Business Plan Complete Updated

7/25/2019 Business Plan Complete Updated

1/16

Entrepreneurship

Project # 3

Submit By:

Hamza Usman Sheikh (21311!"

obeen $shra% (21311!!"

Umair &a'az han (2131113"

$b)u* +aheem (21312!"

Submit ,o:

Basit $%za*

,ab*e o% -ontent:


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Executive Summary3

Company information.4

Product...4

Advantages of BT. Technoogy.4

!istri"ution Channe..#

S$%T Anaysis.&

Strength.&

$ea'ness...&

%pportunity&

Threat &

(anagement...&

Personne)

*ecord 'eeping .+

(ar'eting .+

Target Audience,

Competitors ..,

Advertising..-

Pricing .-

Product !esign.--

Timing of entry.--

(ar'et trend in /ndia.--

PESTE0 anaysis -1

2inancias-3

E.ecuti/e Summary:


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%ur group proect for Entrepreneurship is importing hy"rid seed BT Technoogy5 from the 6SA

mar'et. $e 7i import the seed from an agent. There is no any seed avaia"e in the mar'et of

Pa'istan 7ith the same specification as BT. Technoogy for cotton. /t 7i ma'e the production of

cotton dou"e. $e 7i distri"ute our product to the different retaiers of seeds8 7ho are deaing

in agricuture mar'et. /n this report 7e are discussing a"out "usiness and mar'eting strategies of

our "usiness. %ur maor goa is to achieve a customer satisfaction8 7hich is the most important

factors of any "usiness. %ur pricing 7i sighty higher than other hy"rid seeds oca seeds5 in

the mar'et. Actuay8 it is partnership "ase "usiness. The o7nership of the "usiness 7i remains

7ith four partners of the company. A these partner 7i "e responsi"e for the day to day

activities of the company.

Business 0n%ormation:


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$e are going to import 9y"rid Seeds from the 6SA mar'et. The name of this seed is A9(6

Enterprises. /t 7i "e Partnership Company. The purpose of hy"rid seeds is that it 7i ma'e our

production of cotton dou"e. As there is no seeds avaia"e in Pa'istan i'e it. So it 7i "e a great

opportunity for us to ma'e our space in mar'et. As our company is ne7 in mar'et so 7e have to

get trust of a customers. $e 7i import it through agent. As these agents are importing seeds for

various companies8 7e 7i hire them and pay them on the "asis of voume of import. The

research department of (onsanto Pa'istan 0td decared that the soi of Pa'istan is feasi"e for

hy"rid seed BT. Technoogy5. Basicay it is a partnership "usiness: the tota num"er of partners

are four. These partner 7i import the product from 6SA mar'et. Then 7e 7i distri"ute it to

different retaiers of agricuture. A responsi"iities of 7or' 7i distri"ute among these four

partners.

Pro)uct:

Basicay it is a hy"rid seed 7ith name of BT. Technoogy. /t 7i increase the production of

cotton "y preventing them from "o7orms. Bo7orms are group of insect pest species8 7hich

cause significant crop damage and are responsi"e for heavy chemica pesticide appication in

amost a of the 7ord cotton gro7ing regions. Bt technoogy has "een adopted in different

countries8 "ut in Pa'istan BT. Technoogy is yet not introduce.

$)/antae o% Bt ,echno*oy:

Bt cotton has severa advantages over non Bt cotton. The important advantages of Bt cotton are

"riefy pointed out as "eo7;

/ncreases yied of cotton due to effective contro of three types of "o7orms8 vi


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*eduction in environmenta poution "y the use of insecticides rarey.

But cotton exhi"it genetic resistance or in"uit resistance 7hich is a permanent type of

resistance and not affected "y environmenta factors. Thus protects crop from of

"o7orms.

BT cotton is ecofriendy and does not have adverse effect on parasites8 predators8

"eneficia insecticides and organisms present in soi.

/t promotes mutipication of parasites and predators 7hich hep in controing the

"o7orms "y feeding on arvae and eggs of "o7orm.

=o heath ha


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As hy"rid seeds are ne7 in Pa'istan mar'et so 7e are not facing direct competition in the

mar'et. $hich 7i "e our great strength8 it may aso hep us in ma'ing our space in the mar'et.

eakness:

As this is a ne7 technoogy in the mar'et so the farmers are ess a7are a"out this technoogy. As

7e have ac' of "udget 7e 7i not do something uni@ue to ma'e them a7are a"out this

technoogy. (oreover8 our company 7i "e ne7 company for retaiers. So 7e need time to ma'e

our mar'et pace.

4pportunity:

Currenty there is no any other company is producing or import hy"rid seeds8 so it 7i "e a

great opportunity for us to introduce our imported product to the agricuture mar'et.

,hreat:

Currenty there is no any other company is introducing 9y"rid seeds. But in future 7e are seeing

that (onsanto Pa'istan 7i introduce hy"rid seeds in the mar'et. This information is given "y

one of the empoyee of (onsanto Pa'istan 0td. As (onsanto has very good image in the mar'et

so it 7i "e a great threat for us in the near future.

anaement:

/nitiay 7e are not hiring any staff for any purpose. $e are four partners of this "usiness so 7e

7i manage our "usiness "y our o7n. $e 7i distri"ute duties and responsi"iities among each

other. Areas of 7or' 7i distri"ute among each other i'e deaing 7ith agent a"out imported

product8 cash handing8 distri"ution8 advertising8 engaging ne7 customers etc. $e are friends

from the ast 4 years 7e have a great trust on each other8 so 7e 7i manage our "usiness

efficienty 7ith a "est mutua understanding.

A of us have a great 'no7edge a"out the product and its distri"ution channe. $e are oya and

honest in our 7or'8 7hich is a great strength of our "usiness. A partners are 7e educated and

'no7 ho7 to hande a difficut and chaenging situations. %ne of our partner has agricuture


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"ac'ground so it 7i "e pus point for our "usiness. Because he 'no7 7e a"out the agricuture

industry. (oreover8 he has a good reationship 7ith different farmers 7hich 7i hep us to

promote our product or increase our saes. Simiary8 one of our partner has good mar'eting s'is

and one partner has good accounting s'is. A these s'i 7i ma'e our management effective.

Personne*:

A the four partners have good 'no7edge a"out the mar'et and a product. A the four partner

are students of Business studies and have vast 'no7edge a"out management. They 7i easiy

hande chaenging situation if any5 "y using their s'is and 'no7edge. (r. 9am


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regarding saes and purchase of our product 7i 'ept in 0aptop in exce fie on daiy "asis. And

these record 7i mai to a partner daiy "y (r. A"du *aheem 7ho is responsi"e for a this

matter. And after every -# days 7e 7i get print of a records 7hich 7i 'eep in aptop for

fiing them. /n future8 after sometime of our "usiness 7e are panning to purchase soft7are for

record 'eeping8 7hich 7i hep us to 'eep our record more secure. A the partner 7i 7e

a7are a"out the financia position of the company.

arketin:

(ar'eting of our product is very important to ma'e it successfu. As this is a ne7 technoogy in

the mar'et so peopes are ess a7are of it. %ur mar'eting o"ective is to ma'e a7are farmers

a"out out ne7 technoogy. $e have to gain trust of a consumer in order to ma'e our space in the

mar'et. $e 7i do mar'eting of our product "y pacing sma "i "oards at the viages or at the

pace 7here cotton is gro7ing. (oreover8 7e 7i dispay posters at the saes points of the seeds

from 7here the farmers "uy agricuture products.

(oreover8 7e 7i give sma amount of free sampes to the farmers to chec' our product in their

and8 this steps ma'e them motivate to "uy our product. (r. 6mair 7ho has a good reationship

7ith the farmers as he has an agricuture "ac'ground so he 7i promote our product to them. $e

7i convince retaiers or 7hoe seers to spread positive 7ord of mouth a"out our product to the

different customers.

,aret $u)ience:

%ur target audience are "asicay those farmers 7ho are gro7ing seeds on their and. %ur target

audience is farmers 7ho 7ant to increase their production of cotton and 7iing to pay for it.


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Basicay8 7e 7i distri"ute our product at different saes point from 7here farmers "uy seeds.

(oreover8 7e have a pan to give free sampes to the farmers8 to ma'e them motivate to "uy our

product. As (utan region surroundings is the 9u" of agricuture8 so 7e 7i target farmers of

these areas.

-ompetitors:

As hy"rid seeds BT technoogy5 is introducing first time in the Pa'istan mar'et so as such 7e

are not facing direct competition. But it does not mean 7e have no competitor. $e are many

indirect competitor in the mar'et. There are many oca seeds avaia"e in the mar'et 7hich are

giving indirect competition to our product. But the advantage of BT technoogy is that it 7i

increase production of cotton to 3 to 4 approx... The farmer 7ho are not satisfy 7ith our

product in terms of his price or "y any other reason 7i directy affect our saes. Basicay8 our

main indirect competitors are (onsanto and Syngenta. They are offering other cotton seeds "ut

they are not offering BT technoogy yet.

Strength;

As hy"rid seeds are ne7 in Pa'istan mar'et so 7e are not facing direct competition in the

mar'et. $hich 7i "e our great strength8 it may aso hep us in ma'ing our space in the mar'et.But it does not mean 7e have no competition8 7e are many indirect competitors8 "ut for a 7hie

this is our great strength that no company is competing us directy.

$ea'ness;

As this is a ne7 technoogy in the mar'et so the farmers are ess a7are a"out this technoogy. As

7e have ac' of "udget 7e 7i not do something uni@ue to ma'e them a7are a"out this

technoogy.

$)/ertisin:

Advertising is a very important factor for any "usiness. As agricuture reated advertisement is

running on PTD. *unning an advertisement of our product on teevision 7i "e very expensive


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for us as 7e ac' of "udget8 7e 7i not afford TDC or radio advertisement at this time. $e 7i

advertise our product "y dispaying sma "i "oards in different agricuture areas. $e 7i

personay visit them and te a"out the "enefits of our product. (oreover8 7e 7i dispay poster

at different retaiers of agricuture products8 7henever8 the farmer visited to these retaiers he 7i

have a oo' at these posters and it 7i attract them. Because8 our product 7i increase their

production. (oreover8 7e 7i as' retaiers?7hoe seers to promote our product to the farmers

and generate 7ord of mouth to them. As a farmers are very cose to each other so they 7i

generate 7ord of mouth among each other. (oreover8 (r. (o"een visited different retaiers to

ma'e them convince to sae our product to the farmers. 2or this purpose8 7e have a pan to give

sma gifts to the retaiers for the promotion of our product.

Pricin:

Pricing is an important factor in our "usiness. As 7e are offering hy"rid seeds in the mar'et so its

price is sighty higher than the oca cotton seeds. As no any other company is offering such type

of product in the mar'et so 7e have opportunity to set prices according to our 7i. As oca seed

is avaia"e at a cost *s.31?'g8 so our product 7i "e avaia"e at a price of *s.4)?'g or

4)8?ton. According to the specification of a product8 our product 7i avaia"e at a very

afforda"e price.

Pro)uct esin:

%ur product 7i avaia"e in a pac'aging of 1g. /t 7i "e very simpe pac'aging. /t 7i

attract the customers. This is a standard si


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according to the demand of the customer. The advantages of our imported product 7i aso

mention on the pac'et. (oreover8 there 7i "e a detai of ingredients used in ma'ing this

technoogy BT. Technoogy5. (oreover8 there 7i "e detai of a company from 7here 7e are

going to import our product.

,imin o% entry:

Timing is more important 7hie starting any "usiness. As the cotton seed is panted in spring

season so 7e 7i introduce our product in mar'et near spring season. So 7henever8 the farmer

visit mar'et to "uy seeds for his fieds he 7i get a7are from our product and ma'e purchase of

9y"rid seeds BT. Technoogy5. (oreover8 one of our partner 7i meet the farmers "efore the

start of the season of cotton8 to encourage them to "uy our ne7 imported product.

arket ,ren) in 0n)ia:

BT cotton is suppied in /ndias (aharashtra state "y the agriF"iotechnoogy company8 (ahyco8

as the distri"utor.

The use of BT cotton in /ndia has gro7n exponentiay since its introduction. *ecenty /ndia has

"ecome the num"er one go"a exporter of cotton and the second argest cotton producer in the

7ord. /ndia has "red BtFcotton varieties such as Bi'aneri =erma and hy"rids such as =99F448

setting up /ndia to "enefit no7 and 7e into the future.

SocioFeconomic surveys confirm that Bt cotton continues to deiver significant and mutipe

agronomic8 economic8 environmenta and 7efare "enefits to /ndian farmers and society

incuding haved insecticide re@uirements and a dou"ing of yieds.

PES,E5 $na*ysis

Po*itica* 6actors


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Pa'istan is currenty a poiticay uncertain and unsta"e country 7hich ma'e it unfavora"e for

"usinesses 7hich raises concerns among investors. So8 investing in any fied of "usiness is very

ris'y. As 7e are going to import our product8 so any poitica factor 7i affect our "usiness.

Economic %actors

The increasing infation8 impositionof ne7 taxes and changes in government economic poicies

discouraging investment in many "usinesses in Pa'istan. /n 1-4 infation rate rises up to ).).

As the price of our product is sighty higher than the other seeds in mar'et so purchasing po7er

of our customer is very important for us. As our target audience are those peopes 7ho are

7iing to pay for our product.

,echno*oica* %actors

Technoogica advancement rate is so high no7adays that "usiness cannot fourish 7ithout

updating to atest technoogy. As 7e are importing hy"rid seeds BT technoogy58 7ith the

passage of time this technoogy 7i aso repace "y some other ne7 technoogy8 7hich 7i

directy affect our "usiness.

5ea* 6actors

Companies face many ega o"igations to insure the @uaity standards. /t encompasses a ega

rues and reguations for "usinesses registered 7ith Security and Exchange Commission of

Pa'istanSECP5 and is enforced "y that agency.

6inancia* 0n%ormation:
http://imposition.software.informer.com/http://en.wikipedia.org/wiki/Security_and_Exchange_Commission_of_Pakistanhttp://en.wikipedia.org/wiki/Security_and_Exchange_Commission_of_Pakistanhttp://en.wikipedia.org/wiki/Security_and_Exchange_Commission_of_Pakistanhttp://en.wikipedia.org/wiki/Security_and_Exchange_Commission_of_Pakistanhttp://en.wikipedia.org/wiki/Security_and_Exchange_Commission_of_Pakistanhttp://en.wikipedia.org/wiki/Security_and_Exchange_Commission_of_Pakistanhttp://imposition.software.informer.com/


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Bu)ete) -ash %*o' Statements %or the year en)e) 2!17 8 2!19

2!17 2!1 2!19

-ash %*o' %rom operatin acti/ities

%perating Profit?0oss5 for the year ,185 &,8 ,8

-ash %*o' %rom in/estin acti/ities

!ecrease?/ncrease5 in stoc' 1-85 1-8 F

-ash %*o' %rom %inancin acti/ities

0ong term 0oan /nterest free5 -8 F F

=et Cash fo7 for the year &,+8 1),8 ,8

%pening Cash in hand F &,+8 ,))8

Cosing Cash in hand ;


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Bu)ete) Ba*ance Sheet as at @une 3!= 2!17 8 2!192!17 2!1 2!19

&on A -urrent $ssets F F F

-urrent $ssets

Cosing /nventory 1-8 F F

Cash in hand &,+8 ,))8 -&)8

;!


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Bu)ete) Statement o% chanes in +eser/es as at @une 3!= 2!17 8 2!19

P+

+e/enue +eser/e

Baance as at Huy 38 1-4 FProfit?oss5 for the year ,185

Baance as at Hune 38 1-# (;2=!!!"

Baance as at Huy 38 1-# ,185

Profit?oss5 for the year &,8

Baance as at Hune 38 1-& (23=!!!"

Baance as at Huy 38 1-& 1385

Profit?oss5 for the year ,8

Baance as at Hune 38 1-) 9=!!!

Break8E/en $na*ysis

Break evensale revenue= Cost

(1

variablecost per ton

sale price per ton

)Break evensale revenue=

120,000

(140,00047,000 )Break evensale revenue=Rs .805,714

Break evensale quantity=805,714

47,000

Break evensale quantity=17.1418

As per the pan8 our company intends to sae -4 ton in the first year of operations. Therefore

company suffers oss at -styear end. Company 7i reach "rea'Feven i.e. -+ ton5 in the second

year8 resuting in profit at 1ndyear end.


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Pay8Back perio)

As the Budgeted financia statements iustrate8 our company 7i "e possessing cash in hand

e@uivaent to *s. -&)8 at 3rdyear end. Company 7i "e a"e to payF"ac' the initia interest

free oan o"tained from 2amiy friend amounting to *s. -8.

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