BUSINESS PLAN

F- 09 -118 MR. ARIF MASHWANI F- 09 -149 MR. AFTAB H MALIK SP-09-126 MR. ADEEL ANJUM

Introduction
 Mashhal Handicrafts is a Startup Organization  The Purpose to Build an Organisation is to target ignored market of Pakistan  Mashhal Handicrafts is Striving to Develop its Network of Supplies  Mashhal Handicrafts is Dealing in :o Textile Handicrafts o Clay, Metal & Jewellery o Hand Knitted Carpets o Stone Crafts o Glass, Ceramic o Pottery o Costume Dolls o Shell & Bone Products

Slogan
Premier Craftsmanship will change your view of beauty

Mission Statement
Our mission is to provide a sense of belongingness to personal aesthetics by providing the premier products of true craftsmanship .With a strict adherence to this maxim, success will be ensured; Our products will exceed the expectation of the customers.

History & Current Status

 Mashhal Handicrafts is Business Outlet of SSO  Idea to Run a very Specialised type Business is not new at all

to SSO
 Target Market is Beyond Pakistan  Signature is Totally Customized to Serve the Whole Likings &

Standards.

Markets & Products

 Mashhal Handicrafts possess a research on handicrafts and

decorative market in Pakistan & abroad in :o House Hold Formation o Occasional Professional Men o Professional Women o Baby Boomers

Goals & Objectives

 The main objectives include:

o Providing a measurable increase in financial status of the IDPs at remote locations o Enabling health and educational facilities at their places with quality and dignity o Providing a platform from where such folk can generate and raise their voice to the whole society and world o Helping the societies and governments in bridging the gap between IDPs and developing a problem resolving mechanism

Marketing Plan
A Brief Overview

Salients of Marketing Plan

 Target Market  Product/Service Strategy  Pricing Strategy  Distribution Strategy  Advertising and Promotion  Sales Strategy  Sales and Marketing Forecasts

Goals - Marketing Plan

 Handicrafts being age old business but still offers lot of space to grow  Creation of strong supplier buyer relationship

 Products quality & variety offers market share  Logical development of business  Getting job done through people of great skill & strong desire to excel through economy of scales

Creating New Market Space

Mashhal Handicrafts

Reduce
Wastes in Production Loss of Clients

Eliminate
Quality Issues Debts Marketing Issues

Create New Market Space

Quality Envmnt Sales & Marketing Training & Development

Brand Loyality Customer Relationship

Raise

Major Players
Firm Universal Creation Al Hassan Group KAAF Enterprises Mark House Area of operations National International National International

Economics

SWOT Analysis
STRENGTHS  Abundant and cheap labor hence can compete on price  Low capital investment and high ratio of value addition  Aesthetic and functional qualities  Hand made and hence has few competitors  Variety of products which are unique  Exporters willing to handle small orders  Increasing emphasis on product development and design up gradation

SWOT Analysis
WEAKNESSES  Inconsistent quality and Inadequate market study and marketing strategy  Lack of adequate infrastructure and communication facilities  Capacity to handle limited orders.  Untimely delivery schedule  Unawareness of international standards by many players in the market

SWOT Analysis
OPPORTUNITIES  Rising appreciation for handicrafts by consumerism the developed countries  Widespread novelty seeking  Large discretionary income at disposal of consumer from developed countries  Growth in search made by retail chains in major importing countries for suitable products and reliable suppliers  Opportune for agencies to promote marketing activities  Use of e-commerce indirect marketing

SWOT Analysis
THREATS
 Tough Competition  New entrants can easily share the business  Handicraft export is very exacting and competitive and demands high quality  Decline in Pakistan share in international handicrafts markets due to: o Better quality products produced by competitors from Europe, South Africa, South Asia, etc o Better terms of trade by competing countries Consistent quality and increasing focus on R&D by competing countries o Better packaging and Stricter international standards

Operational Plan

Sales Forecast

Sales Forecast
Sales In $ Textile Handicrafts Clay, Metal & Jewelry Wood work Stone craft Glass, Ceramics Camel & Snake Skin Pottery Hand knitted carpets Costume dolls Shell & bone products 2009 6000 8500 12000 4000 3000 4000 2500 7000 3600 2000 2010 7100 9400 15000 4200 3600 5000 3000 8200 4000 2500 2011 8500 10200 16000 4800 4000 5300 3600 8800 4200 2600 2012 11000 13000 17500 5600 5100 6100 4200 9200 4900 3500

Sales Forecast
Gross Margin 2009 2010 2011 2012

Sales ($) Direct cost of Goods($) Other Costs($) Total Costs of Goods Sold($) Gross Margin($) Gross Margin %

52600 25774 0 25774 26826 51

62200 29856 0 29856 23656 38

68000 35360 0 35360 32640 48

80100 38448 0 38448 41652 52

Management & Organisation

Key Assumptions
Capacity Utilization Assumptions
Starting Capacity Utilization Annual Growth Rate in Capacity Utilization Maximum Capacity Utilization for the Project 50 % 10 % 90 % 50 % 50 % 14 % 5 12 5 20 %

Financial Projections
Debt Equity Interest on Long term Loan Debt tenure (Years) No. of installments per year Amortization (years) Income tax rate

Key Assumptions
No. of working days in a month Working days in a year Sales per annum (60 pairs per day) @ 100% 25 300 18000 20 % 10 % 70 %

Product Mix
Imported Branded Non-Branded

Cash Flow Related Assumptions

Sales 100% cash based Creditors Inventory Cash in Bank 60 45 45

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