Project Title:

Student Gift Center

Members:
Project
Misbah Maheen Managment
Muhammad Iqbal
Submitted to:
Sir Sohail Aslam Sb Misbah Maheen, Muhammad Iqbal
INTRODUCTION:-
A Student gift shop or souvenir gift shop is a store primarily selling souvenirs relating to a
particular topic or theme. The items sold often include coffee mugs, stuffed animals, t-
shirts, postcards, handmade collections and other souvenirs. These gift stores offer a wide
range of gifts and cards for every occasion such as birthdays, weddings, graduation and
many more. In addition to this, these stores also offer unusual gift wrapping services and
customers can also purchase cards on sale.

I chose area of Baghdad Campus of The Islamia University of Bahawalpur because it’s a very
crowded area especially by university students. In This Project we make little efforts to
prepare project proposal for Student Gift Center Business. I hope that it will be helpful for
plan seekers to establish new business. This project proposal contains all relevant
information about opening of new Gift Center and all about its requirements, investments,
return analysis, cost and benefit estimation. We hope that it will be helpful.

Company Name:-

“Malik Gift Center”

Company Summary:-
Malik Gift center is a privately owned specialty gift boutique located at Area of Baghdad
Campus the Islamia University of Bahawalpur. The principal owner is Misbah Maheen. Malik
Gift Center is specializes in a variety of unique merchandise ranging from specialty cards and
personalized printing services to specialty handicrafted gifts and customized apparel.
Vision Statement: -

To be world number one recognized gift service provider operating around all over the
world with excellent strong customer base.

Mission Statement:-
To build long term relationships with our customer and clients to provide exceptional
customer services by pursuing business through innovation advanced communication
method and technology.

Scope Description:-

Include:-
We are going to introduce wide range of gifts and cards for every occasion such as
birthdays, weddings, graduation and many more according to our customers’ needs.

Completion Criteria:-
As per the customer’s needs we are offering special gifts in fancy touch. At every
weekend we replace and re-decorate Gifts sometimes according to requirement or sale
level we receive new gifts from our own workshop.

Risk Assessment:-
We admit that some new Gift Center rapidly make their own reputation and becoming a
risk for our business. Change in customer Choice, Income sometimes challenging for us. We
try to resolve these issues.
 Feasibility Study

Part 1: Strength of Business Idea

For each item, circle the most appropriate answer and make note of the (-1), (0) or (+1)
score.

Low Moderate High

Potential Potential Potential

(-1) (0) (+1)

1. Extent to with the idea:

• Takes advantage of an (+1)

environmental trend

• Solve a problem (0)

• Addresses an unfilled gap (0)

in the market place

2. Timelines if entry to market (-1)

3. Extent to which the idea “adds value” for its (+1)

buyer or end user

4. Extent to which the customer is satisfied by (+1)

competing products that are already available

5. Degree to which the idea requires customers to (0)

change their basic practices or behavior

Part 2: Industry Related Issue

Low Moderate High

Potential (- Potential (0) Potential

1) (+1)

1. Number of competitor (+1)

2. Stage of industry life cycle (0)

3. Growth rate of industry (+1)

4. Importance of industry’s products and/or (+1)

services to customers

5. Industry operating margins (0)

Part 3: Target market and Customer Related Issues

Low Moderate High

Potential Potential Potential

(-1) (0) (+1)

1. Identification of target market for the proposed (0)

new venture

(+1)

2. Ability to create “barriers to entry” for

potential competitor

3. Purchasing power of customers (+1)

4. Ease of making customers aware of the new (+1)

product or service

5. Grown potential to target market (0)

Part 4: Founder-(or founders-) Related Issues

Low Moderate High

Potential Potential Potential

(-1) (0) (+1)

1. Founder’s or founders’ experience in the (0)

Industry

2. Founder’s or founders’ skills as they relate to the (0)

proposed new venture’s product or services

3. Extent of the founder’s or founders’ professional (+1)

and social networks in the relevant industry

4. Extent to which the proposed new venture (+1)

meets the founder’s or founders’ personal goals

aspirations

5. Likelihood that can be put together to launch (0)

and grow the new venture

Part 5: Financial Issues

Low Moderate High

Potential Potential Potential

(-1) (0) (+1)

1. Initial capital investment (0)

2. Number of revenue drivers (ways in which the (0)

company makes money

3. Time to break even (+1)

4. Financial performance of similar businesses (0)

5. Ability to fund initial product (or service) (+1)

development and/or initial start-up expenses

from personal funds or via bootstrapping

Overall Potential
Each part has five items. Score will range from -5 to +5 for each part. The score is a guide
there is in established rule of thumb for the numerical score that equates to high potential,
moderate potential, or low potential, or low potential for each part. The ranking is a judgment call.

Score (-5 to +1) Overall potential of the Suggestions for Improving

Business idea Based in Each the potential

Part

Improve the timeline of Entry

Part 1: to Market

Strength of Business Idea (+2)

Part 2: Improve the Growth Phase

Industry- Related Issues (+1)

Part 3: Attract the Customers of New

Target Market and Customer (+3) Product

Related Issues

Part 4: Improve the founder’s experien-

Founder- ( or Founders-) (+2) ce and skills

Related Issues

Part 5: Increase intial investment by

Financial Issues (+2) Debt Financing

Overall Assessment
 PROJECT CHARTER

PLANNING
1 Name of the Project Student Gift Shop

2 Location Area of Baghdad Campus The Islamia

University of Bahawalpur
3 Authority responsible for:

4 Sponsoring Loan from Allied Bank & United Bank

Limited
5 Execution Misbah Maheen & Muhammad Iqbal
6 Operation and maintenance Manager : Muhammad IQBAL
7 Plan Provision Estimated duration for completion of
project is 6 months.
8 Project objectives and its relationship with Sect-oral Main objective is to earn profit and to
objectives boost up the Gift industry in the
Bahawalpur
9 Annual operating and maintenance cost after 1.5-2.0 million
completion of the
Project

10 Demand and supply analysis Supplier: Multan Gift Center

11 Financial Plan and mode of financing Debt to equity = 60:40

12 Financial Income to the project

13 Social benefits with indicators Provision of good quality Gifts at
reasonable price
14 Employment generation (direct and indirect) Direct: salesman and manager of the
Gift boutique
Indirect: sweepers& Guard
15 Environmental impact Everyone feels good Purchasing from
Malik Gift Center
16 Impact of delays on project cost and viability new Gift Center will be set up and take
the opportunity and market share

17 Implementation schedule 1st June,2018---1st November,2018

18 Management structure and manpower 1. Manager who will see the purchase

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 requirements including Specialized skills during of Gifts and also accounts of Gift
execution and operational phases Center.
2.Interior designer for the interior
design and skilled labor for the work of
interior
3.Electrition
a. Manager:
Age.25-30yrs
Salary.Rs.35000-45000
Education: Master’s in marketing or
equivalent
salesman:
Age.20-35 years
Salary.Rs.12000
Education. Matriculation

MARKETING PLAN:-
The most important part of a business plan is the Marketing Plan. To keep one’s business on course
this plan must be geared toward the business’s mission—its product and service lines, its markets, its
financial situation and marketing/sales tactics.

Bahawalpur is a big city with Many Banks, a big Hospital, many historical places, a basket of hotel industry,
several Bed & Breakfasts and motels, a cavern, a golf course, numerous antique/gift shops and a tourist
information center. New Market also offers a small airport, professional and medical offices, beauty and
barbershops, auto repair and gas stations, video stores, and funeral homes.

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Market Demand:-
Because of growing hotel industry and increasing population nationwide I decided to start student gift
center.

Promotion/Advertising:-
The Malik Gift Center will advertise in the area newspapers, on local radio stations, and through
brochures at area tourist attractions and by word-of-mouth.

Competition:-
There are many small gift shops in this Market. Most of the shops nearby on university and offer
tourist and students gifts-type items. The antique and gift shop at Malik Gift center offers quality
antiques, glassware, and gifts. Customers have returned to the gift shop because they recognize the
quality in the merchandise that is being offered. The business must know its competition, current
and potential. By identifying the competitor’s strengths and weaknesses the business can
improve its position in the marketplace.

Analysis Market Opportunities:-

The business must be aware of its strengths and weaknesses through internal and external analysis
and look for market opportunities.

Analyze products and services:-

The business must analyze its products and services from the viewpoint of the customer—outside-in
thinking. What are the customer looking for and what does the customer want (benefits)? The
business must gain knowledge of the marketplace from its customers.

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Analyze Target Markets:-
The business must analyze its target markets. What other additional markets can the business tap into
and are there additional products or services the business can add? The business must make decisions
on how to apply its resources to the target markets.

Utilize Information:-
The business must utilize the information it has gathered about itself, its customers, its markets, and
its competition by developing a written Marketing Plan that provides measurable goals. The business
must select marketing/sales tactics that will allow it to achieve or surpass its goals.

Implement Plan:-
The business must implement the plan (within an established budget) and then measure its success in
terms of whether or not the goals were met (or the extent to which they were). The Marketing Plan is
an ongoing tool designed to help the business compete in the market for customers. It should be re-
visited, re-worked, and re-created often.

Page 4 of 19
 Work breakdown structure
Work breakdown structure (WBS)

Land Building Furniture/

Staff Product
Equipment

Managerial Non-
purchase Location managerial

Manager
Store Parking
Hall Lighting

Sale person Guard

Sofas Counter Shelves Furniture

Cleaning Staff

Computer Scanner Bar code sticker mac.

RMS

Coffee Mugs Novelty Gifts Greeting Cards T-Shirts

Handmade Collection Stuffed Animals

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 WW&I

Estimated Cash flow Statement

For the Year Ended (2017-2021)

Year 0 2017 (RS) 2018 (RS) 2019 (RS)
Operating activities
Net income - 9,271,615 10,183,614 11,189,315
Depreciation - 63,910 63,910 63,910
Accounts receivable - - - -
Accounts payable - - - -
Amortization - - - -
Other liabilities - - - -
Total operating activities - 9,335,525 10,247,524 11,253,225

Investing activities
Capital expenditures - 2,330,500 - - -
Sale of fixed assets - - - -
Total investing activities - 2,330,500 - - -
Financing activities
Long-term debt/financing 1,500,000 - 212,889 - 249,564 - 292,556
Equity 72,000,000 - - -
Other financing cash flow items - - - -
Total financing activities 73,500,000 - 212,889 - 249,564 - 292,556

Net Change in cash flow 71,169,500 9,122,636 9,997,960 10,960,669

Beginning cash balance - 71,169,500 80,292,136 90,290,096

Ending cash balance 71,169,500 80,292,136 90,290,096 101,250,765

Page 6 of 19
 2017 (RS) 2018 (RS) 2019 (RS)

Sales 100.00% 100.00% 100.00%

Direct Cost of Sales 45.67% 45.67% 45.67%
Operational payroll 2.26% 2.15% 2.06%
Total Cost of Sales 47.92% 47.82% 47.72%
Gross Margin 52.08% 52.18% 52.28%

Operating Expenses
Sales & Marketing Expenses
Sales & Marketing payroll 0.36% 0.36% 0.36%
Miscellaneous 0.11% 0.11% 0.11%
Advertising 0.38% 0.38% 0.38%
Total Sales & Marketing Expenses 0.85% 0.85% 0.85%

General & Administrative Expenses

Utilities 0.27% 0.28% 0.30%
Insurance 0.36% 0.34% 0.33%
Telephone 0.09% 0.09% 0.09%
Total General Admin. Expenses 0.72% 0.72% 0.72%

Other Expenses
Other Payroll #REF! #REF! #REF!
Office Supplies 0.09% 0.09% 0.09%
Depreciation on Furniture 0.11% 0.10% 0.09%
Depreciation on Equipments #REF! #REF! #REF!
Depreciatin on Building 0.13% 0.12% 0.11%
Maintainance #REF! #REF! #REF!
Contract/Consultants fee 0.18% 0.18% 0.18%
Total Other Expenses 0.51% 0.49% 0.47%

Total Operating Expenses 2.08% 2.06% 2.04%

EBIT 49.99% 50.12% 50.24%

Less
Interest Exp 17% 0.85% 0.64% 0.45%
Earning Before Tax 49.15% 49.48% 49.79%
Income Tax 14.27% 14.65% 15.00%

Net Income 34.88% 34.83% 34.79%

Page 7 of 19
 WW&I

Estmated Balance Sheet

For the Year Ended 2017-2021

Year 0 (RS) 2017 (RS) 2018 (RS) 2019 (RS)
Current Assets
Cash & Bank 41.31% 44.27% 47.20% 50.08%
Fixed Assets
Land 58.04% 55.14% 52.28% 49.46%
Building 0.46% 0.42% 0.38% 0.34%
Furniture & Fixture 0.19% 0.17% 0.14% 0.12%
Total Assets 100.00% 100.00% 100.00% 100.00%

Liabilities & Equity

Current liabilities
Account Payable 0.00% 0.00% 0.00% 0.00%
Long Term Liabilities
Deffered Tax 0.00% 0.00% 0.00% 0.00%
Bank Loan 2.04% 1.56% 1.12% 0.72%
Equity
Partners contribution 97.96% 87.21% 77.84% 69.64%
Retain Earning 0.00% 0.00% 10.02% 18.82%
Net Income 0.00% 11.23% 11.01% 10.82%
Total Liabilities 100.00% 100.00% 100.00% 100.00%

Page 8 of 19
Year 0 (RS) 2017 (RS) 2018 (RS) 2019 (RS)
2% 2% 1% 1%

Debt/Equity Ratio
3%
2%
2%
2%
2% 1%
1% 1%

1%

0%
Year 0 (RS) 2017 (RS) 2018 (RS) 2019 (RS)

Year 0 (RS) 2017 (RS) 2018 (RS) 2019 (RS)

0% 5% 5% 6%

ROA
6% 5% 6%
5%
5%
4%
3%
2%
1%
0%
0%
Year 0 (RS) 2017 (RS) 2018 (RS) 2019 (RS)

Page 9 of 19
Years 2018 2019 2020 Total
Annual Cash
Inflow 9,271,615 10,183,614 11,189,315 30,644,543

Project Cost 3,530,500

Discount Rate 16%
NPV $16,550,755

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