Chapter-1 Business Profile of the Entrepreneur

1.1. Name : Abdul Wahid s/o Muhammad Ashraf Khan

1.2. Domicile : Old Polo Ground Muhallah Gilgi Disric Norhern Areas
1.!. Dae of "irh : 2#$12$1%&'
1.# (/) No. : '*+$&'$+,'#'&
1.*. -ducaion : ..A
1.&. "usiness -/0erience: 1he -nre0reneur has been carr2ing business in 0arnershi0
3ih Decen .urniure4s for he las * 2ears and has gained
sufficien e/0erience in manufacuring furniure and mar5eing.
No3 he has sared his o3n business locaed a Old Polo Ground
muhallah Gilgi )i2. 1he enre0reneur has good mar5eing
re0uaion in he arge area and has a large cusomer base.
1.'. O3ner4s -6ui2 : Current Assets
1 )ash in 7and 8s.1+++++
Fixed Assets
2 9and :1, marlas; 8s. 1*!+++
! "uilding 8s.2!*#%++
# Machiner2/e6ui0men:
$<a3 Machine large 8s.%++++
$<a3 Machine small 8s.*++++
$Plainer 8s.&*+++
$Gauge Machine 8s.**+++
$<0indle machine 8s.'*+++
$8ooer Machine 8s.1*+++
$Kharad Machine 8s.!*+++
$Drill machine * Nos 8s.!++++ 8s. #1*+++
Total fixed Assets Rs.2922900
Total assets Rs.3022900
1.,. .inancing of he Pro=ec: O3ners -6ui2 8s.!+22%++
(n>esmen re6uired 8s.!++++++
1oal: 8s.&+22%++
1.%.-6ui2 raio: *+:*+
1.1+. Addiional )a0ial re6uired: 8a3 maerial imber 8s.1*+++++/$
Direc /(ndirec labour8s.1#1&+++/$
Promoional e/0enses 8s. *++++/$
Mar5eing e/0enses 8s. *++++/$
Admin e/0enses 8s. &++++/$ Rs.30!!000
1.11. ?ob creaion: O3ner/Manager +1
)ar0ener +&
Polishers +2
<a3 machine o0eraor +1
7el0ers +2
Guards +2
1oal: 1#
Abdul
Wahid
-nre0reneur
Chapter-2 "ntrodu#tion of the Business
1he Norhern Areas com0rised of fi>e disrics ha>ing a 0o0ulaion of abou 1.2 million
masses. 1he li>elihood of he 0eo0le is de0enden on agriculure@ foresr2@ business and
=obs 0ro>ided b2 he Go>ernmen and he 0ri>ae secor. One of he ma=or fuure 0oenial
businesses is idenified o be he furniure indusr2 because of he fac ha ra3 maerial is
a>ailable a chea0er raes as com0ared o he res 0ars of he counr2. 1here are fe3
similar indusries ha canno mee he gro3ing demands of he Go>ernmen@
NGO4s/Pri>ae secor and he communiies. 1here is large consumer mar5e for furniure
i.e. sofa ses@ chairs@ ables@ sho3 cases@ office rags@ 3ooden cu0boards and oher
domesic consumable iems ec. A 0resen he demand of he consumers boh 0ublic and
0ri>ae secor is me largel2 hrough im0ors from he res 0ars of he counr2 due o non$
e/isence of he furniure indusr2. Wih he esablishmen of his coage indusr2 in he
Gilgi ci2 ma/imum demand of he local 0o0ulace 3ould be me besides 0ro>iding =obs
o00oruniies o he s5illed/uns5illed labour.
2.1 $a%e of the Business&"ndustr'
1he nomenclaure of he business/(ndusr2 is AModern .urniure (ndusr2B locaed a
Old Pologround Muhalla 1ehsil and Disric Gilgi
2.2 ()*e#ti+es of the Business
1he main ob=eci>e of he business is o earn 0rofi hrough manufacuring and mar5eing
of local made furniure 3ih 6uali2 conrol in he fi>e disrics of Norhern Areas in a
susainable manner. 1his 0ro=ec 3ill also hel0 o u0grade/im0ro>e he local s5ills for he
beer earning and add o generae he economic aci>i2 he region.
2.3.1 Chara#teristi#s of the Business
* 1he businesses aci>iies 3ill remain coninue hrough ou he 2ear.
& 1he furniure ma5ing indusr2 has become a need of he da2 in he region.
' 1here are less com0eiors in he mar5e.
, 1he business is 0rofiable echnicall2 sound and economicall2 beneficial for he
arge area.
% ( 3ould also lead o de>elo0 relaed small businesses in foresr2 and 3oodcar>ing
ec.
1+ ( 3ould reduce relaed im0ors.
2.2 ,e-al status of the Business
1he sae la3s/local la3s and radiional la3s srongl2 su00or he furniure indusr2 in
his 0ar of he counr2. 1he Go>ernmen and 0ri>ae secor 0olicies are >er2 conduci>e
o3ards he business.
2.3 En+iron%ental i%pa#t
1he business 3ill be run in accordance 3ih he global com0eii>eness rends. Necessar2
0ro>ision in he esimaes of he business aci>iies ha>e been 0ro>ided o conrol he
haCards of 0olluion if an2 arises during he 0lan 0eriod.
2.. Plan period
1his business 0lan is de>elo0ed for a 0eriod of fi>e 2ears from he dae of a00ro>al
:2++!$2++,; a5ing he fiscal 2ear as ?ul2$?une of e>er2 calendar 2ear. 1he 0roducion
0rocess 3ill sar soon afer he loan is sancioned.
Chapter-3 Produ#tion Plan
3.1 Esta)lish%ent of the Furniture "ndustr'
1he indusr2/business has alread2 been esablished 3ih and iniial in>esmen of
8s.!+22%++ a he old 0olo ground muhallah. 1he land/consrucion@ machiner2 and
e6ui0men are he 0ersonal 0ro0er2 of he enre0reneur.
3.2 Fixed Assets
1he follo3ing are he fi/ed asses of he business:
11 9and :1, marlas; 8s. 1*!+++
12 "uilding 8s.2!*#%++
1! Machiner2/e6ui0men:
$<a3 Machine large 8s.%++++
$<a3 Machine small 8s.*++++
$Plainer 8s.&*+++
$Gauge Machine 8s.**+++
$<0indle machine 8s.'*+++
$8ooer Machine 8s.1*+++
$Kharad Machine 8s.!*+++
$Drill machine * Nos 8s.!++++ 8s. #1*+++
Total fixed Assets Rs.2922900
3.3 ,ife of fixed Assets
1he life of he fi/ed asses e/ce0 land is as under:
)onsruced "uilding *+ 2ears
All machiner2 !+ 2ears
Accordingl2 he de0reciaion coss 3ill be 8s.1!,++ for machiner2 :! 0er cen; and
building i is 8s.#'1++/$:2 0er cen; 0er 2ear.
3.. Cost of Ra/ 0aterial
1he cos of ra3 maerial is calculaed as under:
$ 1imber/3ood 8s. '+++++/$
$Win "oard 8s. 2+++++/$
$7ard 3are 8s. 2+++++/$
$Glasses 8s. 1+++++/$
$Polish Maerial 8s. 1+++++/$
$)loh for sofa ses 8s. 1+++++/$
$.oam and cushions 8s. 1+++++/$
Total Rs.1100000&-
3.1 A+aila)ilit' of Ra/ 0aterial
1he imber/3ood and oher ra3 maerial is a>ailable all he imes in he local mar5e and
no difficulies are foreseeable.
3.1 Cost of la)our

1he business 3ill 0a2 a sum of 8s.1++++/$ 0er monh as o3ner4s salar2 as Manager. 1he
oher em0lo2ees 3ill be 0aid salar2 0er monh as under:
2esi-nation $u%)er 0onthl' salar' Annual salar'
<u0er>isor +1 12+++/$ 1##+++/$
<a3 machine o0eraor +1 1++++/$ 12++++/$
)ar0eners +& 1++++/$ '2++++/$
Polishers +2 1++++/$ 2#++++/$
7el0ers +2 *+++/$ 12++++/$
Guards +2 !+++/$ '2+++/$
Total 1. 10000&- 1.1!000
3.3 ,a)our A+aila)ilit'
No foreseeable 0roblem is e/0eced.
3.4 ,a)our produ#ti+it'
All he labour 3ill be em0lo2ed on conrac basis. 7o3e>er as an inceni>e he2 3ill be
ser>ed 3ih lunch/ea during 3or5ing hours in addiion o heir remuneraion.
3.3 Ad%inistrati+e #osts
1hese coss ma2 include saioner2@ re0air and mainenance of machiner2/e6ui0men ec.
A sum of 8s.*++++/$ has been 0ro>ided o co>er he coss 0er 2ear.
Chapter-. 0ar5etin- Plan
..1 0ar5et sur+e'&Resear#h
1he enre0reneur has conduced sur>e2 and research of he business. 1he sud2
informaion included@ legal saus@ mar5e and sales@ 0rofi earning raion and fuure
0oenial of he business. 1he ma=or cusomers of he business are Pubic /0ri>ae secor@
and he communiies. 1he manufacured 0roducs are 3ih in heir 0urchasing 0o3er.
..2 0ar5et 2e%and&6uppl'
1here is 1++ D demand of furniure and ha is 0ermanen naure. 1he su00l2 is 6uie less
as com0ared o he oal demand locall2 a he mo>emen i.e. 2* D.
..3 0ar5et Area
1he mar5e area is 3hole NA4s :fi>e disrics;. Wih he e/0ansion of he business here
can be e/0ansion in he naional mar5e as 3ell.
... 0ar5et #o%petition
1here are fe3er com0eiors in he business in he local mar5e herefore he business
en>ironmen is 6uie fa>ourable in he region.
..1 0ar5et 6hare
1he enre0reneur 3ill ca0ure he mar5e graduall2 u0 o *+ D during he 0ro=ec 0lan
0eriod. 1he coss of manufacured 0roducs are 3ih in he 0urchasing 0o3er of he
cusomers and he cusomer4s base 3ill be increased during he 0lan 0eriod hrough
6uali2 deli>er2.
..! 6ellin- pri#es
1he selling 0rices 3ill be mar5e based and 6uali2 of 0roducion. 7o3e>er he follo3ing
3ill be differen 0rices of differen manufacured 0roducs:
1# <ofa <es 8s.1*+++/$ each se
1* Double bed 0lung 8s.*+++/$ each uni
1& <ho3 cases 8s.'+++/$ each uni
1' Officer ables 8s.,+++/$ each uni
1, Office ables 8s.#+++/$ each uni
1% Office chairs 8s.12++/$each uni
2+ Officer chairs 8s.2*++/$ each uni
21 .ile rags 8s. #++/$ each uni
22 )u0boards 8s. #+++/$ each uni
1he flucuaion in 0rices 3ill be no more han 1+D is esimaed 0er annum.
..3 6ales fore#ast
1he sales during he firs 2ear 3ill fi/ he arge for he remaining 0eriod of he 0ro=ec
0lan. 1he arges 3ill be achie>ed slo3 and graduall2 hrough a sraeg2 5ee0ing in >ie3
he 0roduc c2cle i.e. #P4s. 1he 0ro=eced sale of furniure for he 2ear 2++! is sho3n in
he able belo3:
Descri0ion No. Of Enis Eni 0rice
8s.
1oal sales
8s.
<ofa ses *+ 1*+++ '*++++
Double bed 0lung ec 2++ *+++ 1++++++
<ho3 cases *+ '+++ !*++++
Officer able 1++ ,+++ ,+++++
Office ables !++ #+++ 12+++++
Officer chairs 1++ 2*++ 2*++++
)u0boards 2++ #+++ ,+++++
.ile rags *++ *++ 2*++++
1oal 1&++ *#+++++
1he sales 3ill be increased hrough increase in he cusomer4s base a leas *$1+ D
annuall2. 1he a>erage cos 0er uni comes o 8s.!!'*/$ and he a>erage selling 0rice is
*'*+/$ 0er uni herefore he business is 0rofiable in a susainable manner.
..4 0ar5et strate-'
1he mar5eing sraeg2 3ill be based on he 6uali2 of 0roducs. "usiness conacs 3ill be
de>elo0ed 3ih he sa5eholders during he 0lan 0eriod according o he ne3 mar5e
rends. .or effeci>e mar5eing sub$sraegies 3ill also be de>elo0ed o raise he
manufacured goods u0 o he le>el of mauri2.
..9 Pro%otional Expenses
1he 0romoional e/0enses ma2 include gifs@ ad>erisemen charges ec. an amoun of
8s.*++++/$ is 0ro>ided in he budge for meeing such e/0enses.
..10 0ar5etin- expenses
he mar5eing e/0enses ma2 be in he form of ra>eling e/0enses@ ele0hone charges and
enerainmens ec. herefore 8s. *++++/$ has been 0ro>ided in he budge for meeing he
anici0aed mar5eing e/0enses.
..10 (r-ani7ational Chart
0ana-er
6uper+isor
6a/ %a#hine operator
Carpenters polishers
8elpers9 8elpers
:uards
Chapter-1 Finan#ial Plan
'.1 )a0ial 8e6uiremen :Pro=ec cos;
3.1.1 Current Assets
$)ash in hand Rs.100000&-
3.1.2 Fixed Assets
$9and 8s. 1*!+++/$
$"uilding 8s.2!*#%++/$
$Machiner2/e6ui0men 8s. #1*+++/$
Total; Rs.2922900&-
3.1.3 Pre-operatin- expenses Rs. 2100&-
3.1.. <or5in- Capital
$Purchase of ra3 maerial 8s.1*+++++/$
$O>erheads 8s.1#1&+++/$
$Promoional e/0enses 8s. *++++/$
$Mar5eing e/0enses 8s. *++++/$
$Admin.coss 8s. &++++ &-
Total; Rs.30!!000&-
Total #apital in+est%ent Rs.!001.00
6a'==========Rs.!000000&-
3.1.1 Finan#in- Plan
Mr. Abdul 3ahid he o3ner o 3hom i ma2 concern has alread2 in>esed and
conribued a sum of 8s. 2%22%++/$ co>ering iniial cos of
land/building/machiner2 and e6ui0men ec. An amoun of 8s.!+@ ++@+++ 3ould
be re6uired as an addiional in>esmen/3or5ing ca0ial for he res of he business
aci>iies. 1he loan re6uiremen can be sho3n as under:
Parti#ulars (/ners e>uit'
Rs.
,oan re>uired
Rs.
Total
in+est%ent
)urren Asses 1+++++ FF. 1+++++
.i/ed Asses 2%22%++ FF. 2%22%++
Pre$O0 e/0enses 2*++ FF. 2*++
Wor5ing ca0ial F.. !++++++ !++++++
Total 3021.00 3000000 !021.00
3.1.! 6e#urit' a-ainst ,oan
1he o3ner inends o run he business@ geing a loan of 8s.!++++++/$from he
Kara5uram )oo0erai>e "an5 9d. Norhern Areas Gilgi under s0ecial scheme
for Pro=ec financing. 1he o3ner is 3illing o 0ro>ide securi2 and morgage his
0ersonal 0ro0er2/Asses of he business agains he loan gran in fa>our of he
said ban5. 1he rele>an documens i.e. ma0 of building@ land measuring 1, MarlaC
3ih >aluaion cerificae is aached 3ih he a00licaion form.
3.1.3 Profit ? ,oss A##ount for the 'ear Endin- @une 2003
$A>erage <ales 8s. %2+++++/$
- less
8a3 maerial 8s.1*+++++/$
O>erheads 8s.1#1&+++/$ 8s.2%1&+++/$
:ross Profit Rs.!24.000&-
,ess
$Promoional e/0enses 8s. *++++/$
$Mar5eing -/0enses 8s.*++++/$
$Adminisrai>e -/0enses 8s.&++++/$
$et profit )efore interest Rs.!12.000&-
,oan repa'%ent Rs.1010000&-
$et profit Rs.103.000
3.1.4 Pro*e#ted Balan#e sheet 30-!-2003
Assets A%ount Rs.
Current assets
)ash in hand %2+++++/$
Fixed Assets
9and 1*!+++/$
"uilding 2!*#%++/$
Machiner2/e6ui0men #1*+++/$
Accumulaed de0reciaion :&+%++/$;
Fixed Assets; 24!2000&-
Total assets; 120!2000&-
,ia)ilities
O3ner4s -6ui2 &+2*#++/$
9oan insallmen/ineres %&2&++/$
Profi *+'#+++/$
Total lia)ilities 120!2000