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International Islamic University Islamabad

Business Plan
Entrepreneurship
MGT 401
BBA-29 (B)
Final Project

Dated: May 11, 2017.

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Business Plan
We would provide packing unpacking services with home décor. When people are
shifting to their new home, it takes weeks for them to settle in. Even worse, in today's
two-income families, nobody has the time to do all this work. But we would
efficiently ease the process with a packing/unpacking service. We would supply
packing materials as well as muscle and, if we're doing the packing, we'll neatly and
carefully label everything so our customers can easily locate items at the other end
of the line. When people shift their house they have a lot of work to do, décor is one
of them. So we would provide them an additional service of home decor.
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I. Table of Content

I. Table of content…………………………………………………………………….…….2

II. Executive Summary………………………………………………………………...............3

III. General Company Description…………………………………………………………….4

IV. Product and Services……………………………………………………………………….5

V. Marketing Plan……………………………………………………………………………....6

VI. Operational Plan…………………………………………………………………………....9

VII. Management and Organization……………………………………………………………12

VIII. Startup expenses and Capitalization……………...………………………………………13

IX. Financial Plan………………………………………………………………………………14

X. Refining the plan…………………………………………………………………………….18

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II. Executive Summary

We are providing packing unpacking services with home décor. When people are
shifting to their new home, it takes weeks for them to settle in. In today's two-income
families, nobody has the time to do all this work because of their busy routine. But
we would efficiently ease the process with a packing/unpacking service. We would
supply packing materials as well as muscle and, if we're doing the packing, we'll
neatly and carefully label everything so our customers can easily locate items at the
other end of the line. So we would provide them an additional service of home decor.
As, here mentions that we provide service.so it is a service based business. Our
customers will be Homeowners, Apartment renters, Businesses, Offices. There are
four owners of the company Mahnoor Khan, Nimra Rehman, Iram saeed and
Marium Bibi.We got loan from bank of Rs. 300,000 and the remaining amount will
be equity based. We are going to use this amount in purchasing equipment,
inventory, rented office etc. The amount of loan will be recover in 2.5 years. Our
business will be per the new busy environment as well as for the customer need.
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III. General Company Description

We would provide packing unpacking services with home décor. When people are shifting to their
new home, it takes weeks for them to settle in. Even worse, in today's two-income families, nobody
has the time to do all this work. But we would efficiently ease the process with a
packing/unpacking service. We would supply packing materials as well as muscle and, if we're
doing the packing, we'll neatly and carefully label everything so our customers can easily locate
items at the other end of the line. When people shift their house they have a lot of work to do,
décor is one of them. So we would provide them an additional service of home décor.

Mission and Vision statement:

The vision is to be the best and most trusted corporation that provides with the best logistics
solutions and also the most innovative and creative living ideas.
Thus, our mission is to achieve our vision through fairness, business ethics, global reach,
technological expertise, building long term relationships with all our associates, customers,
partners and employees.

Company Goals and Objectives:

We provide the most inclusive moving services to our customers, and there is nothing we won't do
for your move. We would provide packing unpacking services with home décor. When people are
shifting to their new home, it takes weeks for them to settle in. Even worse, in today's two-income
families, nobody has the time to do all this work. But we would efficiently ease the process with a
packing/unpacking service.
When people shift their house they have a lot of work to do, décor is one of them. So we would
provide them an additional service of home décor to create a better everyday life

Philosophy:
A strong and positive attitude creates more miracle than any other thing, because life is 10% how
you make it and 90% how to take it.

The Market:
Our clients will be Homeowners, Apartment renters, Businesses, Offices.

Legal Form of Business:

Our business is basically based on partnership. As every partner has its own share of investment
and our business based on services.
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IV. Products and services

When people are shifting to their new home, it takes weeks for them to settle in. Even worse, in
today's two-income families, nobody has the time to do all this work. People who work have no
time to carefully and safely pack up and move to a new place and then unpack. We would supply
packing materials as well as muscle and, if we're doing the packing, we'll neatly and carefully label
everything so our customers can easily locate items at the other end of the line. Also in addition
to this once unpacking is undone the main task is setting up the place which is an additional service
provided with the help of an interior designer. All this is done the lowest prices possible so that
anyone can avail of opportunity of moving safely and with trust.

Logo

And our charges for our service varies but mostly it lies in 7000Rs -1000Rs

Slogan:
The slogan for our company is WE ARE MOVING.
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V. Marketing Plan
Marketing Plan economics:
The company’s focus is to target the whole market and people from all classes because it is
everyone’s desire to get their households or any other items packed and delivered safely which is
a plus point for the company’s market to increase.
The company does face barriers which are the cost of untrained workers and labor, but the
company can’t compromise on the quality of services provided therefore they make sure all people
hired are first properly trained and know exactly how to fulfill clients requirements safely and in
the best way possible.

Marketing mix:
Products:
1) Packing and unpacking service: Movers and Dealers provides with best possible material
(boxes and cartons, crates, wrapping sheets, required to pack goods safely with zero
damage and delivering it to the final destination through their own transportation means
and unpacking the goods.
2) Interior decoration: once the team is done with packing, delivering and unpacking the
goods the next main task for the client is to set the furniture (weather in a house, apartment,
office or etc.) due to tiredness after travelling and other busy schedules they might not get
enough time to do so, so the company has interior designers that help decorate their new
place and start positively.
Home Packing Services are meant to pack your household belongings including bedroom
items-clothes, linen, mattress, lampshades etc., Kitchen appliances- under the sink, silverware
and utensil, pots and pans, Tupperware, bake ware etc, glassware -Interior decorative items,
paintings, dried flowers, ceramic tree, lampshades, hurricane globe, glass coffee table, fire
screen etc, Electronic items-computers, micro oven, music system etc . All these are really
expensive and several have zero tolerance to jerks. From the first roll of tape unraveled to the
last box labeled, team of professional packers wrap your entire home right before your eyes to
prevent any breakage and loss and pack everything at your convenience.
We move your house hold, office goods other delicate & heavy goods (duly packed or without
packing condition on your advice) to its final destination throughout Pakistan by on
containerized vehicle. 20ft Containers of 40ft containers as full load basis as per your
requirement.
In short timely Door delivery at your final destination un-loading and un-packing all your
household goods assembling of your furniture and remove all the packing debris.
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Price:
The prices are low as compared to other competitors inters of material and services provided. The
prices charged depend upon on packing material used and quantity of goods packed which is
decided after visiting the place to be packed up. Whereas interior designing is an additional service.
Customers:
The target market is very broad. They are aiming to appeal to people of all classes all who have
one thing in common: Price preference. The main target therefore are the working people who
have to travel every once in a while, and can’t find enough time to do packing un packing. But
people with low incomes can also take benefit from the services provided at cheaper packages.
Competitors:
It’s becoming a common trend that people hire companies for packing unpacking good while
shifting from one to another place. So there are many such more companies.
The major competitor is DELTA Company that is Karachi based. They only provide packing and
unpacking of the goods whereas transportation is not included neither is the interior setting after
unpacking the goods is. We not only are better from them in terms of services but quality as well.
Trained workers and labor under the supervision of one group leader make sure to do the work
perfectly with zero damage.
Table 1.1
Factor Packers and Strength Weakness Competitor Importance to
Movers customers
Product/ Packing Additional New in market DELTA Customer’s
service unpacking home décor satisfaction is
with home services important
décor
Price It depends _ _ Vary _
Quality Medium Good
we don’t work _ _ _
“fast and
cheap”
Image We will create Good image in
image through _ _ customer’s _
advertisement mind
Location G-9 Islamabad Mostly people
live as paying _ Karachi _
guests in that
sector
Advertising Through tv Social media
adds and _ _ _
social media
Position:
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The company is based in the twin cities Islamabad and Rawalpindi but transfers goods to all major
cities of Pakistan.
Promotion:
The main ways of communication for promotion I the market are the ads on the internet,
newspapers and magazines or via brochures pamphlets. Other than paid advertisements unpaid
advertisement also helps get the target market aware which we so through internet and our social
media pages. Also we have teamed up with the city’s known and largest furniture brands help them
pack and deliver goods to the customers with zero damage.
The main office in the twin cities is beautifully designed with good aesthetic sense which clearly
shows how well the company can decorate their new places.

VI. Operational Plan

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Services
Packers and Movers would provide packing unpacking services with home decor. When people
are shifting to their new home, it takes weeks for them to settle in. .Even worse, in today's two-
income families, nobody has the time to do all this work. But we would efficiently ease the process
with a packing/unpacking service.

Service Cost
Packing material cost:
We would need parking material and that would be according to customer’s demand. Packing
material includes Plastic, Cardboard, Foam, Brick carton, Glass.
Labor cost:
As we need people who can pack luggage and move it. We would hire workers to move luggage
from one place to another. We would hire 8-10 workers for this purpose.
Vehicle cost:
We would need vehicles to move luggage safely. We would contract with any vehicle company.
So when we call them they would be here to move luggage.

Customer Service:
We would provide our customer a very satisfied service. We would make sure that they are fully
satisfied with our services and will make their luggage safe and secure till unpacking.

Location
The location of our business or office will be in G-9, where we get an office on rent. We choose
this location because the location has lesser rent then other locations and the second major reason
is that it is easily accessible to every person and mostly people live in that area on rent so people
access us easily.
Working Hours:
Our working hours will be 9:00 am-6:00 pm.

Legal Environment:
Licensing and work permits:
Our company Packers and Movers is registered in SECP and we are allowed to do this business.

Health, workplace and environment regulation:

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As our business related to the services , apart from this we take care of our workers health, if one
worker is not able to do work due to some health issues then we hire some other worker for that
work. If any worker will hurt in shifting of luggage we will take full responsibility of his health
and free medical treatment.
Trademark, copy right or patents…
Our business is first time in Pakistan as we provide Packing unpacking service and an additional
service of home décor, so for our business we reserved a copy right.

Personnel
Packers and Movers have four owners [investors] who will take care of the business matters. And
in our business no employees we will need, We need only workers or labor for the shifting and
also the interior designer as well for the décor service .So for this we required almost 8-10 labors
for packing unpacking service and professional 2-4 interior designers who will design your new
office or home.
Type of labor:
All the labor will be skilled and professional interior designer.
Pay structure:
We will pay to the labor as per contract mostly 1500Rs-2000Rs, but with the contract type, place
the wage will vary. And for the interior designer the pay scale will be 20% of the total profit of
each contract.

Inventory:
Our inventory will be the packing material which are used while packing and that material which
is used in interior designing.
Our investment for inventory Rs 150,000

Credit policies:
We will not provide any of our service on credit but we have a policy that half of the payment is
in advance then half will be received after provide the whole service to them.

Accounts Receivable
Packers and Movers will receive half payment in advance so the other half would be as receivables
in balance sheet. Remaining fee would be received after completion of services which includes
packing unpacking and home decor. Our debtors would be our customers.
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Packers and Movers will need a policy for dealing with slow‐paying customers:
 We would make phone call three days after providing services.
 If they still wouldn’t pay than we will send a letter.

Accounts Payable
Packers and Movers have to pay wages of labor. And home interior’s charges.
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VII. Management and Organization

Management:
Packers and Movers is owned by Mahnoor Khan, Iram Saeed, Nimra Rehman and Marium Bibi
holds bachelor’s degree in Business administration from International Islamic university
Islamabad. Interior designers will be hired by the business as well as the labors.

Organization:
Nimra Rehman would be the in charge of marketing department. Mahnoor khan will be the in
charge of human resource department. Marium Bibi will oversee the finance department and Iram
Saeed will oversee the daily operations.
There are four partners of Packers and Movers and their investments are same.
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VIII. Startup Expenses and Capitalization

Startup requirements:
Rent of office at G-9 sector.
Furniture [chair, tables and Ac] and office equipment and computers
Packing and décor Material
Trucks that are used by us are also rented
We borrowed loan from HBL bank for an amount of Rs.300,000
We borrow 300,000 from debt and 500000 from equity so the cost of debt is 14% and cost of
equity is 20%, total amount is 800000
WACC= (0.375)* 14% (1-0.14) + (0.635)*20 %
= 0.04515+0.127
= 17.2%
These are initial costs which are required to start a proper business. We are starting our business
at G9 Markaz, Karachi company Islamabad. So the rent is not too much high

Measure RS.
Rent 15,000
Wages 15,000
Advertising cost 20,000
Salaries 15,000
Furniture 180000
Inventory 50,000
Office equipment 155000

We discussed with Angle movers who are doing the same business about initial expenses
incurred and they said that their initial cost was low and they only hire transport for this purpose
and do not own them. They have only head office where they deal with their clients which is also
on rent. So we are motivated to do in this way, we have financed our business through taking
long term loan from the bank at 14% interest rate to be paid annually and by injecting capital in
equal ratios.
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IX. Financial Plan

12-Month Profit and Loss Projection

PACKERS & MOVERS PVT LTD STATEMENT OF PROJECTED

INCOME STATEMENT FOR THE YEAR ENDED 30TH JUNE 2017
PARTICULAR AMOUNT RS. AMOUNT RS.
REVENUE 300,000.00
LESS COST OF SALES
-
PURCHASES 115,000.00
LESS CLOSING STOCK (50,000.00)
WAGES 15,000.00
CARRIAGE INWARD 10,000.00 (90,000.00)
GROSS PROFIT 210,000.00
RENTAL 15,000.00
SALARIES (15,000.00)
MARKETING EXPENSES (20,000.00)

DEPRECIATION
FURNITRUE @ 10% (18,000.00)
OFFICE EQUIPMENT @ 10% (15,500.00)
MOTOR VEHICLE @ 20% (55,875.00)

OPERATING PROFIT 100,625.00

LESS INTEREST ( 300,000 @ 14%) (42,000.00)

NET PROFIT 58,625.00

Our net profit is 58625 and revenue is 300000

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Opening Day Balance Sheet

PACKERS & MOVERS PVT LTD STATEMENT OF PROJECTED

FINANCIAL POSITION FOR THE YEAR ENDED 30TH JUNE 2017
PARTICULAR AMOUNT RS. AMOUNT RS.
NON-CURRENT ASSETS
FURNITURE ( 180,000-18,000) 162,000.00
OFFICE EQUIPMENT (155,000-15,500) 139,500.00
MOTOR VEHICLE (279375-55,875) 223,500.00

TOTAL NON-CURRENT ASSET 525,000.00

CURRENT ASSETS
CASH IN HAND 8,625.00
CASH AT BANK 225,000.00
ACCOUNT RECEIVABLE 70,000.00
CLOSING STOCK 50,000.00 353,625.00

TOTAL ASSETS 878,625.00

CURRENT LIABILITES
TRADE PAYABLE 20,000.00

NON-CURRENT LIABILITIES
LONG TERM LOANS 300,000/- @ 14% PA 300,000.00

TOTAL LIABILITES 320,000.00

NET ASSETS 558,625.00

CAPITAL 500,000.00
NET PROFIT 58,625.00

TOTAL EQUITY 558,625.00

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Projected Cash Flow

PACKERS & MOVERS PVT LTD STATEMENT OF PROJECTED

CASH FLOW STATMENT FOR THE YEAR ENDED 30TH JUNE 2017
PARTICULAR AMOUNT RS. AMOUNT RS.
CASH FLOWS FROM OPERATING
ACTIVITIES

OPERATING PROFIT 100,625.00

ADD DEPRECIATION 89,375.00

INCRESE IN TRADE RECIEVABLE (70,000.00)

LESS DECREASE IN TRADE PAYABLE 20,000.00

LESS INTEREST (42,000.00)

CASH FLOW FROM OPERATING

PROFIT 98,000.00 98,000.00

CASH FLOWS FROM INVESTING

ACTIVITIES

PURCHASED OFFICE FURNITURE 180,000.00

PURCHASED OFFICE EQUIPMENT 155000
PURCHASED MOTOR VEHICLE 279375 (614,375.00)

CASH OUTFLOW FROM THE ACTIVITY

CASHFLOW FROM FINANCING

ACTIVITIES
LONG TERM LOAN 300,000.00
CAPITAL 500,000.00

800,000.00

CASH & CASH EQUALENT 283,625.00

Here is the working of income statement and balance sheet ent.xlsx.

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Break-Even Analysis

Break ‐Even Sales = Fixed cost / Price per Unit-Variable cost

= 119375/10000-4333
= 21 units will be required to sale to achieve breakeven
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X. Refining the Plan

For Raising capital:
Here, we got loan from bank on an interest rate of 7%, the amount of loan is Rs. 300,000 the fund
will use to purchase the inventory and equipment used in the office and to startup the business.
The load amount will be repaid in the period of 2.5 years.

Type of Business:
The type of business we have is of service, our business is service based business. We have labor
cost and very little fixed assets. The prices for our services varies that which type of service
customer requires otherwise it is 7000Rs – 10000Rs.
Method use to set prices:
Well the method used to set price is Cost based pricing because it is basically related to the cost
which is incurred.