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Subject: Entrepreneurship
Professor: Khurram Amin

Project in Lieu of the Subject of Entrepreneur

Project:
Feasibility Plan of a New Venture

Class: M.com 3rd semester

Session: 2019-2021

Outline……………………………………………………Page No.
Executive Summary………………………………. 1-5
Business Description……………………………… 5-7
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Product and Service……………………………… 5-7

Market Research And Analysis……………… 7-11
Market Plan………………………………………… 12-13
Manufacturing plans…………………………. 14-15
Entrepreneurial Team……………………….. 16
Financial Documentation…………………… 17-

Venture: Solar Power Generation Cemented Roof Tiles.

Executive summary
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Outline:

 Venture Defined
 Product and service
 Market Characteristics
 Entrepreneurial Team
 Financial Summary

Venture Defined:

As the solar power generation is the cheapest and the best way to produce the
electric power but still there is the lack of usage because of improper methods and
ways to use the solar energy to produce electricity. Considering the electricity to be
the basic need of the hour today irrespective to the place where it is being used,
whether being used by the large industries or the use of electricity at low scale in
homes. It has always been considered the part parcel of our lives to run.

The best way to efficiently utilize the solar energy could be to convert the vacant
and empty spaces into the solar generation units and those units and spaces must
not occupy the spaces for this specific function only.

Product And Service:

The main motive of our company is not just to do with the creation of the product
that is the production of the Solar generation Roof Tiles but also provide the
service team for the installation of those tiles done by the trained labor.

Solar plates are already very commonly used but to make the solar tiles that could
be used instead of the roof floor tiles would be quite innovative and effective. As
those plates occupy the space, and these plates are delicate in the matter if they get
damaged. Solar tiles can be used instead of the roof tiles and can bear the stroke
and life the weight of the person and people can walk on it. This could be a great
service as the space which was specifically occupied could be now used as the
normal roof top.
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Market Characteristics:

The target market audience would be the industries and those customers who want
to use the cheap electricity resources. The demographics of such customer would
be generally the age of 30 to 40 years because such an age person would be
normally a manager at a firm or the focal person of the home who could have an
agreement with us. As far as the geographical region for the startup of the business
is concerned so will start targeting the core market of Lahore and Islamabad as
because these cities have their interest towards the competitive innovation and
capital expansions.

Entrepreneurial Team:

There will be two entrepreneurial teams who will supervise this new venture i.e
the Team Alpha and the Team Charlie.

Team Alpha: This team will monitor the production of the tiles and will link up
the technological frame development team with the manufacturing department who
will give the tile an actual existence.

Team Charlie: This team will have more to do outside the job floor and will
monitor the work of the workers who will do the installation of those tiles to the
place where the customers want to get it installed. Special trained team will go for
the installation because it is going to be the new technology and normal lay person
and labor won’t understand how to make connection with the tiles to the batteries
and hence may cause any damage such as short circuiting etc. Hence to bring it in
the market successfully these trained person will install those tiles by themselves
by having a keen supervision on the labor.

Financial Summary:

To put a sight on the financial summary we have to consider on the very basic
financial statements that are the income statement and the balance sheet. A rough
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estimation of our expenses and income could give us a rough estimation of the
scale of our business.

Business description

Outline:

 Backflash to invention
 Idea Germination
 Team Efforts to Invention
 Agreement for Commercializing

As the solar power generation is the cheapest and the best way to produce the
electric power but still there is the lack of usage because of improper methods and
ways to use the solar energy to produce electricity. Considering the electricity to be
the basic need of the hour today irrespective to the place where it is being used,
whether being used by the large industries or the use of electricity at low scale in
homes. It has always been considered the part parcel of our lives to run.

The best way to efficiently utilize the solar energy could be to convert the vacant
and empty spaces into the solar generation units and those units and spaces must
not occupy the spaces for this specific function only.

Backflash to the Invention

The concept of the solar roof cemented tiles was invented by the genius chemist
and machines expert who had to face the load shedding issue while working with
the machines. As he was chemist and had the strong previous background
knowledge that which molecule reaction is performed in the solar cell plates to
produce the electricity.

 Idea Germination:

He was already using the solar plates on the roof top and due to heavy hailing one
day. His solar plates got damaged every year so he got an idea in his mind to
invent the solar cemented tiles which could be tough to bear heavy strokes.
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This fetches an idea in his mind that if such tough tiles are made then it can be the
best alternative of the solar plates as this could be used as the roof top tiles and
wont occupy the space which is specifically be spaced for those plates.

and it took years by him to invent a hard roof tile which could absorb the sunlight.
It was very tough job because in the scenario of solar glass plates those tiles are
just covered with the glass and the molecule reaction due to sunlight is performed
easily but here the glass is not used but instead the cemented tiles are to be
produced. To get the same solar reaction of the molecules inside the tiles is ought
to be impossible but the genius chemist was working in his lab to make a material
which could be as harder as the cemented tiles and while it could allow the solar
reaction to be performed inside it to produce the electricity.

 Team Efforts to Invent:

As it was difficult for one man to produce it, so he talked about it with his friend
who have a great experience of working in the solar plates manufacturing industry
and sharing this idea with his such an experienced just worth it a lot as they started
working together for creation of such technology.

In the mid of third year of continuously doing efforts the combination of the
experienced chemist and the experienced solar plates manufacturing labor person
they make it possible to introduce the market with such an innovative product.

 with Innovator for commercializing:

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As the invention of this concept was done over here now the next main primary
focus was to commercialize the product through proper channel to introduce this
new technology to the market. They contact with an innovator who had
management skills and capabilities of marketing and business management to give
this invention a picture of the business.

They had the contract with the innovator that and decide that they will receive
some share of profits and will get the patent rights for 7 years as because they have
spent 3 years to do this invention.

Product & Services

Stagging:
As the innovators provoke the creative concepts very efficiently in the market
because of the there past educational and practical business experiences and
knowledge. Considering the market perspectives and technology implementation,
the decision was made to create design the structure of the organization to be the
manufacturing business and the services business as well. The manufacturing
concerns are considered to be the primary objective and the services are the
secondary objective

Primary Objective:

As the business module is going to have the two basic objectives and the primary
objective is regarding the manufacturing concerns to produce the cemented tiles
and for such a production system. This objective is the job performed inside the job
shop as the tiles are meant to be manufactured by the labors under the supervision
of the inventors as because they know that which circuit and which type of
material is used to shape the brick. We must buy the machines and equipment such
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as the cement and sand mixing machine, the circuit which connects one cement tile
with another to create a network between the tiles to generate the power. It
signifies that we will have the two basic manufacturing department. One where the
basic solar circuit is made and second department where that circuit is covered
with the cement to give it a shape of brick or a tile.

Secondary Objective:

The second objectives shows the concerns of rendering the installation service of
the tiles. As this is the new technology and it is quite critical to install it and hence
to have the safe and right way of installation of these tiles the trained labor services
is provided whose objective is to connect the cemented tiles with another through
the circuit in a right way to avoid any damage. As the labor which is already in the
market will not be aware of the way that how to install those cemented tiles in the
right manner. This was suggested but the business manager as because they will
get the advantage to avoid the intermediaries to give stock on wholesale for every
time and they can have the big contracts with the companies and industries for
booking of those tiles for the roof to generate the power sources by themselves.

Patent rights of inventors:

The business manager decides to file for the patent rights of the inventors as
because they must be credited and be appreciated with monetary rewards of their
efforts of three years for producing such a new technology and the registration of
these rights would be done for 7 years to give the profits.

Market Research and Analysis

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In attempt to do the market research and analysis we have to Identify the

potential customers, Evaluate the market, Analyze the competitors, and
describe the assumptions in order to target for the thorough and complete
market research analysis.

Potential Customers:

The main potential customers of our company will be the following:

Potential Customers Why

House owners
Construction Companies
Companies
Electricity Companies
The domestic use, as there are millions of people who
have the interest to get cheap electricity.
There is a strong competition between the construction
companies and off course the companies will use this
technology to gain competitive advantage.
Those companies who have large free roof space
The electricity power generation companies will take
interest in adopting this technology.

The above potential customers wont be limited to a city in fact will target the
market globally in the new future as because it is new technology and will have a
wide spread chances of success in the international market and our company will
be the first mover to bring this innovative product to the international market.

Markets:
The main primary market of this solar cement block will be the
existing market of the of solar plates as in that market there will be the massive
buyers of those people who have the interest in the solar power generation and
such a new technology will obsolete the solar panel plates in the market and the
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bricks will be instead of it will be used for the solar power generation. As far as the
more trend towards the technology is concerned, Islamabad Lahore and Karachi
are the main markets where there is the trend of accepting the new technology
more firstly as compare to other cities but in accordance with the global
perspective, America japan, and china are the developed countries and these
countries are very interested in accepting the technological improvements. In fact,
these countries are always leading in innovating and creating new product.

Competitors and market niche:

All those electricity producing substitutes are the competitors of the industry such
as the hydraulic power generation. Thermal power generators, wind panes and the
biggest competitor solar plates. These all technologies have the great influence on
the life of people and are very common on the tongue of almost every person and
thereby we can say that there is strong overwhelming substitutes. The use of these
substitutes depends on the available resources of every country such as in the
deserts the wind panes are used and those lands which produce oil use the thermal
power generators and those countries which have rivers and seas have dams to use
the hydraulic power to generate the electricity but the competitive advantage of
solar power generation is that the sunlight is the natural and free resource to utilize
and it is available in every corner of the world and hence to focus on the proper
utilization method of producing the electricity will definitely gain the global
market.

Pricing system:

As this a new technology because the absorption of sunlight by the cement and
then to allow the chemical reaction is totally a new idea so we will it with
relatively high prices because the people will buy this new technology. This
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decision made with the past technology changing circumstance. Whenever a new
technology, new design or new technological improvement is made, it is sold at a
very high cost and high profit sharing is also be given according to the patent rights
to the inventors and hence it will be charged with high prices.

Method of Distribution & Sales Forecast:

There will be the two methods of distribution be used. The first one that the stock
will be given to the wholesalers and the retailers of the electric appliances and
another method is the installation by own self with the help of trained labor team
and the production is done of the single item only in the firm and the tiles sold
depends on the customer we have. If we have those customers who want it for the
domestic purpose then we can normally make an average of 3000 to 10,000
cemented tiles for the roof top in homes. But when the customer is the construction
company or electricity company then there will be the stock purchasing of maybe
500,000 or 10,00,000 tiles.

Market plan
Outline:
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 Price System
 Promotional Mix
 Distribution channels
 Service and Warranties
 Marketing Leadership

Price System:

Product quality concerns are discussed briefly to describe the quality of

our product and service which we are going to deliver in the market and it all
depends upon the managerial beliefs and as the managerial team has decided that
as they are charging the high prices and the tiles installation would be the capital
and long term investments of the public so it is necessary to provide the high
quality product and we will follow the product concept of delivering the very much
high quality product and installation charges as well.

Promotional Mix:

The promotional mix defines the tools and strategies and the plan of action for the
promotion of the product in the market. The decision to choose the right medium
for the promotion of the product is difficult to opt and being the specialized
business manager, we decide to use the digital marketing strategy and provide the
free samples to the electric home appliances store owners and to the construction
companies so that we can introduce our product to domestic potential customers
with digital marketing and the professional’s construction companies with the free
samples to put our product into the market. To hit the international markets to
introduce our innovative product we will mail a complete catalogue professional
video in which our professional manager will provide the complete information
and international booking method with us.

Distribution Channel:

We will start a well-furnished office in Islamabad and Lahore where we will have
the deals and negotiations with the different construction companies to sale our
services. In concern of the long-term planning, we will open an office in every city
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to take a widespread action in the whole country. To talk about more on large scale
so when we talk about the international distribution so our distribution team will
have a contract with the import export companies to market our product globally
when ever an international order is made.

Service and Warranties:

As our product will be the capital investment of the people in the market mostly
and we are costing high charges for the product so we will provide for the lifetime
warranty claim. It will not be costing much because each tile is a single unit and if
there is any manufacturing defect then it would only be in few tiles so it will be
cost effective after sale service to give the lifetime warranty claim to the
customers.

Marketing Leadership:

As it is new product and no body knows about it so our foremost concern will be to
have great focus on the salesforce team and the marketing manager to put the
product into market. A very creative and expert salesforce and marketing manager
will be hired and will be asked them to read the case studies of different innovative
and creative companies that which strategy they have been using to introduce the
new product into the market and the marketing manager will be demanded with the
very creative and potential customer targeting strategy to promote the product.

Manufacturing plans
Here we are going to provide the details regarding the manufacturing of the
product and will cover the following aspects to picture our manufacturing plan
effectively.
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Outline:

 Facilities
 Inventory
 Human Resource
 Legal and insurance Issues

Facilities:

Our facility over head includes the Land building for the manufacturing,
heavy machines, an office of the supervisor and the miscellaneous small
equipment’s to produce the final product and we will make an assembly line and
the product will move through different process to be completed. There will also
be a parking basement in the building for the employees to park their vehicles and
the building will be on rent as because we can not buy the factory building right
now due to large expenses and hence we will have the rental building along with
the parking basement.

Inventory Management:

A separate inventory department will be made which will look after the current
inventory and will forecast the inventory requirement and the purchase decisions.
The main goal of the department will be to not overload the inventory and also not
the inventory to get shorten. The supervisor accountant will be hired who will
manage the inventory store card and will decide that weather the LIFO or FIFO
method is used according to the market economic conditions. The purchasing of
raw material will also be made by him.

Human Resource:

An HRM department will be established in the head office which

will hire all the staff and the selection of the staff will be made intelligently on
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their expertise and experienced staff who are equipped with the manufacturing
ethics that how to put the quality in the product and for non-managerial employees
who are going to work in the Job shop will be considered more if they are qualified
with electrical diploma or machine operating expert so they could handle and
provide the quality product. As far as the senior management is concerned so we
will hire the senior managers of electric appliances industry and give them an
opportunity with a good salary package to be the part of our firm.

Insurance and Provident Funds of Employees:

We will get our production firm be insured from the EFU life insurance as they
provide the best insurance policies to provide the Fire insurance and all the
employees of the firm will be insured to provide the safety to the life of the
employees considering that if any life causality is caused at the workplace to any
labor worker so they will be provided the life insurance benefits and the premium
of the insurance will be deducted from the salary of the employees. Moreover, the
provident funds and labor funds will also be deducted from the salary of the
employees.

Entrepreneurial Team

There will be two entrepreneurial teams who will supervise this new venture i.e
the Team Alpha and the Team Charlie.
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Team Alpha: This team will monitor the production of the tiles and will link up
the technological frame development team with the manufacturing department who
will give the tile an actual existence.

Team Charlie: This team will have more to do outside the job floor and will
monitor the work of the workers who will do the installation of those tiles to the
place where the customers want to get it installed. Special trained team will go for
the installation because it is going to be the new technology and normal lay person
and labor will not understand how to make connection with the tiles to the batteries
and hence may cause any damage such as short circuiting etc. Hence to bring it in
the market successfully these trained people will install those tiles by themselves
by having a keen supervision on the labor.

More over these team leaders will lead the team with the entrepreneurial belief acts
to measure the major events and the major risk which can be occurred in the
organization

Major events include the purchase of the raw material and the capital asset
purchasing in the business, decision regarding the hiring of employees, grand
opening, meeting with the stockholders, Promotional strategy design etc.

The major risk to predict by the entrepreneurs can be natural calamities handling or
the change in the government policies or any other economic crisis prevailing in
the market. A genius entrepreneur put a sight on all such type of risk factors and
both the team leaders will monitor such risk in order to duly make the pre hand
policies regarding the risk handling.

Financial Documentation
To put a sight on the financial summary, we must consider on the very basic
financial statements that are the income statement and the balance sheet. A rough
estimation of our expenses and income could give us a rough estimation of the
scale of our business.

1. Income Statement
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2. Balance Sheet

Expected Semi-Annual Income Statement:

Expected Sales 50,00,000.

Cost of Goods Sold

Material 800,000
Labor 1100,000
Overhead 600,000 25,00,000
Gross Profit 25,00,000.

Less Operating expenses:

Expected Selling expenses 900,000.

Expected Administrative Expenses 600,000.
Expected Depreciation 100,000. 1600000

Operating Income 900,000

Less: Income Tax (25% expected) 225,000

Expected Net Profit: 6,75,000

Similarly the Expected Balance Sheet of our business will give us the picture that
what will be our assets and what are our liabilities. The business manager decided
to take the loan from the bank and all the idea will be shared with bank manager
and considering it to be the new venture the bank will grant loan. The business
manager has the land and he put his land for loan security and sum of the owners
equity and the bank loan will be the capital to start the business.
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Expected Balance Sheet

ASSETS RS. LIABILITIES RS.

Cash in bank 400,000 Accounts Payable 200,000
Accounts Receivable 200,000 Short-term debt 400,000

Machines and Equipment 1300,000 Wages owed 100,000

Raw Material 300,000 Retained Earning 1500000

Total Assets 22,00,000 Total Liabilities 22,00,000

The above all data is expected to declare the range and financial scale of the
business.