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Entrepreneurship Report

NAME:

Fatima Rubab

Yumna kamal

Ayesha Rao

CLASS:

BS 4th year

COURSE TITLE:

Entrepreneurship

COURSE CODE:

MAN 4041

COURSE INCHARGE:

Ms.Faiza Qamar
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Acknowledgement

We would like to thank ALLAH ALMIGHTY, the Most Beneficent and Merciful,

for providing us with the opportunity and strength to compile this report, as it was

a difficult task that would not have been possible without faith in Him. We would

especially like to express our gratitude to our course instructor, Ms.Faiza

Qamar, for providing us with valuable guidance on the professional aspect of

this report and for providing us with this opportunity to prepare this report, which

is an honor for us! Finally, we would like to express our gratitude to one another

for our collaboration on this report.

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TABLE OF CONTENT

1. Introductory Page……………………………………………………………………… 4

2. Executive Summary …………………………………………………………………… 4

3. Industry Analysis …………………………………………………………………….. 5

4. Description of Venture………………………………………………………………… 7

5. Production Plan …………………………………………………………………………8

6. Operational Plan ……………………………………………………………………….12

7. Marketing Plan………………………………………………………………………….12

8. Organizational Plan …………………………………………………………………. 14

9. Assessment of risks ……………………………………………………………………16

10. Financial plan ……………………………………………………………………….. 17

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1. INTRODUCTORY PAGE

A. Name and Address of the Business

Name of the business is Energy Booster Drink and the address is House No# A1/156

Railway Housing Society Block 13/A Gulshan-e-Iqbal Karachi.

B. Name and address of the principle

Yumna kamal

House no# A1/156 Railway housing society block 13/A Gulshan-e-Iqbal Karachi.

C. Nature of Business

The Nature of business is services that provide ready to drink products and it is home

based product its supplies product home to home and stores.

D. Statement of Financing Needed

This is small scale business there is no requirement of high cost equipment. All

the production process is done with internal sources. So, we did not need any financial

fund from outsource.

2. EXECUTIVE SUMMARY

The beverages industry in Pakistan is expected to reach 2.53 billion dollars by 2025, with

a significant growth rate due to the country's growing population. People are becoming more

health-conscious, placing a higher importance on their well-being and consuming a vitamin

and mineral-rich supplement drink. Barley powder, milk, sugar, and cocoa powder are used to

enhance the taste of this energy booster, which is produced entirely of organic ingredients. It

is a drink that is high in nutrients, has a pleasing flavor, and provides immunity to the body. To

appeal to all elements of society, we chose to include women , men and children of all ages.
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Because this is a handcrafted product, no physical plants are used in the manufacturing process.

When the country's inflation rate is low, raw material costs fall, as does the per unit cost,

resulting in greater income. We keep track of our goods and deliver it on time. Department

shops are a good place to start. In the production process, there is no use of any technology. All

of the raw materials are purchased by the members of the group themselves at the grocery shop.

We keep track of our stock and make deliveries as needed. Customers know they'll receive

their money's worth, and because the drink's nutritional content is significantly more than that

of other beverages, they don't hesitate to pick it as their final resort. This is our business plan,

and we are bachelor's students at Jinnah University for Women. Ayesha Rao and Yumna Kamal

(marketing manager) bachelor of commerce are in final year students. They have market

research experience relating to our product's rivals, target market, new trends, and other factors

that help us promote our product and produce sales. To manage our accounts, we will need an

accounts manager. And Fatima Rubab is (HR) she is overview HR activity.

3. INDUSTRY ANALYSIS

A. Future outlook and Trend

Until 2025, the drinks market in Pakistan is forecast to reach 2.53 billion USD to report

strong growth rate over the forecast period due to increasing population.

There is a trend of nowadays of healthy and organic drinks. People are now more

conscious about their health who value their health and consume a healthy supplement

drink that is high in vitamins and minerals. Because of trend it will beneficial for us.
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B. Analysis of competitors

According to our market research there are some energy milks like pakola milk,

and some flavors that added in milk like complain, Horlicks are our competitors in

future once we are grow in the market.

Essential vitamins/mineral supplements and milk substitutes have been competing with

energy boosters.

C. Market Segmentation

Demographics

The market is divided into age groups in this instance

 Teenagers,

 men,

 women,

 Kids.

Geographic

In the metropolitan cities is the demand for energy drinks is high. As compare to the

rural areas of the country because people would not aware about the brands and the ratio of

the departmental stores are lower than the cities.

Targeting

The firm should choose the target market segment or segments for marketing after

segmenting the entire market. This is referred to as targeting.

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So the targeted market of energy booster is teenagers , youngster and middle age

because this is the age groups they consume this type of energy drinks to boost their health

and they also have awareness about the energy drinks as compare to other age groups.

Positioning

The goal of any product or service is to create a picture in the mind of the customer. So

energy booster is talk about all the teenagers, youngster and middle age more focus on

them, but all the family members can also consumed it because it is an energy drink.

Potential customer

Customers of energy booster are middle-income individuals who value their health and

hence consume a healthy supplement drink that is high in vitamins and minerals. We are

primarily targeted 4sets of customers are teenagers, men and women, kids.

Market need

Through market penetration and brand/product extensions, the health and nutritional drinks

industry is innovating to boost its market share and growth figures.so we would

continuously work on innovating our product to fulfill market need.

4. DESCRIPTION OF VENTURE

A. Product

We took particular plan to design the drink scientifically in order to meet the

nutritional needs of the consumers. It has nutritious value, a pleasant taste, and is a drink

that gives the body immunity. We decided to include women and children of all ages
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to cater to all segments of society. energy booster was created to keep and attract a new

generation of health-conscious consumers .energy booster is made from hundred

percent organic product are barley powder, milk ,sugar ,and cocoa powder to enhance

its taste.

B. Size of Business

The size of business is small scale and we don’t need any financial Fund.

C. Office Equipment and Personnel

No office equipment and personnel.

5. PRODUCTION PLAN

A. Manufacturing process

Raw material

Barley powder (1500gm)

Powder milk

Coco powder

Sugar powder

Packaging bags

In the initial stage of manufacturing we added all the ingredients together and mix it

very well with the help of Spatula for the better result.
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Total cost of production

Commodity Measures Rates

Barley powder (1500gm) 750

Powder milk (1560gm) 1260

Coco powder (900gm) 1500

Sugar powder (1500gm) 225

Packaging bags (25pcs) 550

TOTAL COST 4285

Interpretation:

We use these products for the estimation of 24 samples and we bear the cost of 4285.

COST PER UNIT

Formula

Per unit cost =Total cost /no of units produced

Here we calculate for the 24 units to consume from our total cost

Data:

Total cost: 4285

No. of unit produce: 24

Solution
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= 4285/ 24

=178

Interpretation

Here we calculate our per unit cost by dividing total cost with total unit produced.

SELLING PRICE

Data:

Total cost: 4285

No. of unit produced: 24

Formula

= Per unit cost+ profit margin

= 178 +07

= 185

Interpretation

We set our selling price by adding our profit in the per unit cost.

Demand for the per unit if the prices are high

Commodity Demand Price

1 12 300

2 6 600

3 3 900

So if the prices are high people would avoid to purchase.

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Demand for per unit if the prices are low

Commodity Demand Price

1 3 900

2 6 600

3 12 300

So if the prices are low people would want to purchase

Inflation rate

 If the inflation rate is high in the country so the prices of the raw materials will

also high and the per unit cost are also rise and it’s directly impact on the sale

of our product.

If the inflation rate is low in the country so the prices of the raw materials are goes

down and the per unit cost are also low and its generate more revenue.

B. Physical plant

Energy booster drink is our handmade product so there is no usage of physical

plant in manufacturing process.

C. Machinery and equipment

There is no machinery and equipment required in the process of making energy

booster drink.
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D. Name of the supplier of raw material

Group members are self-purchase all the raw material from grocery store.

6. OPERATIONAL PLAN

A. Description of company's operation

Purchase raw material from grocery store.

Mix all the ingredients together.

Pack it in the packaging bags.

Advertise it on social media for boosting our sale through making a page.

B. Flow of Orders for goods and Services

We maintain our inventory and delivered it according to order.in the

departmental stores.

C. Technology utilization

There is no usage of any technology in the production process.

7. MARKETING PLAN

A. Pricing

Our goal is to make our cost reasonable most possible, yet it have kept the costs

affordable. When compared to other comparable drinks, the price approach

incorporates competitive pricing where consumers do not have to make undue financial
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compromises. Consumers are certain to get their money's worth, and because the drink's

nutritional capacity is far more than that of other drinks, they do not hesitate to choose

it as their last option. To minimize any mistake, the prices of the products are printed

and posted on the product labels.

B. Distribution

It is critical that customers have access to things at their leisure. As a result, we've

taken steps to ensure that the product is always available to the user at the right time, in

the right place, and in a variety of amounts. We decided to keep perfect distribution

channels, such as retailers and wholesalers, and to situate our manufacturing region

near metro cities where it is convenient to sell to consumers.

C. Promotion

We have a deep and thorough grasp of our customers' requirements and desires, and

we've used that knowledge to create some incredibly attractive and informative product

advertisements. All of our commercials have emphasized the company's strong

dedication to maintaining and presenting high-quality items. To raise awareness about

our product, we decided to hold multiple festivals at schools, malls, and showrooms,

where we give everyone a sample of a free drink. Later, on various mediums such as

television, print, billboards, radio, and so on.

D. Product Forecasts

When we increase 10% of growth rate so, the forecasted sale is Rs.80, 85.
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We can leverage our brand image to develop new revenue-generating items Example

Adding new flavors to it. Because of changing lifestyles and growing disposable

incomes, emerging economies give potential for the Pakistan to expand in the future.

8. ORGANIZATIONAL PLAN

A. Form Of Ownership

The business have the partnership of three persons:

1. Ayesha Rao

2. Yumna Kamal

3. Fatima Rubab

B. Identification Of Partners Or Principal Shareholder

We are the bachelor’s students studying in Jinnah University for women .and this

is our business idea. And we have the equal share in our business.

C. Authority Of Principals

In our business all the partners have equal authority to take decisions regarding to

product changes, pricing, placement, adding of new flavors etc.

D. Management Team Background

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Ayesha Rao and yumna kamal (marketing manager)

 They are doing bachelors in commerce and a final year students. Chosen

marketing as our major.

 They both have an experience in market research, related to the competitors

of our product, target market, new trends etc.

 They also have an understanding of social media marketing that increase the

promotion and generate our sales.

Fatima Rubab (HR manager)

 She is also doing bachelors in commerce and a final year student. Chosen

HR as her major.

 She have an experience in human resource management like the hiring of

new employees in our business. , provide training, and enhance their skills.

Management team gap

 We have currently gap in our management team. We will hire an accounts

manager to manage our accounts.

E. Roles and responsibilities of members of organization

The responsibility of our members to fulfill those rules that are based on:

 Honesty.

 Leadership.

 Respect.

 Accountability.

 Selflessness.

 Duty.
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9. ASSESSMENT OF RISK

A. Evaluate the Weakness of the Business

Only reliant on one country, Pakistan, and has a small market footprint. There's a

risk that individuals will switch from malted drinks to healthier options like natural or

packaged juices, processed milk, and so on, because to intense rivalry from various

manufacturers.

B. New Technologies

There is no use of any new technology.

C. Contingency Plan

Our contingency plans are as follow.

 Data storage and recovery.

 Environmental policies.

 Reduce the company's long-term costs.

 Maintain a positive public image.

 Maintain the brand's integrity.

 Establish working relationships with the media, and select authorities who will

assist in the dissemination of the organization's message.

 Information that is effective, precise, and timely.

 Financial risk management.

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10. FINANCIAL PLAN

A. Assumptions

We assume that our business runs successfully for the coming three years and we

earn good from the business.

B. Pro forma Income Statement

Description

Sales 7000

Less: cost of goods sold (4285)

Gross profit 2715

Less: operating expense

Travelling 800

Advertising 1200

Total expenses (2000)

Net income 715

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Sales increase 5% year in 2023

Actual year Forecast basis 1st pass

2022 2023

Sales 7000 (1+0.05) (7000) 7350

Expected Cost of goods (4285) 4285 /7000 4483.5

(0.61*7350)

Add: operating expense 2000 2000*5%= 2100

100+2000

(6583.5)

EBIT 766.5

Sales increase 10% year in 2024

Actual year Forecast basis 2nd pass

2023 2024

Sales 7350 (1+0.1) (7350) 8085

Expected cost of goods sold (4483.5) 4483.5/7350 4931.85

(0.61*8085)

Add: operating expense 2100 2000*10%= 2200

200=2000

(7131.85)

EBIT 953.65
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C. Cash flow Projections

Cash flow from operating activities

Revenue 7000

Less: operating expense (2000)

Net cash from operating activities 5000

D. Pro Forma Balance Sheet

BALANCE SHEET

FOR THE YEAR 2022

Assets Liabilities and Equity

Current assets: Equity:

Cash 5430 Ayesha's capital 3000

Inventory 4285 Fatima's capital 3000

Yumna's capital 3000

Net Income 715

Total assets 9715 Total equity 9715

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FORECAST THE BALANCE SHEET

FOR THE YEAR 2023

Description Actual Forecast basis 2023

5% growth rate 1st pass

Cash 5430 5430/7000×7350 5701.5

Inventory 4285 4285/7000×7350 4499.25

Total assets 9715 10200.75

Total equity 9715 9715/7000×7350 10200.75

FORECAST THE BALANCE SHEET

FOR THE YEAR 2024

Description Actual Forecast basis 2023

10% growth rate 2nd t pass

Cash 5430 5430/7000×8085 6271.65

Inventory 4285 4285/7000×8085 4949.175

Total assets 9715 11220.825

Total equity 9715 9715/7000×8085 11220.825