Art and Heart

By
Talha Naeem
Registration # 15017220485
Asad Bilal
Registration # 15017220486
Sunaiya Tariq
Registration #

BBA (HONS.)
Department of Management Science

University of Gujrat, Sub Campus Lahore

Session 2015-2019

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 ACKNOWLEDGEMENT

All the appreciation is for Allah Almighty who is the most merciful, gracious and
beneficent who is entire source of all the knowledge and wisdom endowed to
mankind. All the prayers are forever in the name of Almighty Allah, who helped us
in setting goals and objectives and blessed us to reach the destination. Without His
assistance none is capable of accomplishment.

We would like to thank The Business Administration Department for giving us the
opportunity and providing us with a platform to prove our mettle.

Heartiest thanks to our worthy teachers without them we won’t be able to complete
this task.

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Contents
INTRODUCTION .................................................................................................................................... 5
BUSINESS DESCRIPTION ..................................................................................................................... 6
Point Of Uniqueness: ............................................................................................................................ 7
Products: ............................................................................................................................................... 7
Vision of Art and Heart ................................................................................................................................ 7
MISSION STATEMENT................................................................................................................................... 8
Core Values............................................................................................................................................... 9
OVER ALL OBJECTIVES ................................................................................................................................ 10
1. Main Objectives: ............................................................................................................................. 10
1.1 Commitment to the Team Objective ....................................................................................... 10
1.2 Commitment to Goal Attainment ............................................................................................ 10
1.3 Commitment to Our Time Management System .................................................................... 10
1.4 Commitment to Excellence in All We Do .............................................................................. 10
1.5 Commitment to Innovation ..................................................................................................... 10
2. Specific Objectives: ........................................................................................................................ 11
2.1 Short Term Objectives: ........................................................................................................... 11
2.2 Long Term Objectives: ........................................................................................................... 11
SEGMENTATION ......................................................................................................................................... 12
3. Overall Market Analysis: .................................................................................................................... 12
4. Specific Market Analysis: ................................................................................................................... 12
5. Competitive Analysis: ......................................................................................................................... 13
5.1 Threat of New Entrant (HIGH) ............................................................................................... 13
5.2 Rivalry among Competitors (LOW) ............................................................................................. 13
5.3 Bargaining power of Buyer (HIGH) ....................................................................................... 13
5.4 Bargaining Power Of The Supplier (LOW) ............................................................................ 13
ORGANIZATIONAL PLAN ............................................................................................................................ 14
1. Form of Business: ........................................................................................................................... 14
2. PARTNERSHIP DEED: ................................................................................................................. 14
3. Members ......................................................................................................................................... 14
4. Termination of partnership.............................................................................................................. 14
5. Allocation of assets/ repayment ...................................................................................................... 14

3
AUTHORITIES AND RESPONSIBILITIES ....................................................................................................... 15
(JOB SPECIFICATION) .................................................................................................................... 15
Finance manager ..................................................................................................................................... 15
Marketing and Production Manager ....................................................................................................... 15
Supply-chain Manager ........................................................................................................................... 15
OTHER JOBS ........................................................................................................................................ 15
PRODUCTION PLAN .................................................................................................................................... 16
1. Manufacturing ................................................................................................................................. 16
1.1. Purchase of material and accessories ........................................................................................... 16
1.2. Production Process ....................................................................................................................... 16
1.3. Packing:........................................................................................................................................ 17
2. Strategic Production Resources ...................................................................................................... 17
MARKETING PLAN ...................................................................................................................................... 18
1. Marketing Mix .................................................................................................................................... 18
1.1. PRODUCT ................................................................................................................................... 19
1.2. PRICE .............................................................................................................................................. 22
1.2.1 Pricing Objectives ............................................................................................................... 22
1.2.2 PRICING STRATEGIES .................................................................................................... 22
1.2.3 PRICING STRUCTURE ........................................................................................................ 23
1.3. PLACE ............................................................................................................................................. 23
1.3.1 DISTRIBUTION CHANNELS .......................................................................................... 23
1.4. PROMOTION .................................................................................................................................. 24
1.4.1 ADVERTISING ...................................................................................................................... 24
FINANCIAL PLAN ......................................................................................................................................... 26
1. Sources of funds:............................................................................................................................. 26
2. Equity Structure .............................................................................................................................. 26
3. Budget for production of units: ....................................................................................................... 26
4. Estimated Production Cost .............................................................................................................. 27
5. Per Unit Cost ................................................................................................................................... 27
6. Estimated Operating Cost ............................................................................................................... 28
7. PRO-FORMA INCOME STATEMENT ........................................................................................ 29
Pro-Forma Income Statement ............................................................................................................. 29

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 For the period 2019-2020.................................................................................................................... 29
8. PRO-FORMA CASH FLOW STATEMENT ................................................................................. 30
9. PRO-FORMA BALANCE SHEET ................................................................................................ 31
SWOT ANALYSIS ......................................................................................................................................... 32
STRENGTHS ......................................................................................................................................... 32
WEAKNESSES ...................................................................................................................................... 32
OPPORTUNITIES .................................................................................................................................. 32
THREATS .............................................................................................................................................. 32
EXIT STRATEGIES ........................................................................................................................................ 33
References: ................................................................................................................................................. 34

INTRODUCTION

A wedding, the birth of a child, a new home, an important birthday, all of these are events that
mark our lives forever and should be celebrated with a gift you can cherish for a lifetime. Every
person is in search of attractive and innovative products for purpose of exchanging gifts. There

5
are numerous businesses offering a variety of products for customers to fulfill their needs. But
demand for handmade gift items is substantial. People like to purchase handmade items as gift
because when an item is handmade, a little part of the creator of that piece goes into it.

The fashion for handmade items as a gift is Evergreen. People prefer to purchase handmade stuff
as it provides them with a level of individuality which is not available from mass market
retailers. They prefer personalized gifts on lavish items.

Thus idea of “Art and Heart” is to establish an outlet and an online website that makes available
a variety of handmade items under one roof and to provide a platform that will facilitate
customers.

In order to check the demand and potential for our idea we conducted a survey in our target
market. We came to know that it is a good time to launch such a project as people showed a high
interest for it. First of all we are going to launch it only in the Punjab. In future, in response to its
scope we shall expand it throughout province of Pakistan.

BUSINESS DESCRIPTION

Our idea is to provide a large variety of innovative and creative handmade items under one roof.
The name of our organization is “Art and Heart” which is actually an effort to provide items for

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special celebrations and occasions. It is basically a manufacturing business in which we are
going to present a wide variety of handmade items.

We have started our business as partnership. We are three partners who share equally in startup
capital and hence are entitled to share equally in profits. Any other need for capital will be
entertained by loan.

Point Of Uniqueness:

All the things and the services we are providing may not be unique according to the range of
things now days. Present businesses may be providing a large variety of gift items but the
difference is there that the things provided by us are purely handmade.

Products:

A variety of hands made items are provided under one roof which includes:

 Handmade Gift boxes

 Handmade Wedding boxes
 Handmade Cards
 Handmade Baskets
 Handmade Candles
 Handmade decoration pieces
 Handmade Photo frames
 Scrap Book

Vision of Art and Heart

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 “Our vision is to be
the most trusted and preferred organization to our customers by fair trade practices in the
art and craft sector and want to become the creative house of first choice in our targeted
market.”

MISSION STATEMENT

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 “Our mission statement is to convert the creativity into reality. We promise on time
delivery, best quality and competitive prices. We are ambitious to become a leader in the
handicrafts sector because of our high business ethics and commitment to excellence.”

Core Values

 Develop mutual trust & respect with our team members and customers
 Achieve the highest standards of professional excellence, ethical conduct, integrity and
personal responsibility.
 Customer satisfaction is our number one priority.

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 OVER ALL OBJECTIVES

1. Main Objectives:

Main objective of our business is to flourish the different occasions of our customers by
providing quality products which express their feelings to their dear ones.

1.1 Commitment to the Team Objective

We believe in total commitment to the team. The team objective is a guide for us to
follow in our service to our clients, support of each other, and team growth.

1.2 Commitment to Goal Attainment

We believe every individual should have personal and economic goals. A joint effort will
be put forward to identify and achieve our long-term objectives.

1.3 Commitment to Our Time Management System

We believe our time management system should be utilized in all business activities to
provide maximum efficiency and effectiveness for our customers. We will move towards
managing our time and setting specific goals within that time.

1.4 Commitment to Excellence in All We Do

Our philosophy is to achieve excellence in all that we do. All efforts of our team are
directed towards achievement of maximum quality.

1.5 Commitment to Innovation

We believe our strength lies in our passion to implement new ideas and embrace change.
We realize that innovation involves risk of failure, but we choose to face risk of failure in
our pursuit of success rather than fail passively.

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2. Specific Objectives:
2.1 Short Term Objectives:

 To make successful entry in targeted market

 To provide a wide range of Innovative products
 Provide a wide range of creativeness to the customers
 Attract the customers
 Act as team
 Develop an effective and efficient team
 Develop a strong commucnication system
 Adopt strong marketing strategies
 Try to increase efficiency

2.2 Long Term Objectives:

 Build strong relationship with customers

 Make our customers loyal
 Develop customer oriented strategies
 To be socially responsible by utilizing the waste materials for making new and innovative
products
 Satisfy our customers
 Attract the potential buyer
 Provide a commercial plate form to young home-artisans
 Maintain the efficiency and effectiveness of team

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 SEGMENTATION

We target segment of all the people of Punjab, who love creativity, which includes upper, middle
and lower middle class.

3. Overall Market Analysis:

Market for different handmade items is widespread in Pakistan. People prefer handmade
items for exchange of gifts or fashion wears because they provide a sense of individuality and
uniqueness. Although the handmade items industry is spread in all over the country, it is mostly
operated in local environment.

There are no big players in market of this industry .Most of operator in markets are having their
businesses as sole proprietorship or partnership. That’s why we start up this business on
partnership.

Due to advancement in technology and rapid adoptability of internet, we promoted our business
online. Most of our competitor’s internet based promotional tools. They advertise their products
online to attract the potential customers.

4. Specific Market Analysis:

Handmade items industry is mostly operated in local environment so we have targeted a

segment of Lahore. Economic condition of mostly people living in Lahore is very good and it is
a good signal for our business.

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 5. Competitive Analysis:

Competitive analysis involves a look on competitors of Art and Heart. While discussing the
competitive position of our business, following factors can have greatly influence:

1. Threat of new entrants

2. Rivalry among competitors
3. Bargaining power of buyer
4. Bargaining power of supplier

5.1 Threat of New Entrant (HIGH)

Threat of new entrants for Creative is high. This is because trend for use of handmade items is
evergreen. Start up cost is also low which shows that there are low entry barriers. This attracts
the new entrants to get enter into this business.

5.2 Rivalry among Competitors (LOW)

Rivalry among competitors is low for us as there are a few competitors in whole industry which
is a golden chance for Art and Heart.

5.3 Bargaining power of Buyer (HIGH)

Bargaining power of the buyer is high because of the availability of so many substitutes in the
market.

5.4 Bargaining Power Of The Supplier (LOW)

Bargaining power of the supplier is low. Because of availability of large number of suppliers in
the market. There is significant number of home artisans who are willing to supply their
products.

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 ORGANIZATIONAL PLAN

1. Form of Business:

Art and Heart is a partnership business in which 3 partners are contributing towards
capital and sharing the proceeds of business.

2. PARTNERSHIP DEED:

The partnership deed includes the basic written agreement between the partner explaining
their duties and liabilities. It also explain the which function will be performed by whom.

3. Members

We are three main members of the partnership firm who shares equally in the capital and
profit. These members include:

Names Capital Invested

Talha Naeem 1.5 lac
Asad Bilal 1.5lac
Sunaiya Tariq 1.5lac

4. Termination of partnership

If any partner wants to leave the firm he will also be held liable in the case of insolvency
of the firm for the year, if any.

5. Allocation of assets/ repayment

The payment of all invested capital will be paid in installments to leaving partner. The
maximum time for repaying all amounts will be six months. There will be no claims on the
revenues and profits from the date he left the firm.

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 AUTHORITIES AND RESPONSIBILITIES

(JOB SPECIFICATION)

We will be run by the current team, composed of three members. Each of team members has
developed skills in specific areas that will help the firm to reach its goals.

Finance manager (Talha Naeem)

The manager looks after all jobs of accounts and approves all investment decisions on the
basis of their logical and analytical analysis. He has to maintain all financial statements of the
firm, which are required for auditing.

Marketing and Production Manager (Sunaiya Tariq)

Manager of marketing department is mainly responsible for all advertisement and

promotions of business and to take feedback of the customers. She is also responsible to produce
the goods and supervise all the activities of production process. She is also responsible to
approve new designs of products to be produced.

Supply-chain Manager (Asad Bilal)

Supply-chain manager has duty to deal with the suppliers and contractors for the raw
material and final products. He has authority to take the decision about the matters of that
department.

OTHER JOBS

 Sweeper

One sweeper will be hired. He is required to maintain the cleanliness of whole outlet.

 Office Boy

An office boy will assist who works for performing indoor and outdoor tasks.

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 PRODUCTION PLAN

1. Manufacturing

Our products will be manufactured in our production outlet. There will be a separate
portion behind outlet that will serve as production area.

We will produce the products our self. Creative ideas for innovative products will be explored
through brain storming sessions.

Production process of Art and Heart involves following steps:

1.1. Purchase of material and accessories

For making cards and shopping bag, chart paper is essential thing. Satin ribbons,
shimmering bows, Laces, glue and other material will also be needed to make glorious products.
Including all these, other necessary accessories will be purchased from our regular suppliers in
bulk so that cost minimization can be made.

Necessary raw material required for making different types of “Dough" will also be purchased.
To produce unique styles of candles, wax gel will be purchased in bulk along moulds of different
designs.

Other than above material, waste jewelry accessories will be acquired to be used as base for
handwork.

1.2. Production Process

Cards of inspiring designs, gift boxed of various sizes and unique wedding boxes will be
made through handwork and using appropriate stuff.

Dough will be needed in quantity enough for use in whole months. Once the dough is prepared,
it will be kept in special greased containers. Different jewelry items will be made using moulds
of various sizes. Artistic designing will be made on these items using dough flowers.

16
Using handwork and special techniques wax gel will be converted into candles of different
designs and will be embellished using different accessories.

1.3. Packing:

Different gift and jewelry items will be made available in striking packing. Our
monogram will be printed on each item’s packing going to be sold at outlet.

2. Strategic Production Resources

Designs and artistic techniques of production are the basic and primary assets of our
business. With these two resources we will be able to develop the most unique and genuine
variety of products in the marketplace.

Management team is required to be innovative and has a passion to pursue opportunities related
to hand-made items.

As the business grows we will carry on developing new designs and will strive to hire people
who also possess the drive to continue our goal is to develop the new designs and bring
innovation.

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 MARKETING PLAN
The most important plan for a new starting venture is a marketing plan because without the
marketing plan, a business can never exist. The marketing is a main portion, and the success of
any venture. We are going to make our customers aware through efficient marketing plan that we
value our customer at each and every point. Through effective marketing strategies it will be
realized to customers that if they want to add seven colors of rainbow in the precious moments of
their life then they must purchase our products. Our marketing efforts focuses on making its
customers realize that:

 We are offering variety of imaginative hand-made articles that can flourish their
special movements
 Our ideas are creative and innovative that is what others are lacking.
 We are going to establish a new trend in that society by giving variety of handmade
ingenious items under one roof.

1. Marketing Mix

The four Ps of marketing are also known as the ‘Product Mix’. The product mix is a
crucial tool in determining a product’s offering to the customer. We are describing the 4 P’s of
marketing according to our business. The four Ps of marketing are:

1. Product
2. Price
3. Place
4. Promotion

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1.1. PRODUCT

A list of magnificent products of creative involves following product lines:

 Handmade Gift baskets

 Handmade Shopping Bags
 Handmade Candles
 Handmade Jewelry
 Handmade decoration pieces
 Scrap Books
 Handmade photo frames

a. Wedding Boxes

Gorgeous baskets of different sizes to carry different things that are usually used in
different ceremonies as gifts are offered by Art and Heart. Gifts are always very appealing when
they come in adorable packaging. Our unique gift baskets will surely do the job of impressing
customers while reflecting their unique style.

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 b. Handmade Shopping Bags

Our talented and creative team members have poured their heart out to create the exotic
collection of handmade shopping bags. These handmade paper shopping bags are made with
durable and strong card papers that combine both utility and aesthetics. All these handmade
paper bags are flawlessly designed with beautiful papers and meet the demands of diverse
clients.

c. Handmade Decoration Pieces

Different candles are made with different type of wax which décor your houses at
different occasions and give a unique and charming look to your houses.

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 d. Handmade Jewelry

Flashy & filled with stylish & elegance designs, different items of photo frames are offered. In
which you can paste your beautiful pictures. All photo frames are manufactured using different
sticks and flowers.

e. Handmade Scrap book

Handmade scrap books are made by Art and Heart. In which you can paste your lovely
photographs and gift this flawless scrap books to your love ones to create a memory of good
time.

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 1.2. PRICE

Customer’s decision to purchase a product is greatly influenced by Price tag placed on it.
We have assigned reasonable and justified prices of its products which may realize the customers
that they have made their moments cherished in a unique way in very cheap prices.

1.2.1 Pricing Objectives

Art and Heart is a new business in market with unique and innovative ideas. It wants to
have high growth rate hence it has to set that price for its product which gives maximum possible
profits in the initial couple of years.

1.2.2 PRICING STRATEGIES

In pricing, Art and Heart is focusing on the following strategies:

a. Market Skimming Strategy

Creative is using market skimming strategy in which it is offering high quality and creative
products on slightly increased prices than prices factory assembly line products. We want to have
maximum possible profit through introduction of its creative and unique ideas.

b. Value Based Strategy

For the pricing of products, we were following the value based strategy. In order to cover up the
cost and to gain maximum possible profit, we have decided to take 40% markup on cost price of
each product. Such high rate of mark up is set on base of effective value of the customer for
handmade items.

c. Product Bundle Pricing

In order to move stock that is kept as unsold inventory, we will use Product bundle pricing
strategy. It will combine several products that have left behind in stock in the one package and
will offer them on reduced rates so that potential loss of unsold inventory can be avoided.

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 1.2.3 PRICING STRUCTURE

Name of items Price Mark Up

Scrap Books 500-2000 35%
Wedding Boxes 200-250 35%
Gift Boxes 150-200 35%
Candles 350-400 35%
Photo Frames 100-200 35%
Jewelry 500-1000 35%

1.3. PLACE

We planned to use our own building for the opening of an outlet at Anarkali bazaar,
Lahore. The main reason behind selecting this location is this; it is growing area for all local
brands. So there are many chances that people will visit our outlet along their shopping.

1.3.1 DISTRIBUTION CHANNELS

Initially we are operating only from one outlet, so it doesn’t have any complicated
distribution channel right now. Creative is mainly using the following approaches for
distribution:

a. Direct Selling

We will directly sell our products to target consumers. First it takes the raw material from
the suppliers. Turn that raw material into a variety of innovative and appealing products. These
products are sold to customer when they visit the outlet and customers also can purchase our
product online from our website. In direct selling following model is used by us:

Suppliers Art And Heart End consumers

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 b. Home delivery:

We will also conduct business online. Due to advancement in technology and rapid adaptability
of internet it has been crucial for it to expand its business activities over internet. Online orders
in response of effective electronic advertisement will be received and shipment of these orders
will be made through TCS.

We have following model for online trading:

Online
Shipment End Online
Orders consumers Receipt

1.4. PROMOTION

We will use Marketing communication strategy for promotion of its products. This
Strategy involves promoting heavily to potential customers which will create a demand that will
pull the products through the distribution channels. A handsome amount is set aside from
financial resources for heavy promotion of business in starting years. For promotional activities
unique logo and corporate colors will be used in all means communications.

Following promotional tools will be used to build Brand image in mind of customers:

1.4.1 ADVERTISING

a. Brochure

Brochures describing product specifications of Art and Heart will be designed. Our
unique logo will be printed on it. These brochures will be distributed door to door with help of
local news papers.

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 b. Press Advertisement:

Press advertisements will be released in newspapers to which potential customers in

target market have easy access.

c. Internet marketing

Today most effective way of advertisement is through internet. We have developed our
own Website at which products are published and online orders are taken. Other than developing
its own website, we planned to promote our business through social networking sites. Recently
there is a great trend of public to move towards these sites to establish social networks.

d. Give Aways:

Other than giving ads, we planned to manage different online contest so that maximum
people may be attracted to web page. Exclusive surprise gifts will be given to winners of these
contests.

e. Transport advertising:

Art and Heart logo along its message will be promoted through transport advertising.
Such medium for promotion is selected for conveying message to far areas of target market.

f. Exhibition:

For bringing our offerings into knowledge of potential customers, we decided to

participate in Exhibitions which are managed by chamber of Commerce for support of SMEs.

Note:

Here it should be noted that any combination of the above mentioned promotional
channels will be used depending upon the promotion costs involved there in.

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 FINANCIAL PLAN
Art and Heart start a new business that needs capital investment to recover its expenses like
advertisements, salaries along with the cost of production. Thus we are investing 4,50,000 PKR
as its initial capital investment.

1. Sources of funds:

We are three active partners, who are fulfilling the whole capital requirements to meet our
startup cost. Capital Structure of our business is only Equity. No debt is included to raise funds
because it has an extra burden of expenses as interest, which results in lower profits.

2. Equity Structure

Names Capital Invested

Talha Naeem 1.5 lac
Asad Bilal 1.5 lac
Suanaiya Tariq 1.5 lac

3. Budget for production of units:

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Total
Sales
100 130 140 145 145 155 160 165 175 185 190 200 1890
(Estimated)
+Ending
10 20 25 20 15 25 25 30 35 40 40 45 -
Inventory
Units
Available For 110 150 165 165 160 180 185 195 210 225 230 245 -
Sale
-Opening
0 10 20 25 20 15 25 25 30 35 40 40 -
Inventory
Units To Be
110 140 145 140 140 165 160 170 180 190 190 205 1935
Produced

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 4. Estimated Production Cost

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Total

Material 2310 2940 3045 2940 2940 3465 3360 3570 3780 3990 3990 4305 40635

Laces 2640 3360 3480 3360 3360 3960 3840 4080 4320 4560 4560 4920 46440

FOH 5000 6000 6500 6000 6000 7000 6500 7000 7000 7500 7500 8000 80000

Total 9950 12300 13025 12300 12300 14425 13700 14650 15100 16050 16050 17225 167075

5. Per Unit Cost

= Cost of units produced

Number of units produced

= 167075

1935

= 86.34

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 6. Estimated Operating Cost

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Total

Salaries 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 180000

Dep 1667 1667 1667 1667 1667 1667 1667 1667 1667 1667 1667 1667 20000

Advert 4000 5000 6000 3500 3500 3000 3000 3000 3000 3000 3000 3000 43000

TCS 500 1500 2000 1000 1000 1000 1500 2000 1500 2000 2000 2000 18000

Total 21167 23167 24667 21167 21167 20667 21167 21667 21167 21667 21667 21667 261000

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 7. PRO-FORMA INCOME STATEMENT

Following is our projected income statement based on estimated operating expenses. Projected
net profit is calculated from projected revenues less projected costs and expenses

Pro-Forma Income Statement

For the period 2019-2020

Sales Rs 1134000*

-CGS 163189

Gross profit 970811

Less Operating Expenses:

Salaries 180000

Depreciation 20000

Advertisement 43000

Courier expenses 18000

Net profit transferred to B/S 709811

*Sales amount = Average sale prices x Estimated number of units sold

= 600 x 1890

= 1134000

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 8. PRO-FORMA CASH FLOW STATEMENT

CASH FLOWS STATMENT YEAR 2019-2020

Cash flow from operating activities:

Operating Profit 709811

+Depreciation 20,000

Less

Stock (4,000)

Bank (102,810)

Building security (150,000)

Cash flow from Capital Expenditure

Gas generator (125,000)

Equipment (50,000)

Furniture (5,000)

Computer (35,000)

Cash flow from Financing

Share capital 450,000

Net cash in hand 708001

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 9. PRO-FORMA BALANCE SHEET

A summary of our financial position at end of year 2019 shows projected assets, liabilities, and
net worth of it. Pro Forma Balance Sheet is as follow:

Pro-Forma Balance sheet

As on 31st Dec, 2019

Amount Amount
Assets Liabilities
Rs Rs
Fixed Assets Owner’s Equity
Gas generator 125,000 Talha Naeem 150000
Equipment 50,000 Asad Bilal 150000
Computer 35000 Suanaiya Tariq 150000
Furniture 5000
Total fixed assets 215,000 Total Capital 450000
Less
195,000 Net Profit 709811
Depreciation 20000
Building security 150,000
Current assets
Closing stock 4,000
Cash in hand 708001
Bank Account 102,810
1159811 1159811

 We have no account payable because we will pay cash on the daily basis.

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 SWOT ANALYSIS
STRENGTHS

 Customer oriented.
 Waste recourses are utilized in the best way.
 Online handmade item purchasing facilities.
 Innovative and Passionate partner
 Huge Profit Margin
 Strong market research before entry in the market.
 Operators have completed degree in Business Administration
 Not necessary to rely on banks for startup finance
 Provides discount for the regular customer.

WEAKNESSES

 Lack of awareness among public regarding the business.

 Uncertainty about the business success.
 Lack of practical experience in mass production of stock

OPPORTUNITIES

 Level of the demand of cultural items is increasing day by day.

 Drive away of Consumers from lavish items toward more personalized gifts.
 Easy availability suppliers providing innovative products
 People are fed up with consistency so handmade products can give them uniqueness.

THREATS

 Decreasing purchasing power of people due to political instability in country.

 Possibility of new entrants in the market due to low entry barriers.
 Rapid use of readymade gift items in the society.

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 EXIT STRATEGIES
After analyzing every risk and exit ways of the business, has devised an exit strategy in case our
idea of introducing handmade items does not work. The exit strategies are as follow:

 Legal documents of partnership will be signed by the partners that partnership will not be
resolved until 3 years.
 After five years if any partner wants to exit then he has to inform to the organization at
least 6 months before.
 If any partner exits from the business, he/she will get his or her share after 6 months
 In case of losses every partner will be just liable for her share in organization.
 In case of winding up the business amount received from sale of asset will be divided
among partners equally.

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References:
 http://www.indexmundi.com/pakistan/gdp_real_growth_rate.html
 http://www.ranchodelarte.com/articles/why-handmade-gifts-rock
 www.Eventive.com
 https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/6778-4-ps-of-
marketing.html
 Discussion with teachers
 Analysis on the basis of business gala.

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