ENTREPRENEUR

BUSINESS PLAN

3nd Semester B.S. (SE) 2014

Submitted By:

ANUM ZULFIQAR 2014\COMP\BS.SE\16859

KANZA ASIF 2014\COMP\BS(SE)\16877

MARYUM BATOOL 2014\COMP\BS(SE)\16788

Submitted to: MISS NAZISH

23 April 2015

DEPARTMENT OF COMPUTER SCIENCE AND INFORMATION TECHNOLOGY

JINNAH UNIVERSITY FOR WOMEN

5-C NAZIMABAD, KARACHI 74600

Business Plan

OWNERS

Kanza Asif

Mariam Batool

Anum Zulfiqar

Your Business Name

Craftastic Crochet (Online Business)

Page link:

Karachi, Pakistan

Telephone     03341120488  

E‐Mai: craftasticcrochet@gmail.com

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Table Of Content

I. Table of Contents ................................................................................................. 3

II. Executive Summary............................................................................................. 4

III. General Company Description.......................................................................... 5

IV. Products and Services......................................................................................... 8

V. Marketing Plan...................................................................................................10

VI. Operational Plan................................................................................................15

VII. Management and Organization....................................................................... 20

VIII. Personal Financial Statement..........................................................................22

IX. Startup Expenses and Capitalization ...............................................................24

X. Financial Plan ....................................................................................................27

XI. Appendices.......................................................................................................30

XII. Refining the Plan..............................................................................................32

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Chapter II

Executive Summary

Under this, at first I generated the product idea of handmade crochet items, matching with my

profile (as every item will be made by me). The main object of the study is to analysis the

crochet manufacturing plant. After the idea generation, the industry analysis at both the global

and domestic level was done to understand the market trends and other factors. Then the market

analysis was done through the survey in the form of questionnaires. After this through the

statistical techniques we did the demand analysis.

After completing the demand analysis we did the financial analysis to check the financial

feasibility of the project. It involves the balance sheet statement and cash flow statement. And at

last we did the risk analysis to estimate the risk involved in this project. We did these analyses to

gather all possible information related to our type of product.

At first we have decided to do our business only at national level and then gradually we will

extend it to international level.

On the whole it was a wonderful experience and a great learning opportunity. The complete

project was an eye opener which added to my theoretical knowledge. There were times when I

was disheartened and disappointed b/c I was not able to manage my orders but gradually

everything become fine and in the end it made me feel proud.

Success does not come at once; one has to start right from the scratch and struggle his way

through all hardships with courage and determination.

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Chapter III

General Company Description

Company:Craftastic Crochet is an online store of handmade crochet items that includes crochet purses,

crochet clutches, crochet bags, crochet mobile covers crochet key chains and crochet bangles.

Our initial goal is to provide handmade crochet items to everyone living around Pakistan as

crochet items are very unique and it can’t easily be found. For future we have planed to expand

our business by opening a permanent meaning point or you can say crochet store at good

location. And further more we have decided to take orders globally around the world.

Our each and every product is made by us, so we can give Garnett of the quality of our products.

Mission Statement:

To act as a single point of contact for all crochet items in international level.

Company Goals and Objectives:Our goals and objects are listed below:

Our goal is to create attractive handmade crochet items so that we could gather more

customers throughout the world.

At first our business will be only an online business. We will take orders online and then

deliver them on time.

We will work very hard to gather more orders and to deliver them on time.

Firstly we will take orders at national level only and then gradually we will expand our

business internationally.

After some time or when more and more people will start interacting with us we will

expand our business physically.

Business Philosophy: We put our Customers first and strive to secure their loyalty through top quality service.

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We embrace Professionalism and seek Excellence in everything we do.

Product Mercerization:

At initial we will market our product to the local people. So that people could get

acknowledgement about our new product in the market.

Handicraft Industry:Crochet comes in the handicraft industry. As we all know that handmade things are very unique

and expensive and anyone can earn a lot if they know the worth of their handicraft.

Crochet, knitting, and other handcrafts have enjoyed a surge in popularity in recent years. The

Craft and Hobby Association 2010 Attitudes & Usage Survey reported that the U.S. craft and

hobby industry had $29.2 billion in sales in 2010, of which $1.062billion was specific to crochet.

Their survey covered 114 million U.S. households and reported that 17.4 million reported that

they had engaged in crocheting in the last year, ranking it third among the crafts and hobbies

profiled in the survey, and above other needle crafts such as knitting and cross-stitch (Craft and

Hobby Association, 2011).

Business strength and core competencies: Our biggest strength of our business is that our each and every product is made by us, so

we can give Garnett of the quality of our products.

In beginning we have decided to take fewer amounts from my customers and give them

high quality product.

Keys to Success:

1. While have a good location in future.

2. Quality product and good relationships with vendors

3. Outstanding customer service.

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Company Ownership:

Kanza Asif , Anum Zulfiqar, and Mariam Batool, we the are the owners of Craftastic Crochet or

you can say we fours are the partners. We are having partnership of 50%, 25% & 25% each

partner, as Anum and Mariam are ther invertors + my (Kanza) partners. I (Kanza) am the only

one who use to make our crochet items and Anum and Mariam and plus I (Kanza) have invested

on the items through with I use to make crochet products. If the business dissolves in future

because of some reason so we will equally contribute the items b/w us.

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Chapter IV

Products and Service

What is crochet?Crocheting is a pastime which has been enjoyed for many years by our mothers and

grandmothers alike. And, it has been popular for good reasons. Crocheting not only allows you

to make something wonderful garments and household decorative items, but it also allows you to

create while you relax and watch television or listen to music as well.

Crochet gives you an amazing sense of accomplishment when you are finished with a project.

Whether you are making a blanket, sweater or even a simple scarf, you will be proud to show off

your handiwork work when you have finished it

.

Crochet products included in Craftastic Crochet: Crochet purses and clutches. (Price Range: 200 - 3000 Rs)

Crochet Key chains ( Price Range: 80 – 200 Rs)

Crochet Bangles ( Price Range: 10 – 250 Rs)

Crochet Mobile Covers. ( Price Range: 200 – 400 Rs)

Business Poster:8

Chapter V

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Marketing Plan

Marketing:We consider marketing as the important process of communicating the value of our

products and / or service to potential customers, for the purpose of selling product or

service. The marketing mix is the combination of product, price, place and promotion for

any Crochet Business.

The marketing mix and the 4 Ps of marketing are often used as synonyms for each other.

In fact, they are not necessarily the same thing.

"Marketing mix" is a general phrase used to describe the different kinds of choices

Crochet Businesses have to make in the whole process of bringing a product or service to

market. The 4Ps is one way – probably the best-known way – of defining the marketing

mix, and was first expressed in 1960 by E J McCarthy.

The 4Ps are: Product (or Service).

Place.

Price.

Promotion.

Marketing Objectives:Our marketing objectives are as follows:

Increase product awareness among our target audience, and keep them aware of our

products is the first main objective.

We will inform our target audience about features and benefits of the Craftastic

Crochet and also its competitive advantage in the future.

By increasing product awareness to our target audience, we want to increase there

interest with our product so that they would be interested to buy our products.

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Economics:Economic condition of Pakistan related to crochet is not really very well but still it stands among

the crochet exporters especially yarn exporters and other threads. Pakistan exported US$ 1.65

million worth of textile thread in the year 2007, most of which comprised of cotton thread. Our

exports to China for the same year were only US$ 0.25 million.  

Trade Area AnalysisAs Craftastic Crochet is currently a web-based business located in Karachi,Pakistan, the physical

trade area will not constructed or established until year three when our storefront opens. We plan

to open in Haidry, which is the heart of the city’s unique and shopping district. Tariq Road draws

people from all over the city due to its quality restaurants and shopping.

Target markets:The following table shows the target areas that our business will focus on during the first three

years of its operation.

Year Target Areas

1st Year North Nazimabad

2nd Year Nazimabad

3rd Year Defense

Barriers we faced:The only barrier we face was the Consumer acceptance and brand recognition. And we will

overcome this barrier by good marketing and by promotions.

Product / Services:

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We have shown a brief description about our product and service in the product and service

chapter and now we will describe it in detail.

Features and Benefits:

Each and every part of our business is very important but yet we have some important features,

which are:

The most important feature of Craftastic Crochet is that we also provide crochet key

chains that are rarely found.

The most important benefit of Craftastic Crochet is that customers can easily reach us

through social media that is internet. As we have started our business as online business.

Customers:

Basically crochet is a girly thing and according to our product list mostly women and girls will

be our customers with no age limitation.

Competitive Risks:As such we don’t have any competitive risk as crochet items are rarely found in the local market.

But in social media or you can say on internet may other online companies are providing crochet

items but their prices are too high that we expect that our product can easily make its place in the

market.

Marketing Strategy:

Marketing strategy provides the critical link between what your business will provide, and

how you will create revenue. So at the current motion we have just started our new business

so at the moment our marketing strategy is creating posters, brochures and business cards so

that people could start knowing our product. We also have planned to provide budget

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packages to attract people As we all know that for good business we always need a good

marketing strategy so that we could get successful.

Promotion:

We will provide sample pieces of our product to the people so that they could take interest in our

product. As soon as more will start taking interest in our product we will soon launch new

products in the market.

Promotional Budget

We will try our best to spend less on promotion and gather more people.

Pricing:

S. No. Items Craftastic Crochet

Price Range

Other Online

Companies Price

Range

1 Crochet Purses 500 – 2000 Rs 1000 – 3000 Rs

2 Crochet Bangles 100 – 250 Rs 120 – 300 Rs

3 Crochet Key Chains 80 – 175 Rs 120 – 200 Rs

4 Crochet Mobile

Covers

250 – 400 Rs 300 – 500 Rs

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As we have started a new business so for good market response it is necessary or very important for us

to keep the prices of our product low according to the market so that people could get attracted by our

product.

Distribution Channels

As our Business in only online business so firstly we take orders throught social media that is:

Web side

Facebook page

Delivery Timings:We use to take at least take 7 days’ time for small orders and for big orders we take at least

15 days of time to prepare it and then deliver it.

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Chapter VI

OPERATIONAL PLAN

In this section we discuss about the operation we used in our business clearly. We define all the stages that will make our business successful.

PRODUCTION:Craftastic crochet is the idea which is reveal according to the needs of our society especially for women and girls we are giving them branded and keychain, purses which is in fashion and artificial who looks elegant.

• Production techniques and costs:

We use special techniques for the sake of the attention of our customer by presenting new, stylish, trendy and fashionable keychain and purses. We use the strategy of offering deals in which we give discount for our beloved customers.

We set the pricing which is not much high that cannot afford by common men.

• Quality control:

It is a process by which entities review the quality of all factors involved in production. Quality control emphasizes testing of our products to uncover defects and reporting to management who make the decision to allow or deny product release, whereas quality assurance attempts to improve and stabilize production (and associated processes) to avoid, or at least minimize, issues which led to the defect(s) in the first place.

• Customer service:

Your employees will need other skills -- organizing inventory, operating the register, handling paperwork -- but if they don't send your customers away happy, none of that will matter. According to the firm Only Garment Racks, when customers describe a positive key chains and purses experience, good customer service is what they mention first.

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• Inventory control:

The most vital asset to a small clothing and jewelry business is its inventory. Accordingly, effective inventory management is critical to managing costs, measuring shrinkage and improving the customer shopping experience. Thus, our management can implement various inventory management practices.

1. Location:

Someone say that the three most important considerations in business is location. If you're starting a new business that operates primarily offline, location is still critical. But is it critical for online businesses, too? Yes, but in a different way. Online location is akin to having the right URL and the right keywords and the right text-based advertising (like Google Ad Words).so we make over website easy to find our website is fully secure we also focused to reply of our customers mail. The website is:

Portable Secure Fact Easy to use Search capability Speed Email response system Structure and organization of information

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We are delivered the product on order by shipping through the services of TCS, LEOPARD and FEDIX.

We are selling our product through website mean craftastic crochet is e-commerce business but if our business grow successfully we will construct craftastic crochet stores in our country in the best areas of country where our customer feel easy to come in our stores.

2. Legal Environment: There are following legal environment for e-commerce business:

Licensing and bonding requirements: Business is making with some rules and with some circumstance but in e-commerce

there is not hard and fast bonding. We need the license of our beloved customer that they believed on Craftastic crochet.

Trademarks, copyrights, or patents (pending, existing, or purchased):

Craftastic crochet have many support from our product brands, so we have a copyright to sell heir products.

3. Personnel:

Numbers of Employees:

Three member Craftastic crochet team. Web administrator. Two member marketing team. Office manager.

Type of labor:

Two are skill full. One is unskilled. One is professional.

Pay Structure:

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Staff members Year 1 Year 2 Year 3

Marketing/Website Director

10,000 rs 55,000 rs 60,000 rsDesign Director 10,000 rs 55,000 rs 60,000 rsDesigners 2,000 rs 90,000 rs 94,000 rsWeb Administrator 3,000 rs 52,000 rs 56,000 rs

Office Manager 3,000 rs 39,000 rs 42,000 rs

Marketing Staff 8,000 rs 84,000 rs 90,000 rs

Accountant 3,000 rs 44,000 rs 48,000 rs

others 3,600 rs 44,000 rs 46,200 rs

Total people 8 8 8

Total payroll 42,000rupees 463000 rs 496200 rs

Identify key suppliers:

Name and address:

Name address Phone number

Naseem Nazim chowk,st -13 0900-78601

Umair Cap ount,st-115 112-44-662

Ali Liyaar,bandra road,st-18 111-222-105

Type and amount of inventory furnished:

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We are the first time inventors, so we need guidance experience people guide us that how to run this business. We invest 50,000 rupees each month.

History and reliability:

Craftastic crochet is an e-commerce startup with an aim to mimic Amazon’s success by delivering a wide range of items, Shortly after the startup of the business in city Karachi.

We have more than one supplier for critical items as backup. We planned for the future, we arranged our stock before the end of the month.

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Chapter VII

Management and Organization

Managing Accounts Receivable:

Total Current 30 Days 60 Days 90 Days Over 90 days

AccountsReceivable Aging

20,000 10,000 25,000 45,000 85,000 95,000

we make a call to over customer if payment is not come in our account after 1 day. If customer not responding continuously four time than we send them letter

Managing Your Accounts Payable:

Accounts Payable (AP) is an important factor in a company’s working capital, and a key indicator of overall operational effectiveness. An accounts payable aging is simply a listing of the bills that a company owes, broken down by due date in selected date ranges, typically in 30-day increments. 

Do your proposed vendors offer prompt payment discounts?

Usually invoices will come with Net 30, Net 60, 2%10 Net 30, etc. Regardless of the terms given, you can call your vendors and negotiate terms for your own company. Vendors will often give discounts or special terms to customers that purchase large volumes and on a regular basis. Even if the normal terms can’t be changed, if you run into an issue and must pay late, it’s best to call and discuss it with your vendor rather than avoiding them.

Total Current 30 Days 60 Days 90 Days Over 90 days

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AccountsReceivable Aging

10,000 9,000 20,000 25,000 28,000 95s,000

Organizational Management:

Firstly I will tell what is organizational management? The organizational management of a business needs to be able to make decisions and resolve issues in order to be both effective and beneficial. So as we have started our business in a small plat form and as we make our product by our ownself so therefore each and every thing is managed and organized by ourself.

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Chapter VIII

Personal Financial plan:

Products And Costs:

PRODUTS COSTS2 Bangles 100Doll Key chains 200Heart Key Chain 100Purse key chain 100Alphabet key chain 85Mobile Covers 250Purses 1500,1800,150,200,400,3504 Bangels 1506 Bangels 200

Customer Services:

Products Orignal Price Discount2 Bangles 100 80Doll Key chains 200 185Purse key chain 100 80Heart Key Chain 100 100Alphabet key chain 85 75Mobile Covers 250 200Purses 1500,1800,150,200,400,350 -4 Bangels 150 1406 Bangels 250 200

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Chapter IX

Startup Expenses and capitalization

FUNDIND ESTIMATED ACTUAL UNDER(OVER)

OWNER_1 2,500 2,000 500

OWNER_2 2,500 2,000 500

OWNER_3 2,500 2,000 500

TOTAL 7,500 6,000 1,500

BANK LOAN_1 ___ ___ ___

BANK LOAN_2 ___ ___ ___

BANK LOAN_3 ___ ___ ___

TOTAL LOAN___ ___ ___

GRANT _1 ___ ___ ___

GRANT _2 ___ ___ ___

GRANT _3 ___ ___ ___

TOTAL OTHER FUNDING

___ ___ ___

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TOTAL FUNDING 7,500

COST ESTIMATED ACTUAL UNDER(OVER)

EXPENSESSalary of management ___ ___ ___

All salaries and wages ___ ___ ___

Rents 250 250 ___

Delivery expenses 250 250 ___

Advertising 650 600 50

Telephone 200 200 ___

Insurance ___ ___ ___

Taxes ___ ___ ___

Interest ___ ___ ___

Decorating 600 600 ___

stationary 150 150 ___

Other expenses 300 300 ___

TOTAL EXPENSES 2,350

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COST ESTIMATED ACTUAL UNDER(OVER)

ASSETSLand ___ ___ ___

Building ___ ___ ___

Equipment ___ ___ ___

Other ___ ___ ___

Total Assets ___ ___ ___

TOTAL ASSETS 2,350

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Chapter X

Financial Planning

How our Financial Planning Process is Different…Traditional financial planning focuses on capital needs analysis, where advisors create a detailed cash flow for their clients based on assumptions of income, expenses and taxes over the next 20 years. The only thing we know for sure is most of these assumptions will be wrong. No one can predict that level of detail so many years into the future.

Next, let’s consider rates of return. In retirement, over a period of 30 to 40 years, small changes in rates of return can have a huge impact on a client’s plan. The best we can do is to construct a portfolio and make some estimates about how it will perform. If we predict an annual return of 8%, and the clients receive an overall return close to 8%, we’re doing great. Instead, advisors often input every stock, every mutual fund, and every bond, and predict the return for each of these securities over 30 years including growth rates, dividend yields, tax treatment, tax rates, and other complex calculations. That’s a different level of detail. It actually makes the end result of the plan LESS meaningful because we’ve created even more assumptions, which will most likely prove to be inaccurate.

More data does not make a plan more certain or more accurate. More data, more assumptions, and more moving parts in a financial forecast don’t create more useful results.Think about a 30-year plan. We can assure you almost every assumption included will be inaccurate by the end of the plan. This doesn’t mean the assumptions are bad, or you should not make assumptions. It means we should make as few assumptions as possible, and focus on what really matters.

Our financial plans focus on the most significant factors. Since no one can guarantee the accuracy of any assumption, we limit the assumptions to those most reasonable to predict. With returns, for example, we believe is the long-term return on a portfolio, re-balanced annually is much more meaningful than trying to predict the performance of individual holdings.Focusing on clients’ savings and its relation to their current lifestyle is more reasonable than trying to predict their actual income and expenses for the next 30 years. Many people cannot budget for a year, or manage their life to a budget. It’s better to focus on what they save. Look at client’s income this year, and see what they’re saving and/or contributing to a 401(k) or IRA. Then, if the clients aren’t saving enough or don’t know how they’re spending their money, they may need to create a budget. The difference, with us, is you didn’t start with the budget.

Financial planning is an ongoing process. We want to show clients a plan is a range of possibilities and needs to be frequently updated. A plan helps clients make more appropriate decisions, because they have better information. When a client is focused only on short-term returns, they miss the big picture. If you can instead show them how a loss impacts a 30-year plan, the effect is dampened.

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One of the worst things advisors have done is to focus clients on a quarterly statement of portfolio performance. When returns go down in a quarter or for a year, the clients see they lost money. When discussing progress towards their goals with clients, it’s important to provide the context of a long-term plan, not to sell quarterly returns.

12-Month Profit Projection

Cash Flow January

February

March April May June

Beginning Cash 0 0 0 8,000 8,000 8,500Sales Income 0 0 0 12,500 12,500 13,000Sales of Assets 0 0 0 0 0 0Loans 0 0 0 0 0 0Capital 0 0 0 7,500 0 0Total Cash In 28,000 20,500 21,500

Cash OutflowSalariesOther Operating expenses

0 0 0 0 0 0

Loan payment 0 0 0 0 0 0Capital Expanses 0 0 0 4,000 4,000 4,250Tax Payments 0 0 0 0 0 0Total Cash out 0 0 0 0 0 0Net Cash Flow 0 0 0 4,000 4,000 4,250

Cash Flow July August September

October

November

December

Beginning Cash 8,500 8,500 9,000 9,000 9,000 10,000Sales Income 13,500 13,500 14,500 14,500 14,500 16,500Sales of Assets 0 0 0 0 0 0Loans 0 0 0 0 0 0Capital 0 0 0 0 0 0Total Cash In 22,000 22,000 23,500 23,500 23,500 26,500

Cash OutflowSalariesOther Operating expenses

0 0 0 0 0 0

Loan payment 0 0 0 0 0 0Capital Expanses 4,250 4,250 5,000 5,000 5,000 5,000Tax Payments 0 0 0 0 0 0Total Cash out 0 0 0 0 0 0Net Cash Flow 4,250 4,250 5,000 5,000 5,000 5,000

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Projected Cash Flow

January to March

April to June July to September

October to December

Cash inflows 0 70,000 67,500 73,500Wages 0 0 0 0Martial & cost 0 25,000 22,000 26,000Net Cash Flows 0 20,000 18,000 20,000Opening Balance 0 1700 11,300 15,600Closing Balance 0 1700 11,300 58,000

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Chapter XI

Appendices

Brochures and advertising materials

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Pena Flax

• Copies of leases and contracts

- No concern

• Letters of support from future customers

- No concern

• Any other materials needed to support the assumptions in this plan

- No concern

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Chapter XII

Refining the Plan:

Craftastic Crochet a successful name in the arena of competitive business.

Certain productive measures would be taken prior;

To raise capital, loan amount would be required Rs 5,000,000/- .Hence the funds will be used as investment to buy shop in mall for stronger financial development of business.

Our investment would surely multiply the investment in no time.

From our shop, we would have the authenticated & popularity among the people.This setup will ensure the customer about our business & certain business activities could be made over there. The repayment to bank could also be covered with shop’s profit Business will tends to grow when certain investment made year to year but only if not covered with our profit.We have plan to work for certain multiple companies as their vendor as well & utilize the business credit to invest more and more.

The earning profit to be shared in partners is so nominal that once business would get settle the profit margin would be raised.

Our business positive point indicates our individuality of artistic working with no more additional cost which depends moreover the market needs & trends. Variety of choices, double the customer’s interest to select either whereas product line is self-supported with low investment with high earning.

Price of products is not fixed, as more creative & trendy will simultaneously add the high profit whereas no risk factor of expiry or defect lies with this product line.

Strategy will be kept crystal clean & clear among partners & with clients as well

Innovational development along with customer service will only serve our business stronger.

Promotional activities in market & online intellectual with people will make business popular & to grow sale thus the working policies is not limited to shop only.

Hence, with above all Craftastic Crochet is ready to launched.

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