Business Plan

Pals Auto Dealers and Services

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Small Business Management Project


Submitted to:
Prof. M. Gulraiz Qadri

Contributed by:
Muhammad Awais (6618)
Zishan Hashmi (6621)
Fareed Ali (6624)
Noman Haseeb (6637)
Babar Hussain (6649)
Asad Abbas (6773)


DEPARTMENT OF BUSINESS ADMINISTRATION
Govt. MAO College
93-R, Lower Mall Road, Lahore

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Pals Auto Dealers
and Services
(A Partnership company)


Friendship is the most treasured thing in the
domain, it could even be magnified when we become
perpetual partner of each other and we are going to
avail this opportunity

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Acknowledgment
First of all we would like to thank ALLAH Almighty who gives us
courage and resources to complete this project. Many people have
contributed in the successful completion of this project. Our great
appreciation goes to Prof. Gulraiz, who helped us in every way to learn
and understand Small Business Management. He provided us with every
generous help in the accomplishment of our blue ideas and molding
them into an achievable business plan. We are thankful to our teacher
for the knowledge he has imparted and his guidance in every field. Last
but not the least we would like to thank our families and parents who
provided us love, support, patience & good knowledge.

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The Business Profile
Executive Summary:
Transport Vehicles are always very demanding at all places. So, we plan to start a business of
motor cycles with Friends Auto dealers and Commission Agent is a dealing place located on
Lytton road in Lahore. It occurs at the center of the market. Where daily a lot of buyers come
and purchase their own vehicle.
We will hold true to its vision of being a new and confidential face of market feel in order to
become a trustable spot for customers. Lytton Road is an old market of trading of auto motors,
and here main focus of businessman is to give a vehicle to its customer at low price with
satisfactory of customers. We will also hope to become the important and most trustable dealers
than any other in market. We want that when a customer entered in market than he firstly comes
at our shop. We will try to deal according to him.
Targeted Market and Customers:
Our target market will be adult citizens. The youth especially mature persons must need a motor
vehicle for their daily routine work. We shall plan for our customers what they want and how we
provide them, as our basic aim will be customers satisfaction.
Over the age of 18, every man required a motorcycle for his need. We open our business at
market, so we can easily deal so many buyers in daily routine.
Segmentation:
I will segment the market demographically, which include age, for the business of dealers I will
go for age wise, although everyone required motorcycle weather he is rich or poor, but my main
focus on the customers aged between 15 to 40, because people of these ages like to use bikes for
their personal use than the aged people. Another fact is that most of aged people ignore bikes
because they like to drive a car then motorcycles.

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Sec 1: Business Profile
Pricing Power:
Our plan would be profitable because everyone need a motorcycles at lower cost than market
price and we shall make sure to sell the bikes by lowering the price which will gives us the
competitive edge on our rivals or competitors. We choose low commission rate especially for our
honorable customers as compare to other dealers in market. In market a PAKHERO bike is
selling at the price of 44,000 R/s with registration, we offer this bike at 43,000 R/s and same in
the case of other bikes like United, Road Prince, and Metro motorcycles.
Sec 2: The Vision and the People:
In next few years Friends Auto dealers and commission agent would be the favorite seller in
market. The trust of our customers will be more increase then recent. Also Increase the trust with
our suppliers for take goods on credit basis easily. The customers prime shop for buy bikes will
be us than others dealers in market.
Mission Statement:
We will intend to make enough profit to generate a fair return and to finance continued growth
and development in quality goods. We will also maintain a friendly, fair, and creative work
environment, which respects diversity, new ideas, and hard work. Increasing the savings more
than more. Dominant our business name in market.

Slogan of our Organization will be;
We believe matching our words with reality. We dont want to keep our customers in
darkness

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As our slogan shows our commitment toward our customers, because we shall provide our
customer high quality of goods by lowering the price and our company slogan helps to make it
more authentic.

Product & Services:
1. Main types of goods of our business are Local brand of bikes like
PAKHERO, UNITED, METRO, ROADPRICE, STAR ASIA, SUPERSTAR and
BML.
2. We also sell a special tiny scooter for less than 18 years old.
3. Spare parts and accessories of bikes.
4. Extended plan for the service stores of our product.
Sec 3: Organization
Business Organization:
Friends Auto Dealers and Commission Agents is a partnership business of Motorcycles Among a
group of college friends( Babar Ali, Zeshan Hashmi, Fareed Ali, Noman Haseeb M. Awais, and
Asad Abbas). They all have potential to apply their business skills and abilities to enhance
business growth with diversified nature in business field. One of our partners have business
history in family background. Having strong motivational abilities and back-support of our
families.


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Human Resource Requirements:

Manager:
CEO will personally manage business and perform the duties of manager, it will help CEO to
reduce the salaries expenses, and it will also help us to put an eye on managing operations and
personally supervise the operations.
Dealing person
We will need a dealing person. He will deal with the customers. He is also liable to listen the
customers.
Assistant
One assistant worker will be one of our partner to assist the business operations, his main duties
will be help to dealing person in case of more than 2 customers. He also helps to manager in
financial sector.
External worker
One of our partner will be our external worker. He will deal with the banks affairs, registration
office, and delivery reports etc.
Peon
We will require a peon who will remove dust from shop and also give us and our customers
some refreshments like tea, coffee, biscuits etc.



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License to run a business:
Certificate of Incorporation is required to run such type of private business. Every person can
start its business on receipt of certificate of incorporation. Thus Friends Auto Dealers and
Commission Agent will also commence their business after fulfilling the requirements of
certificate of incorporation. The legal fee to obtain a certificate is up to 5000 R/s at time of get
license and 3000 R/s annually fee.
Sec 4: Insurance
Insurance:
I took an insurance quote from many companies and finally I choose EFU Insurance Company.
Because they give us the best insurance policy on balanced price, they insured our business
approximately Rs. 100000/-
Sec 5: Premises
Location Criteria:
Zoning: - Location of organization would be preferred where tax incentives given to
certain zone and located in market because a large number of customers come here daily.
The attraction of people who has interest in purchasing bikes is also more here than other
markets in Lahore.
Initially exact place of our business is not confirmed; however it would be decided
according to the competitive edge of the place and customers flexibility.
Sec 6: Marketing:
The marketing cost is estimated initially only from 43000 R/s. Our plan is to promote our
business by leafleting, for this purpose we will spend approximately 1000 to 1200 R/s yearly,
and spend more money in start of the business.

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Advertising and Promotion Plans;
At the beginning advertising and promotion plan will need higher budget to attract customers,
thus company need heavy advertisement to attract customers and providing them the sales
services. Advertisement would be according to the culture of the country which makes it more
effective to create and retain customers.
We will use Introductory board, Banners, Cable Slides, key rings, Calendars and wall clock as
our major source of advertising,


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How to gain a competitive edge?
We will sell our bikes less than 1000 R/s from market price. Our competitors goods price is
greater we shall compete them by lowering our price of goods. We can also compete them by
low monthly installments rates and lowering the price that can be possible by hiring of skilled
and qualified staff at balanced salaries.
We will also give helmets with bikes and many other gifts like watch, water cooler, wall clock
etc. So by using low pricing technique and by providing gifts to customers, it will give us the
competitive advantage.
Section 7: Growth Program
Expansion:
Initially we will open the business with the product line of 6 customers favorite products, but in
future I will increase my product line and add HONDA, YAMAHA, in our product line. With
the passage of time, we have program to diversify our business, we are aiming to introduce oil
and service stations along with our outlets, and this decision depends upon the accomplishment
of our goals and objectives.
If all the plans are going well and we will be succeeded in our dealers business and if we will get
the satisfactory profit then our plan is to expand our business in next few years and our future
plan is to open another business in another city.
Section 8: SWOT Analysis:
Strengths:
Self-motivated team
Offering low prices as compared to Competitors.

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Low monthly installment rate.
Give a friendly atmosphere.
Weaknesses:
Initially the product line is very small with only 6 products.
Not enough knowledge about market because of new business.
Limited capital
Lack of experience
Lack of dealing knowledge
Limited Items
Opportunities:
Population of country people are increasing day by day.
Increasing demand in cheaply transport products.
Suppliers are easily available for vehicle products.
Time save due to Occurrence in market.
Specialized marketing skills as compared to rivals.
Threats:
Threats of new entrants.
Effect of Government policies.
Increasing inflation.

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Section 9: Startup Expenses
Startup expenses are those expenses that are required for starting the new business, we need
satisfactory amount of money to meet our business financial requirements. According to our
calculations we need sum of money of about 2800000 R/s, this include purchase of computers
and equipment, furniture for shop, legal expenses, advertisement expenses and it also include
e the cash in hand need to meet the day to day requirements. Sufficient level of inventory is
required to meet the daily requirements.

0
500000
1000000
1500000
2000000
2500000
3000000
Expenses
Assets
Investment
Loan
Start-Up
Start-Up

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Table: Start-up
Start-up Expenses

Requirements

Office Equipments Rs.1020
Computers Rs.10000
Furniture Rs.28200
Telecom & DSL Setup Rs.5000
Logo Design Rs.2000
Legal Certificate Rs.8000
Advertisement Rs.47000
Security Deposit of Property Rs.10000
Total Start-up Expenses Rs.111220
Start-up Asset Needed
Cash balance on starting date Rs.2688780
Start-up Inventory Rs.0
Total Short-term Assets Rs.2688780

Total Long-term Assets Rs.0
Total Assets Rs.2688780
Total Requirements Rs.2800000

Funding

Total Investment Rs.2800000

Total Long-term Liabilities Rs.0

`Loss at start-up (Rs.111220)
Total Capital Rs.2688780
Total Capital & Liabilities Rs.2688780


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Section 10: Financial analysis
We need total investment for starting this business is about Rs.2800000 and it would be totally
financed by our personal source. We will never prefer to take loan from bank or any other
financial institution.
According to our Estimate, Total Sales after 1.5 years is Rs.3410000 and on which we earn net
profit Rs.838180. Cost of Goods Sold will be Rs.2424000.
We will purchase 60 bikes from different companies from which 10 bikes will be sell on cash
basis and 50 bikes will be on installments. We will receive bike from companies at cost of
Rs.38000 and including registration fees Rs.2400. On cash basis, we will sell each bike for
Rs.43000 and On installments, Rs.59600 per bike. In installments, Per installment of month is
2500 and this will carry through 18 months (1.5 Years). Rs.10000 receive as advance payment
and 2000 bike profit for FADCA, 2000 processing fees and 600 from bikes documentation for
registered as remuneration.

Pro-Forma Profit & Loss


1.5 Years
Sales
3410000
CGS
2424000
Gross profit
986000
Selling and Admin Expense
Advertisement expense
47000
Depreciation on furniture
2820
Depreciation on Computer
1000
Salaries
90000
Misc. Expenses
4,000

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Legal Certificate
3000
Net Profit
838180




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Balance Sheet



Assets



Current Assets
Rs,


Cash at hand
3530780


Fixed Assets



Office Equipments
1020
Computers
9000
Furniture
25380
Telecom & DSL Setup
2000
Logo Design
5000
Legal Certificate
8000
Advertisement(Deferred Cost)
47000
Security Deposit of Property
10000


Total Assets
3638180


Liabilities & Capital
Rs.


Owner's Equity



Paid-up-Capital
2800000
Net Profit
838180


Equity
3638180


Liabilities
0



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Total Liabilities & Capital
3638180