Professional Documents
Culture Documents
Entrepreneurship
Prepared for:
Sir Rai Farukh
Management Sciences Department
University of Education, LMC, Lahore
Prepared By:
st
1. EXECUTIVE SUMMARY
To introduce a new era of business module in Pakistan, we are people of four
members are going to establish a retail store, a unique, universal, and versatile sales floor. It
generally provides almost every kind of consumer goods. To make it successful we have
chosen developing region of Lahore city to inaugurate one outlet initially..
Since we have selected Lahore for starting new venture so for now we will just
consider Lahore as our target market. This Retail store business will sell items such as Surf,
Tooth paste, Branded oils, Wheat, Sugar, Rice, Shampoos, Soap, Tea, powdered milk, Bottles,
Mineral Water, Candies, Diapers, Stationery Items, Small Provision items, Branded Jams,
biscuits and chocolate / toffees etc. Total Cost Estimate of the project is Rs.1 million with
Fixed Investment of Rs. 0.2 million and Working Capital of Rs. 0.8 million. The following
factors for success of retail store business are important to operate it an entrepreneurial way,
3: Manpower requirement
Our business is established mainly to provide consumer goods and services to people
in more comfortable way where they will be able to collect their any kinds of necessities with
the assurance of quality and standard in an environment friendly manner.
Mission:
Vision:
To establish a market environment where customer will get quality products and
services at a reasonable price in an environment friendly manner
Target Market:
We have chosen Sanda Lahore as Target Market of our retail store. The estimated
population of this area is about more than 2Million that will be favorable for our Business.
Employment Generation:
The proposed project will provide direct employment for 4 people.
Management Summary
The owners of the retail store believe very strongly that relationships should be
forthright, work should be structured with enough room for creativity, and pay should be fair
and equitable in relation to what the industry is paying. With the right people in place the
Dollar Store will have the incentives to encourage quality people to stay.
3. CRITICAL FACTORS
Critical success factors that will distinguish our retail store business from traditional
stores are,
Marketing Skills
Personal Advertising with Customers
Marketing mediums
Pricing
Use of computer
Store layout and presentation
Suggestions from customers continually
Customer focused
Proper Inventory Management
Marketing Skills
Effective marketing skills are required for this start up. These marketing skills will
help us when,
To target potential customers
To retain long term customer relations.
designed computer system can perform the task in seconds. Software for inventory and sales
recording and management should be used to have updated data at all the times. This
software will not only record each and every sales transaction but also will update stock and
cash position after every transaction.
Suggesstions from customers on regular basis
Old School Retailers dont take reviews from customers. We will continuously take
reviews, suggestions from customers regarding changes that customer wants, and reviews
about their satisfaction.
Customer focused
From day one our strategy will be customer focused profits will automatically inflow.
In contrast traditional retailers are rarely customer focused they just focus on reaping high
profits which results in loss of customer.
4. LOCATION OF STORE
Obviously Retail store location selection is a major decision while starting new
venture. We have selected a Shop of 2 Marlas in Sanda Khurd Lahore on rent of 4000
monthly. The Shop will be acquired on rent basis. And this rent of first month plus additional
amount of advance will be paid out from our fixed investment. In addition to that building
rented carriage car will be required and this amount of rent will be paid out through reserve
cash in hand.
5. SWOT ANALYSIS
A SWOT Analysis is a strategic planning tool used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or business venture.
Opportunities and threats originate from outside while strengths, and weaknesses from inside.
A SWOT for our retail store is,
Strengths
Opportunities
Weaknesses
Threats
7.LEGAL STATUS
Our retail store business falls in sole proprietorship business. Hence it is free from
income taxes by Government. But the prospective law is under consideration by Government
of Pakistan to be approved in 2015-16 Budget, by which all retailers will be taxed.
Intellectual property:
We will designed our logo which will be our special trademark and it will differentiate
us from others. Our strategies and intellectual designs are also important that would not copy.
In this regard, we will have copyrights on these facts. We have introduced unique ideas which
also cannot be copied by others.
We will make registrations according to the rules of law with supporting documents
for the above mentioned intellectual properties
PACKAGING:
We will introduce four types of packages for our different levels of customers which are
environment friendly:
Children: We will introduce new shopping bag for children with cartoony and
colorful
design.
Women: For women we have introduced special bags with some tips of cooking
Men: some beauty tips for men included in the bag for men
PRICING:
We are following cost leadership strategy to capture 25% share from nearby retail
stores when start up. We want to create competitive advantages by reducing cost of supply,
distribution. .
BRANDING:
Today branding has become so important that there is hardly anything that has no
brand identity. We believe the name of our business is a unique identity, people can easily
recall our brand name so that potential customer will attract as well as turn in to our loyal
customer.
2.Marketing to these segments of the population will lead to an expansion in overall market
growth.
Customer service:
1. Arranging products in a discipline way
2. Offering huge number of trolley
3. Giving tag which involved price, date of purchasing
11.MARKET INFORMATION
Major Wholesale Markets
Retailers can acquire retail commodities via wholesale markets in every large city of
pakistan. The major wholesale markets in Lahore are:
12.Competitors Grid
City
Locations
Lahore
Sanda Lahore
Lahore
Lahore
Islampura Lahore
Uniqeness
Store Name
2% Discount
Mohsin Store
Khurram Store
Qazi store
Contribution to Economy
Although in Pakistan the retail business is not providing employment at a large scale
directly, but indirectly it is contributing in the employment growth. As more and more retail
outlets are opening and consumer buying has shifted towards packaged/branded products.
Companies are coming with top quality products and with the increase in production level the
employment also increases.
ELECTRIC AND OTHER EQUIPMENT REQUIREMENT
Following is the detail of equipment required for this project.
Description
Refrigerator
and Computer
Electric
No. of Units
deep freezers
1
Inventory Softwar
1
Fittings
-------
Total cost
40000
20000
40000
5000
Less:
Estimated Cost of Goods sold.400, 000
Gross Profit.Rs/= 3,00, 000
Less:
Operating Expenses
Electricity..Rs/=18000
Salaries Rs/= 40000
Shop Rent.Rs/=12000
Total Operating ExpensesRs/=70,000
Expected Net Profit..Rs/=270,000
Rupees
Rupees
Refrigerators
40,000
Accounts Payables
Computers
20,000
Interest Payable
Nil
Racks
25,000
Accrued Expenses
Nil
Reserve Cash
200,000
Total Liabilities
Inventory Purchased
600,000
Owners Equity
885,000
Total Assets
885,000
885,000
Nil