Business Plan

Business Plan (U n’ Me)

Submitted To: Mr. Manqoosh-ur-Rehman.

Submitted By: Ahad Ali

(063305-010)

Mahed Aamir

(063305-038)

Anees-Ur-Rehman

(063305-016)

Mohammed Yasir Naim

(063305-026)

Mohammed Kazim Amjad (063305-006) Fazal Hussain

(050804-011)

Date: 27/06/09

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Table of contents: Acknowledgements............................................................................................................3 Executive Summery:..........................................................................................................4 General Company Description.........................................................................................6 Mission Statement:............................................................................................................6 Form of Ownership:..........................................................................................................6 Industry History:...............................................................................................................6 Most important Strength and core Competencies:.........................................................7 Variation in price...............................................................................................................8 Significant challenges the company Faces now and in the near future:.......................8 Products and services:.......................................................................................................9 Marketing plan:...............................................................................................................10 Market research:.............................................................................................................10 Features and Benefits:.....................................................................................................13 Products..........................................................................................................................13 Services: ........................................................................................................................13 Competition:.....................................................................................................................16 Porters Five Forces........................................................................................................16 Competitive Analysis:......................................................................................................17 For competitor A:...........................................................................................................17 For Competitor B:..........................................................................................................19 For competitor C:...........................................................................................................21 For U n’ Me:...................................................................................................................24 Niche:................................................................................................................................26 Marketing Strategy: ......................................................................................................27 Promotion:......................................................................................................................27 Advertising:....................................................................................................................27 Promotional Budget:......................................................................................................28 Pricing strategies:...........................................................................................................28 Location:...........................................................................................................................28 Distribution Channel:......................................................................................................29 Operational Plan..............................................................................................................30 Daily operation of the business: ....................................................................................30 Location:...........................................................................................................................31 Organizational chart.......................................................................................................32 Management & organization:.........................................................................................34 Harvest or Exit Strategy:-...............................................................................................35 Financial Analysis:...........................................................................................................36 Balance Sheet...................................................................................................................37 Internal Rate of Return - IRR........................................................................................37 Conclusion:.......................................................................................................................39

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Acknowledgements “First of all we are thankful to one and only the Almighty Allah for always guiding us in the thick and thin and giving us strengths and courage to complete this project without Him nothing would have been possible. Then we would like to thank our parents whose prayers and support have always been influential in our lives. Then we would like to thank all the people who directly or indirectly helped us out in this project we would like to thank all the organizations whose data we used in this project

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Executive Summery: The company deals in garments business consisting of readymade and customized products. Products are cotton shirts and trousers. This business is based on Partnership in which each partner will get each share. The main focus of the company is to provide customized products according to customer preferences. The services which our business is giving are Customization, Home delivery, Membership, Free alteration for members, Special discount package for members. U n’ ME garments is a small venture and on its initial stages. It does not have enough time and finance for primary market research. Keeping in mind the position of the business at the moment an appropriate strategy would be to conduct the secondary research as it will not prove to be a burden on the finances of the company. It also will be convenient option for the company. Niche market of U n’ Me is students of UMT hostel and a small segment of a big industry is focus of operation i.e. UMT hostel which comprises of 500 – 600 students. The products including Dress shirts and formal trousers are source of satisfying needs of target customers. The profile of target customer includes from middle class, upper middle class, male gender of age between 18 – 30 with income level between 8 – 15k. The unique corner of the U n’ Me Garments is that it is accessible for its target market as it will be operating in the UMT hostel which is the main point of focus. It can easily interact with its customers leading to various improvements in its operations, and also better understand the changing preferences of its target customers. U n’ Me Garments will use print media for creating awareness to its customers, because the print media is the most appropriate strategy for it to reach to its target customers. Also the limited marketing budget does not allow it to go on large scale marketing.

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U n’ Me will focus on penetration pricing. This price is deliberately set at low level to gain customer's interest and establishing a foot-hold in the market. This business will deal only on cash basis The location of U n’ Me is very convenient for its target customers to come and have shopping there. It is located in the heart of its target market. As parking facilities are there in the hostel which will fulfill the requirements of customer Daily operations of the business are Up to date financial statement, Proper placement of the product, Order management, Stock management, Cleanliness. U n’ Me will start its operations with the capital of Rs. 0.696 million which will be total equity based. The loan facility would not be availed. The two bikes costing Rs. 140000 will be purchased solely for business purposes. The proposed expenditure for the office and furniture fixes will be closed to Rs. 50,000. U n’ Me will sell their products or services through its retail outlets, and through its own sales force. If U n Me does not get maximum profit than the business go for Exit or harvest strategy.

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General Company Description

Mission Statement:

“To produce innovation, value intensive products by cultivating the creativity and maintaining satisfied customers and set the standards, improve each day and have some fun”

Form of Ownership:

This business is based on Partnership in which each partner will get 20% each. Written contract will be made with the help of legal advisor if any one wants to leave his shares, the shares will be internally divided among other four.

Industry History:

Readymade garment industry has emerged as one of the important small scale industries in Pakistan. Its products have large demand both at home and abroad. The local requirements of readymade garments are almost wholly met by this industry. Its exports in 1999-2000 stood at US $ 772 million or 8.5% of the total exports. The readymade garment industry started in 70's in Pakistan. With the passage of time and industrialization, this industry expanded very rapidly. The majorities of the units making cotton fashion garments are medium and small-size in terms of machines, workers and output, with a few notable exceptions and scattered throughout Pakistan. The importance of this industry lies in the value it adds to indigenous raw material - cotton + blended

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cloth - thereby substantially increasing the revenue from its sale in the international market.

Most important Strength and core Competencies:

•

No Legal Barrier:

As it is a small venture and it does not need to get registered. •

No competitors in the vicinity:

This is competitive edge for the company to start a business in UMT hostel as no one has taken an initiative to start business of this nature. •

Customization:

The main focus of the company is to provide customized products according to customer preferences. •

Customer service:

The main factors of customer service in which company is going to serve customers are:  Free home delivery  Membership cards  After sale services  Friendly atmosphere  Customization of products.

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Variation in price Price will be varied according to the levels of customization. There will be no variance in the price of ready made products. Whereas price will be varied for customized products according to the size, quality and design of product

Significant challenges the company Faces now and in the near future:

Less Capital: It is a small venture and more over shareholders do not have enough capital to invest. Another reason is that the business is in initial stage. Marketing: Due to limited capital and shortages of budgets, it is not possible to advertise our brand at higher level. Because of this, our product awareness in the market will be minimum. Inexperienced: One of the challenges is that all the share holders’ don’t have any kind of business experience moreover the company has no experience of negotiating with different suppliers and vendors. New Brand: New brand at its initial stage is itself a challenge. As discussed above that due to shortage of capital we are unable to promote this new brand for better awareness and desired out comes.

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Long term: The target of the company is to achieve the breakeven in the first six months. From this point onward we will strive to grow at a constant rate to open a new outlet each year so that vision of company can be achieved.

Products and services:

Products Formal shirts and trousers (cotton) with colors, sizes, variety, styles Services: •

Customization

•

Home delivery

•

Membership

•

Free alteration for members

•

Special discount package for members

Competitive Advantage Customization Low Price High quality Easily reachable for target market

Competitive Disadvantage No awareness Small Venture Un experienced

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Pricing Fee: Customized trouser Ready made trouser Customized shirts

499

Ready made shirts

399

Marketing plan: Market research:

Market research is necessary for all kind of businesses but especially before the commencement of new businesses. It clarifies different aspects regarding customers demand, their behavior, and their buying power, their attitude towards the product, their likings and disliking. It also clarifies about the potential customers of the business and also helps the company to focus on those customers more efficiently and effectively. It will help a business to identify right opportunity and the time at which to hit these opportunities. Market research gives the company very concrete information which is close to the accurate because right information is very necessary regarding target markets, their demands, their norms and values, ethics related to the business and it enables the company to minimize the risks. U n’ ME garments is a small venture and on its initial stages. It does not have enough time and finance for primary market research. Keeping in mind the position of the business at the moment an appropriate strategy would be to conduct the secondary research as it will not prove to be a burden on the finances of the company. it also will be convenient option for the company. What barriers to entry keep potential new competitors from flooding into your market? 10

•

High capital cost:

It is not a barrier for the new competitors as any one can start with a low capital. •

High production cost:

It can be a barrier and can not be a barrier because it depends on the references of the business entity. •

High marketing cost:

Marketing is not a barrier for this business because a small business does not require marketing at a bigger level. •

Consumer acceptance/Brand recognition:

It can be a barrier because it is always difficult for a new brand to capture the target market and due to low marketing budget it is almost impossible to create a brand recognition at initial stage. •

Training/skills:

It can be a barrier for new company because if existing company have good marketing skills, communication skills and technical skills related to garments etc then it will always be a barrier for new company to compete the existing company. •

Unique technology/patents:

Because it is a small business therefore it doesn’t require any unique technology and patents.

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•

Shipping costs:

Shipping cost is not a barrier. Because it is a small business and usually small businesses not go for such big segment. •

Tariff barriers/Quotas:

It is also not a barrier because at this small level no legal barrier, government intervention, taxes are involved. How could the following affect your company? Change in technology: There are two ways of technology change •

Positive

•

Negative

If positive change occurs i-e development in technology it will result in increase in production whereas decrease in production cost less labor force which will decrease labor cost, increase quality, new innovative style and design occurs, reduced lead time and increase in flexibility and vice versa for negative change. Government Regulations: There is no involvement of government in our business because it is a small business and it is not opening on a large scale. This business is just for the selected and specific areas. •

Change in your Industry:

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It will not affect if there is any change in this industry because our business is based on customized products as well and due to this new trends and fashion will be adopted accordingly. Features and Benefits: Products

Formal shirts and trousers (cotton) with colors, sizes, variety, styles. Services:

•

Customization

•

Home delivery

•

Membership o Free alteration for members o Special discount package for members

Customization: Features Design flexibility

Benefits Any fashion desire of customer can be

Size variation

fulfilled Different demand of sizes can be met

Various color combination

Different demand of colors can be met

Stuff of customer choice

Getting stuff of customers choice 13

All these would lead to the higher customer satisfaction resulting in building customer loyalty. Home Delivery: The important feature of home delivery is that it saves time of the customer, convenient for them and it is value added service for our business. Features Time saving for customers convenience

Benefits Customers don’t have to go to the shop

Membership: Features Customer record

Benefits Customer can order from anywhere with a

Different packages Updates

simple phone call Discounts, money back guarantee Customer attraction

Products: •

Formal shirts

•

Trousers (cotton)

Formal Shirts: Features Plain design Check design

Benefits For Official use For casual and official use

Trousers:

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Features plate less Wrinkle free Casual trousers

Benefits For formal and casual use No need to iron comfortable

Customers: •

Age:

18-30years •

Gender:

Male •

Location:

UMT Hostel •

Income Level:

8-15k •

Social class/occupation:

Upper middle class Middle class •

Education:

Undergraduate and post graduate

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Competition: Porters Five Forces Bargaining power of Buyers: Clothing is one of the three fundamental human needs. Everybody needs to buy clothing. Clothing includes wearing apparel such as shirt, pants, among others. Buyers usually buy in smaller quantities and do not purchase regularly. Buyers can also easily switch from one competitor to another in case of product dissatisfaction or if they just want to try other brands. The idea of custom-fit pants is still a fresh concept in the garments industry and U and Me is dealing in customized product too; particularly in our business only few buyers, particularly those in the upper middle, upper class, avail/can avail these products because of the products’ perceived high-end status and high price. Bargaining power of Suppliers: U and ME will be dealing in pants and shirts which is made of cotton. Pakistan is likely to remain the largest supplier of cotton and U n ME will buy cotton locally. Substitute Products: Ready-made retail products are considered substitute for custom-made clothing. Moreover, the trend of many universities and offices which uses trousers and jeans has been replaced by Formal pants. The fabric could also be replaced by other fabrics such as those used in khaki pants and pants. Barriers to entry: Barriers to entry include local policies implemented in the textiles and clothing industry. As far as U n Me is concerned there is no as such barrier in entering market.

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Rivalry: The garment industry is comprised of many players, both operating on a large scale and small scale basis. Customers are free to change their suppliers thus creating high uncertainty for competitors. In terms of origin and operating styles, competitors may range from boutiques, specialty stores, bazaars, direct selling agents, department stores to big malls. U and ME is a small venture and have the big threat of having new competitor in the market.

Competitive Analysis: For competitor A:

Factor Products

Strength

Weakness 

Competitor A

Importance

(D for Denim) • Dress

customer

pants

to

&

shirts Price

•



Shirts: Rs 499-600

•

Pants: Rs 795

Quality

•



100% Quality

•

Checked by company

Selection



•

Market trend

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•

Customer demand

Service



•

Alteration

•

Shirt fitting

Reputation



•

Good

•

Customers come from different cities

Location

•



Kareem Market

Appearance

•



Designer (itself)

Sales Method



•

At

spot

sale

Credit Policies



•

No credit policy

•

Only cash basis

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For Competitor B:

Factor Products

Strength

Weakness 

Competitor B

Importance

(Free Edge) • Dress

customer

pants

to

&

shirts Price



•

Pants: Rs 550 (normal)

•

Pants: Rs 1650 (high)

•

Shirts: Rs 450-650

Quality



•

100% Quality

•

Checked washing

•

2-3 washing & check

Selection



•

Market design

•

Market trend

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•

Customer demand

Service



•

After sale, exchange the default product

•

Shirt fitting

Reputation



•

2-2.5 years

in

launching their brand •

Good reputation

•

Customer trust

on

brand Location



•

In Kareem Market.

•

Placement in

Aqsa

garments with some other brand like River Stone, Radiation

20

etc

Appearance

•



By

self

design their products Sales Method



•

At

spot

sale

Credit Policies

•



No credit policy

•

Only cash basis

Advertising

•



Through Magazine (Teen club)

•

Catalog

For competitor C:

Factor Products

Strength

Weakness 

Competitor C

Importance to

(Brands) • Dress

customer

pants

&

shirts •

Cotton

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pants

&

trousers Price



•

Dress Shirts: Rs 450-650

•

Dress Pants:

Rs

1050 Quality



•

Import the products from China, Thailand & Indonesia

•

Checked by company

Selection



•

By owner itself

•

Market trend

•

Changing preference of people

Service



•

Give

six

months warranty 22

of Bubble & Collar Reputation



•

Famous

Location



•

Kareem Market

•

Launch 1st shop

in

Islamabad & 2nd shop in Lahore.

Appearance



•

Designer (itself)

Sales Method

•



Prices are not fixed.

•

Bargaining

•

Normal profit margin

Credit Policies

•



No

credit

policy •

Only cash basis

Advertising



•

Through cables.

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•

Poly bags

•

Catalog

•

Banners

For U n’ Me:

Factor

Strength

Weakness

U n’ Me

Importance to customer

Products



•

Dress pants & shirts

•

Cotton trousers

Price



•

Shirts:

Rs

350-375 •

Pants:

Rs

550 •

Trousers: Rs 500-550

•

Customized shirts:

Rs

425-450 •

Customized trousers: Rs 600-650

Quality



•

Quality assurance 24

by checking our products by washing twice

or

thrice Selection



•

Market trend

•

Customer demand

Service

•



Free

home

delivery •

After

sale

service •

Warranty (6 months)

Reputation

Location





•

Membership

•

No

•

UMT Hostel

•

Sales office/ outlet: Room # 44

•

Storage room: Room # 242

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Appearance



•

Designer (itself)

Sales Method



•

At spot sale

•

Home delivery

Credit Policies

•



No

credit

policy •

Only

cash

basis Advertising



•

Through banners

•

Leaflets

•

Pamphlets

Niche:

A niche market is the subset of the market on which a specific product is focusing on; Therefore the market niche defines the specific product features aimed at satisfying specific market needs, as well as the price range, production quality and the demographics that is intending to impact. Niche market of U n’ Me is students of UMT hostel and a small segment of a big industry is focus of operation i.e. UMT hostel which comprises of 500 – 600 students. The main focus from these numbers is the business students and professionals. The products including Dress shirts and formal trousers are source of satisfying needs of target 26

customers. The profile of target customer includes from middle class, upper middle class, male gender of age between 18 – 30 with income level between 8 – 15k. The unique corner of the U n’ Me Garments is that it is accessible for its target market as it will be operating in the UMT hostel which is the main point of focus. It can easily interact with its customers leading to various improvements in its operations, and also better understand the changing preferences of its target customers.

Marketing Strategy: Promotion:

•

Banners.

•

Leaflets.

•

Pamphlets

•

Word of Mouth.

Advertising:

U n’ Me Garments will use print media for creating awareness to its customers, because the print media is the most appropriate strategy for it to reach to its target customers. Also the limited marketing budget does not allow it to go on large scale marketing. As it is operating on small scale and the target market can be reached through them, there is no need of using other media for advertising. And whenever new products will arrive, new packages for sales promotion U n’ Me garments will go for advertising using appropriate mediums.

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It is an effective strategy because pamphlets will be displayed on the notice boards which are unavoidable for everyone. It is a business operating on small scale requiring marketing on small scale. The marketing budget is weak allowing only marketing on small level. The target market is small so print media is the appropriate medium to create awareness for small portion of market. Promotional Budget: 10% of the total capital will be allocated for the above mentioned advertising. More portion of the marketing budget will be spent on Leaflets, pamphlets with very small proportion for banners. Pricing strategies: U n’ Me will focus on penetration pricing. This price is deliberately set at low level to gain customer's interest and establishing a foot-hold in the market. This business will deal only on cash basis Location:

In the world of business, location is extremely important. Most of us have heard the saying "location, location, location". There is a reason it is a saying and it is important for everything from the perfect photograph and romantic settings as it is in the world of real estate and business success. Spend time scouting out locations that you feel would be great places to open a coffee franchise business and ask yourself the following questions. Is this is a high traffic location? Most people are rather lazy by nature. You want to find a location that people will drive by often. www.linkroll.com The location of U n’ Me is very convenient for its target customers to come and have shopping there. It is located in the heart of its target market. As parking facilities are there in the hostel which will fulfill the requirements of customer. It also posses a required

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space for an effective outlet. It has sufficient display area, shelf space, trial room, and mirrors etc. This location is also suitable and consistent with the image of this business because it is emphasizing as indoor business and this location is consistent with the nature of business, where U n’ Me can easily connect with the target audience. U n’ Me providing such a space which will fulfill the demand of customers as it will be approachable to the customer. It will provide friendly atmosphere for them as such, U n’ Me will be the only leading company dealing in garment industry in the UMT hostel, where there is no such kind of competition. The nearest competitor to the location of U n’ Me is Kareem market. Therefore location will be a better competitive edge for U n’ Me. Distribution Channel:

U n’ Me will sell their products or services through its retail outlets, and through its own sales force. Marketing strategies of U n’ Me is very effective as it is closely connected to the target customer. U n’ Me is using catalogs, brouchers and banners for its advertisement and promotions. It is also suitable with the nature of the business as it will require fewer budgets which will reduce the cost of business. distribution strategies are also effective because garment business deals with direct sale practice. Pricing strategies are also flexible. U n’ Me is using penetration method for its pricing as its target market is the middle class income group.

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Operational Plan Daily operation of the business:

Following will be the daily to daily operations of the business: •

Up to date financial statement.

•

Proper placement of the product.

•

Order management.

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•

Stock management.

•

Cleanliness.

Location: Yes, it is convenient for customers to come and have shopping here. We are located at the heart/middle of our target market.

As parking facilities are there in the hostel which will fulfill the requirement of customers. We also possess a required for an effective outlet. We have sufficient display area, shelf space, trial room, mirror etc. This location is also consistent wit the image of this business because we are emphasis it as indoor business. And this location suits with the nature of business. Where U n Me can easily connect with the target audience. U n Me is providing such a space which will fulfill the demand of customers as it will be easily approachable to the customers. It will provide a friendly atmosphere for them. As such U n e will be the only leading company dealing in garment industry in UMT hostel. Where there is no such kind of competitor. The nearest competitor to the location of U n Me is Kareem Market. Therefore location will be better competitors edge for U n Me.

Legal Environment: There is no legal environment because it is a home based business. Permit: Permission from UMT management and administration. Health, workplace, or environment regulations: No Special regulations covering your industry or profession: No Zoning or building code requirements: 31

No Insurance & Trademark: With the expansion of our business, we will go for trademarks & copyrights then insurance will be part of our plans.

Personnel: Number of employees: 8 (including 2 tailors). Type of Labor: Both skilled and professional. Where do you find new employees? Quality of existing Staff: Six are skilled & qualified while two are skilled & professional. Pay Structure: Profit will be shared between 6 shareholders after paying all the expenses. Training methods & requirements: Not required. New hiring: As we have described in our goal that they will strive to open a new outlet every year for this purpose, it will definitely require some professionals and skilled person who have Market experience.

Organizational chart

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Who does which tasks? •

Marketing & Sales department:

Mr. Ahad Ali will be the head of this department with Mr. Mahed Aamer & Mr. Fazal Hussain will be accompanying him. •

Management Department:

Mr. Anees ur Rehman is the head of management department with Mr. Kazim Amjad will accompanying him. •

Finance Department:

Mr. Yasir Naim is the head of finance department with Mr. Ahad Ali will accompany him.

•

Contract workers:

For the production department, we will have contract workers for assistance.

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Management & organization:

Manages Business on daily basis: •

Finance: Mr Yasir.

•

Operation: Mr. Kazim

•

HR: Mr. Anees

•

Marketing : Ahad Ali

•

Quality Assurance:Mahed Aamer

Experience by person to business: All the members of each department don’t have any practical experience regarding their respective field but the positive point being the student of Business Administration, they know the strategies and policies of operating & launching a business & how to make it successful by utilizing their skills and knowledge. Distinctive competencies: •

Way of communication

•

Customer care

•

Friendly environment

•

Customer relationship management

Plan for continuation of Business: In case, if any shareholder want to withdraw from the business, the other members try to cover the gap by utilizing their efforts & if the situation arises when U n Me will need a specialist person then they will go for new hiring.

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Harvest or Exit Strategy:If U n Me does not get maximum profit than partners of U n Me will decide for exit. The time is come when partners will not be able to get more through this business then the partners will look to harvest it, U n Me will be sell it to another entrepreneur who will be interested in this business. Favorable exit strategies are to sell the business, U n Me sell their assets of the business or merge it with another business and if there come such situation when there is no one in the Market to purchase it and don’t want to Acquire or merge with our Business then partners will go for another strategy that will be to sell out the assets to different shops.

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Financial Analysis: U n’ Me will start its operations with the capital of Rs. 0.696 million which will be total equity based. The loan facility would not be availed. The two bikes costing Rs. 140000 will be purchased solely for business purposes. The proposed expenditure for the office and furniture fixes will be closed to Rs. 50,000. The proposed capacity utilization for the first year is 80% which would yield sales about Rs. 3.8 million which could be a perfect start for an organization. The COGs for the first year calculated are 141,000 and so it would generate a gross profit of Rs. 3,695,000. The proposed tax provision rate is applied at 15% on the operating profit. And at the end of the first year the projected net profit for the organization should be Rs. 3,033,000. The ROE and ROI will be 436. Return On Equity - ROE The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested. Return On Investment - ROI A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio. www.investopedia.com/terms/r/returnoninvestment.asp Cash flow A cash flow statement or statement of cash flows is a financial statement that shows how changes in balance sheet and income accounts affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities. http://en.wikipedia.org/wiki/Cash_flow_statement

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The projected cash flow statement for the first year at 80% capacity utilization states that company which started at Rs. 0.696 million will have total sources of fund 3.6 million. The opening cash balance from the start of the business is Rs. 0.5 million which will make the closing cash balance of the company about Rs. 3.3 million which include the deducted depreciation value. If at the end of the year the company is able to achieve this target it would be an ideal situation for the company which started at a very low level. If this projected target the plan of opening a new outlet after an year could be achieved as the company would have enough cash resources. This would help build the reputation of the company. Balance Sheet A financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time. These three balance sheet segments give investors an idea as to what the company owns and owes, as well as the amount invested by the shareholders http://www.investopedia.com/terms/b/balancesheet.asp The projected balance sheet of the company for the first year at 80% capacity utilization indicates that it would have assets of Rs. 3.7 million consisting of Rs. 3.5 million of current assets and close to Rs. 0.2 million of fixed assets. The accumulated depreciation for the year would be Rs. 38000 which would decrease the value of fixed assets by Rs. 0.15 million. At the end of 9th year the value of fixed assets would be less then the depreciation value which indicates the buying of new fixed assets. The equity and liability side indicates the same value which totally consists of equity as no loan facility or accounts payable would be utilized. The retained earnings for the year one would add up in the capital invested at the start of the year which would make it Rs. 3.7 million.

Internal Rate of Return - IRR The I.F.R.R for the company is 191.707%. The internal rate of return (IRR) is a rate of return used in capital budgeting to measure and compare the profitability of investments. It is also called the discounted cash flow 37

rate of return (DCFROR) or simply the rate of return (RORThe discount rate often used in capital budgeting that makes the net present value of all cash flows from a particular project equal to zero. http://en.wikipedia.org/wiki/Internal_rate_of_return The break even analysis of the company shows that if a company covers 16.2% of the total capacity utilization it would be enough for the company to reach its break even that would prevent it from the danger of loses. But the company has to perform really well to achieve this target as it would be not easy in any way. In order to calculate the break even for the company the total fixed cost is divided by the contribution margin multiplied by 100. This would generate break even for the company. This break even analysis is based on the 100% capacity utilization by the company.

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Conclusion: The company deals in garments business consisting of readymade and customized products. U n’ ME garments is a small venture and on its initial stages. It does not have enough time and finance for primary market research. The products including Dress shirts and formal trousers are source of satisfying needs of target customers. Niche market of U n’ Me is students of UMT hostel and a small segment of a big industry is focus of operation i.e. UMT hostel which comprises of 500 – 600 students. Using of print media is affective for U n’ Me Garments for creating awareness to its customers, because the print media is the most appropriate strategy for it to reach to its target customers. Also the limited marketing budget does not allow it to go on large scale marketing. The business deal only on cash basis. Penetration is used for pricing. This price is deliberately set at low level to gain customer's interest and establishing a foothold in the market. The location of U n’ Me is very convenient for its target customers to come and have shopping there. It is located in the heart of its target market. As parking facilities are there in the hostel which will fulfill the requirements of customer. The unique corner of the U n’ Me Garments is that it is accessible for its target market as it will be operating in the UMT hostel which is the main point of focus. It can easily interact with its customers leading to various improvements in its operations, and also better understand the changing preferences of its target customers. In case, if any shareholder want to withdraw from the business, the other members try to cover the gap by utilizing their efforts & if the situation arises when U n Me will need a specialist person then they will go for new hiring. There are different department in U n ME .All the members of each department don’t have any practical experience regarding their respective field they know the strategies and policies of operating & launching a business & how to make it successful by utilizing their skills and knowledge.

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