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FEASIBILTY REPORT (Engineering

entrepreneurship)

“VANGARD DESIGNS”

Submitted to: Engr. Dr. M Zahid Hussain

Submitted by: Group # 07

Registration No: 2021-ME-505,532,535,538,543

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Table of Contents:
Executive Summary:...............................................................................................................4
Market Opportunity:.............................................................................................................4
Competitive Advantage:......................................................................................................4
Financial Outlook:................................................................................................................4
Expansion Plans:.................................................................................................................4
Conclusion:..........................................................................................................................4
The Business Details:.............................................................................................................5
Type of Business:....................................................................................................................5
Vision of Company:.................................................................................................................5
Mission of Company:...............................................................................................................6
Long Term Goals:....................................................................................................................6
To register a company in Pakistan, you will need to follow these steps:................................6
Market Analysis:......................................................................................................................7
Market Segmentation..........................................................................................................7
Target Market Segment Strategy:...........................................................................................8
Market Needs......................................................................................................................8
Industry Participants............................................................................................................9
Competition and Buying Patterns:..........................................................................................9
Competitive Analysis to Find a Market Advantage:.............................................................9
Market research and competitive analysis:...........................................................................10
Value Proposition:.............................................................................................................10
Competitive Edge:.............................................................................................................10
Business Data and Trends................................................................................................10
Mechanical Design Company in Pakistan:............................................................................11
Engineering Design Bureau (EDB):...................................................................................11
Strengths:.......................................................................................................................11
Weaknesses:..................................................................................................................12
NDC Tech:.........................................................................................................................12
Strengths:.......................................................................................................................12
Weaknesses:..................................................................................................................12

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Avanceon:..........................................................................................................................12
Strengths:.......................................................................................................................12
Weaknesses:..................................................................................................................12
DEW Engineering and Development:................................................................................12
Strengths:.......................................................................................................................12
Weaknesses:..................................................................................................................13
MechCentric:......................................................................................................................13
Strengths:.......................................................................................................................13
Weaknesses:..................................................................................................................13
Marketing plane identification of target audience:................................................................13
Familiarize With Engineering Blog Content:......................................................................13
Launch Different Marketing Campaigns............................................................................13
Leverage Social Media Marketing Channels:....................................................................14
Frequently update our Company’s Official Website:.............................................................14
Take Advantage of Automation.........................................................................................14
Organizing events:.............................................................................................................14
Operation:..........................................................................................................................14
Human resource management:.........................................................................................14
Customer behavior:...............................................................................................................14
Economic indicators:.............................................................................................................14
Market size:.......................................................................................................................15
Market saturation:..............................................................................................................15
Demand:............................................................................................................................15
Pricing:...............................................................................................................................15
Effect of startup business:.................................................................................................15
Fine tune and selling preposition:......................................................................................15
Improving efficiency of machine:.......................................................................................15
Reducing its environmental impact:..................................................................................15
Enhancing its feature:........................................................................................................15
Expertise:...........................................................................................................................15
Financial plan:.......................................................................................................................16
Startup Costs:....................................................................................................................16
Revenue Projections:........................................................................................................16

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Staffing:..............................................................................................................................16
Legal and Licensing:..........................................................................................................16
Revenue Streams:.................................................................................................................16
Machine Design Services:.................................................................................................16
Maintenance and Support:................................................................................................16
Operating Expenses:.........................................................................................................16
Office Expenses:................................................................................................................16
Professional Services:.......................................................................................................16
Sales and Growth Projections:..............................................................................................17
Market Analysis:................................................................................................................17
Sales Forecast:..................................................................................................................17
Growth Strategies:.............................................................................................................17
Financial Projections:............................................................................................................17
Income Statement:............................................................................................................17
Cash Flow Statement:.......................................................................................................17
Break-Even Analysis:........................................................................................................17
Financing Options:.............................................................................................................17
Source of Funds:...................................................................................................................17
Uses of Funds:......................................................................................................................18
Monthly Expense Statement:................................................................................................18
Monthly Income Statement:..................................................................................................18
Profit/Loss Calculation:......................................................................................................19
Cash flow statement:.............................................................................................................19
Break even analysis:.............................................................................................................20
Assumptions:.....................................................................................................................20
Calculation:........................................................................................................................20
Interpretation:.....................................................................................................................20

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Company Name]: VANGARD DESIGNS

[Date]: [Current Date]
Executive Summary:
VANGARD DESIGNS is a machine design company planning to establish its presence
in the Pakistani market, with its first branch in Lahore, Punjab. Our aim is to become a
dominant name in the industry by offering comprehensive machine design services to
various sectors.
Our mission is to provide innovative and high-quality machine design solutions that
meet the unique requirements of our clients. With a team of skilled mechanical design
engineers and a commitment to excellence, we are poised to make a significant impact
in the Pakistani market.
Market Opportunity:
The Pakistani market is experiencing substantial growth in sectors
such as manufacturing, construction, and renewable energy, all of which require
specialized machine design services. VANGARD DESIGNS aims to capitalize on this
opportunity by offering cutting-edge design solutions that optimize efficiency, reduce
costs, and improve overall performance for our clients.
Competitive Advantage:
Our competitive advantage lies in our team's expertise, experience, and commitment to
delivering top-notch design solutions. We have a diverse portfolio of successful projects
across industries, showcasing our versatility and adaptability. Additionally, we leverage
advanced technologies and software tools to optimize designs and stay at the forefront
of industry trends.
Financial Outlook:
We have carefully projected our financials and anticipate steady growth in revenue as
we establish a strong client base. Our financial plan includes a comprehensive analysis
of expenses, revenue projections, and cash flow management to ensure sustainability
and profitability.
Expansion Plans:
While our initial focus is on Lahore, we have ambitious expansion plans to open
Branches in other major cities in Pakistan and eventually explore international markets.
This will enable us to reach a wider client base and diversify our service offerings.
Conclusion:
VANGARD DESIGNS is poised to become a leading machine design company in
Pakistan, offering innovative solutions to various industries. With our skilled team,
commitment to excellence, and a clear vision for growth, we are confident in our ability
to achieve success and establish a dominant presence in the market

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The Business Details:

VANGARD DESIGNS will be a designing company for any kind of machine design in
industry or for distinct services. WE are plaining to open it 2023. Our first branch will be
in Lahore, Punjab. WE have planned to be a dominant name in the PAKISTAN market.
Type of Business:
VANGARD DESIGNS PVT Ltd will be a service providing company. Our company has
in-depth expertise in providing mechanical design engineering services which includes:

1. New design: This design requires technical skills, problem-solving expertise,

analytical skills and creative thinking. Mechanical engineers who create, draft and
build new designs are in high demand across industries and workplaces.
2. Adaptive design: In this process, the engineer focuses on adapting existing
designs. The primary goal here is to make minor modifications or alterations to
existing product designs.
3. Development design: This involves modifying an existing design into a new
product or idea by using new materials or following a new manufacturing method.
4. Rational design: This design relies on mathematical formulae based on the
principles of mechanics to create new designs.
5. Empirical design: Empirical design relies on empirical formulae based on past
experiences and practice.
6. Industrial design: Industrial design is one of the most well-known and commonly
used machine designs. It involves the production of a mechanical component to
address the needs of a specific industrial process.
7. Optimum design: True to its name, it is often the best design to achieve a given
objective under specified constraints.
8. System design: System design is the process of designing the complex
mechanical system of a complicated mechanical device like a car. It includes
designing the various components of the system.
9. Element design: Element design is the design of a specific element of a
mechanical system like a piston, crankshaft, bearing, housing or connecting rod.
10. Computer-aided design: This type of design includes the process of designing
using computer software to assist in creating, analyzing, modifying and optimizing a
design.
Vision of Company:
Vision of 4 MECH DESIGN Pvt Ltd is to become the best designing company of the
country which will be providing quality services in technical industries. Company also
aims to capture the market so that local or national level companies would not have to
go outside of the country to get these services. This will also enhance the economy of
the country.

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Mission of Company:
 High quality and affordable solutions of technical problems.
 Create and cultivate long term relationship with the clients.
 Achieve complete customer satisfaction.
 Improve our services continuously.

Long Term Goals:

Company aims to open its Research and Development department which will be doing
research to optimize the design of the tools and machines used in the industries. Also
company aims to expand its business to international level making it a multinational
company.

To register a company in Pakistan, you will need to follow

these steps:
 Choose a business name: Select a unique name for your company that is not
already registered and meets the legal requirements in Pakistan.
 Obtain a National Tax Number (NTN): Apply for an NTN from the Federal
Board of Revenue (FBR) before registering your company.
 Incorporate the Company: File the required documents with the Securities
and
 Exchange Commission of Pakistan (SECP) to incorporate your company. You
will need to provide information such as the company's name, address,
authorized capital, and the names and addresses of the directors.
 Register for Sales Tax: Register for sales tax with the Federal Board of
Revenue (FBR) if your company will be involved in selling goods or services.
 Obtain a Company Seal: Purchase a company seal from a stationery supplier.
 Open a Company Bank Account: Open a bank account in the company's
name to
 Manage the company's financial transactions.
 Register for Social Security: Register for social security with the Employees'
Old-Age
 Benefits Institution (EOBI) if you will have employees.
 These are the basic steps for registering a company in Pakistan. It is
advisable to seek the help of a professional, such as a lawyer or an
accountant, to ensure that the process is completed accurately and efficiently.

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Market Analysis:
Overview VANGARD DESIGN (Machine Designing Company) is in a period of
Relative stability, although industry size, employment, and revenues typically
fluctuate in response to swings in the business cycle. The number of industry
establishments stands at approximately.
A strong commitment to exporting and the sustained expansion of the Pakistan
economy are key elements in the machine tool industry’s. Changes in the
automotive sector are also important. The automotive industry is far less cyclical
than it was in the past. Auto makers are undertaking more frequent and less
extensive design changes and are becoming globalized, tailoring their products to
individual markets. This has led to ongoing investment programs rather than
concentrated purchasing cycles. The increasing globalization of the automotive
sector is encouraging a similar trend among machine tool suppliers VANGARD
DESIGN(Machine Designing Company)are increasing their worldwide presence,
often through joint ventures, cooperative agreements, and strategic alliances. The
countries that have attracted the largest industry investment to date are India,
Saudi Arabia and China.

Market Segmentation
The company’s target customers:
 Automobile seating manufacturers. These customers require customized
machine tools to better serve their clients.
 Fine blanking and stamping manufacturers. These customers have a strong need
for specialized manufacturing services.
 Manufacturers of complete product lines. Value adding assembly is most
required by this customer segment.
The table and chart below outline the total market potential and estimated growth
rates for the type of products manufactured by Machine Tooling.

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Target Market Segment Strategy:

Machine Tooling will focus our market offerings on three major customer groups:
 Automobile seating manufacturers.
 Fine blanking and stamping manufacturers.
 Manufactures of complete product lines.
Our market research shows that these customer segments are the most
demanding in terms of the engineering, technical service support, and automated
design. Machine Tooling is particularly strong in these areas and will utilize our
capacities to serve these clients. The company will seek customers who require
production of components used in upper-end product lines. This will provide a
further possibility for Machine Tooling to offer our value-added engineering
services.
Market Needs
Each of the served segment’s market needs are shaped by the desire to procure
quality products at reasonable prices. Machine Tooling is in the position to offer
just that to our clientele, and we understand that our products must help our clients
to better add value to their own end customers.
VANGARD DESIGN (Machine Designing Company) tool manufacturers can
expect moderate growth in shipments during the period of 2005-2015. Projections
call for annual increases of approximately four percent. The rising demand for
capital equipment will be driven by manufacturers’ need to improve productivity,
increase capacity, and cut labor costs. Price increases will be virtually nonexistent
as manufacturers continue to place strong price pressure on machine tool
suppliers. The metal cutting sector is expected to be somewhat stronger than the
metal forming sector.

The most active customer markets for VANGARD DESIGN (Machine Designing
Company) in the near future will be the aerospace, appliance, automotive, farm
machinery, and job shop industries. Demand will be particularly robust among job

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shops. The nation’s tool and die businesses are in a retooling mode, investing in a
range of new, high-technology equipment to improve quality and precision. Job
shops are increasing and widening their machining capabilities, particularly in
areas such as high-speed cutting and laser, waterjet, and rapid prototyping
technologies. The trend toward outsourcing by a range of producers, most notably
the automotive industry, will further increase this sector’s demand.
Industry Participants
Competitive threats come from machine shops who perform similar types of
machining, as well as design firms that have established relationships with a large
customer base. Their machinery, tooling, featuring, and inspection equipment is
tailored to accommodate specific customer products. Their weaknesses, however,
are lack of engineering ability, process control, expertise to develop and combine
processes, to synchronously combine operations, and an inability to design and
build automatic load and unload systems for internal use.
Competition and Buying Patterns:
Machine Tooling believes that our customers choose our products based on the
following criteria:
• Price.
• Performance.
• Customer service and support.
Competitive Analysis to Find a Market Advantage:
Competitive analysis helps you learn from businesses competing for your potential
customers. This is key to defining a competitive edge that creates sustainable
revenue.
Your competitive analysis should identify your competition by product line or
service and market segment. Assess the following characteristics of the
competitive landscape:

• Market share
• Strengths and weaknesses
• Your window of opportunity to enter the market
• The importance of your target market to your competitors
• Any barriers that may hinder you as you enter the market
• Indirect or secondary competitors who may impact your success
Several industries might be competing to serve the same market you’re targeting.
The Department of Justice provides a diagram of Porter’s Five Forces as one way
you can differentiate your competitive analysis by industry. Important factors to
consider include level of competition, threat of new competitors or services, and
the effect of suppliers and customers on price.

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Market research and competitive analysis:

Market research helps you find customers for your business. Competitive analysis
helps you make your business unique. Combine them to find a competitive
advantage for your small business.
A good business plan guides you through each stage of starting and managing
your business. You’ll use your business plan as a roadmap for how to structure,
run, and grow your new business. It’s a way to think through the key elements of
your business. Business plans can help you get funding or bring on new business
partners. Investors want to feel confident they’ll see a return on their investment.
Your business plan is the tool you’ll use to convince people that working with you
or investing in your company is a smart choice.
Value Proposition:
Machine Tooling’s products and services offer the following advantages to
customers.

1. Delivery. We provide on-time delivery, thereby reducing customer inventory

and providing them with overall cost reduction.
2. Quality. The products we supply are of high quality and have attributes that
enable customers to carry out their business functions.
3. Price. Our products competitively priced, thus helping customers control their
own bottom line.
Competitive Edge:
Machine Tooling has several highly significant competitive advantages:
• Engineering and technical support service.
• Automated system design and build.
• Customer service and support.
• Engineering and technical skills.
• Cross-functional teams encourage creativity.
• Quality systems are in place.
Business Data and Trends
There are many reliable sources that provide customer and market information at no
cost. Free statistics are readily available to help prospective small business owners.
Consider the following federal business statistics in your market research and
competitive analysis.

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Consider the following federal business statistics in your market research and
competitive analysis:

Mechanical Design Company in Pakistan:

Engineering Design Bureau (EDB):
EDB is a mechanical design and engineering company that specializes in the design
and development of machinery and equipment. They offer a wide range of services,
including concept development, 3D modeling, design validation, and prototyping.
Strengths:
EDB has a highly skilled team of mechanical engineers with expertise in a variety of
design software.
They have experience in a wide range of industries, including energy, manufacturing,
and healthcare.
They offer a comprehensive range of design services, including concept development,
3D modeling, and prototyping.

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Weaknesses:
EDB may not have the same level of resources as larger multinational companies.
They may have limited experience with certain specialized design projects.
NDC Tech:
NDC Tech is a mechanical design company that provides design, analysis, and
prototyping services. They have experience in a variety of industries, including
automotive, aerospace, and energy.
Strengths:
NDC Tech has a strong reputation for quality and reliability in the design and
development of machinery and equipment.
They have experience in a variety of industries, including automotive, aerospace, and
energy.
They offer a comprehensive range of design services, including analysis and
prototyping.
Weaknesses:
NDC Tech may not have the same level of resources or international experience as
larger multinational companies.
They may have limited experience with certain specialized design projects.
Avanceon:
Avanceon is an engineering and automation solutions company that offers mechanical
design services. They have a team of mechanical engineers who specialize in design
and analysis of equipment and machinery.
Strengths:
Avanceon is a well-established engineering and automation solutions company with a
strong track record of successful design projects.
They have a highly skilled team of mechanical engineers with expertise in a variety of
design software.
They have experience in a wide range of industries, including defense, automotive, and
healthcare.
Weaknesses:
Avanceon may be more expensive than smaller, specialized mechanical design
companies.
They may have limited experience with certain specialized design projects.
DEW Engineering and Development:
DEW is a mechanical design and development company that provides design,
prototyping, and testing services. They have experience in a variety of industries,
including defense, automotive, and medical.
Strengths:
DEW has a highly skilled team of mechanical engineers with experience in a variety of
industries, including defense, aerospace, and automotive.
They offer a comprehensive range of design services, including prototyping and testing.

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They have a strong reputation for quality and reliability in the design and development
of machinery and equipment.
Weaknesses:
DEW may not have the same level of resources or international experience as larger
multinational companies.
They may have limited experience with certain specialized design projects.
MechCentric:
MechCentric is a mechanical engineering consultancy firm that provides mechanical
design and analysis services. They have experience in a variety of industries, including
industrial automation, manufacturing, and product design.
Strengths:
MechCentric has a highly skilled team of mechanical engineers with experience in a
variety of industries, including industrial automation and product design.
They offer a comprehensive range of design services, including analysis and
prototyping.
They are focused on providing high-quality, cost-effective solutions to their clients.
Weaknesses:
MechCentric may not have the same level of resources or international experience as
larger multinational companies.
They may have limited experience with certain specialized design projects.

These are just a few examples of mechanical design companies in Pakistan. It's
important to research and compare different companies to find the one that best fits
your needs.
Marketing plane identification of target audience:
You must categorize your clients by looking at the market needs and the services you
offer at your engineering company. In addition, identifying your clients will simplify your
content marketing strategy and ensure that you provide relevant information
You need to provide content that can help clients to differentiate between the two
companies of the same market. It’ll improve the credibility of the company as clients
gain confidence in the services you offer to the table.
Familiarize With Engineering Blog Content:
Blogging in the digital age has become a magnet for leads and conversion for many
businesses. Engineering companies are embracing this strategy to attract more
prospective clients. It’s one way to reach the masses since most people consume
Launch Different Marketing Campaigns
The digital marketing space has several ways to launch campaigns that directly or
indirectly target your audience. You can share information through email or share more
information through video recordings of your engineering work. Of importance, learn
what problems the market has before launching campaigns.

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Leverage Social Media Marketing Channels:

Social media is perhaps the most common marketing channel in the current digital
market ecosystem. People want to keep up with trends, and our engineering company
can ride the digital marketing wave with the help of social media marketing campaigns.
We can organize and interact with your audience through these marketing channels.
This will get us instant feedback from the attendees and possibly improve your
Engineering work. You can grow your client base through marketing channels, which is
Good for business revenue and growth.
Frequently update our Company’s Official Website:
Aside from physical interaction with your clients, you must always pay attention to your
engineering company’s website. It’s one of the touchpoints in a client’s journey to your
engineering workshop. Ensure that you constantly update your web content and remove
stale information that your patrons don’t see as relevant to them and their needs.
Take Advantage of Automation
The technological advancement in digital marketing reduces manual work when
promoting your business. Chabot’s are a common when people are trying to navigate
through your company website. You can automate basic functions and information to
create time for your engineering projects and business.
Organizing events:
Organizing event is known for the event marketing which directly promotes a company’s
product, services, and brand and helps to catch the targeted audiences’ eyes. It
provides a larger opportunity to connect directly with the buyers. The events can be
organized online, offline, as a participant, or a host or even as a sponsor. Event
marketing is often considered as one of the expensive marketing processes. Although
this form of marketing is expensive in nature, many companies have invested.
Operation:
As a beginner we will be working as a small group. After advertising the company we
will be working as well as physically approaching the local clients .But mostly we will be
providing online services.
Human resource management:
The startup will be as a new institute a small group but as we have advertise online we
have to hire someone so to handle the online as well as other clients.
as we will progress will conduct interviews to hire other members.
Customer behavior:
Most of the services we provide are according to best provided environment conditions
(Working) and economic conditions. The customers will be reluctant to try out a new
Company .BUT our services will be on visual outcomes or the values of the theoretical
Outcomes.
Economic indicators:
The company will be providing online as well as on field services so there is almost
Certainty that the company will be a successful and progressing initiative.

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Market size:
Market size and competencies is relatively low so we will be initially facing no or very
Less competition. There is a rare industrial approach that we are using to be a part of
The mainly on top of industrial sector of PAKISTAN.
Market saturation:
There IS almost any chance of some other company leading in this sector because
mainly the PAKISTANI trend of industry is production of goods .IT will take a lot of time
to have market saturated enough to become a rival.
Demand:
There is a huge demand and supply gap in this sector around the world. MOST of the
investors companies need their ideas to be practical but could not have knowledge and
time for it so there will be an advantage for us.
Pricing:
Pricing will be according to the type of work or service. It will also be dependent on the
Company having the service.
Effect of startup business:
The impact of our startup goes beyond job creation and tax revenue. They bring fresh
ideas and new technologies to the market, driving innovation and competition. This can
lead to increased productivity, economic growth, and even the creation of new markets.
Fine tune and selling preposition:
We will be providing solutions to technical problems our method will be changing
according to the market trend plus we will have our products this will make the company
unique.
Improving efficiency of machine:
Our company will always insuring that our customers will have the best experience with
our services and products. This means that there will be improvement from the
previously existing products. WE will be producing new solutions better than their
counter parts in the past.
Reducing its environmental impact:
We will be trying out new solutions rather than relying on the previous ones. OUR main
aim will be to provide new solutions which are according to the globally required
environmentally standards.
Enhancing its feature:
As mentioned earlier we will be enhancing the product or serviced product. We will be
Trying to keep up with the global competition and also collaborating with other
Companies of same market to improve our approach of the field.
Expertise:
We will be hiring people with expertise of their field so that we can creating an
environment which can useful for stockholders .Keeping up with the global market will
rewarding us with the chances of us being the most advanced in the field.

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Financial plan:
To create a financial plan for VANGARD DESIGNS, a machine design company in
Lahore, Punjab, here are some key elements to consider:
Startup Costs:
Determine the initial investment required to establish the company, including office
Space, equipment, software licenses, furniture, marketing expenses, legal fees, and
Initial inventory. Conduct thorough research and create a detailed budget for the costs.
Revenue Projections:
Estimate your potential revenue streams based on the services you plan to offer.
Identify potential clients and market segments, and analyze the demand for machine
Design services in the Pakistan market. Consider factors such as project size, pricing
Strategy, and competition when projecting revenue.
Staffing:
Consider expenses related to hiring and training employees, including salaries, benefits,
And recruitment costs.
Legal and Licensing:
Account for legal fees, permits, and licenses required to establish and operate the
Business.
Revenue Streams:
Machine Design Services:
Outline the different types of machine design services you will offer to clients in various
Industries. Estimate the pricing structure based on market Rates and competition.
Maintenance and Support:
Consider offering maintenance and support services for the Machines designed by your
Company. Determine the pricing model for ongoing support Contracts.
Customization and Consultation: Explore additional revenue opportunities through
Customization requests from clients or offering consultation services for specific
Projects.
Operating Expenses:
Personnel: Include salaries, benefits, and training costs for engineers, designers,
Administrative staff, and any other employees.
Office Expenses:
Budget for utilities, office supplies, maintenance, and insurance costs.
Marketing and Advertising: Allocate funds for marketing strategies, such as website
Development, online advertising, industry events, and promotional materials.
Research and Development: Set aside funds for research, innovation, and staying up-
To-date with the latest design trends and technologies.
Professional Services:
Consider expenses related to legal, accounting, and consulting services.

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Sales and Growth Projections:

Market Analysis:
Conduct thorough market research to identify potential clients, their needs, and
Competitors. Assess market demand and growth potential for machine design services
In Pakistan.
Sales Forecast:
Estimate the number of projects you expect to secure within a given period and
Calculate the revenue generated from each project.
Growth Strategies:
Identify strategies to expand your client base and increase revenue, such as targeted
Marketing campaigns, partnerships, and referrals.
Financial Projections:
Income Statement:
Develop a projected income statement that outlines revenues, costs,
And expenses for the first few years of operation. This will help you assess profitability
And cash flow.
Cash Flow Statement:
Prepare a cash flow statement to track the inflows and outflows of cash, ensuring that
There is sufficient liquidity to cover expenses and investments.
Break-Even Analysis:
Determine the point at which your revenue will cover all operating costs, indicating the
Minimum level of sales required for profitability.
Financing Options:
Evaluate various financing options, such as personal savings, bank loans, investors, or
Government grants. Determine the best approach to fund start-up costs and initial
Operations.
Source of Funds:
Source and refers to the origin and allocation of capital within a business. Here's an
example of the source for VANGARD DESIGNS:
 Personal Investment: The founders of VANGARD DESIGNS may contribute their
personal savings or assets as an initial investment in the company.
 Business Loans: The Company may secure loans from financial institutions or
lenders to obtain additional capital for startup costs, working capital, or expansion
plans.
 Partnerships or Investors: VANGARD DESIGNS may seek partnerships or
investors who are willing to contribute funds in exchange for equity or a share of
future profits.
 Government Grants or Programs: The Company could explore government
grants, subsidies, or startup support programs that provide financial assistance to
businesses in the design or engineering sector.

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Uses of Funds:
 Equipment and Software: Funds may be allocated towards the purchase or lease
of specialized machinery, tools, and software required for machine design
services.
 Office Setup: The Company will allocate funds for office space rental, furniture,
fixtures, and equipment necessary for daily operations.
 Hiring and Training: Capital will be used to recruit and hire a skilled workforce,
including mechanical design engineers, technicians, and administrative staff.
Funds will also be allocated for their training and development.
 Marketing and Advertising: A portion of the funds will be designated for marketing
activities, including creating a website, developing marketing materials, attending
industry events, and online advertising to promote VANGARD DESIGNS'
services and establish a presence in the market.
 Research and Development: Some funds may be allocated towards research
and development initiatives to enhance design capabilities, explore new
technologies, and stay updated with industry trends.
 Working Capital: A portion of the funds will be set aside to cover ongoing
operational expenses, such as employee salaries, utilities, insurance, and other
day-to-day costs.
 Expansion Plans: As the company grows, funds may be allocated towards
opening new branches, acquiring advanced equipment, expanding service
offerings, or entering new market segments.
Monthly Expense Statement:
Salaries and Wages: $12,000 (including salaries for design engineers, technicians,
And administrative staff)
Rent and Utilities: $2,500 (office space rental, electricity, water, internet, etc.)
Equipment and Software Maintenance: $1,000 (regular maintenance and repairs of
Machinery and software)
Marketing and Advertising: $1,500 (online and offline advertising, website
Maintenance, promotional materials)
Professional Services: $500 (legal and accounting fees, consulting services)
Research and Development: $1,000 (investments in new technologies, software
Licenses, research initiatives)
Office Supplies: $300 (stationery, printing, miscellaneous office expenses)
Insurance: $500 (business insurance coverage)
Miscellaneous Expenses: $700 (unforeseen expenses or contingencies)
Total Monthly Expenses: $20,000
Monthly Income Statement:
Machine Design Services: $25,000 (revenue generated from offering machine design
Services to clients)
Other Income Sources: $2,000 (such as consulting fees, training programs, or
Additional services)
Total Monthly Income: $27,000

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Profit/Loss Calculation:
Total Monthly Income - Total Monthly Expenses = Net Monthly Profit/Loss
$27,000 - $20,000 = $7,000 (Net Monthly Profit)
Please note that these figures are hypothetical and for illustrative purposes only. The
Actual expenses and income for VANGARD DESIGNS may vary based on various
Factors such as market demand, pricing strategy, business growth, and operating
Efficiency. It is crucial to conduct thorough market research and financial analysis to
Obtain accurate estimations for your specific business.
Cash flow statement:
VANGARD DESIGNS Cash Flow Statement (Monthly):
Operating Activities: Cash Inflows:
Machine Design Services Revenue: $25,000
Other Income: $2,000
Cash Outflows:
 Salaries and Wages: $12,000
 Rent and Utilities: $2,500
 Equipment and Software Maintenance: $1,000
 Marketing and Advertising: $1,500
 Professional Services: $500
 Research and Development: $1,000
 Office Supplies: $300
 Insurance: $500
 Miscellaneous Expenses: $700
Net Cash Flow from Operating Activities: $8,500
Investing Activities:
Cash Inflows:
None
Cash Outflows:
Purchase of Equipment: $2,000
Net Cash Flow from Investing Activities: -$2,000
Financing Activities:
Cash Inflows:
None
Cash Outflows:
 Repayment of Loans: $1,000
 Net Cash Flow from Financing Activities: -$1,000
 Net Increase in Cash: $5,500
 Beginning Cash Balance: $10,000
 Ending Cash Balance: $15,500
Break even analysis:
Break-even analysis is a financial tool used to determine the point at which a business's
total revenue equals its total expenses, resulting in neither profit nor loss. It helps

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businesses understand the minimum level of sales or production required to cover costs
and start generating profits. Here's an example of a break-even analysis for VANGARD
DESIGNS.
Assumptions:
 Fixed Costs (FC): $10,000 per month (includes rent, utilities, salaries, etc.)
 Variable Costs per Unit (VC): $500 (includes direct materials, labor, etc.)
 Selling Price per Unit (SP): $1,000
Calculation:
Break-Even Point (in Units) = Fixed Costs / (Selling Price per Unit - Variable Costs per
Unit)
Break-Even Point (in Units) = $10,000 / ($1,000 - $500) Break-Even Point (in Units) =
$10,000 / $500 Break-Even Point (in Units) = 20 units
Interpretation:
Based on the above calculation, VANGARD DESIGNS needs to sell a minimum of 20
units of its machine design services to cover all fixed and variable costs and break
even. Selling less than 20 units would result in a loss, while selling more would generate
a profit.

University of engineering & technology Lahore (Narowal campus)