final enterpreneurship report

8/2/2019 Final Enterpreneurship Report

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Karachi Campus

ENTERPRENEURSHIP TERM REPORT

SKILLSTATION

SUBMITTED TO

MS.SUBEIKA RIZVI

SUBMITTED BY

SIDRA AMAL - 1029121

SHAZIA IFTEKHAR GONDAL - 1029119

ALI HASSAN - 1

HANI RAIS 1029

DATE OF SUBMISION

25th

MARCH, 2012

SECTION

MBAD-4A


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ACKNOWLEDGEMENT

All praises are to Almighty Allah and His messenger Muhammad (SAW), who hasbeen greatest blessing to mankind. The humble submit and pray to Almighty for giving us thestrength complete this project.

Our deep gratitude and appreciation to our great and worthy teacher Ms. SubeikaRizvi for his valuable suggestion, guidance, encouragements and inspiration throughout ourwork to finish in it the best possible way.

Last but not the least our institute i.e. SZABIST (Shaheed Zulfikar Ali Bhutto Instituteof Science and Technology). Thanks to all our faculty member and lab staff of their support andco-operation during entire semester.


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March 25th, 2012

Ms. Subeika Rizvi,SzabistKarachi

Dear Ms. Rizvi,

With this letter we transmit the report of Entrepreneurship. Our report consists of

the idea about Skillstation. We have tried our best to make it as informative as wecan. We have tried to include all the marketing tools, competitive analysis and thefinancial analysis ofSkillstation.

The purpose of this report is to make us understand how a unique idea can beutilized by an individual to get involved in either production or service renderingbusiness.

Thanking you in anticipation,

Sincerely,

____________________Sidra Amal

____________________Shazia Iftekhar Gondal

____________________

Ali Hassan____________________Hani Rais


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EXECUTIVE SUMMARY

Now days the scope of entrepreneurship is increasing day by day, youngsters are having flair tostartup their own businesses. They have certain hobbies and talent, some are identified but someof their talent are unidentified and after seeking it, many of the individuals decide to converttheir, this talent and hobby into small businesses. They are doing rigorous activities in order topromote their small businesses. They have been using various social mediums in order topromote their businesses but obviously due to the non access of physical presence they are

unable to build up a permanent commitment with their customers. Therefore we seek thisopportunity and started a new venture which is a partnership based. We decided to open up aGallery named as SkillStation in which we will promote the hobbies of these young individuals.Our gallery will give them a platform to showcase their products and simultaneously they canalso carry out transactions within the gallery. The good thing about our gallery is that we dontrestrict to one line of product range. We will promote multiple products at a time with differentproduct makers. Be it handicraft work, paintings, jute work, jewellery/accessories, handmadeembroidery, art and craft work or any other business, we are there to promote the businesses ofour clients. SkillStation is being run by four individuals who are themselves entrepreneurs. Oneof the partners owns a place where we are going o open up the gallery. Our gallery is veryaesthetically designed; a large hall is built which is decorated with fresh and soothing colors. Theambience of the gallery is very professional so as the displayed products of our clients give avibrant look and catches the attention of the customers and make the investment of our clientsresourceful. We hope that our, this new venture works well and we will be able to provide thetalented individuals the exact platform where their businesses can run with profitability andenthusiastically.


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TABLE OF CONTENTS

Introduction .................................................................................................................................................. 7

Vision Statement ........................................................................................................................................... 7

Mission Statement ........................................................................................................................................ 7

Business Overview ........................................................................................................................................ 8

Management & Organisation ....................................................................................................................... 8

Salary and Benefits: .................................................................................................................................. 9

Management: ............................................................................................................................................ 9

Management Structure & Style: ............................................................................................................... 9

Marketing Research .................................................................................................................................... 10

Our Research Process ................................................................................................................................. 10

The Sampling Plan: ...................................................................................................................................... 10

c. Methods to contacts: ................................................................................................................... 10

Statistics Presentation: .................................................................................................................... 10

SWOT Analysis: ........................................................................................................................................... 11

Strength: ................................................................................................................................................. 11

Weakness: ............................................................................................................................................... 11

Opportunities: ......................................................................................................................................... 11

Threats: ................................................................................................................................................... 12

Market Competition: .................................................................................................................................. 12

Share of Competition: ............................................................................................................................. 12

Competitive Strategy: ............................................................................................................................. 12

PESTLE Analysis: .......................................................................................................................................... 13

Political Factors: ...................................................................................................................................... 13

Economic Factors: ................................................................................................................................... 13

Sociological Factors: ................................................................................................................................ 13

Technological Factors: ............................................................................................................................ 13

Legal Factors: .......................................................................................................................................... 13


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Environmental Factors: ........................................................................................................................... 14

The Stakeholder Group: .............................................................................................................................. 14

Skillstation List of Internal Stakeholders: ................................................................................................ 14

Skillstation List of External Stakeholders: ............................................................................................... 14

Our Target Market: ..................................................................................................................................... 14

Segmentation: ......................................................................................................................................... 14

Demographics: ........................................................................................................................................ 14

Geographics: ........................................................................................................................................... 15

Psychological/Psychographics: ............................................................................................................... 15

Target Market: ............................................................................................................................................ 15

Competitors: ............................................................................................................................................... 15

Our Direct Competitors: .......................................................................................................................... 15

Our Indirect Competitors: ....................................................................................................................... 15

Communication Channels: .......................................................................................................................... 15

Budget: ........................................................................................................................................................ 15

Message to deliver: ..................................................................................................................................... 16

Marketing Strategy: .................................................................................................................................... 16

Market Need: .............................................................................................................................................. 16

Financial Plan .............................................................................................................................................. 17

Sales Forecast FY2013 ............................................................................................................................. 17

Sales Forecast FY2014 ............................................................................................................................. 18

Proforma Cash Flow Statement (FY2013-FY2014) .................................................................................. 19

Proforma Profit & Loss Statement (FY2013 FY2014) ........................................................................... 20

Balance Sheet (FY2013 FY2014) ............................................................................................................... 22

Break Even Analysis .................................................................................................................................... 23

Charts .......................................................................................................................................................... 24

APPENDIX .................................................................................................................................................... 26

BROUCHER .................................................................................................................................................. 27

LEAFLET ....................................................................................................................................................... 28

FLOOR PLAN ................................................................................................................................................ 29


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Introduction

Skillstation is a service oriented company that helps the upcoming underground talentchange their hobbies into their successful businesses. Its provides a platform to the individual or

group of individuals to promote their talents so as their talent should not remain under thepremises of their houses and they can bring it out.

Skillstation caters the young as well as old age individuals, those who are busy in their life oreducation and have not got a proper channel to show up their skills. By getting involved in theirpreference of work/skill they can get more involved and will be able to run a successful business.Our company will provide them an incentive to earn some extra amount of money by the talentthey possess and will give them an opportunity to step forward and compete in this war ofcreativity which has been increasing in this current business scenario. Our market is to targetcreative people who have a particular talent in them which they want to change in their

successful businesses in the near future.

Vision Statement

Skillstation, after 5 years intend to bring about at least 500 small businesses that are been

established by different individuals and these individuals have start up their own business by

using the platform of Skillstation. It wants to create the identity of the people so as they should

never regret that their talent has never been exposed in front of the people.

Mission Statement

Our mission statement is to expose the underground talent of the people of Karachi. To help

them establish their small businesses and make them understand that their skills are worthy

enough to be showcased. We want our gallery to be a channel for the upcoming business

individuals to meet their potential customers who can be their long term customers in the future.

We want to be the best company in Karachi that has a motive to help people in turning their

talent into successful businesses.


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Business Overview

Our business will be a full-service company that will help individuals promoting theirtalent and build within them an entrepreneur by creating a platform for them to meet their

potential customers. At our gallery they can come and showcase their creatively made productsand can earn income that can be generated by selling those products. By doing this they can getan internal satisfaction that they have utilized their skills and now these skills are being theirsource of income. In this way they will enjoy their work and put extra effort in working on theirhobbies and making new stuff. Following are some of the highlights of our business;

Opening up a gallery that is a part of our service based company where people willdisplay and sell their handmade products.

The Gallery will be centrally located as main hub of providing services i.e. P.E.C.H.S,Block 2.

The gallery will comprise a reception area, a garden and a big Hall where theentrepreneurs can display their products and can do selling as well. The registration costfor showcasing products will be Rs. 500 that will come in the accounts of the companyand additional 10% of the sale price of the product as in commission will also be a part ofthe accounts of company.

All the products will be displayed for a week i.e. from Monday to Friday. On Saturdays we will be assigning themes where all of the products made by different

individuals will be displayed but these products should have a linkage with the assignedtheme and should have an interconnection with each other.

Themes include Lets go to school, Wedding Celebrations, All for kids, All for oldies etc. Marketing will be done through Social Media (Facebook Page), Brochures and Leaflets. A detailed survey has been conducted to view the perspectives of people in opening up a

company that has a gallery to exhibit the talent of people in order to make it as a sourceof earning of them.

Our Gallery will showcase the products that will come under the price range of Rs. 500 toRs. 5000.

Gallery Hours will be Monday to Friday 12p.m. to 10a.m. and Saturday 11a.m. to 12a.m.

Management & Organisation

Skillstation is going to be established and managed by four partners,

Shazia Iftekhar Gondal Sidra Amal Hani Rais Ali Hassan


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Salary and Benefits:

Among all of the partners no salary and benefits will be divided. The partners will share the

profits that the company will earn after excluding all the necessary cost in running the gallery.Equal proportion of net profit will be divided among the partners. The profit will be retained inthe form of retained earnings for the first six months which will be re invested in the business.

Management:

Initially we will hire eight workers i.e. four boys and four girls, they will in sets work togetherand a pair of two workers will be present for 5/5 hours on Monday to Friday. Other four workersare hired to work on Saturdays. Their duty will be to look after the products and to keep a checkon the transaction among the business individuals and the customers. They will keep a record onthe products sold that will help us in distributing the amount they have earned as the individualsthemselves will be present in the gallery.

Management Structure & Style:

Shazia Iftekhar Gondal will after the marketing activities of the company. She will be theMarketing Manager. Her job will be to keep in consideration all of the promotional activities,monitoring sales and establishing effective strategies for creating awareness of the company. Shewill look after the BTL activities as well as the social media forums where she can create the

hype to attract upcoming talented business professionals. She would be dealing with the designand distribution of all the direct marketing materials.

Hani Rais will be the Head of Finance. His core job will be to look after the financials of the companyunder within is the gallery and its expenses. Hani will be responsible to prepare the financial statements ofthe company and the management of cash flow i.e. inflow and outflow.

Sidra Amal will be the Head of Human Resources. Her core responsibility will be to look after theworkers and their jobs. She will train the workers and stay in touch with the business individuals. She willstay as a liaison in between the workers and the entrepreneurs and assign tasks to them.

Ali Hassan will be the Head of Logistics. He will be responsible for handling furniture, bills and otherservices issues of the company. Things related to the infrastructure of the gallery will be under thesupervision of Ali Hassan.


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Marketing Research

Our Research Process

We conducted a research i.e marketing research to see whether such a service will work benefit peopleand their talent or it can be a skill or not and if it did then what kind of people will be interested to availthis opportunity provided by our company. Conducting survey was the cheapest and quickest method ofall in order of knowing the people and their interest.

Our Research Objective:Will SKILLSTATION with such a unique idea is going work or not?

Our Research Plan:All we did was the personal interviews to collect primary data about SKILLSTATION.

The Sampling Plan:

a. Sampling unit:People of all ages usually 15-60 were surveyed. People from all ages usually youngsters, middleage and aged were chosen.

b. Sampling size:50 people were surveyed.

c. Methods to contacts:Questions were asked to different age groups by visiting them personally.

Information collection:Information was conducted through the interviews.

Statistics Presentation:According to survey many people like the idea of having such a place where there talent can bepromoted while they are busy in doing their other jobs or busy at home. Everyone greatly


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3. We can also pitch the corporate clients to come up and portray their businessproducts in our galleries.

4. At times the products portrayed on online websites dont turn out to be good forcustomers due to whom they complain a lot, our galleries will give a physical presence tothe products and will help in growing our business.

Threats:

1. The safety and security conditions are the biggest threat for running the business.2. Social websites such as online businesses and facebook pages are a threat in order to run

a gallery where products can be showcased.3. Unavailability of the clients who can come to showcase the products is a threat.4. Making customers meet our clients and their products is a challenge for us and if we

wont be able to make this attempt, our business activities will remain stagnant.5. Competition is the biggest threat.

Market Competition:

Share of Competition:

It is the ultimate target of Skillstation to motivate as many upcoming talented individuals as it can tocome up and be a part of our companys gallery. In the beginning we, through our massive attractive and

creative advertising activities will try to create awareness of our gallery and increase the share of clients.Our other target will be our customers who will come and visit the products made by our substantiateclients.

Competitive Strategy:

To create a competitive edge on our competitors we will use the following ways;

We will offer our clients to portray their products for complete five days. We are encouraging the thematic approach so as to create uniqueness in our gallery. Our marketing campaign is itself a competition for our rivals because we will use all

BTL activities and social medium as well. We will make the clients meet the customers in this way we will build a long term

relationship among both of them. We through our effective operations will create a vibe among upcoming entrepreneurs

who can work on their small businesses. We are charging our clients very low and our main target is to increase the share of

clients in this way we will be able to create a competitive edge among our rivals.


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PESTLE Analysis:

Political Factors:

1. Increasing government rules for taxes, tariff and quotas may affect SkillStationperformance.

2. The increasing taxes will force us to increase the prices of the products and the materials.Economic Factors:

1. There are many reasons which directly affect the purchasing power of the people whichincreases or might decreases as economically people get poor or rich.

2. Another factor can be the inflation and the recession.3. Recession in Pakistan currently causes sales to decrease as to fulfill the basic

requirements first.Sociological Factors:

Demographic factors are the big issue if we talk about Skillstation where they wants tocover the whole market then it might have to sell products at a very low price oraffordable price with an extraordinary effort and quality.

Technological Factors:

1. Efficient recording methods, databases of the clients, online websites marketing andadvertisement can be only possible by technological updations including the productionfactors.

2. Skillstation will have issues with the technological factors as such because products aregoing to be handmade s well as machine made and if Skillstation plan to make a websiteor want to start delivery system then Skillstation might need to focus on Technology.

Legal Factors:

1. Skillstation has to work according to the changes in the countrys rules and regulations.There are many legal acts which a company needs to follow such as employment act,quality of products act etc.

2. Skillstation will try to follow all legal acts that are changing with the changingenvironment.


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Environmental Factors:

1. Since our products will be showing to the public therefore Skillsation will try that no oneis harmed by any means and will be careful about it.2. No wrong information will be provided to media.3. Skillstation will also try to bring awareness through their products the different events

held accordingly.

The Stakeholder Group:

Skillstation List of Internal Stakeholders:

1. Staff and Management.2. Owners.

Skillstation List of External Stakeholders:

1. Suppliers.2. Customers3. General public.4. Local and national Government.5. Pressure Groups.

Our Target Market:

Segmentation:

Skillstation will base its target market on hybrid segmentation

Demographics:

Skillstation caters the young as well as old age individuals, those who are busy in theirlife or education and have not got a proper channel to show up their skills. Occupationthose who want to become an entrepreneur.


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Geographics:

Skillstation segmentation in terms of geographics will be based on people from every partof the city.

Psychological/Psychographics:

Skillstation is a service oriented company that helps the upcoming underground talent changetheir hobbies into their successful businesses. Its provides a platform to the individual or group ofindividuals to promote their talents so as their talent should not remain under the premises of theirhouses and they can bring it out. In psychographics Skillstation is focusing on people includingvariety seeking people, who enjoy at one go trying different things.

Target Market:

Skillstation caters the young as well as old age individuals, those who are busy in their life or education

and have not got a proper channel to show up their skills. Skillstation target market comprises of acombination of different segments. Skillstation target market is people of middle and upper middle class,of all the ages.

Competitors:

Our Direct Competitors:

Facebook, LinkedIn, M.A.D, NAPA, ARTS COUNCIL OF PAKISAN etc.

Our Indirect Competitors:Restaurants providing gallery services such as KOEL CAF, Hotels, Guest houses etc.

Communication Channels:

All the possible communication channels will be used i.e: Brouchers , Leaflet , Our Website, Page onFacebook etc.

Budget:

Skillstation will be allocating enough budgets to promotional activities. Budget is based on the ProductLife Cycle.


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Message to deliver:

There are many messages which we found that Skillstation needs to deliver. Some of them are givenbelow:

A perfect way to unite people. At our gallery they can come and showcase their creatively made products and can earn

income that can be generated by selling those products. A detailed survey has been conducted to view the perspectives of people in opening up a

company that has a gallery to exhibit the talent of people in order to make it as a sourceof earning of them.

Opening up a gallery that is a part of our service based company where people willdisplay and sell their handmade products.

Internal satisfaction that they have utilized their skills and now these skills are being theirsource of income.

Marketing Strategy:

Focusing on the unique aspect of the product theme (healthy, traditional, tasty foods) a mix of marketingvehicles will be created to convey our presence, our image, and our message.

a. Print media -- local newspapers and magazinesb. Broadcast media -- local programming and special interest showsc. Direct mail -- subscriber listsd. Misc. -- yellow pages, events

A public relations firm will be retained to create special events and solicit print and broadcast coverage,especially at the start-up.

Market Need:

It is the ultimate target of Skillstation to motivate as many upcoming talented individuals as it can to

come up and be a part of our companys gallery. Our company will provide them an incentive to earnsome extra amount of money by the talent they possess and will give them an opportunity to step forwardand compete in this war of creativity which has been increasing in this current business scenario.


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Financial Plan

Sales Forecast FY2013

S.No. Month Year No. of Clients Registration Fee Skill Station's Revenue

(Rs.) (Rs.)

1 June 2012 6 500 3,000

2 July 2012 7 500 3,500

3 August 2012 8 500 4,000

4 September 2012 9 500 4,500

5 October 2012 10 500 5,000

6 November 2012 11 500 5,500

7 December 2012 12 500 6,000

8 January 2013 13 500 6,500

9 February 2013 14 500 7,000

10 March 2013 15 500 7,500

11 April 2013 16 500 8,000

12 May 2013 17 500 8,500

69,000


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Sales Forecast FY2014

S.No. Month Year No. of Clients Registration Fee Skill Station's Revenue

(Rs.) (Rs.)

1 June

2013

18 500 9,000

2 July

2013

19 500 9,500

3 August

2013

17 500 8,500

4 September

2013

10 500 5,000

5 October

2013

12 500 6,000

6 November

2013

11 500 5,500

7 December

2013

16 500 8,000

8 January

2014

18 500 9,000

9 February

2014

14 500 7,000

10 March

2014

11 500 5,500

11 April

2014

15 500 7,500

12 May

2014

16 500 8,000

88,500


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Proforma Cash Flow Statement (FY2013-FY2014)

June July Aug Sep Oct Nov Dec Jan Feb

M

ar

Ap

r

Ma

y

FY20

13

FY20

14

Cash Inflow (Rupees)

(Cash from

operations)

Cash Sales

3,000 3,500 4,000 4,500 5,000 5,500 6,00

0

6,50

0

7,00

0

7,5

00

8,0

00

8,50

0

69,000 88,500

Subtotal cash from

operations3,000 3,500 4,000 4,500 5,000 5,500 6,00

0

6,50

0

7,00

0

7,5

00

8,0

00

8,50

0

69,000 88,500

Cash Outflow

(Expenditure from

operations)

Cash Spending34,84

8

1,330 1,480 1,630 1,780 1,930 2,08

0

3,84

0

2,38

0

2,5

30

2,6

80

2,83

0

59,338 169,83

3

Subtotal Spent on

Operations34,84

8

1,330 1,480 1,630 1,780 1,930 2,08

0

3,84

0

2,38

0

2,5

30

2,6

80

2,83

0

59,338 169,83

3

Net Cash Flow(31,8

48)

2,170 2,520 2,870 3,220 3,570 3,92

0

2,66

0

4,62

0

4,9

70

5,3

20

5,67

0

9,662 (81,333

)

Cash Balance(27,4

48)

(25,2

78)

(22,7

58)

(19,8

88)

(16,6

68)

(13,0

98)

(9,17

8)

(6,51

8)

(1,89

8)

3,0

72

8,3

92

14,0

62

14,062 (67,271

)


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Proforma Profit & Loss Statement (FY2013 FY2014)

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May FY2013

FY 2014

(Rupees)

Sales

3,000 3,5

00

4,000 4,5

00

5,0

00

5,5

00

6,0

00

6,5

00

7,0

00

7,5

00

8,0

00

8,5

00

69,000 88,5

00

Direct Cost of

Sales 5,000 - - - - - - 2,3

00

- - - - 7,300 -

Total Cost of

Sales 5,000 - - - - - - 2,3

00

- - - - 7,300 -

Gross Margin

(2,00

0)

3,5

00

4,000 4,5

00

5,0

00

5,5

00

6,0

00

4,2

00

7,0

00

7,5

00

8,0

00

8,5

00

61,700 88,5

00

Gross Margin

% (1) 1 1 1 1 1 1 1 1 1 1 1 1 1

Expenses

Payroll

400 400 400 400 400 400 400 400 400 400 400 400 4,800 94,8

00

Marketing/Pro

motion - - - - - - - - - - - - - 30,0

00

Depreciation

- - - - - - - - - - - - - -

Stationary

Expense 3,600 - - - - - - - - - - - 3,600 3,60

0

Utilities

39,49

7

- - - - - - - - - - - 39,497 41,4

33

Total

Operating

Expenses

43,49

7

400 400 400 400 400 400 400 400 400 400 400 47,897 169,

833


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Profit Before

Interest and

Taxes

(45,4

97)

3,1

00

3,600 4,1

00

4,6

00

5,1

00

5,6

00

3,8

00

6,6

00

7,1

00

7,6

00

8,1

00

13,803 (81,

333)

EBITDA

(45,4

97)

3,1

00

3,600 4,1

00

4,6

00

5,1

00

5,6

00

3,8

00

6,6

00

7,1

00

7,6

00

8,1

00

13,803 (81,

333)

Interest

Expense - - - - - - - - - - - - - -

Taxes

Incurred - - - - - - - - - - - - - -

Net Profit

(31,8

48)

2,1

70

2,520 2,8

70

3,2

20

3,5

70

3,9

20

2,6

60

4,6

20

4,9

70

5,3

20

5,6

70

9,662 (81,

333)

Net

Profit/Sales (11) 1 1 1 1 1 1 0 1 1 1 1 0 (1)


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Balance Sheet (FY2013 FY2014)

FY2013 FY2014 FY2013 FY2014

ASSETS Rs. LIABILITIES Rs.

Current Assets Current Liabilities

Cash 14,062 (67,271)

Office Supplies 600 600

Total Current Assets 14,662 (66,671) Total Current Liabilities 0 0

Fixed Assets

Furniture 3,200 3,200

Total Fixed Assets 3,200 3,200 Total Non Current Liabilities 0 0

Total Assets 17,862 (63,471) Total Liabilities 0 0

OWNER'S EQUITY

Ali Hassan's Capital 2500 2500

Hani's Capital 2500 2500

Shazia's Capital 2500 2500

Sidra's Capital 2500 2500

Retained Earnings -1800 7662

Earnings 9662 -81333

Total Owner's Equity 17862 (63471)

Total Liabilities & Equity 17862 (63471)


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Break Even Analysis

Rs.

Monthly Revenue Break Even 4,464

Assumptions:

Average percent VC 0

Estimated Monthly FC 3,991


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Charts

0

10000

20000

30000

40000

50000

6000070000

80000

90000

FY2013 FY2014

Sales

Sales

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

FY2013 FY2014

Cash Inflow

Cash Outflow


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-90000

-80000

-70000

-60000

-50000

-40000

-30000

-20000

-10000

0

10000

FY2013 FY2014

Net Income/Loss

Net Income/Loss

-70000

-60000

-50000

-40000

-30000

-20000

-10000

0

10000

20000

FY2013

FY2014


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APPENDIX


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BROUCHER


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FLOOR PLAN

final enterpreneurship report

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