ENTREPRENEURSHIP

Business Plan
Submitted By:
Muhammad Nadeem
Muhamad Haseeb
Roll No:
BC18-220
BC18-228
Submitted To:
Mam Dr. Hina Munir
Hailey college of commerce, University of the Punjab, Lahore.
Title page
Table of contents:
 Introduction ---------------------------------------------------------------------2
 Executive summary ----------------------------------------------------------- 3
 Mission statement ----------------------------------------------------------- 4
 Vision statement---------------------------------------------------------------4
 Description of the product and services----------------------------------5
 Competitor analysis ---------------------------------------------------------- 8
 Feasibility analysis ------------------------------------------------------------ 9
 Porters five forces model -------------------------------------------------- 12
 Marketing plan and strategies ------------------------------------------- 15
 Production plan ---------------------------------------------------------------17
 Operational plan ------------------------------------------------------------ 19
 Assessment of risk ---------------------------------------------------------- 20
 Financial segments ---------------------------------------------------------- 21
 Management segments ------------------------------------------------ 22-23
 SWOT analysis ----------------------------------------------------------------24
 Conclusion ---------------------------------------------------------------------25
INTRODUCTION:
Name of the Business :
A1 milk & yogurt store
Address of the Business:
New Garden town near Punjab university area
Name and address of the principal:
Muhammad Nadeem
Muhammad Haseeb
Nature of the business:
services and trading
Statement of financing needed
Approximately 10 lakh rupees by obtaining from family,
relatives, friends, government interest free loans etc.
 Executive summary
A1 Milk & yogurt store will provide online milk & yogurt booking &
delivery services by obtaining online orders via Facebook, Instagram,
website and other internet and social platforms as well as by telephonic
calls.
The uniqueness of our business which will differentiate from other
existing business that It will provide online services of booking and
delivery of dairy products at customer doorstep within the given time.
The main features of our products is that it will be natural and pure and
will be stored at specific temperature by installing chillers and will be
packed in anti-bacterial packets for the purpose of providing healthy
dairy products to ultimate customers.
The target market consists of the following areas. Punjab university
hostels area, barket market (New garden town) Modal town, Iqbal
town and market will be enhanced with time to time.
The booking will be 24 hours a day and will be placed online and
delivery will be in two hours in the morning from 8 to 10 am and 6pm
to 8pm at night. price of one liter’s milk is Rs 130 and yogurt is Rs 120
per kg. Online order will be at least two liters and there is no return due
to perishable things. Payment will be in the form of cash and will be
made at the time of delivery also online payment will be accepted
through jazz cash, AtM card and Easy paisa.
We are creative innovative risk taker hard workers and have social
networking to market our product by digital marketing and to meet the
customers un met needs. We have specialization in finance which will
help in fund raising and will continue work for the advancement of
human life.
MISION AND VISION STATEMENT

Mission statement:
“our mission is to become a reputable company in future in terms of
company standards, profitability index and stakeholder’s interests”

Vision Statement:
“we aim to provide healthy dairy products to the customers for their
healthy life and to serve nation with our best efforts”
Description of the product and services
A1 Milk & yogurt store will provide online milk & yogurt booking &
delivery services by obtaining online orders via Facebook, Instagram,
website and other internet and social platforms as well as by telephonic
calls.
The uniqueness of our business which will differentiate from other
existing business that It will provide online services of booking and
delivery of dairy products at customer doorstep within the given time.
The main features of our products is that it will be natural & pure and
will be stored at specific temperature by installing chillers and will be
packed anti-bacterial packets for the purpose of providing healthy dairy
products to ultimate customers.
The booking will be 24 hours a day and will be placed online and
delivery will be in two hours in the morning from 8 to 10 am and 6pm
to 8pm at night. price of one litres milk is Rs 130 and yogurt is Rs 120
per kg.
Business idea:
To provide milk without any adulteration and a healthy yogurt .to
customers by selling on store as well as by selling online via Facebook
page online orders, website, online app, telephonic calls etc.

Uniqueness:
 Online booking via electronic means
 Delivery of milk in antibacterial packets
 Maintaining milk temperature by installing refrigerators and
chillers.
Placement and receiving of online orders:
orders will be placed by customers through our online app “A1 Milk
store” as well as by our website and telephonic calls.

Delivery of milk:
Milk should be delivered online and temperature of milk should be kept
at -4 degree Celsius by installing refrigerators. Delivery will be through
our manufactured refrigerators vans.

Target market/ area:

Punjab university hostel, barkat market (new garden town), Iqbal town,
model town and further market will be enhanced with time to time.
Booking hours/ timing:
  Booking will be 24 hours a day.
 Booking will be placed online
Restrictions:
Online order will be at least two liters
No return due to perishable item

Payment method:
(i)Cash on delivery
(ii)Online payment at the time of online booking order via
 At debit card
 Credit card
 Jazz cash
 Easy paisa
Price:
Rs 130 per liter (milk)
Rs 140 per kg (yogurt)
Quality Ensurance:
 A1 Milk store should be registered with “HILAL’’
which should ensure quality by:
 quantity – measured in volume or weight;
 organoleptic characteristics – appearance, taste and smell;
 compositional characteristics – especially fat, solid and protein
contents;
 physical and chemical characteristics;
 hygienic characteristics – hygienic conditions, cleanliness and
quality;
 adulteration – with water, preservatives, added solids, etc.

Reasons to choose this business:

 No alternative in market regarding online delivery of milk.
 Market demand regarding online delivery of milk.
Benefits other than profit:
 Tax exemptions (according to budget JUNE 2021, the income
generated from dairy products e.g. milk, yogurt, cheese is totally
exempt from tax)
Market Description
Market will fall into two distinct categories:
Dairy products and gourmet/specialty foods. This business plan will look at dairy
products.

Dairy Products:
While the overall consumption of dairy products in PAKISTAN has been increasing,
as the population is increasing day by day. Entrepreneurs expects the
consumption of dairy product in the PAKISTAN to continue a modest increase of
3-4% per year, which is significant in this $68 billion annual market. This is
attributed in part to more sophisticated processing techniques which have
increased the variety of dairy products available, as well as the increased
awareness of the benefits of a calcium rich diet.
Competitor Analysis
There are several brands of MILK outlets. There is also dry milk available, but
these are not direct competition for PURE MILK & YOGURT. According to sales
figures, approximately 65% of the national brand of MILK is sold in frozen form,
while the remaining 35% is in pressurized can form.
The strengths of these products are their market shares and distribution channels.
They are available in virtually any retail grocery outlet, and have gained strong
market acceptance. They are also distributed with other refrigerated and frozen
dairy products.
Finally, they are priced at RS 130 per Liter. None of these companies provides
online delivery services of milk.

Marketing Strategies
A1 MILK & YPOGURT Store products will begin in the local area. The A1 milk store
have an established name and reputation in this area, and product introduction
should encounter little resistance. The managers of A1 milk store have indicated
that they are willing to carry the products.
A1 MILK store also intends to enter the grocery and specialty markets. They will
demonstrate the pure milk and yogurt in conjunction with fresh fruit during
warmer months, and as a topping on gourmet coffee and hot chocolate in the
cooler months. Special attention has been given to developing an attractive label
that will stress the gourmet/specialty nature of the products.
A business planning and marketing specialist at the IBA and Agricultural Products
Research and Technology Center at University of the Punjab, Lahore assisted with
developing the label, and conducted a focus group study to evaluate the image
projected by the label as well as the packaging.
Feasibility analysis

Service feasibility:
Yes, there is a huge need of online services regarding dairy
products in the target market. This service is feasible due to unmet
need of online booking and delivery of dairy products.

Market feasibility:
Yes, it is market feasible because of attractiveness of business due
to online booking and delivery of milk and delivery products on the
other hand the target market desires the same service.

Organization feasibility:
Yes, it is easily feasible in respect of organization. The management
human resources labor control will be easily available to run business
activities in future.
Financial Feasibility:
Yes, it is financial feasible because less capital is required to start
the business as compared to its returns/profits. Also there are less
chances of risk of loss. The severity of loss is also less.
PORTER’S FIVE FORCES MODEL:
1) BARGAINING POWER OF SUPPLIERS:
YES, there is availability of bargaining power suppliers because there is a
no. of suppliers of milk in the market which will provide us fresh milk.
Due to large no. of suppliers of fresh milk in the market, in case of
dispute the business will switch to the other supplier.
2) Bargaining power of buyers:
Yes, there are a large no. of buyers in the target market which will create
the buying power in customers to buy the product or avail online service.

3) Threat of new entrants:

There is a little threat of new entrants because the consumption of this
product is too much, also this [product will be sold on store as well as in the
open market.
4) Threat of substitute products:
There is no substitute of online service of milk booking and delivery in the
target market area.
Although the product milk is available but our main focus and uniqueness
is online service of milk delivery which is not met6 in the market
FINANCIAL PLAN:

SOURCES OF FINANCING:
(i) Owner’s equity
(ii) Govt. funding schemes (Kamyab Jawan Program)
(iii) Friends
(iv) Relatives
(v) Bank Loans

BASIC FINANCIAL STATEMENTS:

 BALANCE SHEET
 INCOME STATEMENT
 CASH-FLOW STATEMENT
PROFORMA OF INCOME STATEMENT IS AS FOLLOWS:
PROFORMA OF BALANCE SHEET IS AS FOLLOWS:
PROFORMA OF CASH FLOWS STATEMENT IS AS FOLLWS:
RATIO ANALYSIS:

LIQUIDITY RATIOS:
 CURRENT RATIO:
Current ratio = current assets/current liabilities
Current ratio = 35007695759/30694911202
Current ratio = 1.14:1

 QUICK RATIO:
Quick ratio = current assets-inventories/current liabilities
Quick ratio = (35007695759-11767752193)/30694911202
Quick ratio = 0.76:1

LEVERAGE RATIOS:
 DEBT RATIO:
Debt ratio = total debt(liabilities)/total assets
Debt ratio = 30997871050/44185881140
Debt ratio = 0.70:1

 TIMES INTEREST EARNED RATIO:

Times interest earned ratio = EBIT/total interest expense
Times interest earned ratio = 1149631327/93869973
Times interest earned ratio = 12.24:1
OPERATING RATIOS:
 AVERAGE COLLECTION PERIOD RATIO:
Average collection period ratio = days/(credit sales/A/R)
Average collection period ratio = 365/(150000000/40000000)
Average collection period ratio = 365/4.25
Average collection period ratio = 86 DAYS

 AVERAGE INVENTORY TURNOVER RATIO:

Average inventory turnover ratio = CGS/ average inventory
Average inventory turnover ratio = 12003400400/6001240000
Average inventory turnover ratio = 2.00:1

 AVERAGE PAYABLE PERIOD RATIO:

Average payable period ratio: = days/(purchses/A/P)
Average payable period ratio: =365/8.69
Average payable period ratio: =42.00:1

 NET SALES TO TOAL ASSETS RATIO:

Net sales to total assets ratio = net sales/net total assets
Net sales to total assets ratio = 4500786000/4352370000
Net sales to total assets ratio = 0.99:1
PROFITABILITY RATIOS:
 NET PROFIT ON SALES RATIO:
Net profit on sales ratuio = net profit/net sales
Net profit on sales ratuio = 340007690/7800756000
Net profit on sales ratuio = 0.04*100=4%

 NET PROFIT TO ASSETS RATIO:

Net profit to assets ratio = net profit/total assets
Net profit to assets ratio = 340007690/9867900000
Net profit to assets ratio = 0.034*100=3.44%

 NET PROFIT TO EQUITY RATIO:

Net profit to equity ratio = net profit/total equity
Net profit to equity ratio = 340007690/1500000000
Net profit to equity ratio = 0.2266*100= 22.66%
 SWOT ANALYSIS
STRENGTHS:

 Online delivery services

 Pure quality of milk & yogurt
 Government favorable policies and reliefs
 Exellent management
 Modernized technology

WEAKNESS:

 Perishable things
 Short market area
 High costs
 Large no of HR requirements

OPPORTUNITIES:

 Government programmes regarding interest free loan

 High demand of pure milk and yogurt
 Demand of modernized technology
 Less competitors in terms of online services

THREATS:

 High energy prices e.g petrol, diesel

 Unstable economy
 Ever increasing inflation
 Increasing competition
CONCLUSION:
Milk is the basic need of Human life for body growth. There is no
presence of online milk delivery in the targeted area. A1 milk & Yogurt
store will provide the online delivery of 100% pure milk & yogurt. The
quality of milk will be ensured by labotories tests and shall be
registered with “HILAL”.