eps analayis assignment
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ENTREPRENEURSHIPBUSINESS PLAN
Group Members: (BBA-6A)Ahmed SaeedAhsen Ehsan
Syed Umair AsifAhmed Akhtar
Ahmed AliAli Syed
Ahtesham KhanHassan Shahzad Mughal
Submitted to:Ms. Amna Sadaf
ENTREPRENEURSHIPBusiness Plan
ENTREPRENEURSHIPBusiness Plan
Table of Contents
Executive Summary...................................................................................................- 1 -DESCRITION OF THE VENTURE.........................................................................- 2 -Product and Services.................................................................................................- 3 -
Products.................................................................................................................- 3 -Services..................................................................................................................- 4 -
INDUSTRY ANALYSIS..........................................................................................- 6 -Market Analysis.....................................................................................................- 6 -Competitive Analysis............................................................................................- 6 -
Market Segmentation.................................................................................................- 8 -PRODUCTION PLAN............................................................................................- 10 -Suppliers..................................................................................................................- 10 -
Urdu Bazaar.....................................................................................................- 10 -Waseem Stationers..........................................................................................- 10 -
Physical Plant showroom cum gallery.....................................................................- 11 -The Interior Décor...........................................................................................- 11 -
MARKETING PLAN..............................................................................................- 13 -Situation Analysis................................................................................................- 13 -Price.....................................................................................................................- 13 -
Promotion................................................................................................................- 15 -Cradle SWOT Analyses...........................................................................................- 18 -Location...................................................................................................................- 20 -Address....................................................................................................................- 21 -ORGANIZATIONAL PLAN..................................................................................- 21 -
Designation And Responsibilities.......................................................................- 22 -Salary Package.....................................................................................................- 24 -
Organizational Structure..........................................................................................- 25 -Timings................................................................................................................- 25 -
OPERATIONAL PLAN..........................................................................................- 25 -Quotation For The Outlet....................................................................................- 25 -Day To Day Activity...........................................................................................- 26 -
Inventory Control....................................................................................................- 28 -FINANCIAL PLAN................................................................................................- 30 -
Payback Period....................................................................................................- 31 -Internal Rate Of Return.......................................................................................- 31 -
CRADLE IN The Future.........................................................................................- 33 -
ENTREPRENEURSHIPBusiness Plan
GROUP MEMBERS’ EVALUATION
Group Leader: Ahmed Saeed (Came up with the idea, logo and strategies to implement in
each part of the Market Plan, Management Plan, Operational and Financial Plan. In the end did the final compilation of the business plan after getting the data from the team members).
Associates: Ali Syed (Worked on the Marketing Plan) Ahmed Akhtar (Worked on the Management Plan and helped me come up
with the logo design) Ahtesham Khan (Worked on the Operational and Financial Plan)
Followers: Syed Umair Asif (Worked with Ali on the Swot Analysis and Competitive
Analysis by Analyizing our Market i.e. both consumers and producers). Ahsen Ehsan (Worked with the group leader Ahmed Saeed on the Marketing
Mix Strategies on Promotion, Price, Products and Services, and Place) Ahmed Ali (Worked with Ahmed Akhtar to come up with our Management
Plan and to structure our organization). Hassan Shahzad Mughal (Helped Ahtesham in the operational aspects of the
company by highlighting the vendors and the inventory levels of day to day activities).
ENTREPRENEURSHIPBusiness Plan
The history of the craft of hand made paper echoes in many ways the story of civilization, yet its actual development is conjecture.
A civilized world is inconceivable without paper. The uses of paper as a medium for storing and conveying information go far
beyond the dreams of its inventors.
The artistic aspect; paper as a mean of self expression, from notebook, diaries to other forms of fine arts, from the exciting
decorative uses of lampshades to picture frames.
We at Cradle believe in caring & enhancing of this centuries old ancient craft of paper making.
ENTREPRENEURSHIPBusiness Plan
Executive Summary
Cradle is a small outlet for paper products and an Art Gallery providing an exposure
to display their talents. Owned by a zealous artist, Cradle was a vision that was
developed in 2006, and took a physical shape in may 2009. Dealing with customized
cards, paper products, packing services and supporting an art gallery, this shop is one
of its kinds in an evolving market of Islamabad. The market of Islamabad provides
multi audience who want to experiment with new ideas. Starting from teenagers to
elders Cradle offers its services to everyone. Supporting a classical medieval interior
giving it a unique and feminine nature, females would be more interested. Cradle,
being in F-7/2, can cash up on its location with Jinnah Super right around the corner
and the street having an official importance attached to it due to the WHO office.
Cradle has a management staff consisting of six dedicated employees, who work
together to make it a successful business by providing customized services to
everyone alike.
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ENTREPRENEURSHIPBusiness Plan
Description of the venture
Cradle a small business set up by a zealous and an aspiring artist. The business is
setup in pursuance of a hobby that became a passion i.e. Arts. Although this passion
is now a small business setup in the shape of a retail outlet, its main objective is to
share, inspire and to give others with the opportunity to grow.
The concept of Cradle generated in 2006 with the first greeting cards being supplied
to different shops such as Feelings in F-10 Markaz. Due to the academic obligations
and rawness in the business field, we were unable to act upon the idea of owing an
outlet for these unique thoughts. In 2009, an opportunity arose when a young and
bright architect who also had a vision for such an activity, Mr. Ali Syed (a Graduate
from Indus Valley) encouraged opening up an Art Gallery in the district of Islamabad.
Cradle would be made functional on the 1st of May 2009, by holding an exhibition
and inviting friends and family. It would start its function from the first of May, with
an accounting cycle starting from that very date. Cradle offers a variety of products
to its clients, mainly operating on a personal basis. The main product offered by the
business is hand made cards; these are usually made to the requirement of the
clients, even though a variety of cards are already made to suit different taste for
different occasions, personalized cards is always recommended.
Other products offered by cradle include hand made diaries, note pads and other
paper related products using usually recycled papers or hand made papers, designed
and available in different colors and styles.
A number of services are also offered by the business that includes an art gallery to
upcoming and young amateur artists. As this is a passion of the owner, who wants to
provide a platform and to promote arts, these artists will display their work at
minimal cost. Finally a unique service offered by cradle is a gift wrapping service.
This is the first of its kind in Pakistan. The service deals with providing a packaging
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service using different forms of papers in all styles according to the customers wishes
and would be based on themes such as for weddings, special occasions such as
valentines.
The customers for Cradle include all the art lovers from teenagers to elders from all
classes and gender. But due to personalized services, the costs would evidently be
high, making the privileged class providing the target clientele to Cradle. Cradle
would also be offering their Gallery services to the needy artists who can’t afford to
rent a place but have the talent to prove them.
At the moment it is a sole proprietorship with the sponsorship from Mr.Ali Syed. The
entrepreneur Ahmed Saeed would be handling the operations for the initial period in
the capital. They plan to open outlets in Karachi and Lahore upon the Islamabad’s
success which may be handled by the entrepreneur himself backed by the funding
provided by Mr. Ali Syed. The business due to its nature of operations has no
intention of becoming a publicly owned business venture at any stage of time.
Product and Services
Cradle is a unique concept dealing with paper and its products. Also the services
offered are a one of its kinds in Islamabad. A number of product and services offered
by Cradle as listed below
PRODUCTS
1. Cards: all customized made for special occasions
2. Chart Papers: (used to make cards, wrapping material and for selling
purposes)
a. Fabric Sheets (local and imported)
b. Pastel Sheets (local and imported)
c. Every Card (white, pink, light green, blue, yellow)
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ENTREPRENEURSHIPBusiness Plan
d. Graph Sheets
e. Crepe Paper (local and imported)
f. Kite Paper
g. Corrugated Paper (imported)
h. Color Card (imported)
3. Hand made diaries
4. Paper Mache
5. Paper Boxes: used to pack different things such as shirts, clothes, any gift
items
6. Jewellery Boxes
Cradle has a conscious approach towards the environment and works with 100%
wood free recycled natural fiber. Handmade paper are made from the waste scraps
of cotton fabric, waste paper and agriculture waste turning into exquisite sheets of
paper. Submitting to a social responsibility to care of environment, this paper is
biodegradable; therefore using handmade paper is the simple way to protect the
environment.
SERVICES
1. Gallery
The art gallery is a small room where the potential artists would be displaying their
creations to either hold exhibitions or use it to work on their projects. The art gallery
would be providing the amateur artists with an opening into their own private world
to work on their creations and in turn giving them a haven for their talents to
cultivate in a nestled environment. Also after the initial period is over and the
company produces a name in the market, different lectures would be held inviting
different artists from Pakistan to give their input to the amateur artist new in this
field.
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ENTREPRENEURSHIPBusiness Plan
2. Wrapping and packing
The trend for packing gifts in a tasteful fashion has become “in” classified by the
fashion gurus. Fashion stricken people who are cautious about presentation have
become aware about getting their purchases packed in chic ways for their loved
ones. This practice is common when it comes to birthday gifts, valentines (where
girls spend hours packing small gifts to give them a personalized as well as an
impressive touch to it) or in the corporate world if the companies want to get their
packages designed. Through its packaging, the outer look, the value of the gift
changes all together. Taking care of the needs of the people Cradle has introduced
its services for packing gifts to make them more meaningful and memorable.
The elaboration of weddings has exceeded all limits, and people take care of very
minutest details. In consideration of this fact, Cradle provides it services to the
people involved in getting married to pack their gifts bought for exchanging (dowry)
purposes pack according to the clients desire and the theme set up for the wedding
day. The packaging services are customized according to the customers’ wishes, thus
giving the presents a personalized touch. The tradition of giving sweets on occasions
can be fancied by Cradle offering Sweet baskets for the customers on joyous
occasions such as weddings. Along with the packed gifts the customers can also buy
cards or other paper product at a discounted rate.
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ENTREPRENEURSHIPBusiness Plan
INDUSTRY ANALYSIS
MARKET ANALYSIS
The market in which Cradle would function is an evolving market, which holds a lot
of opportunities for new businesses to flourish. The trend in similar products such as
hand made products have seen a favorable attitude by customers. Such items have
been seen by the customers as stylish and in fashion products hence their demand
has increased creditably.
The city of Islamabad is as mentioned above going through a phase of evolving, as
new trends and many fashion gurus have focused their attention to the city. The
demographic changes and the incline towards celebrating different occasions such
as, ‘valentines’ and ‘mother days’ also show positive trait for Cradle. Similar trends
like that of Cradle, coming from other cities alike or being successful in other cities,
such as Papier-mâché in Lahore, has already created a mind set in the residents of
Islamabad, who now are starving for new innovative and creative ideas; especially in
hand made products.
The current business environment is very favorable for a business like Cradle to be
introduced; the customers are willing to try and become in vogue with the new
trends and styles so to experience unique and creative things. Yet the fact that the
not so bright success rate of business in Islamabad is always a risk is kept in mind.
The trend in Islamabad is very unpredictable; if the business ‘clicks’ in the initial
stages it is sure to be a success, otherwise a closure is guaranteed.
COMPETITIVE ANALYSIS
Cradle is a business offering a combination of one of its kind, unique products and
services. The company faces every little competition in the city as there is no other
shop or designer specializing in similar product or services.
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ENTREPRENEURSHIPBusiness Plan
Cradle is expected to face some competition from different shops selling cards and
similar products at the time of launch and the initial stages, till it establishes a fair
footing and builds a name for it self. The competition is considered more of an in-
direct competition rather than direct as these bookshops and other shop sell cards
and other paper products as a part of their retail mix. They do not specialize in any of
these products or hold a wide variety. While Cradle specializes in its product offering
a wide variety of personalized and unique products, rather than the generic products
offered by these shops.
Some of the competitors (in-direct) for Cradle identified are:
Illusions
Haroon’s
Saeed Book Bank
Book Nook
Durrani’s
Waseem Stationers
And main bookshops
Nomad Gallery
While Cradle faces some indirect competition in its product range there is no
competition for its service side. Again if other schools or academies such as Nomad,
Hunerkada are studied, they provide indirect competition to Cradle. All in all their
services are quite different from that of Cradle. Nomad supports an Art gallery but its
target market is completely different from that of Cardle; while Nomad supports
established artist, Cradle has its door open to amateur artists seeking their way in to
success. There are other galleries in Islamabad but as Cradle offers its different
services alongside the gallery, it is safe from competition. While the wrapping papers
and packing service is a unique service which has no competition until now.
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ENTREPRENEURSHIPBusiness Plan
Market Segmentation
The nature of the product and service makes it hard but also impractical to be
segmented; hence Cradle does not limit its clientele to specific groups. But keeping
in line with the nature of the business and the product and service offered certain
segments would be more attracted towards the business, making them the segment
for the business.
The concept of the business is considered as a very stylish and fashionable setup,
hence, would build a perception in the eyes of the customer to be an expensive
shop. Although our cost is low it will still be high in some cases compared to many
products offered by our competitors and other retailers, most of our products would
be at reasonable cost justifying the service and products. This would attract a certain
segment that is willing to spend more than usual.
The main audience would be the people who would want to go a step further in
what they do and how they do it. Making personal cards and other services would
initially attract art lovers or people who really want to make an impact or who just
want to be different.
As the business establishes it self, the market would increase attracting more
segments. Although Cradle’s services would not attract the young customers but the
main audience identified at this point would be the segment aged between the ages
of 16 to 50 or above. At the initial stages and for some services such as packaging
gifts, higher income clients are expected, those who dare to be different or are
scarce in time. This can also be predicted as the gallery would attract a more
sophisticated and higher class audience, who like to spend on such luxuries products
or have a passion for arts.
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ENTREPRENEURSHIPBusiness Plan
The cards on the other hand would cater for a broader segment in terms of income
as many customers are expected to be in late teens or young adults. Keeping this
segment in mind, prices of all products especially cards would be set. The music
session would also attract these segments.
Another segment that is expected to be attracted in the initial launch stage is gender
related. Females are expected to be more inclined towards Cradle in terms of its
products and services offered as compared to men. Hence many designs and styles
would directly target them.
The segment of the gallery includes the students who want to launch themselves.
Also different corporations such as Chen One or restaurants such as Civil Junction,
Blue Lagoon, or interior designers would be catered to. The people involved in the
restaurant business are looking for creative pictures usually buying from the
students at a cheaper price when they refurnish their outlet. They would be given
invitations to visit Cradle if they wish to redecorate. Cradle would also target interior
decorators that are in constant search for finding nice things for a lesser price and
buy them from students.
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ENTREPRENEURSHIPBusiness Plan
Production PlanSUPPLIERS
The inventory for Cradle is all the paper and paper material involved in the packing
services. The inventory would be bought from either Urdu Bazaar or Waseem
Stationers. The transportation would be borne by Cradle itself for the initial
purchase. Deals will be made by some suppliers sitting in Urdu Bazaar to deliver
themselves. The costs for transportation include the fuel expense which comes down
to Rs. 250 on gas for one trip. The re-order quantity would depend on the level of
sales and demand for that product. The distributors for paints are Wamiq and Pablo.
The key suppliers of paper would be from:
URDU BAZAAR
There are different suppliers sitting in Urdu Bazaar, Rawalpindi, who deal with paper
products. They would be bought from there and would be brought to the outlet. The
transportation cost would be Rs. 250 on gas and the things would be ordered twice a
month depending on the level of sales and the demands of the customers.
WASEEM STATIONERS
Waseem Stationers is a stationary shop in Jinnah Super market F-7 Islamabad. It has
a wide variety of paper and other products. The pens and paints would be bought
from here for the cards and the packing services at the convenience of the owner
and the number of orders. Waseem Stationers due to its ideal location is a back up
supplier for Cradle in case of emergency of meeting the deadline for the order.
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ENTREPRENEURSHIPBusiness Plan
Physical Plant showroom cum galleryThe annex is a 2 room house which has two halls. It requires little renovation; the
layout can be easily and effectively used to suit Cradle’s needs.
THE INTERIOR DÉCOR
The outlet is a small setup consisting of two rooms; one devoted to the gallery with
an office and the other one handling the cards and the paper products. The office is
for the entrepreneur where the clients would be discussing their demands of how to
make the cards or themes for packing service.
The interior follows an ancient medieval European setup with heavy draperies. The
only modern touch comes in the color scheme of the gallery. Not following a
traditional red color associated with medieval times, Cradle follows an oceanic
theme blended in with the chic touch of classical times.
The walls of the gallery would be painted a nice soft cream color so as to make the
paintings stand out during an exhibition. The sofas on the left side placed in an L
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ENTREPRENEURSHIPBusiness Plan
shape, are blue leather couches. The office is decorated in combination of blue and
oceanic green, which is the theme for the outlet.
The card section is furnished with wood (dark oak) dominating the room due to the
lining of the shelves placed on all three walls. A centre table made of dark oak wood
is placed for displaying the paper products such as diaries, notebooks, albums,
frames etc.
To fill up the gaps and make the place lively the walls of the card shop would be
painted dark blue contrasting against the deep brown of the wood, and blended by
the green of the plants that will be placed on all the corners in a symmetrical way.
The dark colors, representing the medieval times, would be accentuated by the use
of spot lights and lamps. The use of lamps would soften the touch and would
highlight all the paintings displayed in the gallery section.
The gallery would also be made lively due to the plants used. Lamps would be used
to give the required lighting making it give an elegant look. Spotlights would be
placed in a way that draws attention to the paintings.
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Marketing Plan
SITUATION ANALYSIS
It is important to understand the environment Cradle would function in. Although
the sole purpose of the business is not to be a commercial venture, different aspects
have to be taken in mind to attract clients and attention to the business.
PRICE
The price per month for each item is included in the chart along with its selling price.
(The quantity of the products is listed down in ranges so as to be flexible to demand.)
Item
No.
Products Quantity
Ordered
Price (Rs.)
Purchased
Price
Price (Rs.)
Total Sale
Price
Suppliers
00001 Chart papers(Local)
All Colors
150-200 1200-1600
(Rs. 8 each)
1500-2000
(Rs. 10
each)
Urdu
Bazaar
Waseem
Stationer
s
00002 Papyrus Paper 50-100 2000-4000
(Rs. 40 each)
2500-5000
(Rs. 50
each)
00003 Glaze Paper(Local) 20-50 100-250
(Rs. 5 each)
240-600
(Rs. 12
each)
00004
00004a
Fabric Sheets(local)
(Imported)
15-30
15-30
300-600
375-750
(Rs. 20 local
Rs. 25
imported)
375-750
450-900
(Rs. 25 local
Rs. 30
imported)
00005 Pastel Sheets
(Imported)
15-30 750-1500
(Rs. 50 each)
825-1650
(Rs. 55
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each)
00006 Every Card (white,
pink, light green,
blue, yellow)
20-50 100-250
(Rs. 5 each)
200-500
(Rs. 10
each)
00007 Graph Sheets 20-50 100-250
(Rs. 5 each)
200-500
(Rs. 10
each)
00008
00008a
Crepe Paper (local)
(Imported)
15-30
15-30
75-150
1650-3300
(Rs. 5 local ,
Rs. 110
imported)
150-300
1875-3750
(Rs. 10 local
Rs. 125
imported)
00009 Kite Paper 20-30 20-30
(Re. 1 each)
40-60
(Rs 2 each)
00010 Corrugated Paper
(imported)
15-30 1650-3300
(Rs. 110
each)
1875-3750
(Rs. 125
each)
00011 Color Card
(imported)
15-30 600-1200
(Rs. 40 each)
750-1500
(Rs. 50
each)
00012
00013
00014
00015
00016
00017
00018
Accessories for
making cards and
packing services:
Paints(WaterColors)
(Glass Paints)
(Fabric Paints)
Crayons Sets
Glitter Pens Sets
Pastels
Ribbons
100-150
100-150
100-150
20
10
10
50
3000-4500
2000-3000
2500-3750
2000
3000
4000
100-250
Urdu
Bazaar
00019 Paper Diaries 20-50 Rs. 150-550 Rs. 250-650
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ENTREPRENEURSHIPBusiness Plan
China
Market
00020 Notebooks 20-50 Rs. 200-450 Rs. 250-500
00021 Photo Albums 15-30 Rs. 150-1200 Rs. 250-
1500
00022 Photo Frames 10-30 Rs. 150-550 Rs. 250-800
00023 Paper Mache 15-30 Rs. 200-1000 Rs 350-1500
00024 Paper Boxes 50-100 Rs. 20-250 Rs. 50-500
00025 Jewellery Box 50-100 Rs. 20-250 Rs. 50-500
The above table fives an estimate of how much would be bought in one month at
the initial stage for Cradle to equip itself. In the coming months, the inventory stock
would either increase or decrease depending on how much would be sold. This
would also determine which product is sold the most and so according to that the
inventory would be bought.
PromotionCradle as it is a new concept in a developing market; it needs to promote itself to a
higher level. Targeting artists, the elite class who are willing to pay higher prices for
the unique idea, Cradle needs to promote at that level. Different procedures would
be undertaken for promoting this new idea.
Cradle needs to promote effectively. For launching itself first in the market, Cradle
would be putting up banners all over Islamabad, especially in the vicinity of F-6, F-7,
F-8 and F-10 where more of its clients reside. Hype has to be created in order to
attract the market, so teasers would be used to advertise. In order to do so banners
with just one word such as “Cradle--- For the Artist Inside You” can be put up for the
initial period that would arose a desire and a curiosity about the whole product.
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Advertisements would be printed in the local Newspapers and magazines. This
method of advertisements is comparatively cheaper but would be giving a regional
coverage, the detail of the product and the services can be provided and also the
readers can refer back to the advertisements. Advertisements in magazines such as
Home and Décor, Brides, Asian Brides, In Vogue, Wedding Affair can run color
advertisements targeting a specific market segment, women, and these ads may be
referred to at a later stage.
Also brochures would be circulated in the locality of F-7 and F-8 where more of the
target audience resides. In order to lobby diplomats, invitation cards would be sent
to them in order to gain their support and invite them to visit the gallery.
After a few months’ intervals, this process would be repeated in other localities. The
entrepreneur’s friends working as DJs on FM 99, 101 would be asked to talk about
this shop on their shows so as to cover up a larger audience and to inform them of
the latest happenings of the shop.
Cradle’s operations are such that it requires support form its clientele. For this
purpose it depends on positive word of mouth to be the biggest form of promotion.
Once a customer is satisfied with its service and becomes loyal, he would be
providing us with more clients. Positive word of mouth would be providing Cradle
with the base for establishing itself as a brand. In order to keep a service unique,
personalized yet public is very important for a business like Cradle to do in order to
build up a positive perception about the outlet. So word of mouth is an important
tool for Cradle as art feeds on appreciation, and Cradle needs appreciation and
criticism to improve itself and emerge as a brand.
There would be exhibitions held at the Gallery by known artists. Local artists who
have established a name for themselves would be invited to launch the shop and an
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exhibition would be held. The costs associated with advertisements, refreshments
and invitations would be borne by Cradle but the price of the package would include
all these costs. Cards and other products would also be displayed in order to get the
customers know about these products. These exhibitions by known artists would be
held on a quarterly basis per year in order to keep the audiences know about the
happenings of Cradle and keep them in constant touch with its procedures.
At the inception, Cradle plans to make contracts with certain universities like Iqra
(for students who have graduated and want a base to display their standings in
market) to use the premises of Cradle to hold their students exhibitions at a 10%
discount. This would give Cradle a boost from the students’ side as well as to them,
as they would be allowed to expose their creations in front of the masses.
Direct marketing would also be used to promote Cradle. Invitation letters would be
sending to many different people with mini samples for the exhibitions. When going
to different universities and academies, the entrepreneur would be advertising
personally.
Alongside the exhibition a party would also be arranged where the diplomats and
dignitaries from different corporations would be invited as in Islamabad, they are the
biggest potential buyers for art work.
The following table shows the rates and the time intervals for the different promotions
used:
Type of Promotion Time Interval Rate
Banners (12’ by 4’,
Multicolor, 30)
2 weeks before initial
launch
Rs. 75000
(Rs. 2500 each)
Newspaper Advertisements
The News (Banner on top of
the page - 5cm x 8col)
Initial launch and then
after 4 months for telling
customers about new
Rs. 25000
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2cm x 4col.Leisure Page Banner
The Post (Banner)
Three Months
Strips on Regular pages
(Section A, page 1) Color
products Rs. 5000
Rs. 22500
Rs. 20000
Magazine Advertisements
The Post (Red) Front inside
(Angels)Ordinary
Full Page Advertisements
Interval of 5 months
Rs. 40000
Rs. 18000
Exhibition cum Party Launch Rs. 100,000
Cradle SWOT Analyses
To clearly understand Cradles standing against its competitors, it is vital to
understand the strengths, weakness, opportunities and threat of the company.
Analyzing these vital areas for the businesses would also help in better
understanding the market situation faced by Cradle.
STRENGTHS WEAKNESS
Wide Variety of paper products and
services
Avoiding direct competition
Profit not the main aim
Unique and personal service and
products
Art gallery
Strong social network
A socially responsible company
Working to preserve art and culture
High Costs
Slow growth
Not well known
Limited budget
A new concept of packing service for
which a market has to be created:
idea to be accepted by a large crowd
Art is appreciated but without
compensation
OPPORTUNITIES THREATS
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To grow the business and product
line
New line of business, new idea of
packing service so would create a
monopoly in the market
Opening the gallery for membership
services for the clients who exhibit in
a routine
Indirect competition
New stores opening up
Well known stores increasing
product range (clay works)
Lobbies and groupings of Artists who
have their own galleries
Cradle’s strengths come in the shape of personalized services that creates a sense of
belonging for the clients as they know that their needs would be taken care of. This
is the first shop of its kind that offers paper made products. It is a socially responsible
company working to promote art culture. The students are given maximum
opportunity to display their talents and get a solid foundation.
Cradle would be focusing on enlarging its products so as to cater to all the segments
of the market. Due to its unique nature, it enjoys a monopoly in the market due to
its services. Even though it is faced with the threat of new stores opening up and the
previous ones increasing their product range, but still Cradle has its uniqueness in
the packaging service. Another threat faced by Cradle as an Art Gallery is that in
Islamabad there are different groupings of people who own a gallery. They avoid
competition to come in the market and thus don’t support such an activity which
could take their sales away. In order to avoid such lobbyists, Cradle would
concentrate more on its products and services of providing packing services until it
establishes a name for itself. In the meantime, it would be holding exhibitions for
students and running its operations without getting into competition. Cradle’s art
gallery in order to become a brand would be needing support from influential
people. Mr. Iftikhar, the Director of Media Visibility at KISP an Ngo, former founder
of Takshila, an Ngo working for cultural preservation, would be an influential support
for Cradle.
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ENTREPRENEURSHIPBusiness Plan
The initial period of setting up would be costly and maintaining it would require
additional costs. Also an Art gallery would be used by students mostly who would
not be able to pay up a heavy amount. Nevertheless once Cradle starts providing
membership services, a subscription fee would be charged on a monthly basis. The
growth in such an industry is usually slow, with a few people getting to know about
it. It would be functioning on word of mouth mostly so that would be a slower
process.
Location
Location is a very important and vital point for Cradle. It is important to select the
right location that would help build customer perception and attract the customers
to Cradle, while being easily accessible. Finance is a hindering factor in the business
and network and social circle a strong point.
Keeping these facts in mind, the entrepreneur decided to utilize the space of in the
annexe of his own house to be used as the shop cum gallery for the business. The
annexe is located in sector F-7 in a busy street with the WHO office at the corner
end. At the back of the house is the Egyptian Embassy, providing this area an official
importance and openings for diplomats to come in. the house is built on a 100’ to 90’
plot area, having a value of fourteen crore. The Annexe has 10 by 12, two rooms
with a bathroom attached with a rental value of Rs. 20000.
This sector and the location is the prime location for Cradle as it can set the
perception plus being in house gives it a different atmosphere than a shop, which
was vital to create. The open-end street with Jinnah Supper right around the corner
makes it accessible and an attractive location for the business.
This annexe, separate from the house, is a two room setup which was previously
used as a servants quarter. With the servants shifting to the backside of the house,
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ENTREPRENEURSHIPBusiness Plan
this space provides ideal utilization for Cradle to set up. The two rooms are being
renovated and painted to provide the right set up. At this moment, the renovating
work for Cradle is taking place which is fixing spot lights on all the right places for the
gallery and the shop. The shop has a separate gate making it easily accessible for the
clients to walk in.
AddressCradle
House No. 17, Street No. 20, F-7/2, Islamabad
Organizational Plan
Working in a creative environment demands freedom, with no chains of structure
tying anyone in its hold. In order to keep the ideas following for all the artists
working, Cradle does not have any hierarchical structure. But for the state of affairs
to run smoothly the employees would be given designations but only to identify
their roles and level of responsibility. The main responsibility for all the employees
would be to build strong customer relationships by providing exceptional customer
service and ensuring quality results.
DESIGNATION AND RESPONSIBILITIES
The following management team would be functional:
Owner and Entrepreneur: Ahmed Saeed
Ahmed would be the owner of the small outlet in Islamabad, handling the main
functions of managing the shop in the initial stages. He would be the head
coordinator for designing the layout of the shop and thus putting the foundation of
the art gallery, as well as decorating the interior to make it functional. He is also the
brains behind making the cards in his own unique way that stand different from his
competitor. Also he would be involved in providing all the services and working
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ENTREPRENEURSHIPBusiness Plan
through it himself, such as for packing or for holding exhibitions, he would be
managing them along with his other staff.
Manager: Ahmed Akhtar
The owner would be running most of the operations with the help of a friend Ahmed
Akhar who would be the acting Manager of the company. Both the owner and the
manager would work together through the initial stages of setting up the outlet.
Hiring of the staff would be done on a mutual consensus wanting two helpers
preferably having some creative background. Ahmed Akhtar, possessing a creative
mind, one who finds inspirations in small things is an ideal person to manage the
operations of the gallery. He will take a full time role as an administrative manager,
from maintaining the books to taking care of the inventories.
Creative Designer: Ali Syed
An Indus Valley Graduate, who at the current moment is an architect, would be
helping in designing the layout of the outlet along with helping in interior décor of
the outlet. The Creative Designer is supposed to keep the shop updated at all the
times, keeping it changing with the current trends of the market. Also designing the
cards and assisting the packing service. The Creative Director would also be looking
after the gallery section when an exhibition is held.
Creative Designers
As for helping with every day operations, two assistants would be hired, one
maintaining the Gallery section while the other overlooking the other services;
taking care of card orders and the daily sales of chart papers and paper made
products. The following is the Job Description designed for the Assistants:
Designation
o Creative Directors/ Assistants
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ENTREPRENEURSHIPBusiness Plan
Roles and Responsibilities
o Would be responsible for maintaining day to day operations of the
outlet.
o Taking care of the clients and fulfilling their orders.
o Looking after the gallery, keeping it up to date, changing décor from
time to time
o Helping in designing cards, paper products and packing processes
o Taking care of the accounts for every day transaction and orders
Qualifications
o Preferable art students (amateur artists) who have a knack fro
creativity
o Holding a bachelors degree, either in Fine Arts or should have done
(diploma) courses in Arts
Opportunities
Cradle would be providing an opportunity to the students looking for internships
during summers to combine their creativity with the management side of the
business by taking care of handling and maintaining records. Also they would benefit
by holding exhibitions in the Gallery for their own creations. Lectures from famous
artists would benefit them with their growth. Also the students would be given the
opportunity to go for courses through the sponsorship of Cradle to different
institutions in Islamabad for example Nomad. This in turn would be training them for
the future and would provide more creative ideas to Cradle for its growth too.
Supporting Staff (Sweeper and Guard)
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ENTREPRENEURSHIPBusiness Plan
The basic job for the sweeper would be to keep the outlet clean at all times. A local
cleaning lady would be hired for this purpose. A guard from the company Gabor Knot
would be hired on a full day and night basis. The food, shelter would be provided by
Cradle.
SALARY PACKAGE
Designation Salary/ Compensation Package (monthly basis)
Manager Rs. 28000 Creative Director Rs. 30000Creative Designers Rs.10000 each
If they apply for courses under training, the Company would be taking care of the expenses
5% commission on every exhibition held if they bring in the clients
Sweeper Rs. 2000Guard Rs. 5000
Organizational Structure
Even though Cradle doesn’t function on any form of hierarchy, but for reference
purposes, the following is the organizational structure. The clerical staff comes under
the creative assistants but they are directly under the supervision of the
entrepreneur.
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ENTREPRENEURSHIPBusiness Plan
TIMINGS
The working hours for Cradle are as follows:
Weekdays: 11:00 am to 8:00 pm
Fridays: 11:00 am to 8:00 pm, but would be closed for 2 hours for Prayers
Operations Plan
At first the outlet needs to be renovated to make it functional. As already
mentioned, the walls ate being painted and purchasing the furniture has started. The
quotations from different furniture shops were taken in order to determine which
ones were the best and most suitable for Cradle.
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ENTREPRENEURSHIPBusiness Plan
QUOTATION FOR THE OUTLET
Description of Furniture Quantity
Furnishing Pavilion
Fine Furniture Wood Art
Unit Price
Total Price
Unit Price
Total Price
Unit Price
Total Price
Reception Counter
1 18000 18000 24000 24000 22000 22000
Revolving Chairs 2 6000 12000 8000 16000 7200 14400Office Table 1 14500 14500 14500 14500 14500 14500Card Shelf 4 14000 56000 18500 74000 17500 70000Couch (5 Seats) 1 15000 15000 12000 12000 12000 12000Centre Table 1 45000 45000 44000 44000 50000 46000Total 160500 184500 178900
The furniture would be acquired from Furnishing Pavilion as they are offering the
most compatible rates. The fittings and fixtures would be acquired from Hanman
Fittings on Murree Road Rawalpindi from where the spotlights would be purchased
costing Rs. 300 each for a set of three spotlights. 10 sets of spotlights would be
ordered costing Rs. 3000.
Two Split Conditioners would be ordered of the company Super National of one and
a half ton costing Rs. 23000 each.
The car used for transportation purposes is a City 99 model with a cost of Rs. 6 lakhs.
The car is owned by the entrepreneur and would be used for Cradle’s purposes,
following a 5% depreciation rate per year using the reducing net balance method.
DAY TO DAY ACTIVITY
The day to day activity in Cradle would start from inventory counting and finish with
taking another round of inventory checking. All the sales and the material used
would be recorded in the accounting ledger under different headings of sales of
cards and paper products and the other account for the material used in packing
service. The assistants would be maintaining those accounts which will be checked
by the manager.
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ENTREPRENEURSHIPBusiness Plan
All the orders would be taken by any of the three; manager, or the assistants in
charge there. These orders will be discussed with the entrepreneur and the work
would be done by the collaboration of all four people involved in the operations.
The exhibitions would be handled by the entrepreneur with the assistance from the
manager and the assistants. The media, advertisements and refreshments would be
handled by them in the initial stages. Then with the business moving along, a
specialized staff would be hired to arrange the exhibitions.
Cradle would be working for establishing itself as a brand. It provides personalized
services due to which its prices would be higher than the normal outlets. The prices
offered at Cradle are as follows:
Products and Services Price Offered
Cards (normal) Rs. 25
Cards for special occasions that are fancy
with wordings
Rs.50
Hand made diaries (depending on size) Rs. 250-650
Notebooks Rs. 250-500
Photo Albums Rs. 250-1500
Photo Frames Rs. 250-800
Paper Mache Rs 350-1500
Gift Box Rs. 50-500
Jewellery Box Rs. 50-500
Packing Service (small gift item along
with box)
Rs. 100-250
Packing gift for weddings Rs. 1000-2500
Art Gallery (exhibition held for one day
on regular working hours including the
cost for advertisements, refreshments
Rs. 15000-25000
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ENTREPRENEURSHIPBusiness Plan
and invitations)
Inventory Control
Cradle operations are based on strict inventory control system. In order to maintain
strict control and total quality maintenance, the Manager, Mr. Ahsan is responsible
for maintaining records of each inventory purchased, used and remaining left at the
end of each day. Thus maintaining a record of daily sales and being kept informed of
when to re-order. As the inventory includes office supplies, chart papers, other
accessories, each have to be kept in order as these are very intricate dealings that
tend to be of high maintenance such as paints, pastels.
Also inventory control is important in order to determine how many cards are made
out of one chart paper so as to keep a monthly check for forecasting before
reordering. Also the packing service requires a lot of little stuff, it should be noted
how much it is used so as to estimate its quantities used and by keeping that into
consideration, a price for the package would be determined.
The following table shows how the inventory would be counted at the closing time.
Item No. Description Quantity
Purchased
Quantity
Used
Quantity
Remaining
Total Amount
Consumed
00001 Chart Papers 12 rolls 6 rolls 6 rolls Rs. 60
00002 Papyrus Paper
00003 Glaze Paper
00004 Fabric Sheets
00005 Pastel Sheets
00006 Every Card
00007 Graph Sheets
00008 Crepe Paper
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ENTREPRENEURSHIPBusiness Plan
00009 Kite Paper
00010 Corrugated
Paper
00011 Color Card
00019 Hand made
diaries
00020 Notebooks
00021 Photo Album
00022 Photo Frames
00023 Paper Mache
00024 Paper Boxes
00025 Jewellery Boxes
00012 Watercolor
Paints
00013 Glass Paints
00014 Fabric Paints
00015 Crayon sets
00016 Glitter Pens
00017 Pastels
00018 Ribbons
01000 Office Supplies
such as Pens,
Pencils,
Notebooks
02000
02000a
Cards (Normal
Fancy
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ENTREPRENEURSHIPBusiness Plan
Financial Plan
The business would be financed by the owner and would be functioning on loan
from the bank. A 70:30 debt ratio is determined for the loan. The bank chosen for
such a purpose is NIB where the entrepreneur holds a fixed deposit account termed
for five years. On this a fixed rate of 10.5% is the profit given to the account holder.
1% would be the deferential pay point which adds up to an 11.5% markup paid on
that loan. The bank would be adjusting the loan itself by giving 10.5 % from the fixed
term deposit and 1% from the entrepreneur’s pocket.
As this loan is for an individual business the following documents have to be given:
1. Basic Borrowers Bank Sheet
2. Identity Card of the entrepreneur and two references
3. Reason to meet Working Capital Requirement
4. Balance Sheet for 6 months or a year
5. Income Statement
6. Cash Flow Statements
The payback period initiated by NIB is for 365 days whereas the markup is paid on a
quarterly basis.
The list of assets, liabilities and equity for the business is as follows:
Fixed Assets:
1. Furniture
Reception Counter Rs. 18,000 Revolving Chairs Rs. 12,000 Office Table Rs. 14,500 Card Shelf Rs. 56,000 Couch (5 Seats) Rs. 15,000 Centre Table Rs. 45,000 Total Rs. 160,500
2. Computer and Equipment Rs. 45,0003. Car Rs. 6,00,000
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ENTREPRENEURSHIPBusiness Plan
4. Premises Rs. 1,866,000
Current Assets1. Cash Rs. 4,90,3502. Inventory Rs. 38,6303. Accounts Receivables -
Current Liabilities
1. Accounts Payable -
Long Term Loans
Loan from Bank (30%) Rs. 941019
Equity Rs. 2195711
PAYBACK PERIOD
Initial Investment: Rs. 3136730
Years Cash Flows (Rs.) Payback (Rs.)
2009 2497032 2497032
2010 1907903 4704935
2012 1316745 6021680
2013 723458 6745136
2014 127935 6873071
The payback period is 1 year and 3 months.
INTERNAL RATE OF RETURN
Years Cash
Flows
Discounted
Cash Flows
12%
Net Cash
Flows
Discounted
Cash Flows
Net Cash
Flows
2009 2497032 0.893 0.869
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ENTREPRENEURSHIPBusiness Plan
2010 1907903 0.797 0.756
2011 1316745 0.711 0.657
2012 723458 0.635 0.571
2013 127935 0.567 0.497
Internal Rate of Return= lower rate+ (difference between two rates*NPV with lower)
Difference between 2 rates
= 12% + [23% (2081858)
1543051
= 12%+31%
IRR = 43%
NET PRESENT VALUE
INITIAL INVESTMENT: RS. 3136730
Years Cash Flows Discounted Cash Flows
43%
Net Cash Flows
2009 24970320.699 1745425
2010 19079030.489 932964.6
2011 13167450.314 413457.9
2012 7234580.239 172906.5
2013 1279350.167 21365.15
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ENTREPRENEURSHIPBusiness Plan
CRADLE IN The Future
Cradle would be looking for opportunities to expand once it has established its
standings in the Islamabad market. The future as Cradle predicts is bright for such a
venture as people would be more acceptable and reciprocate to such an idea. The
following are some of the things Cradle would look into after three years of
operations:
Start its membership for the Gallery as it would have established some key
and regular customers
Keep a record of all their customers’ data that have been regular so as to
make cards for them before any special occasions such as keeping track of
their birthdays. This would personalize the service and show that Cradle cares
for its customers more
Expand the outlet and go into F-11 area which is an upcoming market
segment
Expand the paper products providing more customized products for the
customers
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