Hailey College of Commerce: Business Plan

Business Plan Entrepreneurship
Hailey College of Commerce
Business Plan
Submitted by:
Group #: 13
• Maryam MC20-011
• Saleeha MC20-022
• Mahneela MC20-033
• Sidra Bibi MC20-048
Submitted to:
Sir Dr. Ishfaq Ahmad Junjua
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Summary/Highlights
The Mirha fashion is determined to become medium to provide high quality and
variety of clothes for mothers and their daughter’s. And will also provide
comfortable environment, good service Branded clothes at reasonable price all in
one. The Mirha clothes will offer best services to its Valuable customers at Ichra
bazar main Lahore. The clothes will also provide separate place for children where
special decorated mirror with cartoons available and special toys who welcome
with their mother's at our clothes shop. We will take stock of clothes from suppliers
which are exist at Ichra bazar in different Brands. Our competitors also locate at
there our direct competitors are Al-Wahaj, Usman, Naveed and Danish clothes. Our
competitive advantage is that we will provide mothers and daughters clothes in
same colors at reasonable prices against other competitors. We want to serve
those Customers which are finding out like our clothes in other places we are ready
to giving best Services to that customers at best place in Lahore. We will promote
our sales by advertisement, Discount and giving clothes on reasonable prices.
We will provide seasonal clothes to female of all brands. We will provide same
clothes to mother and their daughters. We get this idea from rising trends of
twinning. Our business name is Mirha fashion. The shop will have located in bazar.
Only two person operates. And working hours will be 10 o’clock am to 11 o’clock
Pm. Our business is partnership business. The brands which we provide our
custome is Khaddi, GulAhmed, Alkaram, Sana Safinaz, Sapphire, Warda, Anaya,
Firdous. We will buy in bulk from Amaz Cloth Market. Our suit price range from
Rs.2000 above.
Name of the Business Mirha fashion
This is not the legal name as of yet. I wish to incorporate and trademark, which will
give rise to legal costs.
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Ownership:
We are four class mates who want to start their own business.
Name Qualification Specialization
Maryam M.Com Finance
Saleha M.Com Accounting
Mahneela M.Com Management
Sidra M.Com Marketing
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Mission Statement
Our mission is to create an apparel retail store that can offer superior design,
quality and value to the consumer. Our vision is to build good will in market and to
maintain profitable relationship with customers .
We exhibit a strong will to win in the marketplace and in every aspect of our
business. To offer excellent products to customers and discover new market to
promote extend Income of our business in order to obtain highest quality prices of
products of the business for sustainable and equitable increase and progress of the
company.
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Vision Statement
To transform the business into a modern and dynamic yarn, cloth and processed
cloth and finished product for sale. That is fully equipped to play a meaningful role
on sustainable basis in the economy of Pakistan. To transform the small business
into a modern and dynamic power generating Company that is fully equipped to
play a meaningful role on sustainable basis in the economy of Pakistan
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Products
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M prints unstitched spring summer 22 secret garden clothes will available here.
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Industry analysis and Market
History of Industry
In 1950 Textile industry was started in our country. PIDC came into being which had
the main objective of industrializing the country in major fields. The modern
development of the sector started in 11953 with the inauguration of the Valka
textile Mill at Karachi.
IMPORTANCE OF TEXTILE INDUSTRY IN ECONOMIC SECTOR:

Pakistan’s economy relies heavily on its cotton and textile sectors. The cotton-
processing and textile industries make up almost half of the country’s
manufacturing base, while cotton is Pakistan’s principal industrial crop, supplying
critical income to rural households. Altogether, the cotton-textile sectors account
for 11 percent of GDP and 60 percent of export receipts.
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IMPORTANCE OF TEXTILE SECTOR:

In Asia, Pakistan is the 8th largest exporter of textile products. Cotton is the basic
Cash crop of Pakistan. Textile products are one of the essential and basic human
requirement next to food. Pakistan is the 3rd largest exporter of raw cotton
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Growth rate
Last year, Pakistan's textile exports numbered to around $1.28bn in July 2020, as
per the export data of textile products seen by The News. The value added sector
that represents 78% of the textile export has also registered an unprecedented
growth of more than 17% cumulatively.
Trend's
• Digital textile printing ink -The New Pigmented Ink. ...
• Textile Trends in Healthcare Industry: Bio Textiles. ...
• smart fabrics & Intelligent Textiles. ...
• Sustainability in Textiles - Upcycling and Recycling. ...
• Demand of Organic Fabrics
Famous industry
Faisalabad is famous due to its large textile industry in all over the Pakistan as well
as world, so about half of Pakistan's total textile shipments are made by Faisalabad
(Farhan, 2016).
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Industry attractiveness
Five Force model
Rivalry between existing firm's high

• Local retail clothes stores are Al WA haj clothes,
• Danish clothes
• Naveed clothes and Usman clothes.
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Supplier bargaining power low

• Backward integration
• Attractiveness of substitutes
• To attract buyer's
Buyer bargaining power high

• Low switching cost
• Product variety
• To attract customers
Threats of substitutes lo
• High quality clothes
• Good services
• Pleasant atmosphere.
• Embroidery designs on casual clothes
Threats of new entrance high

• Threats of new entrance is high
• Presence of established Brand's
• Government strict tax policies
Industry structure
Industry Type Characteristics

Fragmented Large number of firms approximately
Industry equal size
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Global Industry Significant international sales
Market analysis
Our market segmentation
Gender Female
Behavior Digital printed
suites
Market segmentation is the process of dividing consumers into different categories

based on distinguishing characteristics. The impetus behind market segmentation
is that it helps retailers identify custo mers who are most likely to buy their products. Small
clothing retailers, wholesalers and manufacturers primarily focus on demographics, personalities
and needs when segmenting their markets.
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Target market
Our target market is mother's and daughter
We provide our product only in Lahore.
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Key success factors

• USP
o Our first key success factor is USP
o Which means unique sale proposition
o We provide same clothes for mother's and theirs daughter it is our
USP.
• Discount
o We provide discount on special events
• Low price
o Our clothes are well brand and on low price available in our retail shop.
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Report on buyer's intention by observation

We daily travel we see in buses that women’s and their daughter's wear same
dressed after stitching.
On birthday and Eid events same thing is seen here
Competitive analysis
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Direct Competitors
Sr.No Name of Competitors Location Selling price

1 Alwahaj cloth Icchra 3500-3800
bazar
2 Danish cloth Icchra 1950-2200
bazar
3 Usman cloth Icchra 1750-2500
bazar
4 Naveed cloth Icchra 1870-2000
bazar
Table 1.1
In table 1.1 we mentioned our direct competitors and also their location and selling
price they will our future competitors.
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Products of Competitors
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Indirect Competitors
Our indirect competitors are whose providing fancy, embroidery, party
wears and weddings dresses
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Value Chain
Sr .No Name of suppliers Location Cost price Sale price

1 Imran cloth Azam market 1200 3000
2 Usman cloth Azam market 1500 2000
3 Fiza Noor Chona mandi 1800 3000
4 UK centre Chona mandi 2000 3500
Table 1.2
In this Table Name of suppliers are mention whose will provide us stock of clothes
from given location at mention cost.
We will get clothes from suppliers in different Brands.
Those brands are Sapphire, Gul Ahmed, Khadi and Nishat.
In table 1.3 we provide the brands and their prices.
Sr.No Name of Brand's Sale price
1 Khadi 1750-2500
2 Sapphire 1785-6103
3 Gul Ahmed 2000-2500
4 Nishat 1950-2200
Table 1.3
So our value chain will start from suppliers which are mentioned they will provide
us brands which are also mentioned above in table after taking stock of clothes We
will arrange our stock in our retail shop and sell our clothes through bricks and
bricks model.
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Layout of our shop

Layout means an operation or processed in which how it’s transformed resources
and their positions in a pattern form.
Product layout is used by Mirha Fashion in which all the products are arranged in
a display form also in folded forms in different shelves.
We will provide separate place for children who will come with their mother's. We
will arrange toys and also one decorated mirror which help us to maintain facility
for their mother's for purchasing clothes easily with tension free.
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Economics of business
Start-up Cost
To open a retail store, it is recommended by our advisor that budget between
Rs500000 to Rs1000000. Costs will fluctuate based on our store's size and location.
Total short term assets 400000
Total Long term assets 600000
Total star up cost 1000000
Cost associated with product development

We purchase print suit RS 1200 per suit from whole and transportation cost also
incurred in cost of product development.
Fixed and Variable cost

Fixed cost
Expense Amount
Rent 100,000
Taxes no tax payment on starting business
Salaries 15,000
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Variable cost
Cost of material per unit 1200 to 1500
Marketing cost 20000 per month
Delivery cost 10000per month
Profit Centre
Our shop will become a profit center if we make strategies to increase profit.
Managers have authority and responsibility over generating revenues and
controlling costs and profit is used as a performance measure.
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We measure the performance of these centers in terms of:
• Expenditure
• Revenue
• Return on investment
• Profitability
Breakeven Analysis
Every year we will be having a breakeven point in which as you know there is no
profit and no loss. We will be only covering our cost using sales. So, in our business
at the end of every season we sale our stock at cost price. So we will not be having
any profit or any loss from that.
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Marketing mix
Marketing Mix is a combination of marketing tools that a company uses to satisfy
their target customers and achieving organizational goals.
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Product
It is important that people want to acquire the benefits of product rather than it's
features.
Mirha Fashion offer clothes for mothers and daughters in same colors benefits of
product
• High quality
• Low price
• Different colors
• Digital printing
Price
It is second important element in marketing mix. Fixing the price is tricky job. Our
price for clothes will reasonable for our customers than our competitors with high
quality brand.
• Brand's;
• Limelight
• Khadi
• Gul Ahmed
• Sapphire
• Price of product
We will purchase sets of box in which consists of 12 suits but sometime in open
bundles 12 printed suits having different colors.
Type Prices
Printed RS 1200 – 1500 per piece
Embroider RS 1700 – 2300 per piece
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Promotion
We will make strategies to increase our sales. We will use different following steps;
• Reasonable price
o We will provide our product in less price as compared to competitors
o This strategy will help to enhance our sales.
• Separate place for children
o The separate place for children who will come with their mother's is
also be given to this facility to our customers.
• Advertisement
o We will make advertisement our branded clothes for mothers and
daughters through magazines and also through social media.
• Sale Discount
o On special events like Eid, independence day, Christmas day on other
such events we will provide discount on sales.
Place
• We will begin our business at ICHHRA bazar Lahore.
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Sale tactics
o We will provide gifts with girl’s clothes.
o We will change our price with
o The movements of competitors.
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Sale process
Our sale process will simple because customer will come at our retail clothes shop
after arrival of customer we will show them clothes according to their
requirements. After selection of clothes they will decide price on which they will
agree. Customer will pay for clothes on counter. Our sale process will be
completed.
Sr .No Quality purchase Sale price Profit

price
1 Low 1200 1500 300
2 Medium 2000 2500 500
3 High 2500 3500 1000
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Operational plan
A general approach to operations
Our business model is standardized business model. This model already set up in
the market
Business Locations
Location of our business is main Ichra Bazar. Ichra Bazar is the one of historical
bazar of Lahore and it’s among one of the main bazars of Lahore. Its location is
easily accessible and situated at the main Ferozepur road, it also has the Metro as
well as speedo stations. Which, makes it accessible to customers to come.
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Facilities and equipment
Name of equipment Price Place from where we

buy
Chairs 18000 Ferozpur road, Ichra
Tables 1000 Ferozpur road Ichra
Water dispenser 22999 Al- Fatah electronics,
Abid market
Fans 5250 Gulshan e ravi
Lights 584 Ashiyana light house
Dummies 150-200 Shah Aalam Market
Racks 4000 – 5000 Shah Aalam Market
Mannequins 3000 – 4000 Shah Aalam market
Security cameras 2500 – 4000 Hall road Lahore
Display Stand 2000 – 3000 Shah Aalam market
Clothing rack 4000 – 6000 Shah Aalam market
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Above contains the very advanced equipment which will be added step by step
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Management plan
Form of ownership of the business

Our form of business is partnership. We are 4 partners in the business. One partner
is finance expert. Second partner is accounting expert. Third partner is
management expert and fourth one is marketing expert.
Management team:
Mahneela: She manages the management of the business
Maryam: She manages the finance of the business
Sidra: She manages the marketing of the business

Saleha: She manages accounts of the business
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Board of advisors:
An advisory board is a body that provides non-binding strategic advice to the management of a
corporation, organization, or foundation. The informal nature of an advisory board gives
greater flexibility in structure and management compared to the board of directors…
Advisors of our business:

Prof. Dr. Ishfaq Ahmed Janjua, He is our teacher and he advised us to create a business idea and
provide all basic information about our business plan
Mr. Ikram, he provided us all the data about our business plan… he advised us to start a retail
store in this market and almost this capital.
Board of directors:
Our form of business is partnership so that’s why our business doesn’t need board of directors
because wo is not own a company.
Company structure:
Our business doesn’t have company structure because our business is based on partnership so
we don’t make a company structure.
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SWOT ANALYSIS
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STRENGTH OF MIRHA FASHION
• Wide Product Range. The Mirha fashion business offers a wide range of
products and services to the fashion lover customers market.
• Financial Growth.
• Quality Products.
• Independent Operations.
• Changing Fashion Trends.
• 3rd Party Suppliers
• Twinning clothes
• Unique product or knowledge.
• Customer service that creates raving fan customers.
• Speed to market.
• High adaptability.
• Diversification of products or services
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WEAKNESS OF MIRHA FASHION
• Changing fashion trends

• 3rd party supplier
• Low quality to keep price low
• Entering new markets
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OPPORTUNITIES TO MIRHA FASHION
• Improve quality
• Start online selling
• People fellow fashion trends
• People use to spend more on clothes
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TREAT TO MIRHA BUSINESS
• High competition
• Changing trends
• Established brands
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FINANCIAL INVESTMENT PLAN

Some capital will arrange by ourselves for taking shop on rent buying statues and
other shop equipment. We will buy stock on loan from Azam market whole seller
Ashraf Alvi. He will give stock to us on loan and on weekly basis we give him some
portion of our sale as interest. And after some time when our business will sustain
in market and we start earning profit we will return his loan and after complete
payment of loan. His right to our sale become finished. First we buy stock on loan
for RS 10,00000
Source of funding
Source of funding in our business is both debt and Equity. Some we will arrange
by our self. And remaining we will take stock on loan.
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Cash flow Statement
Cash flow from operating activities

Details Amount
Cash received from costumer 278000
Cash paid to supplies. (112800)
Cash paid for utilities. (19100)
Cash paid for advertising. (10000)
Cash paid for interest. (5000)
Cash paid for wages. (92000)
Net Cash flow from operating activities. 39100
Cash flow from investing activities

Cash paid for equipment. (72000)
Cash received sale of equipment 15000
Net Cash flow from investing activities. (57000)
Cash flow from finance activities

Cash paid of drawing. (32000)
Cash paid off loans. (10000)
Net Cash flow from finance activities. (42000)
Net Cash (59900)
Cash balance at 1 July 2019. 44000
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Cash balance at 30 June 2020. 15900
Income statement
Details Amount
Sales. 280500
Less cost of sale. (106700)
Gross profit. 173800
Less operating expenses.
Wages expanse 90600
Depreciation of premises 20000
Depreciation of equipment 16000
Advertising 14000
Interest expense 5000
Insurance expanse 5000
Bad debt expense 4500
Utilities. 19100
Loss on sale of equipment 1000 175200
Net loss 1400
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Balance sheet
Current assets
Cash 0
Prepaid insurance 5500
Prepaid advertising 8000
Account receivable 17000
Inventory 13800
Total 44300
Non-current assets
Premises 170000
Less accumulated depreciation (40000)
Computer equipment. 80000
Less accumulated depreciation. (10000)
Total. 200000
Total assets 244300

Current liabilities
Bank overdraft 15900
Accrued wages 1100
Account payable 3500
Total 20500
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Non-current liabilities
Loan payable 190000
Total liabilities 210500
Equity
Capital 33800
Total liabilities and equity 244300
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Ratio Analysis
Ratio Formula Calculations Answers

Current Ratio = Current Assets / 44300 / 20500 2.16
Current Liabilities
Quick Ratio = Quick Assets / Current 17000 / 20500 0.82
Liabilities
Debt to equity ratio = Long term debts / 210500 / 33800 622.7%
Shareholders’ funds
Debt ratio = Long term debts / Net 210500 / 244300 86.16%
Assets
Total Assets to = Total Assets / long 244300 / 210500 116.05%
term debts
Debt ratio Net income / 1400 / 33800 4.14%
Return on Equity ratio = Shareholders ‘ equity
Profit margin = Net income / Net sales 1400 / 280500 0.499%
Return on Assets = Net income / total 1400 / 244300 0.57%
Assets
Trade receivable Net credit Sales / 280500 / 17000 16.5%
turnover ratio = Average trade
receivable
Trade Payable turnover Net credit purchases / 59900 / 3500 17.1%
ratio = Average trade Payable
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Hailey College of Commerce: Business Plan

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Business Plan Entrepreneurship

Hailey College of Commerce

Name of the Business Mirha fashion

Industry analysis and Market

IMPORTANCE OF TEXTILE INDUSTRY IN ECONOMIC SECTOR:

IMPORTANCE OF TEXTILE SECTOR:

Rivalry between existing firm's high

Supplier bargaining power low

Buyer bargaining power high

Threats of new entrance high

Industry Type Characteristics

Global Industry Significant international sales

Market segmentation is the process of dividing consumers into different categories

Key success factors

Report on buyer's intention by observation

Sr.No Name of Competitors Location Selling price

Sr .No Name of suppliers Location Cost price Sale price

3 Gul Ahmed 2000-2500

Layout of our shop

Cost associated with product development

Fixed and Variable cost

We measure the performance of these centers in terms of:

Sr .No Quality purchase Sale price Profit

Facilities and equipment

Name of equipment Price Place from where we

Form of ownership of the business

Sidra: She manages the marketing of the business

Advisors of our business:

STRENGTH OF MIRHA FASHION

WEAKNESS OF MIRHA FASHION

• Changing fashion trends

OPPORTUNITIES TO MIRHA FASHION

TREAT TO MIRHA BUSINESS

FINANCIAL INVESTMENT PLAN

Cash flow Statement

Cash flow from operating activities

Cash flow from investing activities

Cash flow from finance activities

Cash balance at 30 June 2020. 15900

Total assets 244300

Ratio Formula Calculations Answers

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