INTERNATIONAL ISLAMIC UNIVERSITY

FACULTY OF MANAGEMENT SCIENCES ISLAMABAD

AL AIN PARADISE LAWN CARE BUSINESS PLAN

Submitted by: Omer Asif Asim Raza Khan Hamid Ijaz Usman Ilyas 4506 4446 4536 4682

Submitted to:

Prof. Hafiz Ghufran

International Islamic University, Islamabad

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FACULTY OF MANAGEMENT SCIENCES ISLAMABAD

Table of Contents
Acknowledgement
Executive Summary

General Company Description

 Mission Statement  Goals and Objective  Uniqueness, services and features       

Market Research and analysis Target market Market size Competition Marketing plan Market strategy Promotion

Marketing

Operational plan

 Location  Control cost  Management team  Legal form  Rules and regulation  Profit and loss  Break even analysis  Budgeted sales  Obstacles  Alternative courses of action  Transfer of asset and continuation  Different event and their timing

Management plan

Financial plan and statement forecasted Critical Risk

Harvest Strategy Milestone Strategy

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Acknowledgements
First of all we are thankful to one and absolute the Almighty Allah for always guiding us in the thick and thin and giving us strengths and courage to complete this project without Him nothing would have been possible. Then we would like to thank our parents whose prayers and support have always been influential in our lives. Then we would like to thank all the people who directly or indirectly helped us out in this project we would like to thank all the organizations whose data we used in this project

Executive Summary:
Our company name is Al Ain Paradise we are basically service providers. We do lawn care/ land escaping. We provide services to customers at their homes. We have segmented our customers according to locations or sectors. And we provide packages according to location. We provide customized packages to our customers. We felt the need of a proper org with in Islamabad which provide standardized and trusted services to our customers. We provide different membership programs, and we provide special discounted offers to our members. Al Ain Paradise is a small venture and on its initial stages. It does not have enough time and finance for primary market research. Keeping in mind the position of the business at the moment an appropriate strategy would be to conduct the secondary research as it will not prove to be a burden on the finances of the company. It also will be convenient option for the company. Our customers are mainly from Islamabad so our head office is established in Islamabad. To capture prime market of our business. We provide all basic facilities like timely care for lawns, with new and creative looks of decorations, beautiful

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landscaping and the most important thing which we provide is we manage the space of lawns that groom the look of houses.

The business is started in a partnership of four people who are; Mr. Asim Raza Khan, Mr Hamid Ijaz, Mr Usman Ilyas and Omer Asif. They have started the business with the vision of great future. Their utmost effort is to provide best facilities rather than of earning large profits. Idea is taken from own home experience of lawn care that there is no proper lawn care service provider. All the profits are distributed on the basis of 20% share by each partner. Total project costs 10 laces approximately.75 % has been shared by partners.25% is taken by Askari commercial Bank at the interest rate of 16%. The loan is to be repaid in 5 years with the equal installments by strictly following financial plan. The entire financial plan is made for efficient allocation and use of resources. Management will strictly follow its marketing strategy to make positive image of organization in minds of customer.

Sec 2: General Business Description:-

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Mission Statement:
The mission of Al Ain Lawn Care is to provide top-quality residential and commercial yard care service. We will strive to attract and maintain customers by providing services in the timeliest manner to provide 100% customer satisfaction. Our services will exceed the expectations of our customers. To meet and exceed standard of quality. To produce innovation, value intensive services by cultivating the creativity and maintaining satisfied customers and set the standards, improve each day and have some fun

GOALS AND OBJECTIVES:

a. To provide fully standardized services at home. To be a leading company in landscaping business. To make Al Ain an expanded company and to lead the market. To facilitate the customers providing them a luxurious look to their homes. Attract more and more customers not only from Islamabad but also from the other cities of Pakistan. Get the utmost satisfaction of your customer.

2. 3. 4. 5. 6.

7. Create a service-based company whose primary goal is to exceed customers' expectations. 8. Obtain contracts for yard service in at least 30 different residential homes. 9. Increase our number of clients served by 3% per year. 10. Develop a sustainable home business, being maintained by its own cash flow.

We are providing services to both customers domestic and commercial like construction companies who make homes and building we offer packages to let them furnish their building in a very economical way. In Islamabad there are many sectors which are still under construction and need a lot of work like land escaping the sectors which are developed by CDA we provide them lawn care and those who want to furnish their lawn we give new innovative ideas and ways to make their sites beautiful. Islamabad is a market in which people want more luxurious and reliable services people aim to change the physical appearance of their homes. Our services are not limited to Islamabad our services are for all cities and anyone can get services with a reasonable order.

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Uniqueness of Al Ain:
Most of the companies are providing landscaping services but they only provide services at extensive level but there is no as such company who full fill the needs and requirements of domestic or small level customers our company is basically designed to facilitate small level as well large scale customers. Now demand of market are changing people need more sophisticated services the concept of CRM is prevailing. We also focus on this concept and we maintain and build a long term relation with our customer by providing those extra facilities and better helping environment according to their needs. Along with the relation of customer we also facilitate our employees we have created a culture of family within the company to make our employees loyal and to provide them satisfaction. We launch different training programs and we also celebrate dinner nights in which families of employees are also invited.

Products and services of Al Ain:

Decorative Aggregates - Chippings, Cobbles, Pebbles, Slates, Shingle and Dashing A comprehensive range of chippings and decorative stones for your landscaping or garden project

Sands - Coarse Sands, Fine Sands and Blended Sands We stock a large selection of colored sands including our own blends to suit all purposes

Other Decorating Products - Interior and Exterior Paints and Related Products A wide range of breathable paints, lacquers, glazes, preparations and accessories

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Bricks and Blocks - Cob Blocks, Concrete Blocks and Clay Bricks Bricks and Blocks for all your requirements both structural and decorative

Tools Equipment and Hire - Churn Brushes, Trowels, Assorted Tools and Items for Hire A wide range of general and specialist items for all your requirements both traditional and modern

Sec 3 Marketing
(a) Market Research and analysis:We conducted different sectors of Islamabad to analyze the market in which we can incorporate with. A question is distributed to people who are residents/owners of the houses. We also made this research to the construction companies owners who are willing to use our services or interested in membership. Following question are distributed among citizens of Islamabad sectors. 1. Are you satisfied with your existing lawn care and related services? a. Yes b. No 2. Are you using any type of lawn care service or ever subscribed any membership? A. There is no proper lawn service. B. lack of facilities by lawn care provider.

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C-No creative or innovative lawn care is available. D. any other reason

3. Are you provided with the following facilities:Sr.no 1. 2. Facilities Lawn Care Repair and Maintenance YES YES Options NO NO

3. 4. 5. 6. 7. 8. 9.

Quality grass plantation YES Lawn decorations House cleaning Land leveling Tools and equipments for rent Different types of sands Cob blocks, brick blocks YES YES YES YES YES YES

NO NO NO NO NO NO NO

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4. Rank the facilities given below: Sr.no Facility 1. 2. Lawn Care Repair and Maintenance Quality grass plantation Lawn decorations House cleaning Land leveling Tools and equipments for rent Security Different types of sands Cob blocks, brick blocks More Preferable Preferable Less Preferable

3.

4.

5. 6. 7.

8. 9. 10.

We analyze in our marketing research that those customers who are previously using lawn care services were not fully satisfied by the facilities given by their lawn cares so we concluded that we should incorporate a business in which we serve these all services.

Target market
Our target market is home owners with reasonable size lawn and offices for repair and maintenance. Al Ain Lawn Care Service will be targeting one specific group

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of customers, the suburban middle class. Al Ain Lawn Care Service is targeting middleaged homemakers as they are more likely to rely on a lawn service. Younger homemakers are more likely to do their lawn themselves. Al Ain Lawn Care Service will also be targeting homes that do not have teenage children likely to help out with the lawn.

Competition:
I heard a quote today: "You can beat 80% of the competition by working hard. You can beat another 15% by educating yourself in your endeavors. The last 5% is a dog fight"-Dave Ramsey. Hustle is always good in sports so it is in business. There is no as such competitor who is so much organized and can compete this business there are some local level persons who are managing all this and can be easily slashed down to get maximized market share. In this vicinity only gardeners make contracts with the hose owners and serve them only limited services. Like trimming of grass and plantation but they dont provide advanced services which we aim at.

Marketing plan
Marketing Strategy:
As of now, the lawn care business plan is slowly taking shape and all areas pertaining to setting up the business should have been covered. From here on the business plan will be focused on revenue generation. Armed with knowledge gleaned from the market research about the targeted market and the competitors, a winning marketing strategy could be formulated. In the course of identifying the target market, the USP (unique selling proposition) or competitive advantage that the new lawn care business has over the competition had already been identified. Following through from there the strategy is to exploit that to your advantage. It could be a particular service that has not been offered by the competitors, using environmentally friendly fertilizers or even price advantage. However, competing on price is seldom a good strategy as the other competitors can just as easily slash their prices and it will only drive down the profit margin for everyone in the long run.

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With the above in mind, it's time to include in the lawn care business plan, the methods by which The targeted market can be reached effectively. Choices range from advertising in gardening magazines, local newspapers, distributing fliers in mailboxes or even door-todoor promotion. One could perhaps offer an obligation free trial service to potential clients in exchange for their recommendations to 2 neighbors. At this juncture, the lawn care prices for the various services or packages of services to be provided would have been calculated. Things to consider will be the competitors' pricing and the cost of running the business. It goes without saying that the lawn care prices must be at a level that is profitable enough to give the owner an income after deducting all costs. Following from that, monthly client acquisition targets can be established.

SWOT Analysis The following SWOT analysis captures the key strengths and weaknesses within the company and describes the opportunities and threats facing Greens Manicure Service. Strengths
y y y

Strong experiential knowledge of the lawn care industry. A solid foundation with a highly desirable community of prospective customers. Low overhead.

Weaknesses
y y y

The lack of brand equity. Initially only one employee to help generate revenue. A limited marketing budget to develop brand awareness.

Opportunities
y

A market that is generally resistant to economic downturns primarily because most the prospective customers view lawn care as a necessity and are unwilling to do it themselves. The ability to find competent employees.

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y

Repeat business.

Threats
y y y

Competition from the larger, established landscapers. Future competition from a similar, entrepreneur-spirited individual. Seasonal business is not sufficient to carry the business through the off-season.

Marketing Mix Al Ain Lawn Care Service marketing mix is comprised of the following approaches to pricing, distribution, advertising and promotion, and customer service.
y

Pricing: Al Ain will be able to offer competitive prices because of a low overhead structure. Distribution: Services will be offered within Islamabad and residing cities. Advertising and Promotion: A combination of networking and advertisements will be used to develop a customer base and build brand equity. Customer Service: 100% customer satisfaction will be targeted for every transaction. This will be instrumental in developing repeat customers and referrals.

y y

Sec4: OPERATIONAL PLAN:LOCATION:Our office is located in a central place of the market where there is an easy access of employees as well as our customers who want to visit our office. Its location also works as advertisement for business. Our location will also affect in the growth of market share. In Islamabad is a business activity center due to this it also gives jerk in the business expansion. Superior business location an important way to beat your competition in getting sales. If the competing company already has a good location, another strategy is to weaken or

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undermine that location. If your superior location is being attacked, differentiating from the competition may help stave off the attack.

COST:An initial expense of 250,000 is incurred for the purchase of equipments and other tools for landscaping and lawn care. A room is hired on rent for the purpose of using as an office and it is hired in blue area. Office rent is 70,000 per month and the security is given rent of one month. Wear and tear account is also maintained for the machinery and equipment and some expenses on office furnishing are also done.

PERSONAL:Al Ain Paradise will consist of Usman Ilyas working full time. Usman Ilyas will be the manager for the business, signing up new customers, managing customer accounts, hiring, training, supervising, and cutting grass. Al Ain Paradise will use a total of two people during year one. For year two Usman Ilyas will hire an additional two people to create a second work crew.

Personnel Plan Steve Employee 1 Employee 2 Employee 3 Total People Total Payroll Year 1 22,500 12,800 0 0 0 35,300 Year 2 22,500 12,800 12,800 12,800 4 60,900 Year 3 22,500 12,800 12,800 12,800 4 60,900

Sec 5: MANAGEMENT AND ORGANIZATIONAL Management Summary:-

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Al Ain Paradise is owned and operated by Usman Ilyas. Usman Ilyas was first introduced to lawn care while he was pursuing his bachelor's degree in business from the International Islamic University Islamabad. Usman worked for a large, well-respected landscaping company. He started out his freshman summer year as a mower operator. During his four years at school he eventually moved up to crew manager. Usman Ilyas enjoyed taking care of lawns. He was always excited about working outside. He also liked the management responsibilities that he had his last summer. The one thing he longed for is operating his own company. He decided the only thing stopping him was money; he already had all the experience and knowledge necessary. So Usman Ilyas got a loan from his parents and started the company.

LEGAL FORM:
We are going to have partnership. We are four partners in this business. It helps us in not only raising funds but also to get benefit of each others personal skill. Our mutual compensation in duties will help to groom our business very easily.

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Financial Plan

Pro Forma Profit and Loss

Sales Direct Cost of Sales Other Total cost of sales Gross margin Gross margin% Operat5ing expenses Advertising/promotion Travel Miscellaneous Payroll Expense Payroll Burden Depreciation Leased Equipment Utilities Insurance Licenses bonded fees Equipment for second work crew Total operating expenses Profit before interest and taxes Interest expense short term Interest expense long term Taxes incurred Extraordinary items Net profit 2011 41,748 2,922 0 2,922 38,826 93.00% 0 0 0 35,300 5,295 1,152 0 0 1200 1200 0 2012 91,254 6,388 0 6,388 84,866 93.00% 0 0 0 60,900 9,135 2,552 0 0 1200 1200 0 2013 97,854 6,850 0 6,850 91,004 93.00% 0 0 0 60,900 9,135 2,552 0 0 1200 1200 0

44,147 (5321) 0 1945 0 0 (7266)

74987 9879 0 1945 1984 0 5951

74987 16017 0 1945 3518 0 10554

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Sales Forecast The first month will be used to set up the office, purchase the necessary lawn care equipment, hire and train an employee. Additionally, during the last two weeks of the month, Usman Ilyas will be canvassing the neighborhood to build up a customer list. Month two will see some business. The business will be growing as Usman Ilyas continues to increase the number of jobs that he has. Month two through October will see a steady rise in revenues. Business will pick up again in April of year two. From February through April Usman Ilyas will be working hard on generating new customers and will bring on two additional employees to service the new customers.

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Sales Forecast Year 1 Sales Suburban middle class Other Total Sales Direct Cost of Sales Suburban middle class Other Subtotal Direct Cost of Sales 41,748 0 41,748 Year 1 2,922 0 2,922 Year 2 91,254 0 91,254 Year 2 6,388 0 6,388 Year 3 97,854 0 97,854 Year 3 6,850 0 6,850

Important Assumptions The following table highlights some important financial assumptions of Al Ain Paradise.
General Assumptions Year 1 Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other 1 10.00% 10.00% 25.42% 0 Year 2 2 10.00% 10.00% 25.00% 0 Year 3 3 10.00% 10.00% 25.42% 0

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Break-even Analysis:
The Break-even Analysis indicates approximately 3,900 is needed in monthly revenue to break even.

Break-even Analysis Monthly Revenue Break-even Assumptions: Average Percent Variable Cost Estimated Monthly Fixed Cost

3,956

7% 3,679

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CRITICAL RISK FACTORS

Risk Management:
The objective of risk management is to reduce different risks related to business. It may refer to numerous types of threats caused by environment, technology, humans, organizations and politics.

Critical Risks Analysis

For startup business there are many risks involved that are caused by different factors. The risks which are analyzed by Creative are as follow: y Management Risks y Marketing Risks y Operational Risks y Financial Risks

Management Risk:
In this risk we realize that there may be any dispute in the management team due to any unforeseen reasons which may result to terminate any of the members. Remedy:

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In this case when any of the management team members leaves the firm he is not entitled to use the name of the firm. He cannot start the same business with any other name. Such risk is attempted to be controlled by including exclusive clauses in partnership deed.

Marketing Risk:
In case of marketing we realize that there may be any fault in our marketing plan due to which business can suffer. Remedy: For the backup of this risk we have different marketing plans with flexibility, as if in any case plan A does not work the plan B will be executed.

Operational Risk:
There may be a risk which can disturb the operations of the business such as production. There may be load shedding problem etc Remedy: For minimizing this risk we have adopted proactive measures by having firms own movable generator.

Financial Risk:

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We realize that in case of termination of any member there is a risk of finance that he may take his equity away which causes the business to suffer. Moreover startup capital may be proved insufficient to cope with un expectancies. Remedy: To avoid this risk we have made certain clauses in our agreements that if any member decides to leave the firm he will not take his equity out of the business immediately. The time period to pay back the equity will be minimum 6 months. To meet unexpected financial needs, Al Ain Paradise has asked for various sponsors.

HARVEST STRATEGIES
Al Ain Paradise, after analyzing every risk and exit ways of the business, has devised an exit strategy in case our idea of introducing home service does not work. The exit strategies of Al Ain Paradise are as follow: Legal documents of partnership will be signed by the partners that partnership will not be resolved until 3 years. After five years if any partner wants to exit then he has to inform to the organization at least 6 months before. If any partner exits from the business, he will get his share after 6 months In case of losses every partner will be just liable for his share in organization. In case of winding up the business amount received from sale of asset will be divided among partners equally.

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Milestones:
Al Ain Paradise Service will have several milestones early on: 1. Business plan completion. This will be done as a roadmap for the organization. While we do not need a business plan to raise capital, it will be an indispensable tool for the ongoing performance and improvement of the company. 2. Set up the office. 3. Signing up the 20th client. 4. Revenue exceeding 50,000.

Milestones Milestone Business plan completion Set up the office Signing up the 20th client Revenue exceeding $50,000 Totals

Start Date 3/1/2012 3/1/2012 3/1/2012 3/1/2012

End Date 4/1/2012 4/1/2012 5/1/2012 5/1/2013

Budget $0 $0 $0 $0 $0

Manager ABC ABC ABC ABC

Department Marketing Department Department Department