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7/31/2019 Business Plan Final (Entrepreneurship
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BUSINESS PLAN
A SHORT RANGE MULTIMEDIA
MUHAMMAD NAEEM AKRAM
MUHAMMAD SAAD ASAD
SYED MOHSIN ALI
BBA – 6 B
Submitted To: Mr. Nadir Ali Colachi
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EXECUTIVE SUMMARY
MARVELL MEDIA is basically and electronic based companyWe are planning to start the business by opening the shop in UNI-PLAZA at I.IChundrigar RoadKarachi.
Our main product is “Short Range Multimedia", which is the substitute to computer monitor.Marvell Media will import its finished product (Short Range Multimedia) from China and we willalso hire a professional for legal requirements and paper works related to imports. There is nosuch legal binding on import of finished good from China.
Our main customers will be Multinational Companies, Office users, Educational institutesand Home users.
The competitive edge of our product is that, it is introduced first time in Pakistan. Our maincompetitors will be companies that are selling Personal computers. As Marvell Media will importfinished product so wee will only emphasize on sales and marketing of our product.
Marvell media's management consists of 5 qualified and experienced personnel
including 3 of friends who are founders and owners also and 1 sales person willbe hired, and another person will hired by the owners for purchase who will look after
and check our purchases on port and both the sales person and purchase officer's salary
will be decided by the management team and will be according to current market rate,
and 1 sweeper. We will be planning to increase our employees from 5 to 7 in next3 years.
Our organization structure consists of 3 departments
Finance: MUHAMMAD NAEEM AKRAM
Marketing and sales: MUHAMMAD SAAD ASAD
Purchase: SYED MOHSIN ALI
By creating a new niche in the computer industry MARVELL MEDIA will increase sales by 15%each year
Our initial investment will be Rs 3,300,000 and it will be equally shared by each of the threepartners i.e. (1,100,000) per partner.
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We would like to thank ALLAH ALMIGHTY, the most beneficent and merciful for
enabling us to fulfill are duties as a students. May ALLAH always kept HIS blessing on us. We also like to thank our parents and teachers for guiding us.
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Table of contents
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GENERAL COMPANY DESCRIPTION
NAME & LOCATION:
The name of the company is “MARVELL MEDIA”, and we are planning to start the business by
opening the shop in UNI-PLAZA at I.I Chundrigar Road Karachi.
The Business will start operating from January 2008.
OBJECTIVES:
To achieve sales of Rs 3,000,000 at the of 2008.
To start operating business in Lahore by the end of 2010.
MISSION:
“To became the necessary part of personal computer”.
PRODUCT:
Our main product is “short Range Multimedia”, which is the substitute to computer monitor. Our
main customers will be Multinational Companies, Banks, Office users, Educational institutes and
Home users.
COMPETITVE EDGE:
The competitive edge of our product is that, it is introduced first time in Pakistan. Our Indirect
competitors will be companies that are selling Personal computers.
As Marvell Media will import finished product so wee will only emphasize on sales and marketing
of our product.
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01
PRODUCT/SERVICE PLAN:
PRODUCT DESCRIPTION:
As Karachi is the hub of business so Marvell Media is launching an innovative product with
unique feature i.e. (Short Range Multimedia). We initially have only 1 product which is the perfect
replacement of monitors because it will minimize the harmful effects of rays that radiates from
monitors.
The feature of Short Range Multimedia enables users to use it according to their accessibility.
SERVICES:
Free installation service will be provided to all our customers.
A manual is also provided to users to make our product easy to use.
We also provide technical advice at the time of purchase related to durability, quality,
functioning and others technical things.
We provide one year replacement warranty.
Marvell Media will provide equally best display as being provided by others top selling
computer companies.
SOURCING:
Marvell Media will import its finished product (Short Range Multimedia) from China and we will
also hire a professional for legal requirements and paper works related to imports. There is no
such legal binding on import of finished good from China.
PRICE:
The price of Marvell’s Multimedia will be Rs 16000 per unit.
Challenge:
No attention towards transfer of technology.
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02
MARKETING PLAN
MARKET ANALYSIS
The computer market is rapidly expending due to increase in the use of personal computers in
daily life and it has become the basic necessity of very business. The competition in the market is
very high and it is very difficult for new entrants to enter into computer industry and capture the
market share until and unless they have strong competition edge and unique features in their
products.
MARKET SEGMENTATION
As Marvell media is introducing the computer based product the short-range multi-media so we
will target those area in which the computer are extensively used.
MULTI-NATIONAL ORGANIZATONS:
Multi-National organizations which have large IT infra-structure so these organizations will be our
potential target market.
OFFICE USERS:
There are many offices in different locations like university road, Share-e-faisal and obviously I.I
chundrigar road and also we are starting our shop from UNI PLAZA which is also at I.I chundrigar
road.
EDUCATIONAL INSITITUTES:
As most of the educational institutes in Karachi are using computers so these institute are also a
very attractive segment for us to promote our product.
HOME USERS:
Computer has become the basic necessity of every house so most of the peoples have computer
at there own homes either for work or for entertainment purposes and also Karachi has a very
high (%) of internet users.
03
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TARGET MARKET SEGMENT STRATEGY
As we are introducing a very new product so in order to achieve our objectives (sales of 190 units
in 2008) we must have to make lots of efforts to create awareness of our product through
effective marketing.
Advertisements through print and electronic media
Product presentation will be given to multi-national organizations and big governmental
Organizations.
We will arrange (2-3 days) display centers in different shopping malls and other market
Places for the promotion end demonstration of our product.
COMPETITIVE ANALYSIS
Karachi is the biggest computer and electronic market of Pakistan so we have healthy
competition in computer industry.
Our main competitors are all those computer shops who are selling computers whether at
retail price or at discount also electronic shops who are selling long range multi-media.
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04
MANAGEMENT PLAN
MANAGEMENT SUMMARY.
Marvell media's management consists of 5 qualified and experienced personnel/employees
including 3 of friends who are founders and owners also and 1 sales person will be hired, and
another person will hired by the owners for purchase who will look after and check our purchases
on port and both the sales person and purchase officer's salary will be decided by the
management team and will be according to current market rate. We will be planning to increase
our employees from 5 to 7 in 3 to 4 years.
ORGANIZATION STRUCTURE.
Our organization structure consists of 3 departments
Finance
Marketing and sales
Purchase
MANAGEMENT TEAM
All the 3 friends are at the same time founders and owner. Partners will equally share profits and
loss.
SYED MOHSIN ALI: Founder, graduated from Bahria University (MBA Finance). He has a 5
years experience of purchase manager.
MUHAMMAD NAEEM AKRAM: Founder, graduated from Bahria University (MBA Finance). He
has a 3 years experience of finance manager in bank. And his key features are the technical
knowledge and communication skills.
MUHAMMAD SAAD ASAD: Founder, graduated from Bahria University (Mba Marketing). He has
a 2 years experience of marketing manager in multi national companies. And his key features are
the inter-personal and communication skills.
Our sales person and purchase officer should have 2-3 years experience in their respective fields
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05
MANAGEMENT TEAM GAPS.
Each of the 5 employees is responsible for managing his are of expertise but there are gaps exits
between management on the following issues.
Lack of knowledge of other departments
Minimal experience of managing the whole business by ourselves
Sole control over all operations.
PERSONNEL PLAN
In personnel plan we indicates employees in each department according to their education and
skills
2008 2009 2010
Purchase officer Rs 8,000/month= Rs 96,000 Rs 8,000/month= Rs 96,000 Rs 9000/month= Rs 108000
Sales person Rs 5,000/month= Rs 60,000 Rs 5,000/month= Rs 60,000 Rs 6000/month= Rs 72000
Sweeper Rs 2,000/month= Rs 24,000 Rs 2,000/month= Rs 24,000 Rs 2500/month= Rs 30000
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06
FUTURE PLANS
The company has the following future plans in the upcoming years.
We will introduce various other variety of the short range multi-media in terms of design,
features and many other new and innovative things
We will also give bonuses and salary increments to our employees
We will manufacture our products by ourselves as we will going to buy our own place
We will also hire employees as needed for the company’s development
We will promote our brand every where in the world and made this world addicted for our
products
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07
OPERATING PLAN
PRODUCTION FACILITIES:
MARVELL MEDIA will be importing finished good from China, thus there will be no production
activity performed by MARVELL MEDIA in Pakistan.
QUALITY CONTROL:
MARVELL MEDIA’S main emphasis will be on quality. We strongly believe that our main strength
is customer satisfaction and the product that MARVELL MEDIA is importing is quality assured.
Since the target market of MARVELL MEDIA is very sensitive and most of them are
professionals, like multinational organizations, banks and educational institutes. So quality will be
strongly under consideration for these segments.
CUSTOMER SERVICE:
Customer service will be main tool for MARVELL MEDIA for gaining trust among the customers.
Salesman will provide all the services related to product. He will resolved all the problems or
refers to the technical person. There will no communication gap between the customers and the
management team because most of the time management team will be there.
INVENTORY CONTROL:
Purchase manager will be responsible for all the issues related to inventory control. Purchase
officer will be responsible for the collection of import goods from the seaport and for the delivery
to the store. Purchase manager will inspect the delivered items and check all the documentation
related to import of inventory.
LOCATION:
MARELL MEDIA will be operating from UNI-PLAZA, I.I. Chundrigar Road Karachi. The location
has been selected by keeping in view many factors that; there should be easy access for the
customers. Transportation cost for the delivery of imports goods from port to the store should be
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least. Business environment is healthy in that area. Customers related to most the electronic
items and computers prefer to go to UNI-PLAZA.
08
RENT:
The rent of the shop will be Rs 30,000 per month for the year 2008. It will be increased
approximately by Rs 2000 per year for the next two years. , i.e., (Rs 32,000 per month for year
2009 and Rs 34,000 per month for 2010).
TIMINGS:
The business timings will from 10:00 AM to 10:00 PM. MARVELL MEDIA will operate 6 days a
week and Friday will be the half day and timings for Friday will be (3:00 PM to 10: PM). Sunday
will be observed as closed day.
SUPPLIERS:
A single supplier will supply the inventory to MARVELL MEDIA from China. The type of inventory
will be of finished product, so there is no further production process is required. The mode of
payment to the supplier will be “cash” as well as “credit”.
(3- Month credit policy will be adopted).
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09
FINANCIAL PLAN
The financial statements of MARVELL MEDIA are given below, including the pro-forma income
statement, balance sheet and statement of cash flows for three years.
MARVELL MEDIASTART UP COST
DIRECT COST:
Inventory 200 units @ Rs 10,000 per unit 2,000,000Equipment 50,000
Furniture 100,000
Fixtures 100,000
Office supplies 15,000
EXPENSES:
Shop rent Rs 30,000 per month 360,000
Shipments 7.5% of the cost of inventory 150,000
Transportation 5,000
Payroll:
Purchase Officer (Rs 8,000 per month) = Rs 96,000
Salesman (Rs 5,000 per month) = Rs 60,000
Sweeper (Rs 2,000 per month) = Rs 24,000
Total payroll 180,000
Advertising & Promotion 130,000
Other expenses 12,000
Utilities:
Telephone (Rs 5,000 per month) = Rs 60,000
Electricity (Rs 10,000 per month) = Rs 120,000
Internet (Rs 15000 per month) = Rs 18,000
Total Utilities 198,000
TOTAL STARTUP COST 3,300,000
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MARVELL MEDIAPRO-FORMA INCOME STATEMENT
2008 2009 2010
Sales 190 units @ Rs 16,000 per units 3,040,000 3,488,000 4,016,000
Cost of good sold:
Opening inventory - 100,000 220,000
Cost of good purchase 200 units @ Rs 10,000 per unit 2,000,000 2,300,000 2,650,000
Ending inventory (100,000) (220,000) (360,000)
Cost of good sold 1,900,000 2,180,000 2,510,000
Gross profit 1,140,000 1,308,000 1,506,000
Operating Expenses
Rent Rs 30,000 per month 360,000 384,000 408,000
Shipment & Transportation7.5% of the cost of inventory + Rs
5,000 155,000 177,500 203,375
Marketing & other expenses 100,000 115,000 132,250
Payroll 180,000 180,000 210,000
Office supplies 10,000 11,500 13,225
Depreciation:
Equipment 50,000 x 0.2 = 10,000
Furniture 100,000 x 0.1 = 10,000Fixtures 100,000 x 0.1 = 10,000
Total Accumulated
depreciation 30,000 30,000 30,000
Utilities:
Telephone 5,000 x 12 = 60,000
Electricity 10,000 x 12 = 120,000
Internet 1,500 x 12 = 18,000
Total Utility Expense 198,000 198,000 198,000
Total Operating Expense 1,033,000 1,096,000 1,194,850
Income before tax 107,000 212,000 311,150
Tax (15%) 16,050 31,800 46,673
Net Income 90,950 180,200 264,477
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MARVELL MEDIAPRO FORMA CASH FLOW STATEMENT
2008 2009 2010
Cash (beginning balance) 3,300,000 3,070,950 3,161,150
Cash received from sales 3,040,000 3,488,000 4,016,000
Total cash available 6,340,000 6,558,950 7,177,150
CASH DISBERSMENT
Purchase of inventory 2,000,000 2,300,000 2,650,000
Equipment, Furniture & fixtures 250,000 - -
Office supplies 10,000 11,500 13,225
Rent 360,000 384,000 408,000
shipment & Transportation 155,000 177,500 203,375
Salaries 180,000 180,000 210,000
Utilities 198,000 198,000 198,000
Marketing and other expenses 100,000 115,000 132,250
tax 16,050 31,800 46,673
Total cash disbursement 3,269,050 3,397,800 3,861,523
Ending Cash Balance 3,070,950 3,161,150 3,315,627
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MARVELL MEDIAPRO FORMA BALANCE SHEET
2008 2009 2010
ASSETS
Current assets:
Cash 3,070,950 3,161,150 3,315,627
Finished goods 100,000 220,000 350,000
Total current assets 3,170,950 3,381,150 3,665,627
Long term assets:
Furniture 100,000 100,000 100,000
Equipment 50,000 50,000 50,000
Fixture 100,000 100,000 100,000
Accumulated dep. (30,000) (60,000) (90,000)
Total long term assets 220,000 190,000 160,000
TOTAL ASSETS 3,390,950 3,571,150 3,825,627
LIABILITIES & EQUITY
Accrued taxes -
Account payable -
Equity 3,300,000 3,390,950 3,571,150
Retained Earnings 90,950 180,200 264,477
TOTAL LIABILITIES & OWNER
EQUITY 3,390,950 3,571,150 3,835,627
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APPENDIX
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SALES GROWTH RATE 15% PER YEAR
TAX RATE 15%
INCREASE IN SALARY (YEAR 2010)
PURCHASE MANGER------------ RS 1000SALES PERSON--------------------RS 1000SWEEPER----------------------------RS 500
DEPRECIATION
We will use the straight line method for calculating depreciation for equipment,furniture and fixtures
References for tax rate
www.pakboi.gov.pk
www.pseb.gov.pk
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Equipment -------------------------------- 50,000 x 0.2 = 10,000 ---------------(estimated life 5 yrs)
Furniture---------------------------------- 100,000 x 0.1 = 10,000---------------(estimated life 10 yrs)
Fixtures------------------------------------ 100,000 x 0.1 = 10,000---------------(estimated life 10 yrs)
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