Master File - Final

Business Plan - Strategic Financial
Services
By:
Omar Mansoor 14528
Aban Ali 14509
Yasir Sheikh 14909
Mariam Shafiq 14477
Dawood Khan 14810
Hafiz Bilal 14165
Ghulam
14661
Muhammad
To: Sir Fazal

Khalidi
Memon
Table of Contents
Executive Summary......................................................................6
Company Description....................................................................6
Company History........................................................................7
Mission Statement......................................................................7
Product and Services..................................................................7
Current Status............................................................................8
Legal Status and Ownership.......................................................9
Key Partnerships.........................................................................9
Industry Analysis......................................................................... 10
Industry Size, Growth Rate and Sales Projection.......................10
Industry Structure..................................................................... 11
Threat of New Entrants...........................................................11
Threat of Substitutes..............................................................11
Rivalry amongst firms............................................................12
Bargaining Power of Buyers....................................................12
Bargaining Power of Suppliers................................................13
PEST Analysis.........................................................................13
SWOT Analysis.......................................................................14
Nature of Participants...............................................................15
Key Success Factors..................................................................15
Strategic Financial Services
Page 2
Industry Trends and Long Term Prospects.................................16

Market Analysis........................................................................... 17
Market Segmentation..................................................................18
Geographic............................................................................... 18
Demographic............................................................................18
By Age.................................................................................... 18
Race....................................................................................... 18
Sex......................................................................................... 19
Psychographic..........................................................................19
Target Market Selection...............................................................20
Geographic............................................................................... 20
Psychographic..........................................................................20
Level of Education..................................................................20
Socioeconomic Status............................................................20
Sex......................................................................................... 20
Race....................................................................................... 20
By Age.................................................................................... 20
Buyer Behavior...........................................................................21
Competitor Analysis....................................................................22
Marketing Plan............................................................................23
Market Summary......................................................................23
Mission.....................................................................................23
Page 3
Marketing Objectives................................................................23
Positioning................................................................................23
Overall Marketing Strategy.........................................................24
Marketing Mix.............................................................................. 25
Product.....................................................................................25
Price.........................................................................................25
Promotion.................................................................................25
Distribution............................................................................... 26
Management Team and Company Structure................................27
Management Team...................................................................27
Omar Mansoor........................................................................ 27
Aban Ali.................................................................................. 27
Ghulam Muhammad Memon..................................................28
Yasir Sheikh............................................................................28
Hafiz Bilal............................................................................... 28
Mariam Shafiq........................................................................29
Dawood Khan.........................................................................29
Board of Directors.....................................................................29
Board of Advisors......................................................................30
Waqas Ahmed Siddiqui...........................................................30
Saad Javed.............................................................................30
Company Structure...................................................................31
Page 4
Ghulam Muhammad...............................................................31
Yasir Sheikh............................................................................31
Operations Plan........................................................................... 32
General Approach to Operations...............................................32
Business Location.....................................................................33
Bootstrapping...........................................................................33
Facilities and Equipment...........................................................34
Service Design and Development Plan........................................35
Development Status and Tasks.................................................35
Challenges and Risks................................................................37
Intellectual Property.................................................................38
Financial Projections....................................................................39
Sources and Uses of Funds Statement......................................39
Assumptions Sheet...................................................................39
Pro Forma Income Statements..................................................43
Pro Forma Balance Sheets........................................................45
Pro Forma Cash Flows...............................................................46
Ratio Analysis...........................................................................46
Page 5
Executive Summary
Strategic Financial Services is a financial services company in
Pakistan. Located in Karachi, Strategic Financial Services aims to
offer a host of financial services both created by and for
entrepreneurs. Such services include, but are not limited to, cash
management services, transaction handling, book & record
keeping, and banking relations. This business plan communicates
our vision, philosophy, and plan for a better, stronger, and more
economically sound Pakistan.
Using key success factors including, but not limited to, quality and
low price of financial services, efficient marketing, quick turnover,
customizable services and flexibility of payment, we project an
average net profit over the next three years of approximately Rs.
357,000 per year.
Company Description
Strategic Financial Services is a Pakistani company providing
superior financial management services to entrepreneurs at
highly competitive prices. Founded in 2016 by a group of students
from the Institute of Business Management, the company will
ensure both the promotion of Pakistans entrepreneurs and those
of its shareholders. Strategic Financial Services currently has
seven employees and one mentor who serves on the board of
advisors.
Page 6
The company aims to help new entrepreneurs gain better traction

with experienced finance professionals. The company will provide
all
financial
services
required
by
firm
such
as,
Cash
Management, Book keeping, banking relations, etc.

This company is unique because it differs substantially from the
way most existing companies that provide such services operate.
The team includes a host of experienced individuals who are
entrepreneurs themselves.
Strategic Financial Services has been founded by entrepreneurs
who have in-depth knowledge of all aspects concerning financial
management, sales, marketing, and investment organizations and
operations. In the near future professional talent will be acquired
and retained by offering key individuals and professionals.
Company History
Strategic Financial Services was founded in 2016 by a group of
students from the Institute of Business Management as part of
their Entrepreneurship and Small Business Management Term
Project. What started as a simple project turned into a massive
opportunistic venture that set in motion an entrepreneurial nudge
that will skyrocket Pakistans entrepreneurial adoption and growth
rate.
Mission Statement
Strategic Financial Services is committed to helping entrepreneurs
manage their capital and finances in the best way, helping both
Page 7
them and our shareholders grow with and in the communities we

serve and become the best entrepreneurial financial management
company.
Product and Services

We will provide a host of both standard and customized
financial services to small and upcoming businesses. Here is
a basic overview of the product and services offered:
We will handle all the cash on the small start ups so that
they wont have to worry about how theyre going to manage
their cash that is loans or credit collection.
We will also look over and maintain our clients transactional
records. Providing them the book and record keeping
services where we will record the day-to-day financial
transactions of a business, responsible for writing
the daybooks, which contain records of purchases, sales,
receipts, and payments.
We will be responsible for ensuring that all transactions are
recorded in the correct daybook, supplier's ledger, customer
ledger, and general ledger. Our company will also focus on
the banking relations of the company.
LCs will be issued when dealing with foreign clients.
We would provide our clients with the option of letting us
invest their idle cash in various investment avenues
depending upon the level of risk they are willing to take.
That is to say they are risk takers, and we would invest in the
stock market.
However, if they are risk averse, then we will invest in low
risk government bonds. And also we will help the
Page 8
entrepreneurs at their financing of deficits through various

means.
Current Status
Our company is set and will launch by 1 st May, 2016. As such,
while the company is currently up and running due to planning
and minor developmental needs, marketing and sales services
have yet to begin.
Page 9
Legal Status and Ownership

Due to the number of individuals involved, and the relative nature
of the business, Strategic Financial Services is registered as a
Limited Liability Partnership. As such, our liabilities are limited to
the amount we plan to invest in the business.
Ownership percentages will be split evenly among entrepreneurs.
However, since the main idea for the firm originated from Omar
Mansoor, Aban Ali and Dawood Khan, they will have a 15% share
each, with the exception of Omar since his home and its related
resources are being used. Therefore, ownership, as a percentage
of equity is as following:
Omar Mansoor - 20%

Aban Ali - 15%
Dawood Khan - 15%
Mariam Shafiq 12.5%
Hafiz Bilal 12.5%
Yasir Sheikh 12.5%
Ghulam Muhammad Memon 12.5%
Key Partnerships
While key partnerships are planned in the future, Strategic
Financial Services currently has no key partnerships with any
organization.
Strategic Financial Services Page 10
Industry Analysis
Industry Size, Growth Rate and Sales Projection
Financial services are the economic services provided by the
finance industry primarily by the banking sector. This industry
comprises
of
banks,
insurance
companies,
credit
unions,
accountancy companies, consumer-finance companies,

investment funds and some government-sponsored enterprises.
Our companys primary focus is on the financial management
aspect of the financial services. However, our company will also
provide other financial services such as investing idle cash and
issuing LLCs. We are targeting a niche in the financial services
industry and our main target would be new entrepreneurs with
small startup businesses. Hence, our business can be broadly
considered as an application of blue ocean strategy. Blue ocean
strategy is the simultaneous pursuit of differentiation and low cost
to open up a new market space and create new demand.
There are 18 business and/or general universities that offer the
entrepreneurship course in Karachi. Research estimates 20% of
graduates will become entrepreneurs. With an average graduate
number of 300 students per year, this means 60 students from
each university will become entrepreneurs. This brings the grand
total of new firms in Karachi every year up to 1080 firms. If our
company charges a minimum of PKR. 25,000 to each firm, the
current revenue stands at PKR. 27 million. This is the estimate of

Karachi that would be ourinitial target market.
Industry Structure
Threat of New Entrants
Industries are more attractive when the threat of new entrant is
low. Since our company plans to provide exclusive financial
services to small startup services, there is a high probability that
competitors would enter into the market and provide similar
services to our target market. However, there are a number of
way through which we can make high barriers to entry.
We can reach out to our target market through marketing
campaigns on platforms that is accessible to new entrepreneurs.
Initially, our main USP would be to give the best services at the
most reasonable prices. The strategy that we would adopt would
be the cost leadership strategy. The cost factor is important for
start-up firms who are our main target market.
Threat of Substitutes
Industries are more attractive when there is less threat from
substitutes available. In the case of our business, there are a
number of substitutes available that provide similar services.
However, it is important to note that these are not real substitutes
for the services provided but possible indirect substitutes that are
accessed normally as a part of a different required service. These
are:
Banks
Specialized financial management companies
Individually hired professionals
None of these institutions concentrate specifically on the financial
services that we are providing and their target market is different
from ours. However, they would still be strong substitutes of our
services.
Rivalry amongst firms
Our company is catering a niche and offering exclusive financial
service and hence, we do not have any direct competitors in the
market. There is only indirect competition from institutions such
as banks, insurance companies and accountancy companies who
provide these financial services as extras or add-ons. Since the
growth rate of the financial service industry is high, we can
expect rivalry in the future.
Bargaining Power of Buyers
An industry is more attractive when the bargaining power is low.
Buyers can suppress the profitability of the firms by demanding
low prices and high quality services.
Banks and other main financial services institutions do not
consider new entrepreneurs as their main target. Hence, new
entrepreneurs would have limited options left and the most
attractive one would be our company. Our company will aid them
for their smooth startup and deal with all their finance related
hassles. Also, the cost factor is important to new entrepreneur
and we would be providing them services at a low cost. Hence, we

can conclude that the bargaining power of buyers would be low.
Bargaining Power of Suppliers

Industries are considered to be more attractive when the
bargaining power of suppliers is low. Our company is providing a
service and hence, the scope of bargaining power of supplier
diminishes. The switching cost of buyers would be high as our
company would be providing good quality services at the most
reasonable prices. We can conclude that there would be no
attractive substitutes for our target market. We can conclude that
the bargaining power of supplier is low.
Competitive forces
Low
Threat of New Entrant
Threat of Substitutes
Rivalry amongst Firms
Bargaining power of
Medium
buyers
Bargaining power of
High
Suppliers
As such, the industry structure is favorable and our since we have

a first mover advantage, our company is highly likely to thrive in
this new industry.
PEST Analysis
Political Factors
Volatile political environment of Pakistan, unstable government
and threat of terrorism which has a huge impact on the financial
service industry.
Economic Factors
High rate of inflation and interest rate can affect investment. If
there is a high level of interest rate then potential entrepreneur
would rather save their money than invest in businesses and vice
versa.
The high rate of inflation also makes it difficult for other firms to
survive in the market.
Increasing demand for products is increasing the opportunity for
new entrepreneurs to develop businesses.
Social Factors
Increase in living standards of people in Pakistan and the rising
population rate in Pakistan and increasing rate of unemployment
both help promote the industry as an increasing number of
individuals look towards entrepreneurship to solve their financial
problems.
Technological Factors
Development of new and upgraded software would make financial
management easier. Increase in technology that is giving rise to
e-commerce and providing opportunity for new businesses to set

up.
SWOT Analysis
Strengths
Option of flexibility of payments for customers.
Low cost charged for services.
Option for customer to customize the services according
to their needs.
Expert team that understand the needs of the customers.
Weaknesses
Credibility would be low initially as our company would be
new in this field.
Lack of experienced investment professionals that would
make the investment decisions.
Opportunities
Huge market gap for support services.
Banks do not cater to the clients specific needs.
There are high growth rates of startup businesses in
Pakistan who are our main target market.
New entrepreneur lacks the expertise to perform these
financial services.
They also have limited financial resource to go to
institutions like banks for these services.
Threats
There are a lot of indirect competitors present in the
industry that offer similar services.
Nature of Participants
The financial service industry can be termed as an emerging
industry which has great potential to flourish. Our company is
striving to make a new market for itself within the financial

service industry. Hence, we can say that we would have the firstmover advantage for ourselves.
Key Success Factors

Key success factors of this industry includes:
Quality of financial services

Cost of services
Risk factor
Credibility of the firm
Marketing
Customized services
Flexibility of payment
Industry Trends and Long Term Prospects

Whilst Pakistan s economy has not been heavily reliant
upon
the
financial
services
sector
for
its
economic
prosperity, it has, nonetheless felt the ill effects of the

recession the global economy at large is suffering from.
Pakistan has a real opportunity to make inroads into developing
and strengthening its financial services industry during this global
hiatus in financial services activity.
The arguments for resources being devoted to the focused growth
and strengthening of Pakistans financial services industry are
compelling as they will introduce a myriad of benefits to both
Pakistans national and international economic standing.
Therefore, Pakistan has a huge growth potential for its financial
service industry and the trend of businesses approaching
institutions such as banks to seek financial services has increased

over the years. Hence, we can conclude that our company has a
huge potential for growth within the financial service industry.
Market Analysis
In Pakistan, an increasing number of citizens are choosing to
become entrepreneurs. This is fundamentally fueled by 3 primary
reasons:
1. The inability to find jobs
2. Become their own boss
3. Financial incentives
While an increasing number of students want to become
entrepreneurs, over 31% believe they will fail in (almost 39% in
Karachi alone) and thus either fail or quit within 6 months or do
not start a business. One of the primary reasons for failure, other
than the fear of it, is related to financing and/or its management.
When it comes to financial management services, there are
essentially 3 routes most entrepreneurs take. These include:
1. Hiring an experienced financial manager at a very high cost
2. Acquiring standard services from a bank
3. Provide equity to an associate in return for sweat capital in
the form of financial management
Unfortunately, none of the 3 truly understand entrepreneurship
beyond the aspect of a "risky business," which creates problem
for the market.
Thus, the market for entrepreneurial financial management
services is a rapidly growing market that has not been properly
tapped.
Market Segmentation
Geographic
Geographically, the population of Pakistan is located accordingly:
Karachi: 13.9 million
Lahore: 7.6 million
Faisalabad: 3.0 million
Rawalpindi: 2.2 million

Multan: 1.8 million
Islamabad: 0.9 million
Demographic
By Age
In the current market, young entrepreneurs lie commonly in the
following 3 age brackets:
18-25
30-45
55+
Race
While we will not discriminate based on race, the following race
brackets exist in Pakistan:
Punjabi 44.7%
Pashtun
(Pathan)
15.4%
Sindhi 14%
Saraiki 8.4%
Muhajirs 7.6%
Balochi 3.4%
Other 6.3%
Sex
While we will not discriminate by sex, the following sex
brackets exist in Pakistan:
0-14 years: 33% (male 33,595,949/female 31,797,766)

65 years and over: 4% (male 3,951,190/female 4,490,045)
However, studies have shown that in Pakistan, more men are

inclined towards entrepreneurship than are women. As such,
while we will not discriminate, we find it necessary to
mention that men are more likely to be selected because of
their generally larger proportion.
Psychographic
Psychologically, our primary concern is with the attitudinal
basis of the young entrepreneurs of Pakistan. In Pakistan,
there are generally 2 major attitudinal categories associated
with entrepreneurship. These are attitudes:
Favoring entrepreneurship (35%)
Fearful of entrepreneurship (65%)
Target Market Selection

Geographic
With the rapid increase in entrepreneurs in Karachi, over
250/year and the location of the founders, we feel it is fit to
target the entrepreneurs in Karachi.
Psychographic
Level of Education
We will target entrepreneurs who have completed at least
their intermediate-level education. Such students usually
progress forward with education and start a business later or
choose to start a business after intermediate education.
Socioeconomic Status
Most entrepreneurs from SEC A do not need entrepreneurial
financial management services as they possess the financial
backing or education to manage it themselves or choose a
highly professional and expensive finance manager. We will
target young entrepreneurs from SEC B and C as they have
the tenacity for entrepreneurship and usually require and ask
for financial help.
Sex
We will not discriminate based on sex.
Race
We will not discriminate based on race.
By Age
Considering
the
entrepreneurial
demographics, we feel the

are ideal.
and
population
18-25 and 30-45 age groups
Buyer Behavior
In our business, our buyers are essentially the clients we will
provide financial management services to. As such, our
buyers behave rather interestingly. Startups generally lack
the financial expertise to handle their finances and thus,
their behavior tends them to look towards traditional
solutions. They tend to choose solutions, including:
Commercial banking
Financial management companies
Hiring a financial executive
Bringing a friend onto the team and providing sweat equity
instead of paying them
The problem is that they know they will get rather standard
and simplistic services from almost any commercial bank
they choose.
They tend to steer clear of expensive financial management
companies, despite their exceptional level of services. This is
primarily because they know they are a startup that needs to
bootstrap and thus, this option contradicts it.
Hiring a financial executive is a smarter decision but
businesses tend to hire 2 executives or 1 manager, which
usually necessitate monthly payments of up to Rs. 100,000.
Many entrepreneurs tend to bring a friend on their team to
overcome the above issue but this causes a loss in equity,
control and often a major cause for disagreements and

failure.
Competitor Analysis
Because Strategic Financial Services is the first of its kind,
there really are no direct competitors for the business. While
banks and financial management companies CAN be thought
of as indirect competition, it needs to be understood that
these are not competitors but rather substitutes.
As such, there really are no competitors for Strategic
Financial Services. As such, currently, no competitor analysis
is required.
Marketing Plan
Market Summary
Our market consists of men and women from SEC B and C
who
have
completed
at
least
their
intermediate-level
education and live and/or plan to start and operate their

business in Karachi. This represents a market segment that
grows at roughly 9% a year.
Mission
Strategic
Financial
Services
is
committed
to
helping
entrepreneurs manage their capital and finances in the best

way, helping both them and our shareholders grow with and
in the communities we serve and become the best
entrepreneurial financial management company.
Marketing Objectives
To achieve at least an increase in clients by 10% every year
To rapidly grow brand awareness by at least 75% and ensure
top of mind recognition within 18 months
Launch at least 3 new built packages and 2 customizable
packages every year
To target and launch customers in at least one new city
every 2 years
Providing shareholder wealth of at least Rs. 50,00 within 2
years
Positioning
Strategic Financial Services aims to position itself as a
friendly, affordable, and professional financial management
company built by entrepreneurs for entrepreneurs.
Overall Marketing Strategy

Our strategy will be based on communicating Strategic
Financial Services USP and value to our chosen segment of
the market using numerous publicity-based and advertising
methods.
The 1st includes online advertising using PPC and social
media posts, both sponsored and publicity-based. Posts will
initially be targeting 3 business universities for the first 3
months to both grow interest and confidence in budding
entrepreneurs, while increasing awareness and recognition.
These include IoBM, Iqra, and SZABIST.
Another source of marketing will be done with strategic
relationships with incubators such as P@SHA tech incubator.
This will both serve as promotion and acquisition purposes.
The primary reason for targeting such incubators is the wide
range
of
individuals
and
teams
who
align
with
our
demographics.
In the first year, advertising will be kept to a minimum of Rs.
100,000, which will primarily be for sponsored social media
posts and PPC.
Within the first year, our overall marketing strategy is to
increase awareness and recognition within the first 3 months
of operations to help acquire at least 4 clients within that
time and aim for at least 12 by the end of the first 12

months.
Marketing Mix
Product
Our current range of products stands at:Cash Management
Services
Transaction Handling
Book & Record Keeping
Banking Relations
Letter of Credits (LCs)
Investing excess cash
Financing deficits
Price
The pricing strategy will initially revolve around 4 packages
as detailed in the business model. The minimum price of
each package will be set at Rs. 25,000 and will change
depending on the services added.
Promotion
The 1st includes online advertising using PPC and social
media posts, both sponsored and publicity-based. Posts will
initially be targeting 3 business universities for the first 3
months to both grow interest and confidence in budding
entrepreneurs, while increasing awareness and recognition.
These include IoBM, Iqra, and SZABIST.
Another source of marketing will be done with strategic

relationships with incubators such as P@SHA tech incubator.
This will both serve as promotion and acquisition purposes.
The primary reason for targeting such incubators is the wide
range
of
individuals
and
teams
who
align
with
our
demographics.
In the first year, advertising will be kept to a minimum of Rs.
100,000, which will primarily be for sponsored social media
posts and PPC. This will also include 50 small flyers/mini
brochures for handouts at incubator events.
Distribution
Our current distribution channels include:
Social Media
Online Search Engines
Universities
Incubators
Word of Mouth
Management Team and Company

Structure
Management Team
Omar Mansoor
Omar Mansoor is a young entrepreneur who is the head of
the company. Omar is a multi-talented individual with years
of
experiencing
managing
large
projects,
teams
and
resources to ensure organizational efficiency in exceeding

organizational
goals.
He
specialized
in
both
HR
and
marketing and will complete his BBA(H) in 2016. He is

passionate about making an impact in society and giving
back to it. He spends his free time reading books, playing
games, or enjoying some time with his family.
Aban Ali
is the CFO. He specializes in financial management. He is a
top graduate of a leading business school.
Aban Ali is a young aspiring entrepreneur who heads the
finance division of this new upcoming entrepreneurial
venture as CFO. Aban is a hard working and proficient
individual who specializes in corporate finance and equity
investments.
He is currently pursuing a BBA (H) degree from IoBM in

addition to completing his CFA examinations.
His hobbies include reading books and newspapers, watching
movie, and spending time with his family. He also has a keen
interest
in
and
regularly
follows
key
international
developments, both political and financial.

Ghulam Muhammad Memon
He is looking after the human resource of the organization
and specializes in conflict management. He is a top graduate
of a leading business school.
Ghulam Muhammad is a young entrepreneur who heads the
Human resource department. He has worked in Pakistan
State Oil and in Askari Bank as an intern. He is passionate
about bringing a change in Pakistani society and for that, he
has been working with TCF as a volunteer since 2014. He will
complete his BBA(H) in May 2016. He enjoys reading books,
watching movies and playing squash.
Yasir Sheikh
Yasir Sheikh leads the financial analysts of Strategic Financial
Services.
Specializing
in
cost
management
and
risk
management, he has done internships in Pakistans leading

banks and audit firms. He is passionate about working for
society and the people around him.
Hafiz Bilal
Mr. Bilal Anwer is an energetic and dynamic entrepreneur
and leader, whose key areas are marketing and channel
management. He served in Make-a-wish foundation, Brookes
Pharma, Habib Metropolitan Bank LTD and B&B Securities
LTD as a prolific intern and in AIESEC as well. He will
complete his BBA(H) in 2016.
He is passionate about marketing dynamics, long-term
trends, and the unexplored. His hobbies include travelling,
swimming and reading.
Mariam Shafiq
Ambitious, dedicated, and a true leader, Mariam Shafiq
serves Strategic Financial Services as the head of the
marketing department. An aspiring entrepreneur, Mariam
works with Hafiz Bilal to ensure the firm remains the market
leader and grows year by year. Mariam specializes in
advertising, market research and content development. In
her free time, she spends time with her family and friends
and enjoys reading.
Dawood Khan
Dawood Khan is a bright young entrepreneur who brings to
Strategic Financial Services years of experience working at
different financial and supply chain firms. Polishing his skills
in
both
human
resources,
sales,
and
supply
chain
management, Dawood brings a vast skill set in multiple

disciplines, giving him crucial analytical skills and makes him
ideal as the Director Sales. He will complete his BBA(H) in
2016.
He is passionate about making an impact in society and
giving back to it. He spends his free time reading books,
playing games, or enjoying some time with his family.
Board of Directors
1. Omer Mansoor
2. Aban Ali
3. Yasir Sheikh
4.
5.
6.
7.
Mariam Shafiq
Dawood Khan
Hafiz Bilal
Ghulam Muhammad Memon
Board of Advisors
Waqas Ahmed Siddiqui
Waqas Ahmed Siddiqui holds an MBA (Finance) from the
Institute of Business Administration and has cleared all his
CFA exams. With years of experience under his belt at
numerous banks such as HBL and National bank, and
running his own digital marketing firm, Mr. Siddiqui brings his
expertise and skills to Strategic Financial Services as a
trusted advisor.
Saad Javed
Saad Javed holds an MBA (Marketing) from Institute of
Business Administration. With years of experience at Dollar
Industries, Union Biscuit, Getsol.com, and Logicose, Saad has
more than enough experience both managing and growing
businesses and brands. Specializing in product development,
brand management, competitive analysis and consumer
behavior, he makes a perfect fit as a trusted advisor on
Strategic Financial Services' Board of Advisors
Company Structure
Omar Mansoor
Aban
Ali
Ghulam
Muham
mad
Maria
Hafiz
Bilal
Shafiq
Yasir
Sheikh
Dawood
Khan
Operations Plan
General Approach to Operations
Operations are the major part of any business because if
they are conducted in proper form then only a business can
earn profit and make the best use of its competitive
advantage. The operations at occasional treats run in a very
smooth order.
First of all, our approach would be to attract customers
directly, as a B2B approach, such as personal selling etc. And
ask each and every detail from customer to make sure the
best quality and desired product and service is delivered to
the esteemed customer.
Then Marketing and social media managers informs Finance
Manager and CEO about the order and they both further look
whether material or service is available or not and if it is
available then how much more quantity like financial data,
financial analysis or no quantity is required.
After looking at the entire material needs and if the materials
or data are short our financial analyst informs about the
desired information and data to Finance Manager Mr. Aban,
Senior Financial Manager makes an estimate of the cost of
the products, information and data which would need to be
purchased and after making a cost estimate the amount is
handed over to one of the financial analyst who goes and

purchases the desired information from the stock market or
through different sources.
Marketing Manager on the other hand keeps on working on
the brand activation activities by visiting different financial
institutions and corporate clients. Once the information has
been collected, our team of financial analysts sits with the
senior financial manager and analyzes it through different
perspectives and customizes it according to the requirement
of customer.
Once all the computations have been done, before sending it
to the client, our CEO goes through it and whether approves
or refuse it. Our Customer Relationship Manager also informs
the
esteemed
customer
about
the
order
once
it
is
dispatched. All the partners work in a team and respect each

others ideas and work.
Business Location
Our business will be located at Omar Mansoor's residence.
Apart from that, a sub-branch will also be operating in our
university, the Institute of Business Management (IOBM), as
a bootstrapping technique. The university is providing
incubator space to the company to operate in.
Bootstrapping
Bootstrapping is a way for entrepreneurs to cut expenses
and save plenty of As Entrepreneurs, we know there are
plenty of ways to save money both before and during
operations. As such, we have divided our bootstrapping into
two segments i.e. Primary Bootstrapping and Secondary
Bootstrapping techniques. These are:
Primary Sources - These are the techniques we will focus
more:
Keeping our day job, while starting the business in off-hours
Living off and borrowing from our friends and family while
starting the company.
Carpooling to clients instead of meeting them individually
Cautiously using credit cards
Most of the job we will do by our own-selves, rather than
going for outsourcing or hiring people until absolutely
needed.
Secondary Sources: These are some tactics on which we
also do bootstrapping:
Borrow the equipment we would need or use our own such
as computers, laptops and office stationery.
Use extra home furniture instead of buying new furniture.
We will call in past favors and rely on personal relationships

to get things done for free.
We will hire interns instead of regular employees whenever
needed. With our relations in universities, this will be easy.
Facilities and Equipment

Currently, our facility includes the home of our head, Omar
Mansoor, furniture we will bring in from our homes, our own
laptops and a central server (Omar's PC).
In the university, the facilities provided include:
Low cost printing
Cubicles to work
Free WiFi
Furniture
Service Design and Development Plan

Development Status and Tasks
Currently,
all
our
initial
services
have
been
developed.
Considering that we plan to launch soon, new services are not in

development. We plan to see how the current services run and
develop as needed. The current status of our services are:
Our Business model would be a unique and novel one. We would
charge our customers a nominal fee based on the combination of
services they choose to acquire from us until they get themselves
into a profitable position. The combination of services and the fee
structure, before the start-ups attain a profitable position, are as
PACKAGE 2
1- All services
provide in Package 1
plus
2- Letter of Credits
3- Overdraft Facility
(Short Term Loan)
PACKAGE 3
1- All Services in
Package 1 plus
2- Investing
Solutions
3- Long Term
Financing Solutions
PACKAGE 1
1-Cash Management
2-Transaction
Handling
3-Book Keeping &
Prepping Financial
Transactions
4-Banking Relations
follows:
Services
Combinati
on
PACKAGE 4
1- All services in
Package 2 plus
2- Investing
Solutions
3- Long Term
Financing Solutions
FEE STRUCTURE
PACKAGE 1
PACKAGE 2
PACKAGE 3
PACKAGE 4
FEES
BEFORE
PROFITABILITY
PKR
20,000
per
month
PKR
30,000
per
month
PKR
20,000
per
month plus KIBOR+
3% on Long-term
loans
PKR
30,000
per
month plus
KIBOR+3% on Longterm loans
FEES
AFTER
PROFITABILITY
4% of profit (subject
to revision)
5% of profit
4% of profit on
investments
plus
4.5% of profit on
investments
plus
Challenges and Risks

TYPES OF
RISK
HOW IT AFFECTS?
Ways to Mitigate
Financial
Risk
Along with customers

finances, we also have to
manage our own finances.
Cash inflows and Outflows,
Revenue and Expenses,
weather to go for debt or not
in future. Because of first
mover in the market, our
financial risk would be high.
We will properly analyze

our future demand
periodically, so that we can
work on our cash flow
before hand.
Even if we have a line of

credit, securing a regular cash
flow is difficult and stressful.
Business
Risk
We might face operational risk,

because we are dependent on
other banks and other financial
institution for our operations, if
they failed or faced any
problem, we will directly be
affected.
Our professional caliber also
comes under business risk.
Their intellectual abilities to
deal with the operations of
business are also important for
us.
We will diversify our

financial risk by partnering
other financial institutions
in our operations. For
Instance: Partner any bank
for selling their financial
services in bulk at low
cost.
We can contact different
financial institution at one
time.
Simultaneously work on
making ourselves
independent on Banks and
other financial institution
by developing our own
similar services.
For Team, we can work on
innovations and
development in the
services by studying daily
market updates.
Technolog Since in start it will be easy for

us to deal with our customers
ical Risk
without any expensive
software. However, as our
customers increases we need
to buy Oracle or SAP for data
management and for financial
services. So that we can deal
with the technological barriers
efficiently and effectively.
Political
and Legal
Risk
Strict Government policies for

any kind of business for
entrepreneurship are risky for
us. Any kind of government
barriers will for entrepreneur
will directly affects us.
Legal risk includes intellectual
property. Our copyrights and
trademarks will need to be
secured. Proper licensed and
registration of business is very
important.
We will start to save

money for the purchase of
these software from the
start.
We can get SAP online
software as leased
software online by paying
$500 per month. Hence we
can use this in future.
The effect of transaction
cost or any other related
cost because of new
government policies can
be directly added it to the
price of our product; this
will make our services
expensive without
decreasing in quality of
services.
Proper legal guidelines for
the patents, trademarks
and copyright will be taken
by our friend circles who
are our batch mates in our
university. Hence Friends
who are studying law will
be used.
Strategic
Risk
Strategic risk is the risk of

failing in strategy. The Factors
which affects our strategy
includes stakeholders which
further include Entrepreneurs,
Financial Institutions,
Government and Team.
Hence for not failing in our

strategy we will have
foresight of our plan
properly. Plus, we may not
have knowledge about
every aspect of a business;
hence we will be in touch
with difference
experienced professionals
who will guide us in a right
direction.
Intellectual Property
Currently,
the
only
intellectual
property
company's name and a trademark on our logo.
we
own
are
the
Financial Projections
Sources and Uses of Funds Statement
Currently, the sources of finance include our own savings of up to
Rs. 4 million in advances and equity. The funds will be used in
getting
the
operation
up
and
running,
research,
salaries,
travelling and other expenses.
Assumptions Sheet
Economy and Industry
Our target for the first year would to obtain 16 firms as our
clients.
At least 240 firms currently exist as our target market.
Our target for the first is to capture 6%, and for the second
year to obtain 13% of the overall market. We expect our
sales volume to grow by 100% in the second as compared to
the first and after that, it would grow by 25% afterwards.
In FY2015 our GDP growth rate is 4.24%, which according to
various IMF and World Bank Reports is expected to grow to
approximately 4.6% in FY2016.
Increased growth coupled with decreasing inflation rate,
mainly caused due to a steep decline in international
commodity prices, is expected to increase the real income of
households.
Lack of employment opportunities in the corporate sector

have forced young graduates to start their own businesses,
with majority opting to start a business venture which is
related to their field of study.
Income Statement
According to current research, at least 20% of university
graduates become entrepreneurs.
In 2015 alone, startups managed to raise approximately $
100 million in investment.
Cash inflow in the first year is expected to be low since we
offer our clients flexibility of payments. However, it is
expected to significantly boost up in the second year. For this
purpose we would require financing in the first year in order
to maintain our operations.
The companies to whom we would extend our services would
become profitable on an average, 3 years after they
commence operations.
Transaction cost are 2% of total profit on investments.
We would not buy any capital equipment such as personal
computers or laptops, rather we would lease them on a
monthly basis. Although this might result in us having to pay
a higher cost, however it would save us some vital cashflows
initially during our ventures initial days.
Bank Charges are expressed as Average cost per customer

times no. of customers. Average bank charge per customer
is PKR 5,000.
Research cost is PKR 30,000 in the first year and is expected
to increase with the rate of inflation. It inlcudes the
expenditure incurred in purchasing various research reports
and investor recommendations reports.
The aggregated employee salaries are PKR 150,000 for the
first year, PKR 200,000 for the next year and PKR 300,000
and 450,000 for years 3rd and 4th respectively.
Balance Sheet
Our firm would have no fixed asset, except for office
equipment.
Cash in hand would be worth equal to 6 months of operating
expenses for that year.
As, our customers would be new starts, so they most
definitely would be short on cash. Therefore we project that
account receivable would constitute 20% of total revenue.
Loans and advances to customers would be PKR 4 million in
the first year after which we expect it to increase by 5% each
year.
Mark-up receivable on investments would constitute 10% of
the total profit on investments. This 10% is to account for
the cashflows of the profit on investments which have been

realized but has not been received by the firm due to some
time lags in transfer of cash.
Bank Overdraft would be PKR 0.5 million each year.
Accounts payable is expected to account for 10% of total
cost of goods sold. By delaying expenses we would be able
to divert the money elsewhere, where we can earn interest
income.
Accrued expenses would account for approximately 5% of
total operating expenses at any point in time.
No long term liabilities.
Owners would contribute PKR 2million.
PKR 2million would be acquired from a venture capitalist
firms such as Cloud 9, DotZero and DYL ventures.
We have adjusted & balanced the balance sheet figure
through short term borrowings.
Profits would be accumulated in the reserves.
Pro Forma Income Statements
Pro Forma Balance Sheets
Pro Forma Cash Flows
Ratio Analysis

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Business Plan - Strategic Financial

To: Sir Fazal

Industry Trends and Long Term Prospects.................................16

Strategic Financial Services

The company aims to help new entrepreneurs gain better traction

Management, Book keeping, banking relations, etc.

them and our shareholders grow with and in the communities we

Product and Services

Strategic Financial Services

entrepreneurs at their financing of deficits through various

Strategic Financial Services

Legal Status and Ownership

Omar Mansoor - 20%

Strategic Financial Services Page 10

accountancy companies, consumer-finance companies,

current revenue stands at PKR. 27 million. This is the estimate of

and we would be providing them services at a low cost. Hence, we

Strategic Financial Services Page 14

Bargaining Power of Suppliers

As such, the industry structure is favorable and our since we have

Strategic Financial Services Page 15

Strategic Financial Services Page 16

e-commerce and providing opportunity for new businesses to set

striving to make a new market for itself within the financial

Key Success Factors

Quality of financial services

Industry Trends and Long Term Prospects

prosperity, it has, nonetheless felt the ill effects of the

institutions such as banks to seek financial services has increased

Strategic Financial Services Page 19

Strategic Financial Services Page 21

Rawalpindi: 2.2 million

Strategic Financial Services Page 22

0-14 years: 33% (male 33,595,949/female 31,797,766)

However, studies have shown that in Pakistan, more men are

Target Market Selection

demographics, we feel the

18-25 and 30-45 age groups

control and often a major cause for disagreements and

education and live and/or plan to start and operate their

entrepreneurs manage their capital and finances in the best

Overall Marketing Strategy

time and aim for at least 12 by the end of the first 12

Another source of marketing will be done with strategic

Management Team and Company

resources to ensure organizational efficiency in exceeding

marketing and will complete his BBA(H) in 2016. He is

He is currently pursuing a BBA (H) degree from IoBM in

developments, both political and financial.

management, he has done internships in Pakistans leading

management, Dawood brings a vast skill set in multiple

handed over to one of the financial analyst who goes and

dispatched. All the partners work in a team and respect each

We will call in past favors and rely on personal relationships

Facilities and Equipment

Service Design and Development Plan

Considering that we plan to launch soon, new services are not in

Challenges and Risks

Along with customers

We will properly analyze

Even if we have a line of

We might face operational risk,

We will diversify our

Technolog Since in start it will be easy for