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CAPITAL DEVELOPMENT CONSTRUCTION COMPANY PVT LTD

Islam Abad
Pakistan
00923116782909
cadco@cadcopk.com

I. Table of Contents

I. Table of Contents .................................... 1

II. Executive Summary .................................... 3

III. General Company Description .......................... 3

IV. Products and Services ................................ 6

V. Marketing Plan ....................................... 7

VI. Management and Organization ......................... 10

VII.Personal Financial Statement......................... 11

VIII.Startup Expenses and Capitalization................. 13

IX. Appendices .......................................... 15

Capital Development Company for construction Pvt. Ltd Islamabad Pakistan


II. Executive Summary

CAPITAL DEVELOPMENT CONSTRUCTION COMPANY PVT LTD is a construction company. Our


product or service will be remodeling houses or business, fixing small damages in apartments or
elsewhere, and constructing houses or apartments from scratch. Our customers will basically be
all homeowners, or business owners or even landlords. In a near future we are planning to apply
to get into the government sector, so we could be one of their construction contacts, and have
periodical jobs with the public business. This will help us to maintain a good reputation among
other private clients. The owners are Mr. Shahbaz Rasool and his Friend Mr. Zulfiqar Aslam, the
both share the same amount of responsibilities in different aspects of the business. Due to the
seniority the one that has more power in the company is Mr. Shahbaz Rasool, but he is not able
to take financial decisions without having Mr. Zulfiqar Aslam approval. Every year the numbers of
small construction companies are declining, but this business is planning to open and stay in the
market for a long time. Our job will satisfy our clients and the demand will increase.

Sincerely,
Shahbaz Rasool Zulfiqar Aslam

Capital Development Company for construction Pvt. Ltd Islamabad Pakistan


III. General Company Description
CAPITAL DEVELOPMENT CONSTRUCTION COMPANY PVT LTD is a construction company.
We can fix any problems or start a whole house from the beginning. Whether the problem is
electricity, plumbing, hardwood, remodeling or constructing something new, our employees will
be able to help and satisfy our customers’ needs. As a starting construction company our main
focus will be customer satisfaction allowing us to build and maintain a strong reputation among
our clients and competitors.
Our company such as other companies has goals and objectives that we will be able to
meet in a reasonable period of time. As it is stated above, our main goal in this first year is to
build a good reputation, in that way we will have loyal clients that will be happy to do business
with us. In order to do so our employees besides being the ones doing the job are also going to
serve as counselors. They are going to advice our clients into what is going to be best for them.
Sometimes is hard to choose between so many finishing touches and/or materials to use, and
our staff will be more than happy to use their knowledge to help our customers in choosing the
option that best suits their needs. Our objective is to have an agreement with Home Depot
which have been our major supplier. This will cause our expenditures to go down, so we will be
able to offer even better prices to our clients. Seeing our customers happy is what we are all
about. Our service will be market basically to everybody that needs it. It is going to be focused in
home owners, landlords, and business owners.
The service industry is the one that has grown tremendously in the past years. CAPITAL
DEVELOPMENT CONSTRUCTION COMPANY PVT LTD is both the service industry as well as the
manufacturing industry. The service is seen because we provide our customers with advices and
the knowledge for choosing the right option, and for choosing the right materials, as well as the
knowledge that we use to construct the final product. The manufacturing is shown in the process
of building the required job. The manufacturing industry has declined over the years, but

Capital Development Company for construction Pvt. Ltd Islamabad Pakistan


construction is still indispensable in our everyday life. I believe that the service industry will be
still growing and although it seems that the manufacturing industry will keep declining, the
construction part will still be a vital part, especially in the city.
The strengths that we have are qualified and responsible employees. That has the
knowledge of new techniques and the cheapest techniques that are available in the industry.
Other companies are looking to make a profit, therefore they are going to be looking to get
contractor that do the job right as well as have the inexpensive prices. That will enable us to
have more clienteles. Our major competitive will be the amount of employees that we have,
since we are just starting we don’t have that much staff on our team, so it will take a little time
to organize the appointments and the jobs that need to be done. We bring our experience; our
employees have work in the construction industry for more than 5 years. They have experience
and knowledge of the field, and are more than happy to bring it to this new company.
CAPITAL DEVELOPMENT CONSTRUCTION COMPANY PVT LTD is a partnership. We have
selected this form of business because it was easy to start up, and we did not need that much
capital, besides is much easier to make decisions between two people that a group of them.

Capital Development Company for construction Pvt. Ltd Islamabad Pakistan


IV. Products and Services
Our service is going to be in a very competitive market, but since is very competitive
customers are always looking for their best option. A very important advantage that CAPITAL
DEVELOPMENT CONSTRUCTION COMPANY PVT LTD has is the warranty that we offer. Usually we
will offer a 5 to 10 years warranty depending on the type of work that we will be doing. We do
not charge extra for this warranties because we want our clients to feel safe with our work, and
feel like there is no one that could do a better job than the one we will do.
CAPITAL DEVELOPMENT CONSTRUCTION COMPANY PVT LTD has uniqueness like no other.
We have the equipment necessary to do the work done in the right way, which means the way
our clients will preferred it. The process of contacting our services is not going to be a hassle.
After you reach us (mail, fax, or phone number) and set an appointment, our expertise will go
and check what needs to be done, within 3 days you will get an estimate. The estimate will
clearly specify everything that needs to be done, the price of the work, as well as the days in
which we are going to be able to start. Also it will include the approximate length of the job and
the form of payment.
Upon the payments the customers are going to be asked to sign the receipts, and to be
checking the job to see if they want to make any last minute changes, so we will be able to do
them while there is time. Our prices will be based on the degree of work and the length of the
job, also customers will be provided with two different estimates. One in which include the
materials, and the other one without the materials, just in case the customer prefers buying
them themselves.

Capital Development Company for construction Pvt. Ltd Islamabad Pakistan


V. Marketing Plan

Our office is located in The Capital of Pakistan Islamabad. But our work is done mainly
throughout the Country. There are not a lot of construction companies around our area, but
there is always somebody able to do the job that is required. Now, with somebody from the
same neighborhood, customers will feel more secure in doing business with us, and instead of
contracting one single person they will contract a company that will do a better job for about the
same amount of money.
Construction companies are all around the state, they specialize either in electricity or
plumbing, hardwood or any other area. Our advantage is that we know how to do everything
and do every single aspect of the construction industry. So the customers won’t have to be
shopping for companies that all together will give them the final product, but for just a company
in which they can trust, and know that everything that needs to be done is going to be done and
in the right way.
Networking is going to be an essential part of our company. That is how we are planning
to get as much customers as possible. The advantage of being a construction company is that
most of the people see the final product, and that is how they get to know about us. When they
see a really good job done in their friends, family or neighbors houses, they will get exited and
start wanting to do something new for them selves too. That is how networking takes a big role
in our marketing plan.
The total size of our market is very big, it is estimated that 50,000 people are working for
this industry only in the city of Islamabad. Construction work is project-based, with workers and
companies migrating from one job to the next. Most construction companies are trade-specific
contractors or employers, such as electrical, plumbing, masonry, or roofing. General contractors
serve as organizing agents, working with engineers and architects and coordinating the entire
array of trade contractors. Most residential contractors are very small businesses, averaging 4 to

Capital Development Company for construction Pvt. Ltd Islamabad Pakistan


10 employees, while most non-residential contractors are only slightly larger, averaging 15 to 25
people.
Although the construction labor force have being decreasing, the demand for more
construction even small ones are out there everyday. Most of the time tenants need repairs,
requiring the landlords to hire professionals to handle the jobs for them. Also companies need
more renovations, just like the landlords they also need to keep their business according to the
regulations to avoid violations. Therefore construction jobs are going to be available.
Some of the barriers that we will face while entering this market with our new company
will be:
 High production costs

 High marketing costs

 Consumer acceptance and brand recognition

 Training and skills

We will overcome these barriers by having a good flow chart. Since the production costs
will be high due to the materials, we will ask the customers to give a certain percentage before
hand, so we will be able to start the job in the required time. The marketing cost depends on the
places in which we will be marketing. Advertising expenses are considered as investment,
because that is how we are going to get our customers to get to know us and trust us; therefore
we will gain our consumer acceptance and they will recognize our company as a trustworthy
one. Before we hire the employees, they will have to go through a training process, so we are
going to be able to know what skills they possess and which skills do they lack.

Capital Development Company for construction Pvt. Ltd Islamabad Pakistan


VI. Management and Organization
The day-to-day business will be managed by both partners. Shahbaz Rasool will be in
charge of managing the people and their respective schedules, while Zulfiqar Aslam will be in
charge of keeping all the books up to date, including the process of getting our customers to sign
the contracts. Mr. Shahbaz task will mainly be to set the appointments, and personally go to the
jobs and see that everything is going the right way, as well as going to the new customers and
take notes to see what is it that needs to be done, and go to the suppliers to buy the required
materials. On the other hand Mr. Zulfiqar will be in charge of elaborating and delivering the
estimates, or the construction plans (if necessary) to the customers, and keep track of all the
expenditures as well as the receivables and payables. Also, keep all the books up to date, and
report to the Mr. Shahbaz.

Capital Development Company for construction Pvt. Ltd Islamabad Pakistan


VII. Personal Financial Statements
Shahbaz Rasool
as of:
02/14/07

Assets Amount in PKR.


Cash - checking accounts 500,000.00
Certificates of deposit -
Notes & contracts receivable 72,000.00
Life insurance (cash surrender
value) -
Personal property (autos,
jewelry, etc.) 100,000.00

Total Assets 672,000.00

Liabilities Amount in PKR.


Current Debt (Credit cards,
Accounts) 0.00
Notes payable (describe
below) -

Taxes payable -
Real estate mortgages
(describe) 0.00
Total Liabilities 0.00

Net Worth 672,000.00

Signature: Date:

Capital Development Company for construction Pvt. Ltd Islamabad Pakistan


02/14/07

Personal Financial Statement of:


Zulfiqar Aslam
as of:
02/14/07

Assets Amount in PKR


Cash - checking accounts 500,000.00
Notes & contracts receivable 0.00
Life insurance (cash surrender
value) -
Personal property (autos, jewelry,
etc.) 50,000.00
Retirement Funds (eg. IRAs,
401k) -

Total Assets 550,000.00


Current Debt (Credit cards,
Accounts) 0.00
Notes payable (describe below) 0.00
Taxes payable
Real estate mortgages (describe) 0.00

Total Liabilities 0.00

Net Worth 550,000.00

Signature: Date:

Capital Development Company for construction Pvt. Ltd Islamabad Pakistan


VIII. Startup Expenses and Capitalization
Startup Expenses
CAPITAL DEVELOPMENT
CONSTRUCTION COMPANY PVT
LTD

Sources of Capital

Owners' Investment (name and percent


ownership)
Shahbaz Rasool 500,000
Zulfiqar Aslam 500,000

Total Investment 10,000,00.00

Bank Loans
Chase 0.00
Total Bank Loans 0.00

Startup Expenses

Buildings/Real Estate
Remodeling 75,000.00
Other -
Total Buildings/Real Estate 75,000.00

Capital Equipment List


Furniture 50,000.00
Equipment 100,000.00
Fixtures
Machinery 100,000.00
Total Capital Equipment 250,000.00

Location and Admin Expenses


Rental 25,000.00
Utility deposits 5,000.00
Prepaid insurance 0.00
Pre-opening salaries 0.00

Capital Development Company for construction Pvt. Ltd Islamabad Pakistan


Other 50,000.00
Total Location and Admin Expenses 80,000.00

Summary Statement

Sources of Capital
Owners' and other investments 10,000,00.00
Bank loans 0.00
Total Source of Funds 10,000,00.00

Startup Expenses
Buildings/real estate 75,000.00
Capital equipment 250,000.00
Location/administration expenses 80,000.00
Total Startup Expenses 405,000.00

Owners
Shahbaz Rasool
Zulfiqar Aslam

Capital Development Company for construction Pvt. Ltd Islamabad Pakistan


IX. Startup Target Market.
Capital Development Company shall look for 2 types of contract
1) With Material
2) To provide manpower only (Labor rate)
1) With Material
Capital Development Company shall target the government and private sector for this
option. In the Private sector we ll market ourselves in posh residential areas e.g Bahria
Town, Islamabad all sectors, Bani gala, Chachk Shahzad, Defence, Askri, Satelite town
and other all posh housing colonies. And also all the large businesses in the twins cities.
2) To Provide manpower only
Capital Development Company shall target the small private sector in this option. We ll
market ourselves in lower and middle class residential areas and small business all across
the twin cities.

Capital Development Company for construction Pvt. Ltd Islamabad Pakistan