1
TABLE OF CONTENTS
INTRODUCTION PAGE: ......................................................................................................... 3
EXECUTIVE SUMMARY: ...................................................................................................... 4
CONCEPT: ......................................................................................................................... 4
PROBLEM STATEMENT: ....................................................................................................... 6
RESEARCH GAP FINDINGS .................................................................................................. 7
INDUSTRY ANALYSIS: ......................................................................................................... 8
Economy: ............................................................................................................................ 8
DESCRIPTION OF VENTURE: ............................................................................................... 9
PRODUCTION PLAN: ........................................................................................................... 10
4.
Staffing: ..................................................................................................................... 10
OPERATIONS PLAN: ............................................................................................................ 12
MARKETING PLAN: ............................................................................................................. 13
Marketing mix:......................................................................................................................... 15
SWOT: ..................................................................................................................................... 16
Chain ratio analysis: ......................................................................................................... 17
Organizational Plan/ HR requirement analysis: ....................................................................... 19
Principal shareholders: ...................................................................................................... 19
Authority of principles: .................................................................................................... 20
HR Requirement Analysis: ...................................................................................................... 22
FINANCIAL PLAN: ............................................................................................................... 24
Analysis: .................................................................................................................................. 30
SUMMARY OF WHOLE FINANCIAL PLAN: .................................................................... 32
CONCLUSION: ....................................................................................................................... 33
2
INTRODUCTION PAGE:
À la mode
In fashion, up to date…
Akbar
Square
Lahore, Township
www.website.com
Description of business:
À la mode is a Men‟s Boutique or a men‟s clothing store. The business revolves around
today‟s scenario of style and designing with keeping traditional touch of our culture in line
with. All types of men‟s clothing come under our offerings and specially Kurta, Suits, Shorts
& Shirts. The basis on which we have started this business is providing a facility to people
from middle-middle to middle-upper class.
Financing:
For first two years, we are going to invest Rs 2 million & Rs 1 million is going to be invested
for the third year. All of this investment is going to be used for manufacturing, supplies,
equipment, rent, marketing and other activities which are needed to carry out business
activities.
The report is confidential and is property of the co-owners. Copy of any of this content is
prohibited until written consent of the company is provided to the person/organization that it
is going to be belonged to.
3
EXECUTIVE SUMMARY:
GOAL:
Our Goal is to give our products (Kurta, Shalwar, Suits, Shorts & Shirts, etc.) on competitive
prices but with export quality cloth. As nobody here do that and those who do that, they
usually give cloths on a very high price so we have decided to build a chain of this store but
first we‟ll start from one store in Lahore.
CONCEPT:
À la mode is based upon the solution to the problems of a common customer. All activities
are designed to fill up the gap of trust which is lying down these days in the mind of
customers due to which customer hesitates to rely on the words of salesmen these days. Our
main weapon is the present economic situation saturated with the local and international
trends influencing people‟s needs and at last their decisions about purchasing.
Uniqueness of the Concept:
The concept is unique due to its emergence in era of inflation when everybody when go to
shop they know that they are not going to get for what they are promised off in terms of
relations to quality & price, Durability & working, Need & its solution & fulfillment of the
promise.
We are going launch these clothing lines with reasonable price to provide customers with the
quality of cloth as through our research we have figured out that average of 70% of people
from the segmented market are willing to pay for Rs 2000- Rs 5000 for shopping cloth but
they lack trust among many brands. They say that dresses don‟t last long, bad quality &
improper conduct in complaints proposition to the stores. So we have analyzed the whole
scenario and reached to a conclusion that we could fill the gap but still there comes a very
important question that„ would people buy from us?‟ The answer to this question is hiding in
following questions:

Is paying average payment of Rs 2,500 for a thing which can‟t satisfy you are justified?

Some say that people won‟t buy our clothes even with good quality due to other
competitors, we say “why not?”

Are people satisfied with their purchases these days?
4

Are you satisfied even with your last 3 purchases?
Obviously yes, people would buy from us if the find us trustworthy and they find proper
dealing conduct from us if the comeback to us for any valid reason.
We are three partners joined together to fill the gap among people and generate a sense of
trust among customers to carry out business in a good reputed way. An average store who
just keep clothes for selling purpose, which don‟t manufacture themselves have a good
clientele then why can‟t we have if we give some more cushion.
As we are operating in men‟s clothing and our main products include kurta, suits, shirts and
shorts we could build our business a very important in present scenario. Cultural scenario tells
us that there is a great room for kurta, shirts & shorts these days. One of the biggest occasions
is EID when everybody tries to have a good nice kurta and some other important occasions
include marriages & other formal occasions which give us opportunity to position our
business.
Key Points of À la mode:
Unlike any other business in the same line we have 2 properly gifted designers who are going
to be our key members as designs add value to our product. We have analyzed average cost
for production of one unit of kurta as Rs 1500 maximum but price charged would be based on
the level of designing and karhai which makes Rs 2500 as a reasonable middle price for a
middle level of designed suit & as we go higher in designing, we could go increasing the price
till Rs 5000 which makes us rather profitable.
If as the realistic guess in sales plan we take average of all the sales we get 223 sales per
month which we say we have kept low but still if 223 units are to be processed as of average
sales by one customer which we have taken as Rs 2500 it makes revenue of 557,500. We
think that even average sale by one customer would go higher to Rs 3500 as per spending
patterns of customer these days and if we take this sale we get revenue of approximate
800,000 which is even more good.
It is stated here that whatever calculations we have done so far in all of the plans are taken as
low as it could be due to those being prior from existence of the business. We could have
changed the whole units taken in calculations but it is not done just to assure that if with those
units we seems to have a good business then what profitable could this business be if we go
beyond those assumptions.
5
PROBLEM STATEMENT:
Pakistan is the world‟s third largest producer of cotton and the fourth largest consumer in the
world. The garment industry, therefore, has a competitive edge in respect of the basic raw
material. Labor, though available, is not as productive as in China or Vietnam. The Pakistani
garments manufacturers have invested heavily in new plant and machinery and hence are well
off in terms of technology. Pakistani menswear industry, that is the retail brands and
designers, is concentrating on exploiting the potential of the home market. The focus is on the
traditional shalwar kurta, sherwani, suits and other men‟s wear. The designers, too, are
concentrating on this market segment. Shalwar-Kurta infact is truly our street fashion. With
the growth of the western menswear brands locally and the urban youth fondness for casual
dressing, a Pakistani street fashion is slowly but surely takings
Local brands are focusing on pricing high but quality is not up to mark as compared to price
and not in range of most of middle class people like in case of wedding clothing and other
formal events like Eid. So our brand will focus on low price with high quality and customized
products and also branding through ordinary models by events management and through sales
promotion plans, we will be able to capture targeted area and it will be according to market
demand and expectations and within reach of their budget for their personal clothing in this
era of hyper inflation.
6
RESEARCH GAP FINDINGS
What is missing in Pakistan’s men wear clothing?

Fashion is missing in mens‟ clothing. “Traditional menswear doesn‟t mean adding
embroidery on everything; it can be trendy while being desi. All we see actors
wearing across our television channels these days are jamawar waistcoats or
embroidered kurtas. It‟s like

watching a shaadi ceremony on TV.

Feminine designing in men‟s clothing

True designers work is not exhibited due to nepotism and lack of competent models

Lack of digital marketing skills to compete in international market

Supply chain management issue as per quality demanded by overseas customers

Quality issue in online selling as compared to price by online stores
7
INDUSTRY ANALYSIS:
Economy:
Economic condition is not very stable these days as inflation is getting higher and higher and
it definitely effects the purchase decision of people but still there is a large room for business
in Pakistan as people are willing to spend their money. Hence this economic condition also
provides us opportunity as one of our main goal is to provide facility in this era of inflation.
Culture:
Culture is another very important & interesting fact in today’s era as it is changing very
rapidly so we have to know about recent trends and stuff so our market offerings are based
on needs of market. In Pakistani culture, though it has changed a lot but still few running
items are in trend like kurta so we are emphasizing on this stuff.
Technology:
As this is era of digitalization and technology is changing these days, increasing efficiency,
preciseness & quality of life, goods & businesses. If you have to be in market, you need to go
along with, as many of other businesses are following latest technologies to enhance their
ability we also have plans to use technology and create distinction with ease as to go online
in the near future.
8
DESCRIPTION OF VENTURE:
Objective: Our objective is to become a very famous brand of this country in future & also
to be known as a trend setter through distinctive styling & innovative designing.
Mantra: Reasonably in fashion & up to date.
Size of Business: There is a clear increase in the size of business as it is also mentioned in
the organizational plan that till 5 years we have plan to have the whole chain of our stores
with manufacturing facility also expanded in Karachi and capacity increase in Lahore to
facilitate RWP region as well.
After having some good brand stores in Lahore we will go to RWP region and then Karachi
& we are optimistic in this fact that we definitely have a broad idea which is something more
than just collecting money from selling clothes so we will soon get opportunity to expand,
sooner than planned 3 to 5 years we hope.
Location: We have decided to have our first manufacturing facility in Lahore as a center of
our chosen segment & accessibility to good quality cloth from Faisalabad textile mills. The
kind of employees that we need is suitably available in Lahore and our main designers also
live there. One of the owners has cultural & social experience in the area and equipment that
is going to be used is going to be taken from Gujranwala so Lahore seems to be the best
option for us to start this business in terms of process & procedure allocation & also in one of
the big markets in Pakistan to capture.
Product: Products offered in our business are kurta, suits, shirts, jeans & shorts mainly so
from the study we have come to know that the two main running items these days according
to the trend & culture are Kurta & jeans. As we are not manufacturing jeans rather we are
going to buy-to-sell this item, we are not mentioning anything but as far as kurta is
concerned, people are fond of having good quality kurta so in this region we are emphasizing
mainly on this item through quality of cloth, stitching, design & marketing of our brand store.
9
PRODUCTION PLAN:
1.
Facility:
Our area needed of production is not as big as per requirement for the start we have 10 tailors
so we have a ½ canal land with two floor building in which our tailors will perform their
processes. One room is reserved for go down purpose and rest of the others are for
production related. Upper floor is for designing purpose and over locking.
2.
Location:
Our building is located in township because of the space issues of loading, unloading
purposes, reasonable rent & least electricity issues. Another reason is that it would encourage
female tailors to easily come and do their work without having anything in their minds about
peculiarity of rest of the areas.
3.
Production:
Production process starts as soon as raw material (cloth) arrives and it is stored in our go
down from where it straight away gets cut according to design & goes to tailors who start
sewing. Process flow diagram will show the clear path:
4.
Staffing:
Experienced designers & tailors are major part of our business because designers create
innovation & tailor put those designs to life which attracts people so these two are our major
staff for production purpose.
5.
Quality:
Quality is our core area & as we are having raw cloth from Faisalabad industry so cloth is
quality passed and quality inspection for production of suits is done by our designers on
every batch which comes to over locking department and by any of our partners once a week.
6.
Environmental Issue:
Major environment issue is polythene bags so we are trying to have packaging which is
polythene free and for the purpose we are trying to have packaging in paper bags which
contain our logo.
7.
Condition of production assets:
Major assets are sewing & over locking machines. After every month they are going to be
10
properly oiled and for any sudden wear & tear we have spare machines for instance we have
10 tailors then we have 13 machines as these would be more likely to be used in near future
as soon as we expand and would also be helpful as a backup.
8.
Manufacturing process advantages:
As our process is taking place in one building so it‟s adjusting for many costs which are as
follow:

Multiple buildings cost for every department

Process flow is fast

Instant quality inspection in same cost

carriage costs from raw till finish product
9.
Government requirements:
There are very few Government requirements to be fulfilled in the kind of business we are
doing & these are:

Commercial electricity meter

Company name registration

Permit to work in residential area
All of these requirements are fulfilled.
11
OPERATIONS PLAN:
As this business is going to be tangibly performed in Lahore at first & is mentioned in
production plan that finished goods are going to be kept in the Township in one of the rooms
from manufacturing area. Further goods are going to be transferred from township to our
stores where those would be available to customers who like to buy them. This is a simple
chain from raw material till delivery of goods to customers.
12
MARKETING PLAN:
POD:
Points of differences are those aspects of your market offering which can position you as
different from other competitors.
o Our basic POD is Value based pricing as we are giving good quality clothes when
compared with other stores at reasonable prices then competitors.
o KHADDI made clothing.
Segmentation:
Our segmentation is based upon:
o Age (above 18 years of age males)
o Economic class (middle-middle & middle-upper)
o Geographical area (first target Punjab; starting from Lahore)
Objectives:
Main objective is to attain customer loyalty through giving a solution for the gap i.e. justified
spending which would create a positive image of being reasonably approachable fashion
brand.
Data Gathering:
We have gathered data as a market research for the gap and for its solution as well which is
given below:
Primary source:
Primary source is our social circle including ourselves, our friends and short interviews from
customers whom we have met around market, looking for clothes.
Secondary source:
For sales plan, population has been taken from Wikipedia.
Analysis of data:
After feeling an urge for those brand stores who give what they have promised we have
decided to open this brand store. Through every interview we have found this need in almost
70% customers and we have also analyzed that customers are usually not satisfied with their
13
previous spending. They think that they have always been cheated and they don‟t find the
difference between the real & copied branded items. Our specified economic class clearly
shows that they are willing to pay from 1,500 to 5,000 Rs/-specifically for clothing items.
14
Marketing mix:
Product: Men‟s clothing brand
Price: based on both value-based & value-added pricing strategies. Usually we are
determined to charge the price as keeping in mind that it is a cost to the customer so charge
them the cost that is reasonable & for those who can pay more, we use value-added pricing
for them as by paying more attention towards fascinated designing which includes hand
based Karhai on suits.
Place: Starting from Lahore as we have felt it‟s the biggest market in which we can serve by
minimize our cost by having good quality unstitch clothes from Faisalabad. Plan is to first
build a chain of this brand store in Lahore to grab major market share in our represented
segment.
Promotion: For expensive stuff channel style360 is going to advertise for our brand and
stores but for going on air we have to wait for the right time. For now we are using following
strategies:
The local cable networks:
Most of the houses nowadays have cable installed in their houses. Approaching the cable
network operators with an attractive advertisement will be a very good idea. The interested
people will be attracted to the beautiful place and the value proposed will also be consumed
by the local people. It will also be an attraction for the guests who arrives form different
places.
Internet:
Most of the people use social networking websites and we are also planning to give our
advertisements on the social networking websites.
Word of Mouth:
We have to rely on snow ball effect of good reputation of our brand store and when people
themselves tell others about us, we think it will be the most effective way of promotion.
Weekly Magazine ads:
We will post ads for our Brand store in different magazines.
15
SWOT:
Strengths
Weaknesses
Power of Brand
New Entry
Quality
Existing market offerings
Pricing
No diversification in product line
Our product‟s a solution
Opportunities
Threats
Present Economic situation
More powerful brands
Recent trends in youngsters
Competitors
Increase in spending pattern
Segmentation Revisited:
After analyzing data gathered by market research and SWOT analysis we can say that our
picked segments are having best potential needed to step in for filling the gap in market and
making business out of that.
Budgeting:
Cost of positioning:
Video making (1.5 min advert): 50,000 Rs/- Sunday Magazine adverts: 50,000 Rs/Local Cable network budget: 10,000 Rs/- month
Internet charges: Facebook page (cost=Time) free from cash flow TOTAL POSITIONING
COST=110,000 Rs/Implementation:
Execution has always been the most important issue to address and we are ensuring the fact
that now we have to implement the whole business idea with maximum correspondence,
loyalty & determination.
16
Monitoring:
After stepping in providing the offering in real world in real time, we need to monitor so that
we shall come to know about any short come to be taken care off & for this purpose we are
designing an online and also one-to-one feedback platform.
A. SALES PLAN:
Chain ratio analysis:
SEC: middle-middle class & Middle-upper class= 45% Total population of Lahore in 2011=
11,000,000
Total segmented SEC=0.55
Age group 18-35 years old males=0.4 Above 35 years old males=0.15
Estimated target market=11,000,000 x 0.55 x 0.4 x 0.15=363,000 people
ATAR Model: Awareness=25% Trial=20%
Availability=10%
Repeat=15%
Actual target market=363,000 people x 0.25 x 0.2 x 0.1 x 0.15=272 people
ESTEMATED
Pessimists
Realists
Optimists
Jan 2013
100
150
200
Feb 2013
120
170
220
March 2013
150
200
250
April 2013
150
200
250
May 2013
160
210
260
June 2013
180
230
280
July 2013
150
200
250
SALES in units: Year 2013
17
Aug 2013
300
350
400
Sep 2013
250
300
350
Oct 2013
160
210
260
Nov 2013
180
230
280
Dec 2013
170
220
270
Estimation is based upon seasonal changes.
18
Organizational Plan/ HR requirement analysis:
Form of ownership:
In our business A la mode, our form of business is partnership. We are three partners here
and we are going to invest and carry out our business operations by ourselves at first and with
minimum labor cost to attain a certain level of achievement to grow further.
Principal shareholders:
Organizational Chart:
Partners/ Entrepreneurs
Marketing
department
Admin & HR
Abdullah
Finance
Hamza
Investments
Production
PR
Ameer
Profit Sharing*
Sr. #
Partners
Money Invested
Partners
Profit shared
1
Abdullah
2 million
Abdullah
66 %
2
Hamza
0.5 million
Hamza
22%
3
Ameer
0.5 million
Ameer
22%
Profit is shared on the basis of departments shared.
19
Authority of principles:
Boards of directors are those who make policies. Advisors help CEO and board of directors
to establish, consider, reconsider, communicate, execute & monitor the standards and
decorum.
Hierarchy for 0 years:
Board of
directors
CEO &
Advisors
Branch
Based on
branch
Advisor
Abdullah,
Hamza ,
Ameer
Advisor
Based on
branch
Based on
branch
Hierarchy for 3 years:
Board of
directors
CEO &
Advisors
Area
Managers
Lahore:
Abdullah
Advisor
Abdullah,
Hamza ,
Ameer
Advisor
20
Isb/Rwp:
Hamza
Karachi:
Ameer
Management team background:
The background check we have established is first of all for ourselves. As we have
distributed departments among ourselves so background here needed for us is that we
considered the potential in all the partners and we all have chosen departments accordingly.
For future, when we‟ll be carrying out our activities by recruited branch managers and few
more area managers we have decided to have background check based on their experience,
ambitions and temporary appointments of future candidate.
Roles & Responsibilities:
We most probably would be recruiting five different types of employees so there job
description and specification would also be different.
Branch managers are held accountable for any mistake and they are supposed to get all of the
policies implemented by the employees.
Job Descriptions
Tailors
Designers
Sales men
Sweepers
Guards
Contract for a year
15
10 hours shift
10 hours shift
24/7 12
3 seats
2 seats
4 guards in two
hours
working
a
week
12 hour’s work
2 seats
shifts.
10 seats
Job Specification
Tailors
Designers
Sales men
3
years‟
experience.
Creative
possible.
Flexibility to make
every design
No
age 
bounding

as 18-30 years age

Persuasive
Cooperative
Enthusiastic
21
Sweepers
Guards
Above 25 age.
Above 30 years
age.
Weapon license
holder.
HR Requirement Analysis:
Requirement
Qty.
Edu/Exp
Salary
Bonus
Perks
Tailors
10
3 years’
25,000
One month
Medical
free
trips once a
Work
salary
semi
Designers
2
Any
exp. 30,000
&
years
annually
Appreciated
Sales Men
3
At
least 15,000
matric
Sweepers
2
Not needed
10,000
Guards
4
Not needed
10,000
ASSESMENT OF RISK:
o More powerful brands
o Competitors
o Unable to meet the demand
o Market Dynamics
The existing businesses in the same business line for a new entry has always been much of a
threat but as our value proposed and objective is different we are hopeful that we would be
able to manage the environment affectively and would keep on growing through more and
more customer orientation as customer make the market and so profits after all.
Availability of the product is the major issue these days, if we can‟t fulfill the demand, we
could be out of business so we have proper planning for the supply chain till distribution
process as it is going to be one of the very common but unique key of our success.
Dynamics plays a very vital role and usually they are not in the control of entrepreneur.
These dynamics could be cost of production increase due to any of reason, recession, worst
economic state, major trend changing & inexperience activities due to new entrants in the
market. We have decided a standard feedback procedure which could be in some schemes for
customers to encourage them giving us their feedback, this would help us to know where we
22
are unconsciously lacking and as far as other major external dynamics are concerned, we
have to take a chance this time to become a business with major customer equity to equalize
if any of this stuff happens.
Strengths
Weaknesses
Power of Brand
New Entry
Quality
Existing market offerings
Pricing
No diversification in product line
Our product‟s a solution
Opportunities
Threats
Present Economic situation
More powerful brands
Recent trends in youngsters
Competitors
Increase in spending pattern
23
FINANCIAL PLAN:
Cash Flow Statement:

In sales plan we have mentioned unit sales for only 1st year so increase for unit sales
is assumed in 2nd and 3rd year in this cash flow statement.

For Cash flow statement we need to have revenue and for revenue we first need to
have a sales price. As we are dealing in different types of products in the same
product category so we have different prices. In order to get a figure we are going to
quote a general average price which means that such amount would be charged as our
one sale.

Rs 2500 purchase is considered as our one sale and units sale considered in sales plan
is based on such assumption that if in first month we have 150 sales this means that
we had 150 customers who purchased items cost 2500.

Figure of staff salary is taken from HR requirement analysis model and condition for
semiannual increase in salary of multiply by 2 is applied.

Equipment is taken from production plan that is 13 sewing machines which cost
78,000 and 5 Overclocking machines which cost 30,000.

As per our organizational plan till 3rd year we have just been expanded till three
different areas so we will increase our production capacity hence our rent, equipment
cost and salary would increase so in cash flow the expected increase in every activity
is mentioned after 2 years. In 2nd year we‟ll only expand to ISB/RWP region and in
13rd year we go for Karachi.

Manufacturing capacity is increased in Lahore and is favorable to provide supply to
ISB/RWP region but for Karachi we have stated another manufacturing activity in 3rd
year.

In every June, assets are properly addressed of any issue because for Ramadan season
we have to increase our capacity that is why in maintenance cost you can see increase
in every June.

IN EVERY YEAR INFLATION AND OUR MONEY‟S DEVALUATION IS
TAKEN IN ACCOUNTS.
24
month values
Net
decoration
Interior
bonus
semiannual
per
&
Salary
Equipment
Maintenance
Dummies
Utilities
Rent
Revenue
Year 1
JAN 375,000
25,000
20,000
5000
2000
108,000
415,000
300,000
-500,000
FEB 425,000
25,000
20,000
-
2000
-
415,000
-
-37,000
MA
500,000
25,000
20,000
-
2000
-
415,000
-
38,000
APR 500,000
25,000
20,000
-
2000
-
415,000
-
38,000
MA
525,000
25,000
20,000
-
2000
-
415,000
-
63,000
JUN 575,000
25,000
20,000
-
5000
-
830,000
-
-305,000
JUL
500,000
25,000
20,000
-
2000
-
415,000
-
38,000
AU
875,000
25,000
20,000
-
2000
-
415,000
-
413,000
SEP
750,000
25,000
20,000
-
2000
-
415,000
-
288,000
OC
525,000
25,000
20,000
-
2000
-
415,000
-
63,000
575,000
25,000
20,000
-
2000
-
415,000
-
113,000
R
Y
G
T
NO
V
25
DE
550,000
25,000
20,000
-
2000
-
830,000
-
-327,000
6,675,000
300,000
240,000
5000
27000
108,000
5,810,000
300,000
-115,000
JAN 937,500
-55,000
-45,000
-12,000 -5000
-400,000
-429,500
FEB 1,062,500
-55,000
-45,000
-
-5000
-600,000
357,500
MA
1,250,000
-55,000
-45,000
-
-5000
-600,000
545,000
APR 1,250,000
-55,000
-45,000
-
-5000
-600,000
545,000
MA
1,312,500
-55,000
-45,000
-
-5000
-600,000
607,500
JUN 1,437,500
-55,000
-45,000
-
-8000
-1,200,000
129,500
JUL
1,250,000
-55,000
-45,000
-
-5000
-600,000
545,000
AU
2,187,500
-55,000
-45,000
-
-5000
-600,000
1,482,50
C
Year 2
-250,000 -600,000
R
Y
G
SEP
0
1,875,000
-55,000
-45,000
-
-5000
-600,000
1,170,00
0
OC
1,312,500
-55,000
-45,000
-
-5000
-600,000
607,500
1,437,500
-55,000
-45,000
-
-5000
-600,000
732,500
T
NO
V
26
DE
1,375,000
-55,000
-45,000
-
-5000
-1,200,000
70,000
C
16,687,500 -660,000
-540,000 12,000
-63000
250,000
-8,400,000
400,000
6,362,50
0
Year 3
JAN 1,312,500
-90,000
-60,000
-20,000 -7000
-500,000
-1,200,000
-500,000
1,064,50
0
FEB 1,487,500
-90,000
-60,000
-
-7000
-1,200,000
130,500
MA
1,750,000
-90,000
-60,000
-
-7000
-1,200,000
393,000
APR 1,750,000
-90,000
-60,000
-
-7000
-1,200,000
393,000
MA
1,837,500
-90,000
-60,000
-
-7000
-1,200,000
480,500
JUN 2,012,500
-90,000
-60,000
-
-15,000
-2,400,000
-552,500
JUL 1,750,000
-90,000
-60,000
-
-7000
-1,200,000
393,000
AU
-90,000
-60,000
-
-7000
-1,200,000
1,705,50
R
Y
3,062,500
G
0
SEP 2,625,000
-90,000
-60,000
-
-7000
-1,200,000
1,268,00
0
OC
1,837,500
-90,000
-60,000
-
-7000
T
27
-1,200,000
480,500
NO
2,012,500
-90,000
-60,000
-
-7000
-1,200,000
655,500
1,925,000
-90,000
-60,000
-
-7000
-2,400,000
-632,000
-16,800,000 500,000
3,650,50
V
DE
C
23,362,500 -
-720,000 20,000
-92000
500,000
1,080,000
0
Income Statement:
For income statement we need cost of goods sold and CGS for us under a sale of 2500 is
RANGING B/W 800-1300.
Year 1
Year 2
Year 3
Sales
6,675,000
16,687,500
23,362,500
Less: CGS
2,670,000
5,340,000
8,010,000
Gross profit
4,005,000
11,347,500
15,352,500
Salaries
5,810,000
8,400,000
16,800,000
Rent
300,000
660,000
1,080,000
Utilities
240,000
540,000
720,000
Maintenance
27,000
63,000
92,000
Advertising
110,000
250,000
500,000
9,913,000
19,192,000
Revenue
Operating Expense
Total
operating 6,487,000
expense
28
Net profit/ Loss
-2,482,000
1,434,500
29
-3,839,500
Analysis:
As we decided the whole operations process which related manufacturing and its supply from
Lahore to Isb/Rwp region and to Lahore itself and another manufacturing operation is
developed in Karachi in third year which is a rather big project, Income statement shows the
same thing that 1st year shows loss as it is our beginning year and in 2nd year shows above 1
million profit because we lowered the cost of having a new manufacturing facility for
Isb/Rwp region by supporting its demand through old manufacturing facility but again in 3rd
year as we started another manufacturing process in Karachi to accommodate its operations
we have to bear lot more cost hence shown as loss in year 3.
Balance sheet:
BALANCE
YEAR 1
YEAR 2
YEAR 3
1,885,000
10,247,500
14,898,000
500,000
2,000,000
5,000,000
12,247,500
19,898,000
108,000
250,000
500,000
Fixed 108,000
250,000
500,000
12,497,500
20,398,000
SHEET
Assets
Current Assets:
Cash
A/R
Total
Current 2,385,000
Assets
Fixed Assets:
Equipment
Total
Assets
Total Assets
2,493,000
Liabilities & Owner’s Equity
30
Current Liabilities 400000
4,000,000
7000000
N/P
382,500
720,000
1,115,000
2678000
5,497,500
10398000
A/P
93000
Total
current 493,000
liabilities
Owner‟s Equity
Adeel
500,000
500,000
Faizan
500,000
500,000
Imran
1,000,000
1,000,000
1,000,000
Retained earnings
5,000,000
9,000,000
Total
2,000,000
1,000,000
12,497,500
20,398,000
owner 2,000,000
equity
Total
liabilities 2,493,000
&
owner equity
31
SUMMARY OF WHOLE FINANCIAL PLAN:
Summarizing the whole plan we have come to know about certain facts of our business
which are very important as finance is the basic element of starting a business and are as
follow:

Growth potential

Profitability

Cash flow clearly showed influx of cash.

Financial position is above average as a new business in competitive market.

Assets are utilized properly.

Reflection of difference b/w cash actually received and cash disbursements.

Balance sheet clearly shows increase in assets with low liabilities throughout its 3
years period.
32
CONCLUSION:
According to the overall analysis of statistics involved and study of scenarios we can say that
the idea proposed is favorable in context of a good business as gap is there to be filled and
right program to project the whole business in the mind of customers is needed. The better
there is positioning, the more chances of growth are there and we are quite optimistic
regarding launch of the whole idea physically.
The idea supports realistic views and growth potential in the business, which are positive
aspects of the whole report and are supported by the cultural, economical & modern scenario
in today‟s Pakistan where people are more educated and are more surrounded with the feeling
of self-esteem and awareness among their style and clothing.
Siddiqi 28vertically integrated mills, thus have control over the entire production cycle. Years
ofworking with international brands have given them an understanding of the
internationalmenswear industry and they have organized themselves to meet international
demand, particularly in timely delivery of goods. Exposure to the international brands must
have impacted their working methods and developed sound quality consciousness, adapted
them to research and development and above all exposed them to innovation and its role in
meeting global requirements. Soorty‟s website claims that “in order to enrich the lives of
those who work with us, we employ measures for uplifting working conditions & welfare”
Rajby Industries have a Quality Policy, Environmental Policy, Social Policy, Community
Initiative and Green Policy. Artistic Milliners claim to be an environment-friendly vertically
integrated company. They are planning to set-up their fourth unit as a totally green
manufacturing project which would be internationally certified as such. The examples above
confirm that the contract manufacturers are better placed to introduce their brands globally.
They have organized themselves to meet international standards. Opening of retail stores
abroad is no doubt an expensive affair. However, advertising costs may be avoided. Like
Zara, Pakistani brands can utilize the store to promote their brand. To keep costs down,
franchising may be considered as an option. Britain has a large Pakistani diaspora. Like Zara,
they may follow suit to first target this market to develop and establish the brand. Bosideng, a
Chinese company and the world‟s largest producer of feather jackets and also menswear has
decided to open a store in London. According to the CEO, “The building is the first foray that
Bosideng has ever made abroad, and through the landmark building, we expect to enhance
our brand popularity and reputation,"
33
He goes on to say,“ Everything is there. We have quality goods, long-term commitment and
capital. Why not give it a try?" With this kind of a spirit, Pakistani brands too can enter the
global market. Bosideng believes that “promoting the brand abroad is an arduous and timeconsuming task.”
“Ensemble”, a Pakistani outlet, markets local brands under one roof in Karachi and Lahore.
Recently, they have established a store in Dubai where most of the leading Pakistani brands
are available. “Zeba Husain tells Instep Today about the need for Ensemble in Dubai that
resulted in the launch, “Pakistani fashion is very big in India these days, and in Dubai,
Pakistani designers were not projected very well. The pricing was not very fair to our
designers and multi-brand stores were adding on their margins - towards the end of the day,
people thought it was very expensive to buy things from Pakistani designers. What I think is
that Pakistani fashion is very good for the value of money. At Ensemble Dubai, we have the
latest collection of all the Pakistani designers under one roof for the same price as in
Pakistan; that goes for the Indian designers we are stocking too. We want to make sure that
Pakistani fashion is at par with Indian fashion and that it should be very affordable."
Perhaps, here is the clue to developing the global potential of Pakistani menswear brands.
Deepak Perwani has a floor to himself at Ensemble Dubai where the emphasis is on mens
wear though his women‟s wear collection too is available. There is a large Pakistani
population in the United Kingdom. It should be possible to establish “Ensemble-type” there,
catering to the Pakistani male and also the local population. It seems that with highly
competitive pricing in the initial years, a breakthrough can be achieved in menswear. We also
believe Pakistani retail brands can team up with American or
Pakistani men‟s suits can be sold in the European markets should the Italian designers and
Pakistani manufacturers1co-operate. We believe that the designs and patterns should be
supplied by the Italian designers and the cutting, stitching and finishing done in Pakistan. In
short, innovation is the key to successful introduction in the market place, be it in terms of
production marketing and merchandising or designing Considering the growth in menswear
in Pakistan, it is time that the Fashion Design Institutes offered specific courses related to
menswear. Also, menswear fashion shows should become a regular feature of the country‟s
fashion calendar. As already mentioned reliability of the supply-chain is of the utmost
importance in going global. Zara takes 24hours to replenish stocks in any of its outlets.
Pakistani brands going global will have to organize themselves to meet this challenge. Energy
shortage is here to stay. Successful businesses adapt to the business environment. Self34
generation should be actively considered, cost notwithstanding as the other alternative is
business failure. The Trade Development Authority of Pakistan must come forward to help
the mens wear manufacturers to establish themselves in the foreign markets through financial
help in opening outlets abroad. Perhaps it can buy retail outlets and sub-let them to Pakistani
brands to reduce their initial investments. Pakistan is world-renowned in the production of
sports goods and surgical instruments. We have not developed a single global brand though
these industries are very old and service the world. As a nation, we are not marketing
orientated. The menswear garments manufacturers should embrace branding and take bold
steps.
35