Establishment of Partnership

business

Submitted to:
Sir Tabasum Riaz
Submitted by:

Siddique Group
Raza Javed
M.Bilal Akhtar

(bba.f13.05)
(bba.f13.09)

Ahasn Mumtaz
(bba.f13.12)
Asad Mehmood
(bba.f13.15)
Naveed Hussain

(bba.f13.26)

Usman Ali
(bba.f13.45)
Sohail Bilal

(bba.f13.34)

Submission date:
3rd , April 2014

Department of Business Administration, Jhelum Campus

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UNIVERSITY OF THE PUNJAB

Honda Palace
MotorCycles showroom

Table of Contents
Business Idea........................................................................................
Business sector.......................................................................................................
Nature of Business..............................................................................................
Pest Analysis........................................................................................
Political,socio cultural,technological .......................................................................
Technological environment...................................................................................
Benafits of our business to public............................................................
Factors of production.............................................................................
Land, labour ,capital.Enterprise...............................................................................
Partnership............................................................................................
Our Business partnership at will .............................................................................
Partnership Deed...................................................................................
Management..........................................................................................
Organization structure..........................................................................
Accounting...........................................................................................
Marketing............................................................................................
More ideas for marketing our business..................................................................
Finance................................................................................................

Business Idea
The first step is the discovering idea to start the new business.
Basically Business activity exist to produce consumer goods or
services that meet the needs of the customer to earn the profit.
These goods and services can be classified in several ways.
Consumer goods: Those physical and tangible goods sold to the
general public for the sake of profit
Consumer services: That non tangible produces sold to the general
public for the sake of profit.
We have to decide to open a motorcycles showroom as a
partnership business. This idea we gain after a research and we gain
the experience that the use of motorcycle is increasing day to day
and in our city Jhelum there is no any motorcycle dealing point
where the customers can easily fulfill their need of buying a bicycle.
So we thought that this business is very profit full for us and also
fulfill the demand of motorcycles in our city and people can get a
reliable service in their home city.
Secondary economic sector:
The sector which belongs to the activities related to the change
in the shape of things which are obtained by primary activities,
and make them more useful to earn more profit.
OR
The section of the economy where business activity is
concerned with the construction and manufacturing of physical
products; automation and mechanization in modern societies
has seen this sector decline in terms of employment.
Nature of our business:
Partnership:
When two or more than two persons agreed to share the profit of
business, carried on by all or any one of them acting for all. Such
business is known as Partnership.

The type of our business is partnership at will. In partnership at

will agreement is made neither any specific duration nor mode
of dissolution. As we know that, partnership business has more
resources then sole proprietorship. Loss can be divided into
partners. Nobody bears the whole burden of loss. Everyone has
the right to participate in management of firm.
Our business is a secondary sector because it is related to the
construction and manufacturing of physical product i-e
Motorcycle.

PEST ANALYSIS
PEST Analysis is a useful tool for
understanding the big picture of the
environment in which you are
operating, and for thinking about the
opportunities and threats that lie
within it. By understanding your
environment, you can take
advantage of the opportunities and
minimize the threats.
PEST is a mnemonic standing for
Political, Economic, Social and
Technological. These headings are
used first to brainstorm the
characteristics of a country or region
and,
from this, draw conclusions as to the
significant forces of change operating within it.
This provides the context within which more detailed planning can
take place, so that you can take full advantage of the opportunities
that present themselves.
The necessary things that we have kept in the consideration while
taking a survey in the locality about our motorcycle showroom
business plan:
Political:
Government type and stability.
Freedom of press, rule of law and levels of bureaucracy and
corruption.
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Regulation and de-regulation trends.

Social and employment legislation.
Tax policy, and trade and tariff controls.
Environmental and consumer-protection legislation.
Likely changes in the political environment.
Economic:
Stage of business cycle.
Current and projected economic growth, inflation and interest
rates.
Unemployment and labor supply.
Labor costs.
Levels of disposable income and income distribution.
Impact of globalization.
Likely impact of technological or other change on the economy.
Likely changes in the economic environment.
Socio-Cultural:

Population growth rate and age profile.

Population health, education and social mobility, and attitudes to

these.
Population employment patterns, job market freedom and
attitudes to work.
Press attitudes, public opinion, social attitudes and social taboos.
Lifestyle choices and attitudes to these.
Socio-cultural changes.

Technological Environment:
Impact of emerging technologies.
Impact of Internet, reduction in communications costs and
increased remote working.
Research & Development activity.
Impact of technology transfer.

Benafits of our business to general public

Public service
Provide bikes on installments
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 Low interest rate

Provide bikes without down payment
Provide services in commercial area

Factor of production:
Land:
First of all we have to select a piece of land where we will start our
business. We have buy a land near to the G.T Road to build up a
motorcycles showroom. This land we purchase from Mr.Kamran who
was the owner of this land .we pay for this land Rs 3000000/-.
Labour:
we have need labour force for construction of building for showroom,
performing the day to day activities in the showroom works and for
giving service to the customers. We
have need labor source skilled and unskilled as well as permanent
and temporary.
Capital:
Capital can represent the monetary resources that a business use to
purchase natural resources, land and other capital goods or the
major physical assets for producing goods or services. These assets
include buildings, production facilities, equipment, vehicles and
other similar items.[3] All the partners contribute in capital with a
particular percentage. We need a capital of Rs 15000000/- for our
new business which is contributed by all the partners.
Capital Structure:
Name of partner
Ahsan Mumtaz
Asad Mehmood
Raza Javed
M.Bilal Akhtar
Naveed Hussain
Sohail Bilal
Usman Ali

Contribution in Rs.
3000000
2000000
2000000
2000000
2000000
2000000
2000000

Percentage
20%
13.33%
13.13%
13.13%
13.13%
13.13%
13.13%

Enterprise:

That which is undertaken; something attempted to be performed; a

work projected which involves activity, courage, energy, and the
like; a bold, arduous, or hazardous attempt; an undertaking; as, a
manly enterprise; a warlike enterprise.

Partnership:

Partnership at-will:

The essence of a partnership at-will is that the partners do not

limit the duration of their partnership, and are free to break their
relationship at any time they see fit. It is a partnership for indefinite
period. The partnership may be dissolved at any point as long as the
partner gives notice to all the other partners

Partnership Deed
Partnership Deed is a document that tells about the mutual rights
and obligations of all partners. This needs to be signed by all the
partners and subsequent copies held by each partner. At the time of
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registration, a copy of the deed has to be submitted with an

application to the Registrar of Firms in the concerned area. This
document may also be referred to as an Article of partnership. A
partnership deed usually contains the following format:

Partnership Deed:
1.
2.
3.
4.

The name of our business is Honda Auto Palas

Partnership business that is to be carried out by the firm
Our business is situated at Shandar chowk Jhelum.
Capital criteria that each partner contributes from total capital of
20000000/Name of
partner
Ahsan Mumtaz
Asad Mehmood
Raza Javed
M.Bilal Akhtar
Naveed Hussain
Sohail Bilal
Usman Ali

5. The names and

Name
Ahsan mumtaz
Raza Javed
Jhelum)
Asad Mehmood

Contribution in
Rs.
3000000
2000000
2000000
2000000
2000000
2000000
2000000

addresses of each partner:

Address
(po.box Chak qazi Tehsil dina district Jhelum)
(po.box Chak khasa tahlianwala Tehsil & district
(po.box Jhelum city khanssama muhallah)
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Usman Ali
Naveed Hussain
M. Bilal Akhtar
Jhelum)
Sohail Bilal

(dina city Main bazaar near lal masjid)

(dina city Main bazaar near lal masjid)
(po.box Kala Gujran Kotli Allah Yar Tehsil & district
(dina city Main bazaar near lal masjid)

6. Our partnership is at will.

7. The ratio of sharing profit is according to each partners capital
ratio.
8. Salary will not given to any partner because all partner will active.
9. Dissolution of partnership will occur if any partner become insolvent,
unsound mind or such like situation.
10.
Provisions regarding the accounting system and the fiscal year
to be used.
11.
Rules to be followed in the case of retirement, death and
admission of a partner.
12.
Arbitrator for our partnership dispute is Mr. Syed Muzahir
Shah.
13.
In the case of breach of duty by one partner, powers of other
partners to expel him from the firm
14.
The keeping of proper books of accounts and periodical such
like monthly.

Signature of partners
Witness

Signature of

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Management:

Sets objectives:
First of all our manager set goals for the group, and decides what
work needs to be done to meet those goals.
Motivates and communicates:
The manager creates a team out of his people, through decisions on
pay, placement, promotion, and through his communications with
the team. Drucker also referred to this as the integrating function
of the manager.
Measures:
The manager establishes appropriate targets and yardsticks, and
analyzes, appraises and interprets performance.

Leading the people:

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With the rise of the knowledge worker, this task has taken on added
importance. In a knowledge economy, people are the businesss
most important asset, and it is up to the manager to develop that
asset.
Organizes:
The manager divides the work into manageable activities, and
selects people to accomplish the tasks that need to be done .

Organization structure:

Raza Javed
(Manager)

Naveed Hussain

M. Bilal Akhtar

Usman Ali

Account Manager

Marketing Manager

Finance Manager

Accounting:
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The systematic and comprehensive recording of financial

transactions pertaining to a business. Accounting also refers to the
process of summarizing, analyzing and reporting these transactions.
The financial statements that summarize a large company's
operations, financial position and cash flows over a particular period
are a concise summary of hundreds of thousands of financial
transactions it may have entered into over this period. Accounting is
one of the key functions for almost any business; it may be handled
by a bookkeeper and accountant at small firms or by sizable finance
departments with dozens of employees at larger companies.

Important things to prepare and ascertain about accounting

and bookkeeping

Bank account
Using a cheque book
Putting money into the accounts
Bank statements
Keep daily record and keep monthly records
A petty cash book
A cash book
Preparing annual financial statements audits

Marketing:
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Essential Tools for our Business Marketing

Here are a few items to pack into your marketing toolkit:

A plan and a budget:

Getting a plan that will support us for years to come is essential to
keep you on track. It doesnt need to be as thick as War and Peace,
but it does need to be written down, clearly communicated to your
team and acted on day by and even when business is booming.
A great product or service:
Advertising our business has no point if the customers dont want,
value or love what we have to offer. We make sure do our research
and listen to our customers before sending our product out to the
market.
A professional brand:
A brand is much more than a logo. It encompasses everything
people see, hear, think and feel about our business. Invest up-front
in developing a brand that stands out from the crowd. Itll save you
money and heartache in the long run. So thats why we chose Honda
company to sale its product on our showroom.

Powerful marketing materials:

Our business card, sales brochures, sales letters, website, signage,
uniforms and car decal speak volumes about our business. And
A simple database:
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The backbone of all good marketing is about building a solid

database of past, present and future customers (prospects) so you
can keep in touch and communicate regularly via e-newsletters,
emails and phone.

Some more ideas to Market Your Small Business:

We dont need to spend buckets of money on marketing. We can
even advertise our business by some more ideas. Creativity and a
bit of gumption to do something different from everyone else in the
market can be the difference between business success and
business failure. Here we have are just a few numbers of ideas to
market your business:
Sponsor a local event or charity:
It really does make our feel good to support your community, and
everyone benefits, we, our staff, our customers, the people that we
sponsor and, of course, the community at large.
Manage your public relations:
Getting our name up in lights on TV and radio, and in newspapers
and magazines it is not hard as we thing.
Use social media:
Using social-networking sites like Facebook, Twitter and LinkedIn,
producing our own videos for YouTube or writing our own blog are
creative methods of letting people know about us and our business.
Host seminars and events:
Hosting own events and inviting along our best customers and
some of their friends is a great way to get to know people, connect
at a personal level and build deep relationships.

Finance:
There are two main sources of finance:

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Equity Financing - money invested into your business in exchange

for a share in its ownership.
Our plan is to use our collected Capital that we have collected from
all partners to perform business activities.
But if we feel need for more capital we will use,
Debt Financing - usually in the form of a loan where the principal
amount borrowed and interest accumulated on the loan needs to be
paid.
This include

Loan Programs

Term Loans

Trade Credit

Profit Ratio
The Rratio of Profit for each partner is shown in the table given
below:

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