compilation of entrepreneur project

8/7/2019 compilation of entrepreneur project

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Vision and mission

Mission and vision statement of the organization have been developed in the following

manner.

Vision

To integrate real life businesses with simulations in best way possible.

Mission

To increase business efficiency without wasting single penny

Main business

The main business that we are targeting is providing simulation services to the students of

management sciences department and in the future to the corporate level employees of

organizations.

In this business, we will provide different scenarios to the students and will ask them to take

decisions in those certain situations. For this purpose a complete document outlining the rules

to be followed and techniques to be used in the simulation training will be provided to the

trainees at least a week before the simulations will be carried out. On the basis of the data

provided in those documents, the trainees will take certain decisions and data regarding their

decisions will be fed in the simulation software. This software then on the basis of the data

put in will tell about the efficiency of the decision been taken in the form of future

projections and the effect of these decisions on these future projections.

Values and principles

The basic values that we following are

Being profitable while staying true to our mission

Providing our customers with satisfactory training

Inducing rational approach in the trainees

Staying true to our customers

Providing our customers the strategic evaluation abilities


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Considering the contribution that we would like to make to society in the coming

future

Uniqueness of our business

So far in Pakistan no company is providing simulation training. The only trainings that are

being provided are in the form of seminars and in the office trainings. Considering the above

factors, our company will be the first one in Pakistan to provide such exercises and trainings.

More over as it is prominent from our vision and mission that we have the capability of

providing trainings to trainees without wasting any capital.

The tradition that is prevalent in Pakistan is companies invest in decisions and then find and

evaluate whether it is profitable or not. Contrary to this situation, we would help different

universities and firms to understand that how different aspects should be weighed when such

sort of decision is to be taken.

In short we have the capability of establishing real life scenarios for the trainees to make

decisions.


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Business and industry profile

Industry analysis

Over the past few years more and more students are turning to management sciences

education and fields affiliated to it because of the versatility available to the students after

doing such sort of degree. A student doing BBA or MBA from a business school can look for

a job or can start his or her own business.

In the light of the above facts, the market that we are targeting is expected to increase in

future. Moreover because of the profit margin and potential target market available more and

more companies are expected to emerge in the near future.

Moreover as the market is un served right now, because of the increasing demand and

potential monopoly we can charge our customers the prices of our desire and can cover our

cost quickly. By doing so we would be able to decrease our prices in the future to force our

competition out of the market and would be able to maintain our monopoly.

As said before due to increasing profit margin we have a good probability of having highprofits in the future.

Key success factors

Following are our ksfs

Personal attention for customers

Trained and motivated employees

High quality

Consistency of services

Friendly and empathetic staff

Besides these KSFs we would try our best to satisfy our customers in the best way possible.

Goals and objectives


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Business strategy

For any business to operate in the environment, it needs to be very much clear regarding how

it is going to tackle with the competitors in the market. For our business the business strategy

is as follows.

Image of our business

We as a company are portraying image of simulation solution providers. For organizations

and universities that are trying to provide their employees and students with real life tinge

without wasting capital, we are the right company for them to contact.

Position in customer mind

As discussed earlier we would like to position ourselves as a simulation solution provider in

the mind of the customer. We portray our image as a company that would take care of our

clients and would provide them with personal attention and satisfaction. Personal attention

means that we would try our best to customize our processes according to the needs of our

customers and satisfaction in the sense that we would try to provide our customers with the

best training and facilitating services possible.

Competitive strategy

The competitive strategy that we are following is focus. Under this focus strategy we have

identified a certain niche in the market. This niche has further been divided in to 2 parts. In

the first phase we are targeting one of the part of niche that is the students who are graduating

and receiving MBAs degree from different universities.

Once we have completely captured the university part of our niche, then we will set out to

target the other part that is the corporate level executives of organizations functioning.


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For this purpose we have closely monitored the needs of our target niche universities". We

have identified that the universities want to provide their students with practical experiences

but do not have enough capital to practically build different businesses in real life to provide

students with opportunities to learn. Moreover it is not their responsibility and is also not

practically feasible to develop businesses on such large scale for the sake of providing

trainings to the students. So keeping in view the above stated requirements of universities we

are using such softwares with the help of which simulated businesses will be generated and

the students will be asked to take decisions for effective performance of these businesses.

This will provide an opportunity to the universities to provide their students with real life

experiences without making huge investments.

Similarly we will provide opportunity to organizations to train their corporate employees to

take critical decisions without the fear of losing investment.

SWOT analysis

We will SWOT our company in the following manner.

Strengths Weaknesses

Educated staff ! Inexperienced staff

High Motivation ! Limited Capital

Defined business plan ! No PR

Urge to learn ! No history for customer

Opportunities S / O O / W

Un served mkt Use educated staff to serve un served mkt Serve mkt to gain experience

Chance of monopoly Use business plan to create monopoly Develop PR to create monopoly

Demand Learn how to force competition out

No direct competition Use motivation to fulfil demand

Threats S / T W / T


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Expectation Use educated staff to meet expectation Develop PR to meet expectations

Building demand Use business plan to cope uncertainty Use limited capital to meet

Uncertainty uncertainity

Instability of economy

Company products and services

The product that we will be offering to our customers is the training services that we will be

providing to our customers.

Description of our services

We will be providing training services to our customers. In these trainings, we will beproviding our customers with the skills of taking the most efficient decision in the situations

called for it.

We will provide different scenarios to the trainees and will ask them to take decisions in

those certain situations. For this purpose a complete document outlining the rules to be

followed and techniques to be used in the simulation training will be provided to the trainees

at least a week before the simulations will be carried out. On the basis of the data provided in

those documents, the trainees will take certain decisions and data regarding their decisions

will be fed in the simulation software. This software then on the basis of the data put in will

tell about the efficiency of the decision been taken in the form of future projections and the

effect of these decisions on these future projections.

As a result the trainees will be able to identify the effect of this decision on their future

conditions. The effects of decision of factors such as the finances of the company, human

resource of the company, marketing and other departments.


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Benefits for customers

The benefits that our customers will receive from our services are

Rational skills to evaluate different options

Team leading skills

Decision making skills

No capital wastage

Strategy making skills

Crisis and conflict management skills

Organization development skills

Uniqueness

The nature of our business is in itself unique as it has not been implemented practically in

Pakistan up till now, so this service is being provided for the first time in Pakistan.

Some of the universities like Lahore University of management sciences are providing these

services but there are no such company working in Pakistan whose sole formation is based

for the purpose of providing these services. So our organization is the first one in Pakistan.

Patents or trademark protection

We are not developing any new product or service instead we are providing trainings and the

software that we are using, we have developed a contract with the developers of the software.

According to this contract they are going to provide us with the software for which they have

obtained a copyright and we will use it in return for money.

As far as copyright and trade mark for the incorporation of the company and name of the

organization is concerned, we have received a letter of commencement of business for the


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registration department has been received and we have been given the right to use the name

of the company.

For the website we have purchased the domain name of the company in return for a fee and

has the right and authority to use it.

Future services

In the coming future we would include certain other aspects in our training facilities such as

training regarding

Quality assurance

Quality of work life

Diagnosis of the organization

Moreover as newer fields will continue emerging we will in cooperate them in our training

services as well.

Marketing section of business plan

In this section we are going to discuss the four main Ps that are included in marketing that

are

Product

Price

Placement

Promotion

In order to define the above stated factors we have to first identify the situational factors that

are residing with respect to our product.

Situational analysis

Over the past few years, the field of management sciences has seen new heights and

challenges. With increasing interest of youth to adopt management sciences as their career

path, the level of competition has been all time high.


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With the changing trends, the old yearly systems have been replaced by new and improved

semester systems in which students are given more and more experience and tinge of real life

that how things are done in real life.

Adding to the above aspects is competition from students who go abroad to obtain education

and then come back to serve people in Pakistan. The main difference between them and

students graduating from Pakistan is their experience and knowledge with respect to practical

implementation and research work.

As a result universities in Pakistan are trying their best to educate the students at level

comparative and competitive with the international standards.

Customer analysis

Up till now considerable amount of research has not been done in this particular field

however, as discussed in the prior section, with increasing competition students want to be asmuch practical as they can be within the limited resources available and for that the

simulations that we are providing will help them in the fullest sense to the maximum extent

possible.

Target market

Initially, we are targeting all the universities that are offering MBA and BBA across the

province of Punjab and Islamabad. If we add these up the universities that we are targeting

are as follow

If the number of students coming put from these universities are added up, it would give us a

target market of around 15000 to 16000 thousands students. For the time being we can say

that we are targeting a niche completing their business degrees around Pakistan.

Market will shrink or expand in future ?

If we would evaluate the conditions, the trend over the past few years show that our target

market would grow with the passage of time and we would have more customers to capture.

Moreover we can also serve the corporate sector in future that is we can target the corporate

management of big organizations and can provide them training in future.

SWOT analysis (customer point of view)

From the eye of customer we can SWOT our organization in the following manner.

Strength

Educated and qualified staff

Collaboration with international simulation company


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Well defined plan and products

Weaknesses

Inexperienced staff

No past history

Limited capital

Opportunities

No direct competition

Un served market

High demand

Threats

Conventional frame of mind of people

Changing economic conditions

Uncertainty

1. Pricing strategy

As we have already discussed that there are no direct competitors of ours in Pakistan as for

now. So we have un tapped sources of revenue that we can use to reach our breakeven point

as soon as possible.

In the later stages if any new competitor would enter the market, we would have the first

mover advantage and we will be able to force out our competitors with the help of decreased

prices because of economies of scale.

High

price

Low

EconomyPenetration

Skimming

Premium


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Low quality High

In the light of the above data the pricing strategy that we are going to use is skimming that is

we are going to skim as much revenue as possible in the beginning and then we will use

penetration strategy to grab and capture more market.

Cost structure

Our basic cost structure will be based on the following costs

Cost of software

Overheads ( projector, fuel etc)

Fee of trainer

Miscellaneous costs

Member ship

For those institutions that would sign contracts with us we would give them 5% discounts of

the accumulated charges.

2. Placement

We have decided to place our office in blue area in one of the buildings. This decision has

been made because of the following reasons.

High traffic area

Proximity to all the universities of Islamabad

An ideal location to start a business

Main stream business location of Islamabad

Easy to identify

3. Promotion

The following means will be used for the purpose of promotion of our products

Our website

The main tool that we are going to use to promote our products will be our website. With the

help of this website we will not only promote our products but we will also sell them.

Collaboration

We will also collaborate with different universities to promote our product. It will be a part ofour PR activities that will be carried out with different universities.


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Advertisement in newspaper

Advertisement in the Sunday news papers will be given in order to promote our product.

Advertisement on face book

The last tool that will be used is advertisement through face book.

Distribution

One of the main factor that can be considered about any service is that it cannot be separated

from its providers. Keeping the same point in view the distribution of our service will be

done in the form of the trainings that will be given to different customers.

LOCATION

The location that we have chosen is Blue Area Islamabad to setup our office

GEOGRAPHIC IMPORTANCE OF LOCATION

Its a commercial area

Easily accesable for major universities


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Helpful for future expansion plans regarding providing corporate training as offices of

many business organizations are there

LEASE RENTAL RATE

30000 per month

Size requirement

For the time being as we have just started two rooms offce is enough for us so we have leased

a two room office on rent

Plan of operations

Forio is the name of software that we have acquired for this purpose costing us 5.99$ per

student

The location of training sessions depends on the customers where they want to arrange it

For the start we have decided to have 7 pcs and 6 laptops for our own use in office and

laptops for training session

LABOR

Includes

Managers marketing

Manager finance

Manager HR

Manager operations

2 sweepers

2 peons

1 security guard

1 IT expert

FORM OF OWNERSHIP


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We have chosen partnership 6 partners are there with following percentage

Ali raza 20%

Qasim ejaz 20%

Salman khan 20%

Hamna Khalid 20%

Naqi husnain 10%

Muhammad umar 10%

REASON

We are all students and lack financial resources and combine we can contribute the cost that

is required to start the business as we are starting on smaller scale so cannot think of

corporation at this time

DECISION MAKING AUTHORITY

It will be decentralized each manager of a particular field will take decision connected to that

respective field

COMPENSATION AND BENEFIT PACKAGE

There will be profit sharing to the extent of investment percentage in the business

Competitor Analysis


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The competitor analysis for our product can be done in the following manner.

Existing competitor

There is no such organization in Pakistan that has started for the sole purpose of providing the

services that we are providing. The competitor to simulation solution can be done in the

following manner.

Direct competitor

As said earlier there are no such companies in Pakistan that are providing simulation services

to universities and companies. So our target market will not have competitors to compare us

to.

Indirect competitors

Few universities like Lahore university of management sciences and institute of business

administration are providing these services but they are not providing these services for the

purpose of doing business instead they are using it to train their students. As a result we have

a huge market that we can capture.

Potential competitors

A number of people are thinking about entering this market. Among these are a group of

entrepreneurs from COMSATS University. More over LUMS and IBA can also see the

potential and can decide to enter the market in future.

As a result of these universities entering the market, our target market will be divided and

because of their names and reputation and goodwill that they have developed over the past

few years it is quite possible that the customers will switch over to them.

Impact on our business

As discussed above, if these universities would start providing these services professionally

in future simulation solution will have tough competition and the market will be divided.


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Human Resource Department

I as the manager of the H.R department will be outlining the major HR developments and

perspectives which are necessary to keep our consultation firm on the run.

Key managers and employees:

In this section I will highlighting our key departments, their managers and our employees

Finance department

The finance department is being supervised by Qasim Ejaz and Salman khan. Along with

these supervisors there are 5 employees working in the finance department which look after

the organizations finances and financial aspects.

Marketing department:

Marketing department is being headed by M.Ali Raza and Naqi hussain.

Operations

Operational department is also a very active department of our organization. Its being

supervised by M.Umer.

HR department:

H.R department is being headed by Hamna Khalid.

MANAGERIAL PROFILE:

1. QASIM EJAZ:

Qasim Ejaz is a graduate from COMSATS University Islamabad with a degree in

bachelors in management sciences. He has majored in finance. In his educational

career he has done many finance related projects for example the Ratio Analysis and

Comparison on Two listed companies and has also wrote finance related research

papers

1. SALMAN KHAN:

Salman Khan is a graduate from COMSATS university Islamabad with a degree in

bachelors in management sciences. He has also majored in finance. He worked on many

portfolio investment and credit management related projects in his educational career.

2. M.ALI RAZA:

M.Ali Raza is also a graduate from COMSATS university Islamabad with also a degree

in management sciences. He majored in Marketing. In his educational career he did many


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marketing and advertising related projects. He wrote a business plan for opening a inter

university radio channel and has also wrote many research papers related to marketing.

3. NAQI HUSSNAIN:Naqi Hussnain is a graduate of COMSATS University Islamabad with a degree in

bachelors in business administration. He has majored in Marketing. He has also been

affiliated with marketing related projects which includes a creation of business plan for

opening a Youth Club in Islamabad and also for opening a business consultancy firm.

M.UMER:

M. Umer Khan is a graduate from COMSATS university Islamabad with a degree in

bachelors in business administration majoring in Operational management. He has

worked in many operational management and TQM projects and has also wrote many

research papers related to it

HAMNA KHALID:

Hamna Khalid is a graduate from COMSATS university Islamabad. She has also acquired

a degree in business administration majoring in human resource management. She has

worked on many HR related projects, has also conducted a training session on job skills

and wrote many human resource management related research ppers.

JOB TITLES;

Qasim Ejaz Finance Manager

Salman khan- Sr finance Analyst.

M.Ali Raza- Product Manager

Naqi Hussnain- Advertisement Head

M.Umer- Executive Team Leader, Operations

Hamna Khalid- Executive recruiter and HR head.


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% ofPartnership

Particulars % Ammong partners Particulars

M.Ali Raza 203,00,00

0

Qasim Ejaz 203,00,00

0

M.Salman Khan 203,00,00

0

Hamna Khalid 203,00,00

0M.Umar 10

1,50,000

Naqi Hussnain 101,50,00

0

Total15,00,0

00

ExpenseSheet

Particulars Rs.

Software cost

Initial cost 8600

Semi Annually 4300

Per person 515OfficeEquipments2 LaptopsCompaq

1,00,000

2 DesktopComp 30,000

Office Furniture etc

1,00,0

00

marketing exp3,00,0

00

Office acquiring cost3,00,0

00advancepayment

3 MonthAdvance 90,000

per month rent 30,000

Hall Charges 20,000

Total9,82,9

00


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Cash Flow Budget Worksheet

[Month]

Beginning Cash Balance 1500000.00

Cash Inflows (Income): 2712778.00

Sales & Receipts 7500000.00

Total Cash Inflows 7500000.00

Available Cash Balance 9000000.00

Cash Outflows (Expenses):

Advertising 300000.00

Maintinance 40000.00

Depriciation 20000.00

Miscellaneous 40000.00

Professional Fees 100000.00

Rent or Lease 120000.00

Utilities & Telephone 250000.00

Travell 120000.00

Direct Labour 216000.00

Hall Charges 750000.00

Taxes 1003356.00

Subtotal 2959356.00

Other Cash Out Flows:

Capital Purchases 2577866.00

Subtotal 2577866.00

Total Cash Outflows 5537222.00

Ending Cash Balance 3462778.00

SIM SOL

Income StatementFor the period ended jan 01 To 30th

April 2010

Revenue:


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SIM SOL

Balance SheetFor the period ended jan 01 To 30th

April 2010

Rs. RS.

CURRENT ASSETS:

Bank 10,00,000

Cash 17,12,778

Accounts Receivable .

TOTAL CURRENT ASSETS 27,12,778

PROPERTY & EQUIPMENT:

Fixtures & Equipment 1,00,0002 Laptop 1,00,000

2 Desktop 30,000

Prepaid Rent 90,000

NET FIXED ASSETS 3,20,000

TOTAL ASSETS 30,32,778

CURRENT LIABILITIES:

Notes Payable .

Accounts Payable .

Accrued Expenses 529422

Taxes Owed 10,03,356

TOTAL CURRENT LIABILITIES 15,32,778

STOCKHOLDERS EQUITY:

M.Ali Raza 20% 3,00,000

M.Salman Khan 20% 3,00,000

Hamna Khalid 20% 3,00,000

QasimEjaz 20% 3,00,000

M.Omar 10% 1,50,000

Naqi Hussnain 10% 1,50,000

TOTAL NET WORTH 15,00,000

TOTAL LIABILITIES AND NET WORTH 30,32,778


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Documents

compilation of entrepreneur project