Entrepreneurship

Business Plan – Space Savers

BBA 7D
Saud Abdullah 1911268
Beenish Farhan 1911241
Arsalan Amanat 1911240
M. Sunny Abbasi 1911250
M. Abdullah Paracha 1911208

Instructor: Mr. Fahad Zuberi | Date: 28 th December, 2022

 Acknowledgements

This document includes valued inputs in the form of costs, advice on business operations, and
various strategies from industry professionals and stakeholders. These individuals, who are either
company-owners or working at specific industries related to the venture described in this
business proposal, have given us their valuable time in explaining the intricacies and concepts of
being owners of a start-up.

While appreciating the efforts of these professionals, it is important to acknowledge the guidance
given to us by our instructor, Mr. Fahad Zuberi, who has been teaching us the fundamentals of
entrepreneurship in our final year of the BBA Program at SZABIST.
 Contents
Acknowledgements....................................................................................................................................2
Executive Summary...................................................................................................................................4
Introduction...............................................................................................................................................7
Business Name and Contact....................................................................................................................7
Entrepreneur’s Contact............................................................................................................................7
About the Company.................................................................................................................................7
Business Objectives.................................................................................................................................8
Project Financing & Costs.......................................................................................................................8
Industry Analysis.....................................................................................................................................10
Description of Venture............................................................................................................................13
Ideology of Space Savers.......................................................................................................................13
Vision....................................................................................................................................................13
Mission..................................................................................................................................................13
Reason of Venture.................................................................................................................................13
Service Information...............................................................................................................................14
Prohibited Items to Store at Space Savers..............................................................................................15
Office Location......................................................................................................................................15
Office Equipment..................................................................................................................................16
Unique Selling Point..............................................................................................................................16
Organizational Plan.................................................................................................................................17
Form of Organization and Ownership...................................................................................................17
Cheque Signing Authority.....................................................................................................................17
Organizational Chart..............................................................................................................................17
Management Responsibilities................................................................................................................18
Salaries of Directors..............................................................................................................................20
Manufacturing Plan................................................................................................................................23
Service Blueprint.....................................................................................................................................24
Physical Evidence..................................................................................................................................24
Customer Actions..................................................................................................................................24
Front-Stage Interactions........................................................................................................................24
Back-Stage Interactions.........................................................................................................................24
 Support Process.....................................................................................................................................25
Business Operations & Revenue Model.................................................................................................26
Marketing Plan........................................................................................................................................28
Marketing Objectives............................................................................................................................28
Space Savers’ Marketing Mix................................................................................................................28
Target Market........................................................................................................................................30
Segmentation of Target Market.............................................................................................................31
Competitor Analysis..............................................................................................................................32
SWOT Analysis.....................................................................................................................................34
Marketing Strategies..............................................................................................................................35
Marketing Budget..................................................................................................................................38
Financial Statements...............................................................................................................................39
Risk Assessments.....................................................................................................................................42
Fire........................................................................................................................................................42
Flooding................................................................................................................................................42
Product Damage....................................................................................................................................42
Security.................................................................................................................................................42
Slips and Trips.......................................................................................................................................43
Outsourcing Transportation...................................................................................................................43
Measuring Parameters............................................................................................................................44
Quality Control......................................................................................................................................44
Sales Control.........................................................................................................................................44
Inventory Control..................................................................................................................................45
Exit Strategy............................................................................................................................................46
Statement of Confidentiality...................................................................................................................47
Executive Summary

This business proposal describes a venture titles Space Savers. It is a self-storage company that
will provide flecible unit options for cutomers to store their items in. The customers targeted are
those who are in the process of relocation, de-cluttering, and renovations. Space Savers is
providing services to the upper- and upper-middle income segments of Karachi.

Space Savers differentiates itself from its competitors by providing insurance to its customers
and the following of standardized procedures on each step. This is to gain customers’ trust and
portray professionalism of the business. Space Savers will have a website through which
customers can gain information about the company’s services.

The initial cost requirements and capital investments are as follows:

Introduction

Business Name and Contact

Business Name: Space Savers

Address: Mehran Town Sector 6 A Korangi, Karachi City, Sindh, Pakistan

Office Number: +92-310-000000

Entrepreneur’s Contact
Space Savers is a partnership that is owned and run by five partners. All partners have invested
equally and share ownership and the responsibilities of running and managing the company.
Each partner is a member of the board of directors and has been assigned key positions in the
company, relative to his or her area of expertise.

The contact information of the owners of Space Savers is as follows:

Partners Email ID Phone Number

1. Saud Abdullah saudabdullah@SS.pk.com 0332-294-7465
2. Beenish Farhan beenishfarhan@SS.pk.com 0349-543-8567
3. Arsalan Amanat arsalanamanat@SS.pk.com 0332-857-3856
4. Mohammad Sunny Abbasi sunnyabbasi@SS.pk.com 0334-768-9475
5. Muhammad Abdullah Paracha abdullahparacha@SS.pk.com 0337-678-7584

About the Company

Space Savers is a service-based company located and operating in Karachi, Pakistan. Space
Savers provides safe, convenient, and professional storage solutions for customers who are in the
process of relocating, renovating, or de-cluttering.

Temporary storage-solution is the answer to multiple problems, such as being in the process of
relocating to a different city or country, wanting to down-size living-spaces without having to
compromise on the security and ownership of personal assets, and needing storage on a short-
term basis while renovating homes or offices.
Space Savers is a warehouse where residential customers can avail self-storage services.
Customers can rent pre-set storage-units within containers on a long-term basis, or opt for
flexible storage-units, depending on the amount of items, on a short-term basis.

Space Savers also offers packing and transporting services; fragile household items such as
kitchenware, electronic appliances, books/documents, and similar goods will be securely packed
in boxes, and together with bigger item such as fridge, television set, tables, washing machine,
sofa set, and similar goods, will be safely packed. Items will then be collectively transported to
Space Savers’ warehouse through monitored third-party transportation service.

Space Savers offers insurance coverage to its customers on the total value of goods that they
have stored within the premises of the warehouse, in their respective units. All procedures and
processes carried out at and by Space Savers are within the compliances of industry standards.

Tagline: Aap Karein Save, Hum Rakhein Safe.

Space Savers tagline encompasses the ideology of the business concept of self-storage – where
customers are presented with an opportunity to save their assets without having to compromise
on their storage needs.

Business Objectives
The following list of objectives illustrate the long-term business goals of Space Savers, which
will be aimed to be achieved through the financial, marketing, and business management
strategies highlighted in this business plan:

1. Survival
2. Profit Maximization
3. Excellent Customer Relationship
Employee Attraction and Retention
4. Reaching the Right Customers

Project Financing & Costs

Space Savers’ initial investment will be realized through a combination of equity- and debt-
financing. The following table depicts the initial capital required and the projected costs of
working capital:
Industry Analysis

According to Pakistan Bureau of Statistics, a self-storage facility, such as Space Savers, falls in
the economic activity of real estate (pgb.gov.pk, 2010). Self-storage is not a common concept in
Pakistan, let alone Karachi, and cultural plays an important role in how citizens of Karachi
manage their storage spaces.

Research has discovered that hoarding tendencies are found in home-makers which makes them
more protective of their household items and this figure is more prevalent in late adulthood. The
cause of this is due to the attachment that increases over-time for personal home-items, to the
extent that people face difficulty in parting ways, leading to hoarding (Ayesha Inam, February
2021).

The following is an analysis of the current PESTLE analysis of Pakistan:

Political:

Pakistan is placed strategically in a very important location in the south Asian continent on the
other hand tensions between its neighboring countries India and Afghanistan have made
Pakistan’s status quite hostile. Islamic republic of Pakistan is a democrat country with Prime
Minister having the most power but analysts put up the argument of Pakistan’s establishment
consisting of its security forces and armed forces overshadow the ruling political party when it
comes to policy making. PTI, PMLN and PPP are the three main political parties that play a key
role in Pakistan’s political setup. On the other hand, as of 2022 Pakistan is going through
complete political instability and chaos making it difficult for industries to function smoothly.
Country’s huge hurdle to having effective implementation of policies and ease of business is
corruption.

Economic:

Pakistan is witnessing economic turmoil due to recovery from COVID, flooding, political
instability, Ukraine-Russia war and overall global crisis going on. According to World Bank,
Pakistan shall witness an increase of 2% in its economy by the end of fiscal year 2023 and the
GDP is supposed to grow slow and steady to 3.2% by the end of 2024. The macroeconomic
outlook of Pakistan is outweighing the positives as the current account deficit is increasing,
inflation is rapidly rising specially due to the flood hit areas, there has been disruption in supply
chain, strict monetary policy have increased the interest rates and there is urgency of relief
programs to be executed to control poverty. Pakistan being the Agrarian economy will have to
suffer more due to the agricultural land shrinking due to climate change and most importantly the
flooding of 2022 had submerged 2/3 of the country in water. Amidst all that Pakistan entering it
19th IMF Loan Program has to ensure that they make a way out for themselves in repaying the
foreign and public debt, which has been staying as hanging sword on its economic outlook since
past few decades now. Foreign investments in the country by countries like China, Qatar, KSA,
USA, UK, Japan etc. shed a positive light amongst all the uncertainties. Imports of Pakistan
contribute around 16% of its GDP while exports contribute around 9% of its GDP, which is
again an alarming sign.

Legal:

Pakistan’s constitution ensures to protect the rights of all kinds of social discriminations on the
bases of cast, color, gender, race, color, religion which gives the advantage of residents of
Pakistan to have just life. The industrial laws are in line with its constitution and federal sharia
court to have synchronization with Islamic rulings in the country. The laws of the country are
defined for all the business operations, investors and companies. To help the laws to be
implemented proper structure of regularity authorities have also been defined. Contrary to all of
this, the huge hurdle is effective implementation of these laws which mainly is reflection of
corruption in the society and poor judicial system. Legal efforts are being taken to encourage
people to file themselves for incomes taxes. Minimum wage for employees in Pakistan is 25000
rupees while working hours defined by law are 8-9 hours per day.

Technological:

Pakistan being one of the nuclear states in the World, is witnessing a technological progress in
the country. Comparatively to the World the country has not been progressive in the area due to
poor tech infrastructure and limited internet accessibility however the perspective is changing
now. Pakistan is witnessing boom in its tech startups and a lot of businesses are focusing on
digital transition or presence. In the landscape of limited resources, there is rise in technological
literacy, digital skills and race of innovation going on in the country as of 2022. As of 2022
Pakistan had 51% smart phone users to the share of its total population.

Environment:

Pakistan being the country rich with folding all the seasons, landscapes, terrains leading to being
country with most beautiful natural tourist attractions, still needs to find a way to expand its
tourism sector. Climate change hitting the entire World, Pakistan has been hard stuck by natural
calamities occurring as a result of climate change and recent flooding is one of the significant
examples of that. There is growing problem of waste management, plastic disposal,
deforestation, air pollution, scarcity of clean water and sewerage management.
Description of Venture

Ideology of Space Savers

Space-Savers is a modern day warehouse storage service facility. The ideology behind this
concept is to facilitate those customers who are re-locating, renovating, or de-cluttering to store
their items in a storage facility through making bookings through our website. Such home-items
which they don’t use in their daily lives however at the same time they don’t wish to discard
these items. Space Savers aims to offer convenience to our customers and to ensure the safety of
their goods 24/7.
Vision
Space Savers’ vision is to be the first name that comes to mind when our customer’s prized
possessions need a safe home, away from home.
Mission
Space Savers mission is to provide professional, well-maintained, and secure storing facilities
and packing services for the fast-paced people of Karachi. Re-locating to new territories, shifting
homes, or simply wanting to de-clutter becomes a hassle-free process with Space Savers, through
transparency of the services provided and a personalized customer experience.

Reason of Venture
The main aim of starting this business was the initial brain-storming of Space Savers
entrepreneurs, which led to the common problem that all personally appeared to face – storage
problems at their own homes. Whether it may be due to the personal problems of one of the
entrepreneurs, who has faced re-locating residency over multiple cities and countries, amassing
to excessive expenditure on the purchasing of home-items, or to the issues other entrepreneurs of
Space Savers, who face an abundance of hoarding in their homes. Storage area in homes is
limited, and discarding items is not always an option on the table.

Families on rent re-locating to different cities or countries with an uncertainty of returning to the
host city/country, often do not want to discard their current furniture, electronic appliances and
other household items. The thought of having to return to their former city/country causes
hesitation in having to re-purchase home inventory. Not having a safe and secured option of
storing home-items, they are left with the option of selling, whereas storing their possessions
could be more cost-effective.

Our people are known to hoard and form attachments to home-items. There comes a point where,
as families expand, more storing-room is required, and due to unwillingness of discarding prized
possessions, homes become cluttered. A safe and reliable facility offering storage space is the
solution to de-clutter homes, without having to discard the loved possessions.

The process of renovating houses leads to renting out temporary large spaces due to the amount
of furniture and appliances. A storing facility, such as Space Savers, can store the excess
inventory while renovation of homes is completed. This way, customers save from the soaring
costs of housing-rents.

For all of these situations, people can rent out Space Savers’ storage units to store their items,
whether it may be for a long-term or a short term period. Whether they want to store only few
cartons of boxes, or large volumes of furniture, Space Savers is the one-stop storage-solution to
help people in their renovation, relocation, or decluttering.

Service Information
Space Savers’ package includes:

 Packing: Once an order has been confirmed, Space Savers hires the right mode of
transportation vehicle, depending on the amount of items and volume of space that has
been confirmed from the Director Operations. Space Savers visits the client’s house for
ensuring efficient and secured packing of the items that have to be stored at the
warehouse. Packing inventory includes boxes, bubble-wrap, and wrapping sheets which
are provided by Space Savers. This process is carried out by 2 staff members of Space
Savers, under the provision of Director Logistics and Procurement. Packing is a crucial
part as Space Savers safely packs all of the items according to set standards, in order to
avoid damage while transporting.

 Transportation: Transportation will be carried out by 3rd party van- or truck-owners.

Director Logistics and Procurement will be responsible for hiring the right mode of
vehicle 3 days prior to the day of transporting the items. The same Director will also be
 physically present during the transporting and packing duration, in order to ensure quality
of service is being maintained.

 Storage-unit: Space Savers provides two types of storing-units. First, the Self-Storage
Unit is the compartment within sturdy containers. Its dimensions are 8*10 square feet in
size and customers can store their home-furniture amounting to the size of 2-bedrooms.
Second, is Flexible Storage Unit which is 10*10 square feet in size and it is the space
utilized in the open floor-plan of Space Savers’ warehouse. The Flexible Storage Unit
also comes in an additional size of 2*5 square feet.

Customers will be able to extract information about the company, details of the services
provided, contact of the first direct personnel, the Operations Manager, and an illustration of a
step-by-step process of availing the services of Space Savers on the company’s website. Through
the website, interested customers will be able to contact the head office and a company
representative will be available to guide further, in the working hours of the business.

Prohibited Items to Store at Space Savers

Space Savers prioritizes safety first and foremost. Safety of its customers, personnel, as well as
the working conditions at the warehouse. The safety precautions of the items that are to be
stored, will be ensured at multiple points on interaction; the pre-storing survey where customers
will send a list of the items that need storing, the day the service is availed during packing and
transporting, and once the goods enter the warehouse, they will be cross-checked by Director
Operations.

The following is a list of prohibited items that Space Savers will not be storing:

 Hazardous materials (flammable items such as chemicals, oil, propane, fireworks, oil)
 Weapons, firearms, ammunitions
 Perishable items (food, pet-food)
 Undrained washing-machines, fridges, and freezers
 Valuable items (Jewelry, cash)
Office Location
Space Savers’ head office and warehouse are both located at Mehran Town Sector 6 A Korangi,
Karachi City, Sindh, Pakistan.

The purpose of situation the head office within the warehouse was a strategic decision, in order
to save costs, as well as allowing the convenience to customers to have a tour of the warehouse
while meeting the executives.

Office Equipment
Space Savers’ office equipment includes:
 CCTV cameras
 Working Desk and Chairs
 Stationary Supplies
 Printer, A4 Paper
 Laptop
 AC unit
 Fans
 LED TV
 Internet and Telephone
Unique Selling Point
The USP of Space Savers is providing insurance to its customers, which no other warehouse-
storage company in Karachi is providing to its customers. Safety is the top-most concern of
individuals and this is what sets Space Savers apart from its competitors.

In addition, Space Savers is prominently adherent to following standards. The policies regarding
employment laws, customer laws, service-manufacturing laws, and working condition laws will
stay consistent. All procedures will be professionally recorded so that it earns the trust of
customers and increases brand equity.

Insurance is a crucial element and a USP of Space Savers. Since the warehouse will be densely
packed with stored goods such as Furniture Items, even a small fire can lead to a big loss for the
company and its clientele. Our team contacted Mr. Faizan Imran from EFU Insurance Karachi
who provided us with the quotation of insuring storage goods in a warehouse facility. Space
Savers will provide receipts of each sale to EFU Insurance who will charge a 1% Premium on
the invoice value. Certain conditions will be applicable. Sprinklers, fire extinguishers, smoke
detectors and alarms will have to be installed in the warehouse facility, the warehouse facility
will have to be well equipped with pumps to drain excessive water in case of heavy rains and
floods, a well-equipped and trained team to load and offload the goods and a proper security
system. The insurance policy will be including clauses as water and fire damage, biological
agents, theft and vandalism, falling objects and explosions. The policy will also be covering the
clause of transportation of goods from and any damage caused to the goods during
loading/offloading.

Organizational Plan

Form of Organization and Ownership

Space Savers is a partnership consisting of five (5) equal partners. Each partner, who is also a
member of the board of directors, has invested an equal capital amount of PKR600,000.

The partners are: Saud Abdullah, Beenish Farhan, Arsalan Amanat, Muhammad Abdullah
Paracha, and Mohammad Sunny Abbasi. All partners are to share an equal salary and share of
profits.

Cheque Signing Authority

The sole authority of the disbursement of cash and signing cheques has been given to the CEO,
Saud Abdullah. In the CEO’s absence, Director Finance, Mohammad Sunny Abbasi, is
authorized for the signing.

Organizational Chart
 CEO
Saud Abdullah

Director Logistics
Director Finance
& Procurement
Sunny Abbasi
Arsalan Amanat

Director Director
Marketing Oerations
Beenish Farhan Abdullah Paracha

Loaders/Labor x3

Security Guards
x2

Management Responsibilities
1. CEO – Saud Abdullah

 Setting business objectives

 Responsible for meeting with clients for service inquiry and advising on their
storage-needs package

 Getting reports from the other authorities to ensure processes are up to date

 Responsible for developing long term strategies for the business

 Responsible for overseeing and fulfilling manpower requirements

 Cultivating a positive company culture

 Responsible for maintaining coordination between the department

 Responsible for ensuring all business standards are being followed

 Responsible for compliance of rule and regulations pertaining to policies

 Establishing and maintaining customer relationship management

 Qualification: Holds a MBA Degree in Marketing from SZABIST.
Experience: 2 years in the Business Development department as Product Portfolio
Manager at Nestle.

2. Director Logistics and Procurement – Arsalan Amanat

 Keeping records and maintaining the inventory of packing material and office
stationary

 Assigning the correct storage units to customers according to their storing needs

 Being physically present on every client’s transportation and packing process

 Training loaders on the right conduct of delivering packing and storing services

 Responsible for arranging the vehicle for transport from customer location to
warehouse and back to the customer location when the contract ends
Qualification: Holds a BBA Degree and Majors in Supply Chain from SZABIST.
Experience: 1 year experience in the Supply Chain department as Logistics Analyst at
Daraz.

3. Director Finance – Sunny Abbasi

 Receiving cheques and cash settlements from clients

 Setting financial strategies with CEO

 Preparing annual budgets in coordination with CEO and Director Marketing

 Creating monthly financial statements of the company (cash flow statements,

profit and loss statements, and balance sheets

 Responsible for monthly compensation payments to all members of Space Savers

 Recording all transactions from customers and from other authorities of the
company

 Responsible for tax filings and preparing annual audits

 Approving transactions from company account

Qualification: Holds a BBA Degree and Majors in Finance from SZABIST.

Experience: 1 year experience in the Accounts Department as Financial Analyst at HBL
Bank.
 4. Director Marketing – Beenish Farhan

 Developing marketing objectives and the relevant strategies in accordance to

business goals

 Setting yearly marketing budget

 Establishing brand equity

 Responsible for maintaining social media accounts

 Creating blog posts for Space Savers website

 Planning and implementation of PR campaigns

 Managing PR during crisis

Qualification: Holds a BBA Degree and amidst a MBA Degree in Marketing from SZABIST.
Experience: 1 year experience in the Marketing Department as a Brand Ambassador at Unilever.

5. Director Operations – Abdullah Paracha

 Responsible for the operational processes in the warehouse

 Responsible for overseeing labor activities during loading and unloading

processes

 Responsible for ensuring maximized utilization of storage units at the warehouse

 Responsible for checking the storing items for any prohibited item

 Responsible for creating logs of customers’ list of items

 Responsible for arranging and being a part of meetings with customers upon
request of warehouse visit
Qualification: Holds a BBA Degree and Majors in Supply Chain from SZABIST.
Experience: 2 years as Operations Manager in Pak Agri. Commodities International.
Salaries of Directors
The following table illustrates the break-up of salaries by the Directors of Space Savers, as well
as the staff, in the first 5 years:
Manufacturing Plan

Initially, 3x20FT containers will be installed in the warehouse facility. The dimensions of a 20FT
container are 19'4 x 7'4 x 7'10 (L X W X H). The cost of purchasing a container is PKR 350,000.
The transportation cost from Karachi port to the warehouse facility in Korangi town is PKR
20,000. The cost of unloading a container from a truck an installing it in the warehouse facility is
PKR 50,000. Furthermore, there will be modifications required in the container therefore we
have included the welding + labour + repairs amounting to PKR 15,000/20 FT container. 4
drums of paint (approximately 14.56 Liters/Drum) will be needed in order to paint the containers
costing a total of PKR 52,000. 4 persons will be hired on a daily wage basis to paint the
containers and we have estimated the cost at PKR 3,000 per day. Each container would be
equally divided into 2 partitions. Wooden frames will be constructed and sheets will be used
inside the containers to create partitions. 2 sheets with dimensions (4 x 8) would be used in a 20
ft container to create partitions costing PKR 4,000/Sheet. We have estimated the cost of
installing a heavy duty lock on the container doors at PKR 800. All the above mentioned
calculations have been taken online and from respective companies.

At a later stage when Space Savers has achieved sufficient sales and acquired a larger target
market, we will be willing to expand to a larger facility and acquiring more containers in order to
cater to a larger target market. Our future plan is also to acquire 40ft high cube containers to
meet the needs of specific subset of target consumers.
Service Blueprint
Space Savers’ service blueprint is designed to illustrate the different service components that are
directly, or indirectly, related to all the touch-points a customer will face while interacting with
Space Savers.

Physical Evidence
This point is where the customers can visit Space Savers head office and warehouse during the
office hours. Space Savers’ website also is where the customers can get information regarding
the company, staff, service, packages, contact details, and GPS of the warehouse location.

Customer Actions
This point includes the visiting of customers at the warehouse and having meetings with
company representatives. Customers will sign an agreement with the company regarding the
purchase of the unit and the items they are placing there. Agreement also includes safety and
security terms and also defines the time period. Customer can also visit the website for
information and booking a meeting with the representative for further discussions. Website will
also have interactive sections such as FAQ or live chat where customer can directly interact with
the company representative.

Front-Stage Interactions
Space Savers’ representatives, present at the warehouse, will greet the customers who will be
coming to the warehouse. All the documentation will be done there and the company will be
responsible of packing the items and offering the transportation service of goods from
customer’s location to the warehouse and back to the customer’s location when the contract ends
or when the customer needs the items back. All the relevant information will be provided to the
customer regarding the units, price, and standards. These are examples of human-to-human
interactions whereas there will also be human-to-computer interactions where the customers will
be using Space Savers’ website for information or for having a live chat with the representative.

Back-Stage Interactions
This includes the maintenance of the website, maintaining the storage-units’ conditions, ensuring
that the security cameras are working fine, ensuring the old CCTV footages are available and
that old footage remains accessible to comply with company standards of providing 24/7 access
to customers.

Support Process
In order to ensure all processes are being carried out efficiently, every employee of Space Savers
will be carrying out their respective responsibilities accordingly. If any employee falls short in
their tasks, corrective measures will be taken and a member of the board of members will
temporarily substitute for the other’s role, if crucial. Training sessions will be provided to the
staff members of Space Savers on how to pack and store items responsibly and how to conduct
with customers to meet exceptional expectations of customers. All members of the board of
directors will be a part of monthly meetings to discuss upcoming
promotional activities carried out by Space Savers.

Physical Evidence Office/Warehouse

Website Interface
Visitations

Customers Actions Meeting with Visiting Website for Engaging with Live Chat
Company Reps. Info Feature on Website

Human-to-human
Front-Stage Interactions Human-to-computer
Interactions (greeting at
interactions (FAQ online)
warehouse)

Maintenance of Warehouse
Maintenance of
operations (CCTV cameras
Back-Stage Interactions Website
working)

Trainings of employees Monthly meetings of board

members for updates and
corrective actions
 Support Process

Business Operations & Revenue Model

Demand Pre-
of Service Transport
from Storing Quotation Packing -ation Storing Unpacking Feedback
Customer Survey

The above diagram is an illustration of the services that Space Savers is offering at each point of
interaction.
The following table illustrates the revenue model of Space Savers:
PER MONTH PRICING
  Self Storage Unit Flexible Storage Unit Flexible Storage
8x10 10x10 Unit 2x5
Units Available 6 10 6
Unit Rent 35,000 25,000 7,500
Packaging 17,500 17,500 2500
Transport 20,000 20,000 7500
Price Before 72,500 62,500 17,500
Insruance
Insurance Premium 725 625 175
1%
Price 73,225 63,125 17,675
PER WEEK PRICING
    Flexible Storage Unit Flexible Storage
10x10 Unit 2x5
Units Available   10 6
Unit Rent   5,000 1,750
Packaging   17,500 2000
Transport   20,000 7500
Price Before   42,500 11,250
Insruance
Insurance Premium   425 113
1%
Price   42,925 11,363
Marketing Plan

Marketing Objectives
The following marketing objectives are the overall aims Space Savers aims to achieve, within the
first 5 years of operations, through the implementation of relevant and effective marketing
strategies:

 Cultivate and maintain brand awareness of Space Savers in Karachi, within the first 5
years of its operations, to the point that Space Savers becomes synonymous with the
service it provides – self-storage units.
 To increase sales revenue by 25% every year, for the first 5 years, through effective
marketing strategies.
 Increase traffic on Space Savers website by 10% on a monthly-basis, for the first 5 years.

Space Savers’ Marketing Mix

 Product (Service): Space Savers provides self-storage units as well as the packing and
transportation services to its clients.

 The self-storage units are classified in the categories of: Self-storage container
unit (pre-set units developed within containers) and flexible units (floor-space
rented out to clients with different space requirements).

 Packaging service includes Space Savers own material, such as the carton boxes,
tools, bubble-wrap, and packing-paper to keep items safe.

 Transportation services are provided through 3rd party van- or truck-owners,

depending on the amount of items that need to be transported. Space Savers is
bound to physically monitor the packing and transporting processes through the
presence of the Director Logistic & Procurement, in order to maintain trust of the
customers.
 Price: Space Savers’ pricing strategy is developed on the basis of market competitive
prices, that includes the service cost of warehouse unit space rent (including security and
safety cost), packaging service cost, transport service cost (cost of two trips and loading-
unloading labor wages) and insurance premium charge.

The pricing of our product on the basis of monthly and weekly packages and unit sizes
are as stated below:

 Place: Head office and the warehouse location of Space Savers is located in Mehran
Town, Sector 6-A Korangi, Karachi, Pakistan.

Space Savers’ information about the company and its services are also provided on the
company’s website at www.spacesavers.com. Customers may find the contact
information on the website of the head office phone number, or choose to get in touch
with the Director Operations and/or the CEO.

 Promotion: Awareness of Space Savers will be communicated and spread to the target
market through relevant promotional activities. This will include strategies directed at
traditional advertising, digital media strategy, and PR campaigns. Space Savers will have
a Facebook presence, which will be linked to the activities of Space Savers’ website.

 People: Space Savers will be prominently highlighting the concern it keeps for its
employees and customers.
  Customers’ needs will be prioritized at each touch point of the service to promote
a customer-centric approach of the business and successfully deliver positive
customer service.

 Space Savers’ staff will be trained to offer the best customer experience. In
addition, the staff of Space Savers will be employed within the labor laws of
Pakistan and will be subjected to a safe and physically- and mentally-healthy
working environment, in order to maintain productivity and quality levels.

 Process: As customers’ expectations for fast and reliable services are the upmost priority,
Space Savers will be maintaining a streamlined process of its logistics. From the back-
stage to the front-stage interactions, customers will be subjected to timely responses and
delivery of services. The process will also be illustrated on Space Savers’ website for
ease of understanding and to reduce perceived risks of customers.

 Physical Evidence: In order to ensure legitimacy of Space Savers, as a startup, physical

factors such as the company’s website will be designed professionally and with a purpose
of delivering functionality. Company information, its values and principles, pictures
section of the warehouse, testimonials of customers, services information from
description of units and the amount and types of items that can be stores to efficient
packaging, and delivery processes will all be demonstrated to users browsing through the
website. This will be carried out to cultivate a positive and trustworthy image in the
customers’ minds that Space Savers is not just any other self-storage company in
Karachi, but that its existence is to fulfil a need of the target market.

Target Market
Space Savers’ target market defined, in a broad manner, are residential property-owners who
need storage space. To segment and target this pool more precisely, Space Savers has defined its
customers who are in the process of:
  Renovating: Property-owners who are in the process of renovating their homes who shift
to a different temporary place and need storage-space to store their furniture and home-
items. This may also include business-owners who are renovating their office-spaces.
These customers can save rent on the temporary place they’re abiding in by storing their
property items at Space Savers’ storage-units.

 Re-locating: These customers are those who are shifting to a different city, in Pakistan,
or country. The households targeted in this segment are those who are uncertain and wary
of selling their property-items (home furniture) in their current residence, in the event that
the re-location is unsuccessful and they must return to their current residence. Space
Savers will allow these customers to store and save their personal items, so that they can
save costs on purchasing new home inventory again.

 De-cluttering: This type of household is one where home-items have been hoarded and
discarding is an option they hesitate with. Space Savers allows storage-solutions to store
home-items that are not a daily-need for these customers and they wish to down-size their
belongings, without losing ownership of the items.

Segmentation of Target Market

 Demographics
Renovators/Re-locators: Age: 45-year-old and above (boomers and GEN X); Gender:
Male and females; Households-of-four; Families living on rent; Upper- and Upper-
middle income classes (SEC A and SEC B)
Renovators: Age: 45-year-old and above (boomers and GEN X); Gender: Male and
females; Households-of-four; Families living on rent or home-owners; Upper- and
Upper-middle income classes (SEC A and SEC B)
Down-sizers (de-cluttering): Age: 45-year-old and above (boomers and GEN X); Gender:
Pre-dominantly females; Upper- and Upper-middle income classes (SEC A and SEC B)
  Geographic
Renovators/Re-locators/Down-sizers: Residents living nearby warehouse in Korangi,
Clifton, and DHA

 Behavioral
Renovators/Re-locators/Down-sizers: Customers who seek professionalism and value
standards being implemented. Those who will be willing to purchase premium services as
long as quality of service is not compromised. Customers who stay loyal to a brand once
they have witnessed excellent customer service.

 Psychographic
Renovators/Re-locators: Those customers who seek one-stop solutions for tough
processes such as shifting; Those who seek a hassle-free service efficiently with minimal
contact directly related to the process
Down-sizers (de-cluttering): Customers with the personality of hoarding who do not want
to sell their home-items but require free space at their residencies as well

Competitor Analysis
Direct Competitors:

 CAS – Cargo Aviation System

 Harsa Group

Indirect Competitors:

There are several indirect competitors of Space Savers, but mostly are unstable one. These
includes renting out shops, homes, depots, and offices for storing house-hold items or business-
related inventory. These property-owners charge according to the rental value of their empty
spaces depending on the location of the vicinity. Generally, these options are not feasible and
accessible for the customer as there are no proper security measures; this creates chances of theft
or deterioration of stored items. Customers are hence wary and reluctant to rely on these indirect
methods and only use their services for short term purposes. This gives Space Savers an
advantage over the current dynamics of the industry.
Pricing Strategies of Competitors:

In order to ensure that the pricing strategies and the price levels set by Space Savers is in line
with its competitor’s offerings, the following companies related to Space Savers’ services were
contacted:

1. Karachi Movers and Packers

2. Movers and Packers International
3. Speed Movers and Packers

 Karachi Movers provided the following quotation:

Transportation Charges from Residence to Warehouse (D.H.A – Korangi): 18,000

Loading/Unloading Charges: 16,000

Warehouse Unit Rent / Month: 14,000

Packaging Charges: 22,000

Total = PKR 70,000 / Month

 Speed Movers and Packers quoted a figure of PKR 75,000 / Month.

Movers and Packers International provided us the following quotation:
Transportation Charges from Residence to Warehouse (D.H.A – Korangi): 12,000
Loading/Unloading Charges: 14,000
Warehouse Unit Rent / Month: 20,000
Packaging Charges: 30,000
Total = PKR 76,000 / Month

Hence, Space Savers pricing is set competitively, as follow:

SWOT Analysis
Strengths
- Insurance is provided on customers’ goods -This concept of self-storage is relatively
- Space Savers outlines standards of
processes and complies with them
- Secured warehouse with 24/7 security and benefits
CCTV cameras
- Transportation and packing services
available for customers
- Competitive pricing
- Flexible storage-unit availability
- Customer-eccentric approach
Opportunities
-To expand storage facility to other segments,
such as students (lockers in schools and
universities)
- Engaging with customers to arouse their needs
of renting a storage unit, as it saves costs for
them (counselling services)
- Targeting small business owners to store their
inventory items at Space Savers
- Growing storage space to target B2B clients
- Efficient branding as current competitors are
unheard of
Weaknesses
unheard of in Pakistani market so it will
take efforts to attract customers of the
- Hiring trustworthy staff will be a concern
- As a start-up, marketing expense will be
limited
- Location of Korangi might not be suitable
to some customers as it might be far away
from their home/work
- Current economic situations may restrict
customers in expenditure
Threats
-There are old school offline channels that
work like storage units in Karachi. It is
culturally-acceptable.
- Few competitors in the market that are
offering similar service of self-storage
- Economic instability may raise business
costs
- Business may be at risk of bankruptcy if
marketing and financial efforts are not in
sync, as a startup
Marketing Strategies
Space Savers’ marketing strategies have been outlined for the first 5 years. The strategies are to
be designed, consistently evaluated, and remain in sync with the overall marketing and business
objectives.

The marketing strategies have been devised accordingly within the pre-launch, launch, and post-
launch stage of Space Savers.

Pre-launch Stage

1. Development of Space Savers’ Website

The development and maintenance of the company website will be outsourced to
professionals at Boundless Technologies. Space Savers’ team will closely work with the
developers on the designing and in providing the accurate information.

The following are the important aspects that the website will illustrate:
o Company Profile (Directors’ information, company values, mission, vision)
o Storage Types (Services offered, size guide)
o Illustration of Process Flow (Easy to understand for customers)
o Privacy Policy (Customer details/logs)
o Blog (Articles written by Space Savers)
o Live Chat Pop-Up (Instant Messaging)
o FAQs
o Contact information (Head office telephone number, location, email, working
hours)

2. Below-the-Line Activity
Owners of Space Savers, who are also final-year BBA students of SZABIST, have
carried out a PR activity to raise brand awareness of the said company. Though university
 students are not the direct target market of Space Savers, the aim was to ident the identity
of Space Savers as self-storage providers.
The campaign carried out included team-based games and challenges, where students
could participate and win prizes. It was an engaging event, where students were seen to
be eager to participate in the games amidst end-of-the-semester-stress, and others were
interested and curious to witness the buzz.
The product (service) placement was in the face of Space Savers’ logo present on the
prizes distributed to winners of the games. Brochures were placed on the university’s
notice boards and handed out to students engaging with the set-up. In addition, a sign-
poster was hung, describing the services of Space Savers with its highlighted tagline
“Aap Karein Save, Hum Rakhein Safe”. Moreover, Space Savers’ owners also wore the
company logo throughout the day, to establish an image if the brand identity in the
viewers’ minds.

3. Generate Space Savers Facebook Page

Space Savers presence on Facebook will be vital as the target market is found relatively
more engaged on this social media platform, as compared to others (Instagram and
Tiktok). Creating a FB page will be free-of-cost. Uploading accurate information of the
company and its services will help the account gain initial, low traction, until in later
stages when targeting through efficient content and ad placements can commence.

Launch Stage

1. Google Ads – Pay-per-Click

Promoting Space Savers through Google Ads will be highly efficient as it will increase
the chances of driving customers, who are searching for self-storage units, on Space
Savers website. Google is the first place customers visit when searching for a service,
hence placing ads on convenient times and places will be strategic for Space Savers. This
way, a potential customer can be directed to Space Savers website, when searching for
storage services on Google or Google Maps. Utilizing Google for the PPC method can
also allow Space Savers to advertise itself on platforms owned by Google, like YouTube,
 which has a higher success rate of potential customers purchasing a product or service
once an ad has been spotted.

2. Launch Event – PR Campaign

A PR activity, similar to the BTL activity carried out in SZABIST, will be conducted on
a bigger-scale during the first day of launch. This will be an awareness campaign
revolving around a Family Day event where families will be targeted. The event will
include games, prizes, and catering. In addition, a social responsibility element will be
added to the day, such as a drive to plant trees for the betterment of Karachi’s landscape
and climate. The event will be advertised on FB groups and road-signs

Post-launch Stage

1. Content Creation – Blog Posts

Creating blogs will be an engaging way of retaining traffic on Space Savers website. The
blogs will be curated in-house by Director Marketing and the topics will revolve around
Space Savers’ business of self-storage and related areas that will be informative and
interesting for customers. The goal of this is to retain traction on the company website,
content that readers can relate to and want to share. The monthly blogs will be shared to
Space Savers’ e-mail list and shared on the FB page.

2. E-Mail Marketing
The nature of Space Savers’ business is such that constant e-mail marketing will be
unnecessary. However, in order to achieve the vision of Space Savers, “being the first
name that comes to mind...”, the aim will be to send frequent emails to current and old
clients, informing them of promotions or the monthly blog posts. This will aid in
retaining an image of Space Savers in the consumers’ minds.

3. Influencer Marketing
Space Savers will invest in influencer marketing, by setting annual budgets to gain
sponsorships from local favorite social media influencers. Influencers like Junaid Akram
and Abdullah Sultan can increase credibility of Space Savers and they are suitable as they
 target the right target market. The sponsored contents will be informative clips and videos
about Space Savers’ services and its USP, to make it stand out.

4. WOM
Word-of-mouth will be generated with the sole tactic of providing exceptional customer
service. From the initial point of being in contact with Space Savers’ representatives until
the end of the contract, customers’ requirements will be prioritized, without
compromising on company standards, and feedback will be evaluated for suggestions.
Though repeat purchases may be rare (but foreseeable in the event a previous customer
needs storing-services again), positive experience will aid in referrals.

Marketing Budget

The following is a break-up of the total marketing expense Space Savers’ will incur in the first 5
years of operations:

Financial Statements

Space Savers’ Cash Flows of the first 5 years:

Space Savers’ Income Statements of the first 5 years:
Space Savers’ Balance Sheets of the first 5 years:

Risk Assessments
Every business, whether physical or digital, is exposed to a variety of threats. The following are
the potential risks for Space Savers:

Fire
Warehouse will be having a lot of household items made of different material and all wrapped in
cardboard boxes and even a small fire can expand in minutes and can be disastrous. To minimize
the damage, Space Savers will be maintaining fire extinguishers and sprinkler systems will be
connected with smoke detectors. Training of the staff will be done on how to use this equipment
in case of emergency.

Flooding
Water can damage the items that are stored in Space Savers flexible units and there are 2 ways to
avoid water contact with the goods. First is that all the goods will be stored on palettes to avoid
contact from the floor and water. Secondly windows and doors will be having rubber seals to
avoid penetration of water from windows and doors.

Product Damage
There will be goods Space Savers will be receiving from the customer which may include heavy
items, light items, and even fragile items. All items will be marked during packing according to
its category and hence will be placed and taken care according to the category such as that heavy
items are stored on the bottom line having light items above it and fragile items on a side for
special care. Staff will be trained on how to handle different category of goods.

Security
As Space Savers will have high volumes of good stored in the warehouse, risk of security
concerns will rise as well. There can be internal and external threats. Internal threats may include
the staff of Space Savers, and external threats may include any individual entering the premises
as a customer. To avoid such scenarios, safety standard procedures will be complied by
conducting background checks of the staff and checking of every customer at entrance. Security
systems will be maintained and ensured that 24/7 CCTV recording is being recorded. The control
system will have recording of last 30 days. For further security, Space Savers will keep
records/logs of people visiting the head office or warehouse by writing their contact details and
CNIC number.

Slips and Trips

Any accident can happen in the warehouse as there are human and machines working together.
Space Savers staff will be conducting daily checks to ensure that there are no loose materials on
the floor and the track of lifter is clear. Space Savers standards are to comply with the
maintenance of good lighting and using of caution-sign boards and floor markings.

Outsourcing Transportation
As transportation needs will be outsourced on the basis of the amount of goods needed to be
transferred from clients’ homes to Space Savers’ warehouse, or vice versa, there is a risk of
sudden cancellations. The Director Logistics & Procurement will be responsible for renting van-
owners 3 days prior to a service-delivery. The van-owner will be contacted on the day of
delivery as well to confirm the availability.

Measuring Parameters
Quality Control
Quality control is a crucial and vital aspect of Space Savers which will be highly focused upon
by the team. Several quality checks will be carried out throughout the procedure from loading of
goods from the client’s residence or business workplace to unloading the goods in the
warehouse. Once the client demands for a service from Space Savers, the Director Operations,
will be conducting visits to the client’s residence or workplace in order to conduct surveys and
take a closer look at the job assigned and then plan and offer to the customers accordingly. The
director operations will be inspecting the goods that need to be moved, closely work with client
in order to understand their needs, identify the delicate and valuable items, assess the man power
required along with the availability of the vehicle and finally schedule the date with the client. In
the next phase process would be the packing. All the fragile items will be packed in a proper
manner to avoid any chances of breakage. All items will be packed in cardboard boxes plastic
wrapped, tapes, strings etc. Throughout the loading process, the Director Logistics &
Procurement will be present at the location to ensure that the goods are being packed and loaded
on trucks to ensure customers peace of mind. The packed goods will be carefully moved on to
the trucks and unloaded at the specified warehouse location in 20 FT Containers where the
Director logistics and procurement will be overseeing the operations. Space Savers will be
fumigating the entire warehouse facility (Open Area +Containers) in order to protect the
furniture kept in the warehouse completely from all kinds of pests and termites. Space Savers
aims to differentiate from its competitors by offering premium quality services to its customers
and at attractive prices. Space Savers team will also be thoroughly inspecting the quality of
containers that will be transported to the warehouse facility for any kinds of major defects,
damages, repairs or rust to the container. The team will ensure that good quality sound containers
are delivered to the warehouse so there is no compromise on the quality standards. Space Savers
will be obtaining feedbacks from customers. This will help the company to build and maintain
relations with customers will be very important for the long term success of the business.

Sales Control
An updated and well monitored record of all the sales receipts will be kept by Space Savers. The
ledgers will be updated on a weekly/monthly basis. All the sales record will be kept and
maintained by the Director Finance who will be managing the income from customers and
recording the transactions. The Director Finance will be making assumptions and predicting the
sales performance of the company by looking at the current, past, and future sales of the
company in order to create an efficient sales control system and maintaining the sales operations
within the company. Sales control would be important for Space Savers as it would allow the
company to work efficiently by staying within the financial means and would encourage
transparency with the company. Having the right sales budget with the least possible costs can
align well Space Savers sales objectives and profit targets. Once the sale agreement has been
made between the client and Space Savers, all the items will be thoroughly inspected by the
Space savers team. At the time of returning the goods to the clients, if there is any damage to the
goods, Space Savers will be liable to compensate the clients.

Inventory Control
Having a well-integrated inventory control system which will include all the inventory tasks and
receiving/dispatching goods to and from the warehouse storage service facility would be
beneficial for Space Savers. A good inventory control system would optimize productivity and
meet customer expectations by having the right inventories at the right location. The type of
inventory Space Savers would be keeping at their warehouse would be classified under the
category of MRO Goods (Maintenance, Repair and Operating Supplies). MRO Inventory
consists of items that are needed for maintaining equipment and infrastructure. The MRO Items
Space Savers will be keeping are the packing materials which will be used in the packing of the
goods such as cardboard boxes, carton hard sheets, plastic wraps, brown papers for kitchen
utensils, plastic strings, tapes and bubble wraps.

Space savers will be using a perpetual inventory system which would continually update the
inventory records and will account for additions and subtractions as inventory items will be
received, sold from stock, or moved from one location to the other. A perpetual inventory system
would result in accurate results reducing the chances of errors in inventory count.
Exit Strategy

After the initial 5 years, Space Savers will evaluate the financial situation of the business and
accordingly decide the most suitable option for Exit Strategy, given the scenario that the
investors have agreed upon exiting. In worst case scenario, where Space Savers is not only
proftible but also not performing will in other financial indicators, it’ll cause difficulties for the
owners to afford the running of the business. Hence, the best possible exit strategy in that
scenario would be being acquired by a larger company in the industry. The business will be sold
to potential investors at a fair price which is greater than the net worth of the business.

Acquisition would be the most favorable scenario, compared to any other, as it would give the
investors an opportunity to sell the business for more than it may be worth, resulting in returns
for the investors. The acquisition value will be utilized to pay the existing debts and then the
remaining amount will be equally distributed among the partners as the investment by every
partner was equal.

The second option, or strategic decision, would be to liquidate all assets of Space Savers and
exit. This option will help in avoiding further loss and bankruptcy of the company, and
consequently the partners. The liquidation of the Partnership will occur by selling the assets of
Space Savers such as containers, office equipment. and manufacturing-related inventory and
equally distributing the money to the partners, as the investments were equal. This money will be
distributed after all liabilities have been paid off. Dissolution of Partnership will be executed by
the legal counsel.

The exit strategy will be executed in the best possible interest and scenario for all the partners
and it will be reached upon by the mutual consensus of all the partners in consultation with the
Legal team.
Statement of Confidentiality