Business Market?

Our market is Entrepreneurship Week December 2015 in NUML University
Islamabad where we will perform this business activity.

Targeted Market
In NUML University Islamabad male and female people both studying and
working approximately equal in number. Most of the people are belong to middle
and upper middle class. Many people also belong from upper elite and richest
class. Here, we are targeting to female, middle and upper middle class to offer
Jewelries and Cosmetics products.

Projected Market Share

There is our two others competitors in market of Entrepreneurship Week.
Suppose If 100 Customers will visit and purchase Jewelries & Cosmetics
products in this market, then we hopeful and expect 40 customers will visit on
our stall & buy our products. So, our projected and expected market share is
40% in Entrepreneurship Week December 2015.

Positioning and Differentiation

We will try create a good image about our products. When customer will listen
the name of our business he/she will have good image that we are offering best
quality, latest designed and most popular designed & brands of Jewelries. There
is our two others competitors in Entrepreneurship Week, one is offering Jewelry
and other is offering Cosmetics but we are offering both jewelry and cosmetics
products at same place at discount price. Due this our business will different
from other competitors. Because now a days customers have no time to go for
shopping here there, that’s why when they will come on our stall, they can buy
both kind of products at one place and save their time because time is money.

Pricing Strategy
There are a lot of pricing strategies exist in this world. Our pricing strategy will
be very simple and easily affordable by customer. We will offer Discount Pricing
Strategy for our Jewelries and Cosmetics products. We will offer 5% to 20%
discount. The discount rates depends on cost and profit margins of products. All
the prices of products will covers all costs incurred on them. We will offer
 5

discount Pricing Strategy, just one behind it to attract the customer on our stall.
(Price list of Jewelries and Cosmetics products are give in Appendixes-A).

Distribution Strategy
Our business is not big business. So, our distribution will also simple not
complex. The distribution channel is also important for any business. We already
mention in Business Description that the nature of our business is retail. We
purchase Jewelries & Cosmetics Products from wholesaler on cash & credit
basis and directly sale to customer. The distribution strategy we choose for our
product will be based on several factors that include the channels being used by
our competition, our pricing strategy and our own internal resources.

Promotion Strategy
Our promotion is not complex. It is very simple. Our promotion strategy further
two divided into two parts for this business activity.

A. Advertisement Strategy
We already done our Stall's advertisement during selling of Business
Tickets/Cards. We already issued to free Business Cards among female faculty
members of Management Sciences Department of NUML Islamabad. We also
have planned to advertise of our stall through distribution of free Cards among
female people.

B. Sales Promotion Strategy

We have planned to give 1 item of Jewelry & Cosmetics on sale of products of
Rs.500. Its means that If a customer buy products worth Rs.500 we will give
him/her 1 item free of cost. If the demand will low, we can also introduce "buy
two products & get one free". It will depend on as per situation or demand.

Sales Potential
Our expected sales in two days Entrepreneurship Week will be as follows:

S=TxA

S = Sales

T = Total Expected Number of Customers

 6

A = Average Revenue Earn Per Customer

So,

S = 500 x Rs.100 = Rs.50000

Expected peak hours of sales will be 11:00am to 01:00pm & 04:25pm to

05:45pm.
 7

Competitive Analysis
Our competition is in Entrepreneurship Week December 2015. Basically Our
Competition with two more stalls. One group will offer Jewelry and other will
offer Cosmetics but we will offer both Jewelries & Cosmetics Products at same
place. Our strength and Weakness given below:

Strength
Our Strength our two group member. Mr. Muhammad Arbab Ali have experience
how to manage finance and also work experience on shop. Shop. Other member
Mr. Hamad Ahmad also have business experience. So, this our strength to help
to perform this two days business activity of Entrepreneurship Week December
2015.

Weakness
According to survey of NUML Islamabad Entrepreneurship Market every group
should have to at least one female member who help to attract the customers.
Our stall is also offering Jewelries & Cosmetics Products. So, that’s why 1
female member would be there. But it could not possible. It is our weakness that
can create difficulties in two days business activity of Entrepreneurship Week
December 2015.
 8

Design and Development Plan

The purpose of design and development plan is to provide investors with the
description of the product's and its development within the context of
production, marketing and business itself. The purpose is also reach to business
goals and objectives.

Our Design and Development Plan further divided into two parts:

A. Design
Our business is retail not manufacturing business. So, our business is not
concern with design of products. But we will try to offer most beautiful and
attractive design of Jewelries in wide range. We will also try to offer Cosmetics
products in attractive packaging.

B. Development Plan
The development plan of our business further divided into three more parts:

I. Product Development Plan

We will offer latest Jewelry & Cosmetics Products in two days business activity
of Entrepreneurship. We will also have plan to offer other fashion designing
products for example Lady Designed Neck Galas and Mehndi etc. It will be our
product development plan.

II. Market Development Plan

After this two days business activity of Entrepreneurship Week December 2015
we have plan to offer these products in other market to start our business at new
place. For example we can start our same business at any market in twin cities.
It will be our Market Development plan.

III. Organizational Development Plan

The Organizational Development means overall planned change in an
organizational culture. Our business organization is very small at this stage and
will work manually. We have plan If our business grow rapidly then we conduct
organization development and we will introduce advanced computerized system
instead of manual system in whole organization. It will be our organizational
development plan.
 9

Operations and Management

Operations and Management are most costly parts of any business organization.
The operations and management plan is designed to describe just how the
business functions on a continuing basis. The operations plan will highlight the
logistics of the organization such as the various responsibilities of the
management team, the tasks assigned to each division within the business, and
capital and expense requirements related to the operations of the business. This
section is divided into two parts one is related to Operations and other is related
to management & Organizational Structure. The of these two parts given below
in detail;

Operating Expenses and Cost of Goods

Our business operating expenses and costs are given below;

Advance Stall Rent (includes electricity, tents, table & chairs etc.) Rs.5000

Cost of Goods Rs.30000

Carriage Rs.1000

Advertisement Cost Rs.700

Management and Organizational Structure

Our management and organizational structure is so simple no any complexity
here. We divide all the business operating functions equally among members to
make it job easy to perform. The division of work done according to their
expertise. All the group member perform business function according to
assigned tasks and operating responsibilities

Operations Responsibilities of all Group’s members:

Mr. Muhammad Arbab Ali Financial operations

Mr. Rehman Shafiq Marketing operations

Mr. Hamad Ahamd Stall management

Mr. Moin Yousaf Other operations

 10

Financial Section
The financial is most important for us to perform two days Business Activity of
Entrepreneurship Week December2015. The financial section further divided
into three parts in detsil given below:

Investment Details of Capital

We need Rs.40000 capital for this business activity. We will invest Rs.20000 by
our own resources including Rs.2000 by selling of tickets, each members’
investment is Rs.5000. We will arrange Jewelry cost Rs.20000 on credit basis.
Rs.10000 for Cosmetics Products and remaining Rs.10000 for Advance Stall
Rent and other miscellaneous expenses. In our total capital of Rs.40000 amount,
50% equity and 50% debt. This is a partnership business. All the members are
general partners and liable equally for profit and loss in this business activity.

Return on Investment
Our target is to meet breakeven point at the end of 1st day of business activity in
Entrepreneurship Week. We will want to earn Minimum 25% return on this
investment. We will offer products at discount price to create maximum market
share due to this market share our profit automatically maximized.

Expected Income Statement

Our expected income statement is given below:
STYLISH JEWELERS & COSMETICS
EXPECTED INCOME STATEMENT
As on 01st December, 2015
PRs. PRs.
Expected Net Sales 50000.00
Expected Cost Goods of Sold 30000.00
Expected Carriage Expenses 1000.00
Advanced Stall Rent (includes electricity, tents, table & chairs etc.) 5000.00 36000.00
Expected Gross Profit 14000.00
Expected Marketing & Operating Expenses 1200.00
Expected Net Profit 12800.00
 11

Appendixes-A
Price and Cost Range List of Jewelries and Cosmetics Products

Jewelries Items Cost (PRs.) Price (PRs.)

Earrings 20-250 30-400

Topes 15-60 30-100

Necklaces 120-350 200-600

Chains 50-125 100-250

Bangles 70-325 100-500

Bracelets 70-350 100-500

Lockets 100-375 150-550

Cosmetics Items Cost (PRs.) Price (PRs.)

Body Sprays 100-150 180-300

Eye Shade 180-500 300-650

Eye Liner 80-180 100-200

Kajal 70-250 100-300

Face Powder 180-300 200-350

Lips Liner 30-80 40-100

Nail Polish 70-150 100-200

Lips Glow 80-150 150-200

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Appendixes-B
Ticket’s Design