11/10/2015 Entrepreneur

BURHAN SHAFQAT
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Contents
INTRODUCTION...........................................................................................................................................2
FEASIBILITY ANALYSIS.................................................................................................................................3
BUYING INTENTION SURVEY.......................................................................................................................5
1.1 CONCEPT TESTING QUESTIONNAIRE.................................................................................................8
1.2 BUYING INTENTION SURVAY..............................................................................................................9
ORGANIZATIONAL FEASIBILITY.................................................................................................................10
2.1 ORGANIZATIONAL FEASIBILITY........................................................................................................12
RESOURCE SUFFICIENCY...........................................................................................................................13
INDUSTRY ANALYSIS.................................................................................................................................14
3.1 GROWTH RATE.................................................................................................................................15
3.2 KEY SUCCESS FACTORS IN INDUSTRY...............................................................................................16
3.3 TRAGET ATTRACTIVENESS...............................................................................................................16
PEST ANALYSIS..........................................................................................................................................17
PORTAL ANALYSIS.....................................................................................................................................21
COMPATERNER ANALYSIS........................................................................................................................22
FINANCIAL ANALYSIS................................................................................................................................23
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INTRODUCTION

We are introducing new product which is used in cars tyre, Tyre Sealant is an advance of
chemical solution specifically designed and formulated to seal the hole directly in the
commercial area of a tire rotating tires there for the elimination of the problem of tyre
Deflation. Its helps the car driver they don’t need to worry about the tyre puncher and solving
the problem of tyre preacher. This product is useful for all those people who have their own
cars and facing the problem of tyre puncher and damage their tyre and they spend a lot of
money. If we provide this product they can save their money. This product is onetime expense
and give the long benefit and saving the money. In Pakistan every 6 month the car owner
change their tyre because of off road so if they use this product its benefit one year minimum.

In Pakistan market a few people know about this product mostly people didn’t know about this
product so we have opportunity and fill the gap. Our product is different because in Pakistan
people don’t know about this product and them facing many problem even some accident
cause also happened because of tyre damage.

FEASIBILITY ANALYSIS
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For testing the feasibility idea we develop the questionnaire and distribute among the
respondent who were involved in sales of tyre in Fasial town Lahore. As the respondents were
not highly educated so we had to asked each question in Urdu and translate their answers in
English, 95% respondents were asked about the feasibility of idea. Our first experiences Mr,
Gondal he was asked about the product idea. According to him, product will be feasible and its
new technology and helps driver for safe ride. Then he suggest us you must make that sealant
which can be use in bike tyre. Second respondent was from the same market Mr, Malik Awan
he asked us a question, what kind of that thing, than we explain in Urdu and tell all the features
than he shows good expression. Than we asked the question to customers in market almost
every customers like this product and he also give his number to purchase the product when
you launch this product. Our target market are seller some seller like our product but not
interested to purchase the product, we asked the reason they explain that he cannot take risk
he suggest us we arrange the product for him and they sell our product and after he give the
amount.

When we introduce this product 95% people like our product

likeness of idea
and told us this product is interesting and they want to know
how it works. 3% respondents response us we don’t want
that product and 1.3% respondents response us that he might
be like or not.

YES NO Might Be
Suggestions for making this
product better

We add the question in our survey 70% respondents tell us that this product is perfect if this
Perfect Product improvement Sale suggestion
product is work as define us this can be very helpful for the drivers. 15% respondents give us
some suggestion to improve this product it can be more helpful. 15% respondents give us the
sale suggestion because they want to take 0% risk.
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We also add this question in survey 80% responders tell us that this product is very useful and
make safe drive with free tension. 12% respondent’s response that they don’t know is this
product is useful or not. 8% people response that Might be is product is useful.

Product is Useful

Very useful Don't know Might Be

BUYING INTENTION SURVEY

To check our idea we need to know that the people that they will buy this product. We conduct
the buying intention survey. We make some questionnaire and distribute in market and collect
the data and analysis with the Bar chat.
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DEMOGRAPHIC PROFILE

In demographic section, respondents were asked about their profession in which they are currently
involved. We invalid customer and seller in our
Profession
survey and asked some questions. In the
survey we asked question their profession and
15 25
30% person are Salaried person 35% are Self
35
30
Employed and 25% business man and 15% are
student.
Salaried Person Self Employed
Business Man Student

CUSTOMERS WILLINNESS

For how many people ride a motorcycle, we asked respondents how often they ride a car. 70%
of them said they go every day for a car or travel to
the office. 18% of them said they drive weekly rise How often do you ride your
most make traveling on public transport. 6% said they car
used to go up every fortnight car drive for
recreational purposes as they travel in the car for
their daily work. Only 6 % say they drive car on a
6 6 Daily
monthly basis because of bad traffic.
18 Weekely

70 Forthnight
Monthly
Do you think this technology
The 60% should be introduce
of respondent choose the option of Puncher
Reason for Changing tyre
of their tyres and 20% choose the reason off-road,
10% respondents select car lineament and 10% select 10
18
other reason. 10

14

65 20 60
3

Yes NO Don't Know May be Puncher Off Road lineament other

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In the survey the 65% respondent answer is ‘YES’ they say this technology must be
introduce in Pakistan and
18% respondent not sure so they select ‘May be’ and only 3% reply ‘No’ and 14% respondent
select the option ‘Don’t Know’.

The respondents were asked the price of their last tyre they purchased. Estimated results were
seen, 35% told that they purchase their last tyre of Rs. 9000, 32% said they purchased tyre for Rs.
12000, 18% said Rs.16000. Few of
respondents told us that they are How much money did you spend on
very conscious about their safety your last tyre?
and they purchase good quality
tyre and they spend Rs.25000.

35 32

15 18

12000 16000 25000 9000

We add this question in our survey 30% respondent response they change the tyre when the
tyre is useless and 20% respondent say they change their tyre according to KM, 35%
respondent response they change their tyre on yearly basis.
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What do you think about Tyre

life?

20
30

15

35

KM 6Month Yearly When needed

1.1 CONCEPT TESTING QUESTIONNAIRE

QUESTIONNAIRE
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Please read the following statement and answer the questions below:

Tyre sealant is an advance chemical solution specially formulated and designed to fill the
hole quickly in the area where the tyre got puncture. As the tyre revolve the tire will it self-
resolve the problem of getting flat? When sealant install in tyre as the wheel rotate the
chemical is distributed in a forward motion, this applies a protective coating on the inner lining
of the tread area of the tyre.  When a foreign object penetrates in tyre the gel wound creating a
self-sealing tyre.
1. Please list any things you like about this product.

2. Provide three suggestions for making this product better.

3. Do you believe this product is useful for you?

4. Please share any comments or suggestions you may have.

1.2 BUYING INTENTION SURVAY

Trye sealant
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1. Pick your Profession?

Salaried Person  Businessman  Self Employed  Student 
2. How often do you ride your Car?
Monthly  Fortnightly  Weekly  Daily 

3. If “Never” then select the reasons from below:

Tyres are unnecessary  tyres are too expensive 
Never thought about it 

4. From where do you buy your car tyre?

Other (Please mention)  Hypermarkets  Online  Local trye shop 
5: Do you want to modify your car?
Yes  NO  Ma be  Maybe  Not 

6. How much money did you spend on your last car tyres?

Rs.12000  Rs.16000  Rs.25000  Rs.9000  Rs.8000 

7. Reason for changing your tyre?
Puncher  off road  lineament  others 
8. Do you agree with the suggestions that sealant technology should be introduced in
the tyres?
May Be  No  Yes  Don’t Know 
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ORGANIZATIONAL FEASIBILITY

Organizational feasibility refers to realistically company's ability to deal with one company.
What sets organizational feasibility involves a set of skills, expertise and resources available to
manage the team. Our social and professional network is very strong we have good relations in
the Market. There is a high creativity among our team member. We have a moderate level of
knowledge and experience in the management of cash flows.

MANAGEMENT PROWESS
Management skills as a whole has a moderate potential based on this assessment. Personal
experience in entrepreneurial companies makes it difficult to have a high potential in this area.
However, I think we are able to make connection quickly and to quickly learn that benefit the
general company.

GENERAL MANAGER

General Manager is to Review and analyze the system of Company. In our company, Mr. Burhan
Shafqat is the GM and responsible for all the operations and task done on daily basis.

SALES MANAGER
We are new in market and our competitors have strong market links our business is initial
stage. In binging all sales operation handle Mr. Umair and perform all operation in sales and
responsible for all sales operation. The scope of this task requires that he strongly interact with
the various department of his firm.
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HR / OPERATIONS EXECUTIVE

An individual within an organization responsible for hiring new employees, interviews, monitor
employees, mediation between employers and employees depending on their needs and overall
supervision of the HR. In our company Miss. Ulfat Rafiq perform the task of HR and will be
responsible for all matters working, worker’s compensation and complaints.

FINANCE EXECUTIVE

Approve or reject, or coordinate the approval and rejection of, lines of credit and commercial,
real estate, and personal loans. Establish procedures for custody and control of assets, records,
loan collateral, and securities, in order to ensure safekeeping. Evaluate data pertaining to costs
in order to plan budgets. Develop and analyze information to assess the current and future
financial status of firms. Evaluate financial reporting systems, accounting and collection
procedures, and investment activities, and make recommendations for changes to procedures,
operating systems, budgets, and other financial control functions. Networking within
communities to find and attract new business. Mr. Arslan Qaddri will perform as Finance
manager and will be responsible for generating funds.
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2.1 ORGANIZATIONAL FEASIBILITY

Management Description Low Potential Moderate High Potential

Prowess Potential
Assessment
Tool Sr. #

1 College graduate Currently

there is no
college
graduate

2 Relevant industry experience moderate

3 Passion for the business strong

idea

4 Creativity among management High

team members
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Resource Resource Sufficiency

Sufficiency
Assessment
Tool Ratings

1 We are required office space and also need the storage room.

2 Assembly unit are not required.

3 Some furniture required for the office.

4 Begging we required 2 or 3 employee.

RESOURCE SUFFICIENCY

We will start our operation from Fasial Town Lahore. The location is perfect for our business.
Here we can also avail the entire facilities related to tyre. Movable furniture, fixtures or other
equipment that are have no permanent connection to the structure of a building or utilities.
These items depreciate substantially but definitely are important costs to consider when
valuing a company, especially in liquidation. Consumers, car dealers, and corporations across
the globe rely on auto transporting businesses to move vehicles over long distances, thereby
saving time, money, and wear and tear on their vehicles.
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INDUSTRY ANALYSIS

INDUSTRY PROFILE & ATTRAICTIVENESS

Tyre industry is key industry of Pakistan with total annual demand of 8.3mn tyres
during 2012-13; out of which 1.65mn (20%) were produced locally, 3.9mn (47%) were imported
and remaining 2.6mn (32%) tyres were smuggled. Sharp increase in tyre smuggling from
Afghanistan has hampered the local industry production. Our automobile sector is growing in
terms of production, which is good omen for tyre demand. As per the recent PAMA data
tractors sales has been increased by 85% during 1QFY14 buses and tractor sales also increased
by 64%. The sale of tyres has direct proportion to automobile sales, and we see growth in
automobile sector.

Falling rubber prices have brought supplier into a position to desist its supply if prices
continuous to fall below $1.5/kg. Meanwhile Malaysian & Thai government are making
combine efforts to assist rubber industry from falling prices and advised growers to hold on
their stock. If growers stopped supplying rubber bellow $1.5/kg then rubber prices are likely to
move around $1.5/kg to $1.7/kg.
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3.1 GROWTH RATE

Despite a strong industrial growth the tyre industry of Pakistan could hardly meet 12 to 15 % demand
and the shortfall paves the way for the international tyre companies in Pakistan. Apart from vehicles
population the dilapidated condition of the roads stand was another reason for high incidence of tyre
consumption in Pakistan.

Tyre technology at international level has expand that not only for every nature of vehicle a separate
tyre is designed but also two to three kinds of tyre are designed and manufactured for one nature of
vehicle depending of its use. For one vehicle two to three type of tyres are manufactured internationally
which are recommended for nature of use of vehicles.
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There is no definite statistic of tyre consumption in Pakistan, a tyre importer said. He said that there are
many rough ideas about the import, local production, and smuggled tyres. The government of Pakistan's
department of statistic too has rough ideas about the figures as tyre consumption increasing without
any scientific direction.

An importer said more than 50% tyres smuggled into the country. The smuggling methods change
according to situations at boarders. This must be a fact that why no investors are establishing tyre
manufacturing plants in our country although the fact also remains on the record that Karachi, Lahore,
and Rawalpindi are the part of the country where more than six tyre manufacturing plants are badly
required.

3.2 KEY SUCCESS FACTORS IN INDUSTRY

The key to success in the tyre industry is the ability to move in to high quality markets. We introduce
new product which is use in tyre and we have a lot of opportune to fill the gap and give the comfort to
the customer with low cost and give the best technology. It is understood that sealant is not useful for
bike tyre because the bike tyre rim made with wires if there is no wire in the rim the sealant can be use
and we considered it will be profitable market, so larger entities such as the bike riders and tech
corporations are targeted as the key to success. These groups will have higher requirements for quality,
but they will also be able to pay for the quality improvements. As time passes, this industry will offer
more opportunities. Cost for parts will decrease, making lower cost markets more feasible. Additionally,
the technology in this field will continue to develop, allowing customers to update to the most cutting
edge systems.

3.3 TRAGET ATTRACTIVENESS

We included different market in our survey and focus on our target market, in survey we
introduce our product to target market and collect the data after we analysis the data and
measure the attractiveness of the product, 75% target market shows positive response and 10%
shows negative response, because they don’t understand the product and not interest to give
the time 15% respondents give the response in form of may be. Our main target market are
sellers but they don’t take risk so they suggest us that we sale this product on credit base.
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PEST ANALYSIS
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PEST ANALYSIS

POLITICAL

This technical association gives us a major edge over all other local manufacturers and
unknown brands coming from China and India in terms of quality, consistency and reliability.

General Tyre receives all its raw materials strictly in compliance with Continental’s given
parameters from approved sources and follows construction patterns approved by them. Over
the years, we have also mastered the art of making tyres that suit local road conditions,
providing unmatched durability, safety and value for money, that no other tyre can claim. We
are extremely proud of the fact that statistics show that General Tyres has minimal or no record
of tyre bursts on fast tracks such as motorway and highways. We are the best for Pakistani
roads and that is the reason why all vehicle assemblers find us suitable.

The total consumption of tyres in Pakistan is approximately 6.5 million tyres. Of these the auto
industry consumes one million tyres. This figure does not include motorcycle tyres consumed.

 Improvement in auto industry sales has a direct positive impact on our sales as all major
vehicle assemblers buy from us. The rest of the local tyre industry has so far not been able to
benefit from the auto industry’s growth as their tyres have not been patronized by vehicle
assemblers due to the quality that is needed by the auto industry.
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The local tyre industry enjoys approximately one-third of the market share. Smuggling and
under-invoicing together account for approximately two-thirds of the market share. This is a
menace. Not only does this undermine the efforts of the local industry to provide employment,
save foreign exchange and improve local investment, but is surely putting a huge dent in the
national exchequer by way of taxes and duties that are evaded. These evasions run into
hundreds of millions of rupees every year. Other local industries are also affected due to this
uneven playing field.

Investment in Pakistan by a foreign group or company is a complete no at this stage. This is not
because Pakistan doesn’t have the potential. This situation is primarily owing to the
environment that we are created. Forget foreign investment, now even leading local investors
are thinking of or have already acted upon the idea of flight capital – establishing a second leg
outside Pakistan. This is what I call a reverse gear for any country.

 Pakistan should be open to trade with India as long as there are rules pre-set providing a level
playing field. Like India, Pakistan too has a lot of products to offer. Pakistan also has a clear
advantage in this case as India’s population is five times that of Pakistan – meaning more
consumers on the buying front. Pakistan should also capitalize on the areas where India has
excelled. Using India as a training ground could bring lots of benefits, particularly on the
technical and innovation front. The tyre industry in India is huge and advanced compared to the
industry in Pakistan, and a lot can be learnt with mutual cooperation. This type of cooperation
might also open doors for future investment in Pakistan in the long run.

ECONOMICAL

Pakistan is facing Economic challenges. It shows that our country is in the list of under
developed countries. In this article we will discuss about the Economic Condition of Pakistan. In
the last budget, the government gained 4.3 per cent economic growth but with gas and load
shedding problems they didn’t achieve the targets. So due to lake of experience and knowledge
they came of 2.2 per cent growth which shows almost no growth in the current year. The major
problem in Pakistan is increase in population which is directly effecting our economic growth.
Of course, due to higher rate of population, we should increase our investments but due to less
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financial reserves this investment is not possible. The present rate of GDP is around 14 percent
which is lower than the developing countries. If we want to increase our investments for getting
higher growth we should increase our savings for GDP to at least 20 percent, especially when
foreign investments are not involved.

Another challenge is inflation. Inflation means increase in the prices of commodity. It badly
affects the salary based groups. This also shows our higher rate of taxes because tax is part of
the inflation. When inflation rate high in our country then it generates the public debts, which is
about 70 percent of the Gross Domestic Product. This problem is increasing day by day. So how
we can overcome this problem? The answer is we have been producing less and consuming
more. And if investor wants to invest so they should invest on human developments.

The major problem is immediate change in the situation of regional and international market.
Utilities such as gas, electricity, water is another cause of a problems because IMF forced to the
under develop countries to enhance their rates which is effecting the common man or salary
based groups. They don’t save much in fact they just fulfill their basic needs.

SOCIAL

Consumer behavior and life style are changing rapidly. The advancement of technology and the
wide spread of media has captured the mind of the people to a great extent. More than half the
Pakistani population is about a quarter of a century old. It is now or never. We have such huge
potential – a vortex of energy at this point that we need to take hold of and put to use – for
Pakistan’s prosperity. We talk about the youth being Pakistan’s future – however, they are not
only the future – they are the present. We are now!
Sure, we need the proper infrastructure, electricity and support facilities to accomplish our
everyday goals and prosper. But the first thing all Pakistani’s need to change is our attitude,
towards hard work and in general towards each other. The people of Pakistani is life style is
very fast they adopted the culture and fashion. There is a trend in Pakistan to purchase the new
and unique product.
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TECHNOLOGICAL

The technology in the field is very slow and process of tyre repair is old the world is too fast
and introduce new method.

PORTAL ANALYSIS

Buying power of suppliers

There is a perfect competition in market and many suppliers they

invest the amount which is easily convert in to cash and every supplier want to increase the
sales when we introduce our product they like our product but not interested to purchase.

Buying power of Customers

We asked question to customers and they give very good response

and they are also interested to buy our product some customer giving his number which shows
that they are willing to buy our product.

Threat of New Entrance

We are launching the new product we may be face the threat if

someone else start that type of business if it’s happened we have to reduce our margin
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and also try to reduce the cost, we can give some extra advantages to the customer to
fight with the competitor.

Threat of Substitute

We introduce innovative product, mothed of tyre repair is old if

someone introduce the substitute that can be very series problem so we can offering
the best deal like wheel balancing lineament, with minimum price.

COMPATERNER ANALYSIS

Direct Competitor
Our direct competitor is local tyre shops they sale repair tyre and 55%
customer purchase the tyres in local shops they also give the fecality to repair the tyre
so if they also introduce the tyre sealant it can be big threat for our business.

Indirect Competitor
Our indirect competitor are outlet of tyre shop which deal direct the
companies and having strong links in the markets it can be threat for our business.

Future Competitor
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In future we can face multiple competitors so our first stagey is to

make strong links in market and also focus to introduce more product its helps our
business to survive in market.

FINANCIAL ANALYSIS

LIST OF ASSETS
S.NO ASSETS QUANTITY PRICE
1 BUILDING ADVANCE   80000
2 FURNITURE   35000
3 LCD 1 25000
4 SPILT AC 1 36000
5 LIGHTS 25 12000
6 FANS 3 10260
7 ADVERTISMENT   40000
8 CASH IN HAND   25000
9 STOCK 15 375000
10 SIGN BOARD 1 25000
11 UPS 1 23000
12 FLEXS 30 13500
13 TOOLS   12000
14 WATER COOLER 1 9000
15 AIR COMPRESSOR 1 25000
  TOTAL   745760

REVENUE GENERATION
       
S.NO DESCPRIPTION SALE PRICE TOTAL
1 SEALENT SALE PER CAR 8000  
2 ONE GALLEN FOR 4 CAR 8000 32000
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3 ONE MONTH SALES 10 GALLEN 320000

  ANNUAL SALES   3840000

NOTE: We assumed our sales and calculated the return it can be increase or decrease.

STAFF REQUIED
S.NO POSITIONS SALERILY PER MONTH TOTAL
1 MACANIC 11000 132000
2 HELPER 8000 96000
3 HELPER 8000 96000
  TOTAL   324000

OPERATION COST & EXPENCES

S.NO DESCRIPTION COST PER MONTH ANNUAL COST
1 RENT 25000 300000
2 ELECTRICITY Bill 8000 96000
3 CABLE CHARGES 500 6000
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4 TELEPHONE & INTERNET 2200 26400

  TOTAL   428400

DEPRECIATION
S.N DEPRECIATION OF QUANTIT AMOUN DEPRECIATION RATE ANNUAL
O ASSETS Y T ANNUAL DEPRECIATION
1 FURNITURE   35000 10% 3500
2 LCD 1 25000 10% 2500
3 SPILT AC 1 36000 10% 3600
4 LIGHTS 25 12000 10% 1200
5 FANS 3 10260 10% 1026
6 SIGN BOARD 1 25000 10% 2500
7 UPS 1 23000 10% 2300
8 WATER COOLER 1 9000 10% 900
9 AIR COMPRESSOR 1 25000 10% 2500
      200260   20026

Depreciation Rate 10%

Annual Deprecation 20026

PROJECTED PROFIT % LOSS STATEMENT

REVENUE
SALES YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

SEALENT 3840000 4300800 4816896 5394924 6042315

           
TOTAL 3840000 4300800 4816896 5394924 6042315
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  OPERATION COST & EXPENCES
S.NO   YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
1 RENT 300000 336000 376320 421478.4 742055.8

2 ELECTRICITY Bill 96000 107520 120422.4 134873.1 151057.9

3 CABLE CHARGES 6000 6270 7022.4 7865.088 8808.899
4 TELEPHONE & INTERNET 26400 29568 33116.16 37090.1 41540.91
5 SALARIES 324000 362880 406425.6 455196.7 509820.3
6 DEPERACTION 20060 22467.2 25163.26 28182.85 31564.79
  TOTAL EXPENCE 772460 864705.2 968469.82 1084686.238 1484848.599
  NET PROFIT & LOSS 3067540 3436094.8 3848426.18 4310237.762 4557466.401
  TAX @ 11% 337429.4 377970.428 423326.8798 474126.1538 501321.3041
  NET PROFIT AFTER TAX 2730110.6 3058124.372 3425099.3 3836111.608 4056145.097
             

NOTE: ANNUAL INCREAMENT IN REVENUE AND EXPENSES IS ASSUMED TO BE 12%

  YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

NET PROFIT AFTER TAX 2730110.6 3058124.372 3425099.3 3836111.6 4056145.97

add DEPERACTION 20060 20060 20060 20060 20060

NET CASH FLOW 2750170.6 3078184.372 3445159.3 3856171.6 4076205.97

           

       
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  745760 2004410.6 5082594.972

PAY BACK PERIOD   1 0.651166518