How to start a new business with an innovative idea
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Transcript of How to start a new business with an innovative idea
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Dedica
ted to:Miss:
Zoofishan Sahgal
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Fatima
Hira
Sana
Group No:9
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MUMZA LEATHERS
Introduction Vision & Mission
Production Process Nature & Location of
business Data SourcesOrganizational planMarketing Plan
Financial StatementsRisk AssessmentsFuture Plans
PROJECT OUTLINE
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MUMZA Leathers is the manufacturer of leather gloves and jackets.
It was established in 2007.
It is a family oriented business.
INTRODUCTION
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MR. .ZAHID MAHMUD IS THE
OWNER OF MUMZA
LEATHERS!
OWN
ER:
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The nature of business is sole proprietorship
NATURE OF BUSINESS
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Abdullah Palace, ops Mughal Hospital Pastor road, Sialkot – Pakistan.
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TO serve and become a business & production model”
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Promote our Quality products & services.Ensure customer satisfaction by offering Quality Products and services driven by their needs.Produce Best Quality of products using best latest techniques and machinery.
PRODUC
T LINE
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PRODUCTION PROCESS
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RAW MATERIAL
TUNNING
WASHING DRYING
DYING
SIZE CUTTING
SEWING
LEATHER GLOVES & JACKETS:
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RAW MATERIAL
Lambskin
Sheepskin
Goatskin
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TUNNING
It converts skin into stable consistent condition that can be worked on in many ways to produce different leather types.
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WASHIN
G
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DRYI
NG
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DYEING
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SIZE
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CUTTING
Leather cut into different sizes and shapes for the purpose of stitching.
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SEWING
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MATERIAL REQUIRED
IP
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Thread
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Buttons:
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TOOLS
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Innovation in
Tools
We have introduced some latest machines for production
which might help us for increasing sales volume.
Cutting machine
Sewing machine
Electric scissor
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CUTTING MACHINE
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SEWING MACHINE
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ELECTRIC SCISSOR
ELECTRIC SCISSOR
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MACHINES REQUIRED
Cutting 10
Sewing 25
Cutting scissors 15
LATEST MACHINES REQUIRED FOR PRODUCTION:
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SUPP
LIER
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HIRA
MC12141
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Internal sources
Group Members
Subject Instructor
DATA SOURCES
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Group Discussion
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Subject Instructor:
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Employers:
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55%
35%
15%
RESULTS OF QUESTIONNAIRE
55% who like leather products.35% who don’t like leather products.15% who like leather products but some specific brands.
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ORGANIZATIONAL PLAN
MUMZA LEATHERS
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As we have already explained that they are doing work with the help of more than 10 employees, business working conditions are not properly defined and organized for this we have make the organizational plan for the business.
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:DEPARTMENTS:
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Production Department
Raw MaterialControl
Packing Department
SellingDepartment
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DIRECTOR GENERAL Mr.Zahid
PRODUCTIONManager
MIS.Madiha
MARKETING MANAGERMr.Muaaz
INVENTORY INCHARGE Mr.Hanzala
SELLING MANAGERMr.Safwan
FINANCE MANAGER Mr.Shahan
HIERARCHY
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MARKETING PLAN
MUMZA LEATHERS
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We have decided to segment our market on the basis of geography. Mumza leather products will be available on all the urban area markets of Punjab and as well as available on hill stations.
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Innovation in location
Area required 1.5 canals.
Stock room will be in basement of 1 canal.
Production unit will be in second floor.
Packing plant will be in ground floor.
Remaining area will b used for office purposes.
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MARKETING MIX
Marketing mix is the combination of 4 P’s.
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Anything or activity that can be offered to a market for attention, acquisition, use, or consumption that might satisfy the want or need is called product.
SUGGESTIONS
•Designs•Colors•Packing
PRODUCT
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We have decided to hire designers who will change our products according to customers demand.
DESIGNER SERVICES
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Our products will be available in all beautiful colors.
COLORS
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”Packing is an important marketing tool. Numerous machine are provide packing functions”
PACKING
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We have introduced a new packing machine. Which we will purchase from Japan.
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The amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefit of having or using the product or service.
PRICE
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COST BASED PRICING
VALUE BASED PRICING
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We will charge price according to cost because we have spend a lot of amount on machineries, advertisement and other business expenses.
SUGGESTION:
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Before our innovation the company is using old method of distribution within a limited area that is
Manufacturer
Retailer
customer
PLACE
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FORECASTED FINANCIAL STATEMENTS
MUMZA LEATHERS
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MUMZA LEATHERS income statement For the year ended Dec,31 2013
PARTICULARS AMOUNT AMOUNT
Sales 36000000
Less: CGS (1440000)
Gross profit 21600000
Less: Operating Expenses
Admin expenses 760000
Selling expenses 455000 (1215000)
EBIT 9450000Less: Interest (150000)EBT 795000
Less: Tax (119250)
NPAIT 6757500
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BALANCE SHEETAS ON DEC,31 2013
ASSETS Amount LIA & CAPITAL AmountCurrent assets Current liability
Cash in hand 150000 Capital 2600000
Prepaid insurance 340000 Creditors 560000
Prepaid rent 30000 Loan 300000Closing stock 4500000 Outstanding interest 12000
5020000 3472000
Fixed assets Fixed liability
Land & building 1100000 Small business loan 2722250
Machinery 1000000 Long term liabilities 400000
Furniture 50000Storage racks 50000 Net profit 6757500
Packing tables 50000Total 7270000 7270000
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MUTAZ LEATHER
Cash flow statement
As on 31.dec,2013.
Particulars Oct. Nov. Dec. Sales 25000 30000 20000 Sales of assets 100000 - 80000 Other income 50000 65000 40000 Cash receive from debtor
40000 50000 90000
TOTAL 215000 145000 230000 Less cash purchases
15000 25000 15000
Rent 2000 2500 3000 Salaries 30000 35000 40000 Transportation 5000 3000 2000 Repairs 1000 2000 3000 Others 4000 5000 8000 Total payments 57000 72500 71000 Cash surplus 158000 72500 159000
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PARTICULARS AMOUNT AMOUNT
Sales 45000000
Less: CGS 36000000
Gross profit 9000000
Less: Operating Expenses
Admin expenses 850000
Selling expenses 550000 1400000
EBIT 7600000
Less: Interest
EBT 7400000
Less: Tax 1500000
NPAIT 7250000
MUMZA & CO.INCOME STATEMENTFOR THE YEAR ENDED DEC 31, 2014
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ASSETS Amount LIA & CAPITAL AmountCurrent assets Current liability
Cash in hand 170000 Capital 2600000
Prepaid insurance 370000 Creditors 400000
Prepaid rent 45000 Loan 150000Closing stock 5000000 Outstanding interest 120000
Cash at bank 3021000
Fixed assets Fixed liability
Land & building 1200000
Machinery 1000000 Long term liabilities 400000
Furniture 45000Storage racks 35000 Net profit 7250000
Packing tables 34000Total 10920000 10920000
MUMZA & CO.BALANCE SHEETAS ON DEC 31, 2014
Mumza leather
Cash flow statement
As on 31.dec,2014.
Particulars Oct. Nov. Dec. Sales 50000 60000 40000 Sales of assets 200000 50000 20000 Other income 80000 100000 50000 Cash receive from debtor
150000 120000 200000
TOTAL 480000 330000 310000 Less cash purchases
15000 25000 15000
Rent 2000 2500 3000 Salaries 60000 50000 60000 Transportation 5000 3000 2000 Repairs 1000 2000 3000 Others 4000 5000 8000 Total payments 87000 87500 91000 Cash surplus 393000 242500 219000
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How business fits and interacts with surrounding environment both internal and externally.For the purpose of risk assessment me make a SWOT ANALYSIS of the.
RISK ASSESMENT
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SWOT
ANALYSIS
Strengths provide an insight to the business opportunities & weaknesses in the business can cause immediate threats.
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The objective is to be in a position where you can determine a strategy for the future to improve your company’s overall performance (or maintain it if you are happy with your final analysis).
OBJECTIVE
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S
Strength
Tax incentives on machinery by Govt.
Strength
Easy availability of low cost labor.
Strength
Jackets are always in fashion product
StrengthCurrently in a good financial position we have low debt burden.
Strength
We are bearing low renting cost.
STRENGHTS
SWOT
ANALYSI
S
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Lack of modern finishing facilities of leather
Weaknesses Weaknesses
Low level of labor productivity due to inadequate training.
Weaknesses
No awareness about national standards.
Weaknesses
Entry of multinational products in domestic market.
Weaknesses
Low variation in designs.
Weaknesses
Less knowledge about modern equipment.
WEAKNESSES
SWOT
ANALYSIS
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O
Opportunities
Product diversification.
Opportunities
Growing national and domestic markets
Opportunities
We can become a part of growing fashion industry of Pakistan.
OPPORTUNITIES
SWOT
ANALYSIS
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T
Threats
Designer products
Threats
International standards.
ThreatsStiff competition from large number of competitors
THREATS
SWOT ANALYSIS
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NES
S FU
TURE
PLA
NS
MUMZA LEATHERS
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Our 1st priority to introduce our business on national level.
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MUMZA LEATHERS
Increase the area of production for future production purposes.
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Introduce heavy machinery to compete the competitors & increase the production capacity of the business.
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Our goal is to increase number of outlets in major big cities of Pakistan.
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Recognize our brand name in all over the Pakistan with the help of strong advertisement strategies
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We will increase our product line in leather, so people can avail all the possible items with in one roof.
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Product Line for 5 years:
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Ladies Leather Bags:
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Mobile Leather Covers:
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Laptop Leather Bags:
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Leather Belts:
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Product line For next 5 years
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Leather Shoes
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Garments:
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We will conduct training programs for the training of employees for increasing production capacity.
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Organize a proper department for designing to overcome the designer’s products competition.
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Hire models for advertisement of our leather jackets.
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Provide quality satisfaction to the customers.
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