Business Plan on:

Small and medium enterprise of online store for customized and

personalized T-shirt manufacturing TeeBay






SUBMITTED BY:
Joun Ali
BBA 4, Section I
08U0455



Lahore School of Economics
Intersection Main Boulevard, Phase VI DHA, Burki Road Lahore
53200, Pakistan.
2012

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Contents
Analysis of the current situation: .................................................................................................................. 5
Identity of the business:............................................................................................................................ 5
Introduction: ......................................................................................................................................... 5
Market potential ................................................................................................................................... 6
Customized T-shirts An overview ..................................................................................................... 6
Brand Name: ......................................................................................................................................... 6
Legal identity: ........................................................................................................................................ 7
Location: ................................................................................................................................................ 7
The key people: ......................................................................................................................................... 8
Existing management: ........................................................................................................................... 8
Future requirements ............................................................................................................................. 9
The nature of the business: ...................................................................................................................... 9
Market research .................................................................................................................................. 10
RESEARCH OBJECTIVES ....................................................................................................................... 10
RESEARCH METHODOLOGY ................................................................................................................ 11
RESULTS AND FINDINGS ...................................................................................................................... 11
Products and Services: ............................................................................................................................ 21
Market and customers: ........................................................................................................................... 24
Market Segmentation ......................................................................................................................... 24
Target Market Segment Strategy ........................................................................................................ 25
Industry Analysis: .................................................................................................................................... 26
Analyzing the competition: ..................................................................................................................... 27
Future directions: ........................................................................................................................................ 29
Strategic influences: ................................................................................................................................ 29
Strategic direction: .................................................................................................................................. 30
Objectives: .......................................................................................................................................... 30
Mission: ............................................................................................................................................... 30
Keys to Success: .................................................................................................................................. 30
Sales Strategy ...................................................................................................................................... 31
Activities and Milestones: ................................................................................................................... 31
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Implementation of aims .............................................................................................................................. 32
Management of resources: ..................................................................................................................... 33
Start-up Summary ............................................................................................................................... 33
Premises: ............................................................................................................................................. 34
Web Plan Summary: ............................................................................................................................ 34
Development Requirements ............................................................................................................... 36
Website Marketing Strategy ............................................................................................................... 36
Startup Personnel Plan: ...................................................................................................................... 36
Marketing plan: ........................................................................................................................................... 37
Competitive edge: ................................................................................................................................... 37
4 Ps of marketing: .............................................................................................................................. 39
Brand positioning .................................................................................................................................... 40
Marketing methods: ............................................................................................................................... 41
Above The Line: ................................................................................................................................... 41
Distribution Channel: .......................................................................................................................... 43
Financial analysis:........................................................................................................................................ 43
Start-up capital summary: ...................................................................................................................... 44
Payback period: ....................................................................................................................................... 44
Break even analysis: ................................................................................................................................ 45
Income statement ............................................................................................................................... 46
Balance sheet ...................................................................................................................................... 47
Cash flow statement ........................................................................................................................... 48
Gross profit analysis: ........................................................................................................................... 49
Payroll summary: ................................................................................................................................ 50





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AKNOWLEDGEMENT

We have faced many daunting tasks and challenges in our life and have come over many
obstacles leaving us with something new learned every time with success, the greater
proportion of the thanks is solely to the Allah Almighty, who has given us strength and
ability to comprehend and make vital use of resources provided to us in the process of
completing the challenges accepted by us with honor and respect. We have also learned
to accomplish any task with the complete success rate and have followed a quote which
suggested to us that failure is not an option, which is as under;

Great ability develops and reveals itself increasingly with every new assignment
(BaltasarGracian)

Provided with the divine help which played an important role in guiding us, it would be
highly unjust if the kind help and support provided to us by our sincere and respectable
instructor Mr. Haroon Ahmed is left unacknowledged.
During the course of conducting the research and analyzing different aspects of this
project practically, we came across massive volume of hindrances and confusions but it
is safe to say that we would not have been able to accomplish this project and to
achieve the desired goals if we would not have been enlightened with the extraordinary
knowledge and experience of our esteemed instructor Mr. Haroon Ahmed.
Other than the assistance provided to us by our instructor, there was a major role
played by our Teaching Assistant who has provided us with all the guidelines required by
us in order to get the task completed and have most effectively and efficiently provided
all the information and details to us without any delay.

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Analysis of the current situation:

The first and the foremost step of a business plan is to analyze the current situation
which tells us that where are we standing right now. This part of the plan will include
the basic identity of the business that I am going to start, the important and key people
related to this business and also the nature of the business.
Identity of the business:

The identity of a business includes is thorough introduction, the names from which the
new business will be conducted this will include the main and the sub brand names. It
will also include the legal identity and existence of the business lets discuss each of
them in detail regarding my new business.
Introduction:

The main idea of my new business is to allow people to custom design a shirt
(specifically the design on the front or back) in any way that they would like. This will be
an exciting new idea which will intelligently use the technology to print customized and
personalized t-shirts in production runs as small as one unit. The business will not
confine to just individuals with orders for single units but to provide t-shirts in bulk to
different people who want to develop their own brands specially the designers and
some firms who want to make their promotional t-shirts or event t-shirts, that some
people wear on special occasion like matches, elections or any other campaigns. In
short, the idea is to provide any kind of t-shirts (in terms of any quality, any color and in
any quantity). Initially the idea is just to produce t-shirts, then according to the season,
in winters hoodies will also be added in the product line and in the future other
products will also be added. There will be no restriction in terms of clients location. I
want to target local as well as international buyers with both B2B and B2C market. The
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proposed date to start this business is in the month of May 2012 which will be right
after the completion of my graduation.
You cannot be a success in any business without believing that it is the greatest
business in the world; you have to put your heart into the business and the business in
your heart Thomas Watson
Market potential

There is countless number of varieties in the fabric that is used to make T-shirts or other
knitwear products. Therefore a lot of varieties and innovations can be done in their
production and when it comes to printing there are lot of methods for the printing on
shirts including conventional and digital printing for example, and especially in this
market I see a countless number of innovations that can be done, therefore I see a lot of
room in this field.
Customized T-shirts An overview

Customized T-shirts mean that a T-shirt that is made according to the design provided
by the customer, i.e. tailored according to the demand of customer. Now, imagine the
ability to create a totally custom shirt. You choose the material and style of the shirt,
and then the image or graphic you want on the front and/or back. This is the ultimate
form of expression. There are no limits to what you can communicate. Some people
might show their fanaticism for a particular sports team, others a musician. Or you
might have a social message or cause on your shirt. Whatever you may decide, you can
print any image on your shirt.
Brand Name:

The name of the business has been decided to be TeeBay. This name has been
decided after doing a great amount of brainstorming and an immense thought process
because in this era the trading or business name (usually known as Brand Name) has a
great link with the companys successful marketing and advertizing campaign. The
research showed that the customers usually remember the brand names that are short
and easy to pronounce and they will likely to remember it more when it have a certain
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kind of link with their daily lives or they have any kind of nostalgic attachment with that
name. The name TeeBay has combined by 2 words Tee; which has been taken from the
word T-shirt and eBay; which is the worlds first and the most famous online shopping
website. Therefore the brand name TeeBay will have a positive effect on the advertising
campaign of the company as it is short, easy to pronounce and also have a link with the
worlds most famous shopping website.
Legal identity:

TeeBay is a start-up organization. The legal identity of TeeBay will be a sole
proprietorship that is owned by a single owner Joun Ali. The sole proprietorship
formation was chosen as a way to minimize personal liability issues and avoiding the
double taxation.
Taking about the management of the company; the founder, Joun Ali will be the
president of TeeBay and will personally handle all the operations and no manager will
be hired for the first 6 months in order to save the costs. Initially the capital will be
raised through personal savings and some startup capital from dad, which makes a total
initial capital of 7 lacks. The official bank that will be used to handle all the transaction is
the Standard Charted bank. The Standard Charted bank has been chosen because it has
the maximum no. of services when it comes to online banking facilities.

Location:

Initially the company will not have any physical outlet but it will have a comprehensive
website that will allow proper ordering to occur anywhere. Therefore the business will
be operated from home through computer via internet. I will dedicate one outer room
of my house to this business which will act as an office for TeeBay. It will have office
equipment like table, chain and computer and the small T-shirt printer (which will be
explained further in this report). The purpose to choose an outer room of my own house
is that it will save office rent which is a huge burden on a small scale business like
TeeBay. Another reason to choose this location is that I can manage my office related
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work anytime and much quickly due to the convenience of no distance advantage and I
will also have a proper supervision of my company operations.
After 2 months of startup advertisement form the home through computer I will need
to have a proper location as an outlet for the meetings with the clients. Here I will also
use the available recourses to minimize the office related costs. My brother has an
outlet for his brand near expo center Lahore by the name of wall moods and the shop
size is quite big and I plan to place a kiosk in that shop which will help me and my
brother to share the rent expense.
The key people:

The people in a business perform the basic operations of a business. It will deal with the
existing management of the business and analyze the gaps in the current personnel and
tells the basis of the future requirements.
Existing management:

TeeBay will be led by Joun Ali and it is not my first t-shirt venture. I live in the area of
Allama Iqbal town in Lahore which is known as a hub for knitwear products. A lot of
business activities regarding this field happens all the day in the area of Karim market
which is situated a block away from my home therefore I keenly observe all those
activities which takes place all the day like buying and selling of the knitted fabric, the
selling of B lots of the branded clothes and the designer brands that have huge outlets
in this area. Besides this, key opportunity in this area is that there are lots of stitching
and printing facilities (units) i.e. manufacturing facilities in this area. Almost in every
block there are 5-6 manufacturing units present.
Moreover in college i.e. Lahore School of Economics during my graduation, I
produced and sold many T-shirts with the cartoon characters like angry birds, superman
and SpongeBob. This early business experience gave me valuable insight into the
market, the products, and the customer's needs and desires. During this business
experience I went to many factories that manufacture knitted fabric and dye yarn and
also met with many people who do digital printing on the shirts and it was this
experience that provided useful business and professional contacts within the shirt
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sublimation technology industry that I am currently going to practice. I will use my
educational skills, my technological business contacts, and the previous shirt industry
experience to make TeeBay profitable.
Future requirements
As a startup the scope of the business will be very small so I will manage all the
processes myself. But as the business will grow, I foresee some gaps when it comes to
management. Especially after two months when I planned to open an outlet near expo
center Lahore, in-store retail employee will be needed to help the customers to place
the orders and to manage the existing orders. A book keeper will be needed who will
handle the accounting books and also manage the sales data and customer invoices he
will also be responsible for the making of daily ledgers besides this I will need a graphic
artist that will assist customers to make their designs into printable form. I will so need
personnel related to IT to manage the company website. All these personnel and
management requirements will be further explained in the later chapters the report.
I personally have a skill set which is related to marketing and management and I do not
have any IT background therefore before starting the business I myself need to fulfill the
gap of technical education regarding the management of online ordering system and
the web development and designing skills. I can fill this gap by doing a proper web
designing course from any good and well reputed institution. It will help me to grasp the
fresh knowledge regarding the websites and how they are made and how to make them
unique and attractive.
The nature of the business:

The nature of a business is a detailed analysis of the products and services that I want to
offer. It will also includes the market and the customer analysis and the marketing
research on this basis of which the business idea progress. It will also include the study
of the related industry and the completion in the market in which we are going to
operate.
Individual orders can be fulfilled through digital printing but its cost is
comparatively very high therefore I need to find out the amount of money that people
willing to pay as a premium to buy a customized tee.
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A market research is needed to find out the trend and behavior of the target
market, either they like the product and willing to buy a customized t-shirt or not and
other related questions that are needed to be answered through market research.
Market research
Market research is an organized effort to gather information about markets or
customers. It is a very important component of business strategy.
Purpose
The first and the foremost purpose of this Market research is to practically apply the
tools and concepts of conducting a fruitful research of my product, so that it enables me
to market the products effectively and more efficiently
The primary purpose of this research project is to get the insight of the target market
i.e. their demand and requirements, in order to achieve higher goals with an objective
to create value in return.
The secondary purpose is to analyze and examine the broad conditions and trends of
the societies in order to formulate a Marketing Plan keeping in view the cultural and the
traditional values of certain geographical area in which these T-shirts are being launched
and how these factors can influence the values as a whole both positively and
negatively.
Scope of the research
At the initial stage of my small business, I will focus the research to B2C only and for the
local customers only. Another separate exploratory research will be carried out in order
to cater B2B sector of this market which will be done in the later stages.
RESEARCH OBJECTIVES
Once the need for research information has been clearly defined, now the objectives of
this research must be specified and there is a need to develop a specific list of
information that is required from this survey. The main objectives of my research are as
follows;
1. Likeliness for the customized t-shirts
2. Willingness to buy customized t-shirts?
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3. What type of people wants to buy these shirts?
4. Proposed price that they are willing to pay for such type of printed shirts?
5. How the target market rate quality of fabric and quality of printing?
6. Awareness towards online shopping.

RESEARCH METHODOLOGY
Descriptive research will be carried out in order to find out the answers to the questions
like who, when, why, where and whom. Primary data will be collected in order to carry
out this research, through questionnaires.
Population under study would be all the males and females who wear T-shirts, including
the people from a kid to a 50 year old person. Sample size will be of 50 respondents.
Questionnaires will be distributed among the respondents to carry out the research and
simple random sampling will be used. Some observational techniques will be used in
order to select the respondent. In these 50 people there are persons from different
professions and from different age groups. In these 50 respondents almost 50% of them
will be females and 50% will be males.

RESULTS AND FINDINGS
A questionnaire was distributed among 55 respondents and we get 50 filled
questionnaires back in the time span of five days, which means that the response rate
was 90%. The questionnaire was distributed mostly among the students of the
universities which includes; Lahore School of Economics, LUMS and PCBA. Some of the
questionnaires were distributed among people who are doing jobs.
The responses of the questionnaires were analyzed using the statistical tools in Excel,
and the following graphs were obtained. The analysis of the survey is shown below with
the help of pie charts and bar charts.

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Out of 50 respondents 46 respondents are from the age bracket of 16 years to 25 years
i.e. 92% or the questionnaires were distributed mostly among the youth, which is also
the age bracket of my target market.

The question two in the survey was about the gender, the above graph shows that out
of 50 respondents 26 were males and 24 were females, which shows almost equal
distribution of questionnaire among the target audience
0
46
2 1 1
0
5
10
15
20
25
30
35
40
45
50
10 to 15 16 to 25 26 to 35 36 to 40 40 +
Q1. In what age bracket do you fall?
26
24
23
23.5
24
24.5
25
25.5
26
26.5
Male Female
Q2. What is your gender?
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Next question was also about the demographic of the target market. Out of 50
respondents 44 of them were students and 6 of them were businessmen, which again is
a representative of my target market.

Question five was the first question about the likeliness of wearing T-shirts. The results
of the questionnaire survey showed that out of 50 respondents, 42 people like to wear
T-shirts which almost comprises 84% or the target population and among the
respondents 16% of the people do not likely to wear T-shirts.
44
0
6
0
0
5
10
15
20
25
30
35
40
45
50
Student Service Businessman Job Holder
Q4. What is your occupation?
84%
16%
Q5. Do you like to wear T-shirts?
Yes
No
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In question six respondents were asked about the frequency of wearing T-shirts that
how often they wear T-shirts. Out of the sample of 50 respondents, 20 said that they
wear T-shirts daily. 14 of them said one to three days a week, 12 of them said that they
wear T-shirts once in a week whereas 4 of them said that they rarely wear a T-shirt.

In this question the respondents were asked about their opinion regarding the likeliness
of having personalized designs on the T-shirts they wear. The results showed that out of
50 respondents, 38 were likely to have personalized designs on the t-shirts they wear.
This shows that nearly 76% of the sample size is likely to wear customized designs and
20
14
12
4
0
5
10
15
20
25
Daily 1-3 Days a week Once a week Rarely
Q6. How often do you wear t-shirts?
38
12
0
5
10
15
20
25
30
35
40
Yes No
Q7. Do you want your customized/ personalized
designs printed on the T-shirts you wear?
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the rest 24% do not likely to wear customized designs, i.e., 12 people gave the negative
response.

In question 8 of the survey, the buying pattern and the buying frequency of the
respondents were asked. The results showed that out of 50 respondents, 16 people
purchase T-shirts on monthly basis, 14 people purchase once in a season, 10 people
responded that they often do shop for t-shirts, 8 of them responded rarely whereas only
one responded that they shop for T-shirts weekly.
1
16
10
14
8
0
2
4
6
8
10
12
14
16
18
Weekly Monthly Often Once in a season Rarely
Q8. How often do you purchase T-shirts
in a season?
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Question 9 was about how the target market rate the quality of fabric in terms of its
look and feel, the question was intentionally made little vague because generally people
have several perceptions about the fabric quality some say that thick fabric is better
some say that more soft the fabric is the more better it is. The results of the survey
showed that 26 people said that the more finer the more better the fabric is, and 14
responded that the more soft the fabric, more it is better and 6 said that more thick will
be the more better fabric and only 4 of the respondents said that the more thinner the
fabric is the more better it is.
6
4
26
14
0
5
10
15
20
25
30
The more thick the
more better?
The thinner, the
better?
The more Finer the
more better?
The more soft the
more better?
Q9. How do you rate the quality of the fabric of
a t-shirt?
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This question was asked to find out that either people would like to gift custom made t-
shits to their friends or not and the survey showed that 80% of the respondents replied
positively about the question that they would like to gift custom made shirts to their
friends

Question 11 typically finds out the price of our product that our target market is willing
to pay. The questionnaire results showed that 54% of the respondents are willing to pay
750-1000 rupees for a personalized T-shirt, whereas 40% respondents are willing to pay
a price between 500-700 rupees and almost 5% of the people are willing to pay more
than 1000 rupees.
40
10
0
5
10
15
20
25
30
35
40
45
Yes No
Q10. Would you like to gift a custom
made T-shirt to your friends?
20
26
2
0
5
10
15
20
25
30
Rs.500-749 Rs.750-1000 Rs.1000+
Q11. How much are you willing to
pay for a customized T-shirt?
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The results to this survey question showed that out of 50 respondents 28 have
purchased some products online before whether 22 of them have not buy anything
from the internet.

Question 13 was asked from the sample to find out that from where they want to
purchase these personalized T-shirts. The results showed that almost 44% of the sample
wants to buy these T-shirts from clothing stores, 28% of them want to buy from online
websites, 8% of them from shopping malls and around 12% of the respondents want to
buy them from gift shops.
28
22
0
5
10
15
20
25
30
Yes No
Q12. Have you purchase any products
online before?
14
6
22
8
0
5
10
15
20
25
Online website Gift shop Clothing store Shopping Malls
Q13. By preference, where do you want to
purchase these personalized T-shirts from?
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This question was asked to know about the preference of the target audience that do
they want to choose some designs from the gallery or they want their own designs to be
printed on their T-shirts. The results showed that out of 50 respondents, 28 respondents
prefer to give their own designs whereas 22 responded that they prefer the designs that
are available in the gallery.

Question 15 in the survey was asked to find out the best advertising tool for these kinds
of T-shirts. The survey results showed that out of 50 respondents 24 said that there
should be online ads on some websites like facebook, twitter etc and 14 respondents
said that there should be outdoor advertisements like on billboards, 6 said that there
28
22
0
5
10
15
20
25
30
Own design Gallery
Q14. Will you prefer a T-shirt to purchase from a
gallery containing a lot of designs or will you
prefer to give your own design?
24
14
6
4 2
0
5
10
15
20
25
30
Online ads Outdoor
advertisement
TVCs Magazines Exhibitions
Q15. Which option would you consider as the
best advertisement tool for this idea?
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should be television commercials, 4 said about print ads like in magazines and only 2
said that there should be exhibitions to promote these kind of products.

Sixteenth item in the survey was again regarding the advertisement and the promotion
of the product. In this question respondents are asked about celebrity endorsements
that do these endorsements have any effect on their buying behavior, and surprisingly,
the results showed that 60% of the respondents do motivate to buy the personalized T-
shirts if they see brand endorsements whereas 40% or the respondents replied in
negative that they do not have any effect of these endorsements.

30
20
0
5
10
15
20
25
30
35
Yes No
Q16.Would brand endorsements motivate
you to purchase personalized tees?
49
1
0
10
20
30
40
50
60
Yes No
Q18. Once the brand is developed, would
you like further product line extensions For
E.g.: Customized Hoodies, bags, Caps, etc
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This question was about the future developments in the product line; out of 50
respondents 49 would like product line extensions in the form of customized Hoodies,
bags and Caps etc.

Conclusion
The conducted research fulfilled my research objectives. I have successfully analyzed the
B2C trends into this market.
The cross tabular analysis of the graphs showed that almost 75% of the people from the
age group of 16 to 25 years have liked the idea of the customized t-shirts and they are
willing to pay Rs.500-Rs.1000 for these kind of personalized T-shirts. Whereas among
these 75% of the people 45% are males and 30% are females.
Another important finding of this research is that the youth is now taking much interest
to shop online i.e. 56% of the respondents supported the online shopping therefore I
will need a company website for this business idea with online marketing on Facebook
and twitter and some other popular websites and also in the print media like magazines
which are related to youth mostly such as Student Blog etc.

Products and Services:
TeeBay is a custom T-shirt printing company that offering customers a choice of imagery
(outs or theirs) to apply to the front or back of a shirt. It will give them an opportunity to
wear the t-shirts that are personalized according to their thoughts and imaginations.
The process of transferring a full colored picture on a t-shirt is known as sublimation.
This process uses heat to transfer (embed) ink into a fabric surface such as a shirt. The
alternative method of creating custom shirt designs is called silk-screening; a process in
which a screen is made with an image and that image is transferred onto a shirt.
Because set-up costs are high silk-screening is not cost effective for small number
production runs. Another disadvantage is that silk-screening applies a thin layer of ink to
the surface the shirt inhibiting breathability. The sublimation process avoids this
problem since the ink is not coating the fabric's surface, but rather, is embedded in the
fabric. Only with technological advances has sublimation become kind of cost effective
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in small production runs. In Lahore, the lay mans term used for sublimation is the
sticker Printing and the per shirt cost for printing came out to be around 300-400
rupees.
While other vendors are able to offer sublimation in low production runs especially
when printing different names of the team on the shirts and in single production runs,
their computer based sublimation process produces lower image quality. This method
was a bit expensive one when it comes to single production runs. Then the sublimation
technology evolved and then introduces a method of garment transfer paper. In this
method a special kind of paper is used which is called a garment transfer paper. This
method uses the equipment which includes a simple Photo printer and a heat press
machine. The process is that an image is printed through the Photo printer on the
garment transfer paper by using the sublimation ink in the printer and then this printed
paper is placed on the t-shirt where the printing is required and then both the things i.e.
the shirt and the paper are placed into the heat press machine and within seconds the
image is transferred on the shirt and then the extra paper is peeled off from the print.
The advantages of this printing include high color quality and lower printing costs i.e.
around 200 rupees but this type of digital printing have a limitation that the printing size
is restricted to A4 size of a paper if the size increases the costs raises to double. Another
major problem with this type of printing is that the printing quality does not lasts long
and the colors start fading after 2-3 washes. Many vendors in our country are providing
this type of printing facilities by the name of digital printing.
TeeBay takes this digital printing one step further by producing the graphic images at a
higher resolution than other existing technologies and print the design directly on the
garment of the shirt i.e. no garment transfer paper is involved. This high resolution
printing without any limitation of size and long lasting colors is giving TeeBay a
significant advantage.
TeeBay will offer customized and personalized printing mainly on T-shirts, but will have
other shirt styles available. Customers can choose from traditional cotton-blend shirts or
all natural fiber cotton shirts and polyester shirts and the mixed fabric shirts. There will
also be variety in a sense that there are round neck and collar shirts available in XS, S, M,
L, XL and XXL sizes for both the genders.
After conducting the market research I decided that customers can then choose from
pre-existing graphics or custom artwork. The pre-existing graphics are chosen from an
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extensive catalog. TeeBay will develop strategic relationships with several companies
that will offer the company a wide range of graphic images. These relationships will
allow TeeBay to list the other company's graphics within their catalog thereby
significantly options. These images can be viewed and ordered online, providing
customers with flexibility and convenience. TeeBay will have a comprehensive Website
that will allow ordering a customer's home, or where ever they may be. Additionally, the
company will have a computer kiosk in the store front as an in-store catalog.
There will be our two main suppliers one will be the provider of plain shirts and other
will be the supplier of the ink of our specialized printer. Due to the prior experience in
this field I can manage a just in time inventory system for TeeBays plain shirts as the
parent company of TeeBay i.e. Cluster Fashions always have a ready stock for the plain
T-shirts. As far as the other supplier is concern who will supply the ink for the T-shirt
printer is located abroad, therefore I will have to keep the inventory of ink for
approximately 3-4 months by keeping in view the ordering time and the no. of days it
takes to get the ink and I will also take into account the economic order quantity to
minimize the costs.
TeeBay will also offer custom artwork or graphic options for printing. The customer may
bring in a graphic or may use TeeBay's sub-contracted artist to realize their vision.
TeeBay's artist can take a customer's pencil drawing or even articulated thoughts and
turn them into a new design.
TeeBay will offer a range of different shirt options. As indicated by the name, there will
be an emphasis on T-shirts. Short sleeves, long sleeves, organic fabrics, and a variety of
polo, rugby and other styles will also be offered.
Besides it TeeBay will offer a 6 months guarantee that the printing colors of the shirt will
not fade after washings and also the fabric of the cloth will lasts longer than other low
quality fabric. TeeBay will be liable to pay back the money if the quality will not be up to
the mark.
Initially the idea is only to focus on the T-shirts but after specializing in this product
other products will also be added in to the product line like customized and
personalized hoodies, bags, caps, mugs and key chains. The market research has also re-
enforced that once the brand is established the customers are looking forward for other
product line extensions.
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Business Plan

Market and customers:
TeeBay has segmented the market into two groups, organized by the type of product
that they purchase. The first group is customers that desire an already created graphic
image to be placed on their shirt. The second group is of those people that prefer
custom artwork to be placed on their shirt. TeeBay has decided to divide the market by
the products that they purchase because it offers an intuitive, easy method of targeting
the two different groups. An additional reason for segmenting the market based on the
two products is because the demographics for the buyers of the two products are
distinct enough to group them separately.
Market Segmentation
TeeBay has segmented its market into two distinct groups. As mentioned
previously, the two segments are grouped by the type of product they chose. Although
the company is dividing the market by product type, it is effectively dividing the market
by age as well since the customers who purchase the custom artwork shirts tend to be
older than the group preferring the ready-made graphics. While this is not a hard and
fast rule, it is a fairly accurate generalization which is also evident in the results of our
marketing research.
Existing Graphics
This group will purchase a shirt that has an existing graphical image already placed
on the shirt. This is the less expensive option and lends itself to low production
numbers, as low as one, since there is not the inherent expense of artwork creation.
These existing graphics include some famous cartoons like angry birds, SpongeBob,
superman and mike mouse. Besides these cartoons graphics this segment will have
graphics like some kind of vector designs and some abstract designs etc. The research
showed the following types of demographic and behavioral characteristics among the
customers of this target segment:
Ages 14-25
69% are students
Go out to eat 3.4 times a week
Listen to 3.6 hours of music a week
Customized Artwork
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This segment prefers having custom artwork created and placed on their shirt. They
generally have the image or style which they have designed themselves and they upload
it via company website or by e-mail. But sometimes they have the designs in their minds
and will direct the artist to create it. That is why we have created this opportunity for
those customers by contracting the graphic designers. Occasionally when the customer
will not have an exact image in mind but will rely on the artist's skills to help shape the
work. Some of these customers will use TeeBays partner artist, others will have a friend
or other service provider develop the art. Their demographic characteristics are like the
followings:
Ages 24-43
Median individual income is $42,000
Go out to eat 2.7 times a week
Listen to 3.3 hours of music a week
18% are using the shirt as a form of communication for a cause or a message
Growth potential in these two segments is
evident by the census data of our country. The
main age group which we are going to target is
14-43 who wear T-shirts and the results of 2009
estimates showed that around 60% of our
population fall under this age bracket having the
number of 53,658,173 males and 49,500,786 females, having the urban population of
33% and the growth rate for urban population of 4% per year. The data shows a great
no. of potential customers in this segment.
Target Market Segment Strategy
Teebay has chosen these two market segments because their demographic
characteristics which shows that they are reasonably young, have the highest likelihood
of purchasing a customized and personalized T-shirt. Both of these segments are
reasonably young. This is important because most of TeeBay's products are T-shirts and
younger people tend to wear them frequently.
Music is also an important interest for the target markets since both segments listen
to and watch more than average amount of music. T-shirts are particularly popular at
music events. This phenomenon may be explained in part by the expressive nature of
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Business Plan

both music and T-shirt graphics. TeeBay will provide a form of expression, allowing each
customer to choose what aesthetic or idea they want to communicate to others through
their T-shirts.
Industry Analysis:
This part of business plan will include the description and analysis of the industry
in which I am going to operate and it will also analyze the competition in this field. The
strengths and weaknesses and strengths of the major competitors will also be a part of
this discussion.
Taking about the competition, there are a countless no. of people in the
manufacturing of T-shirts. Most of them are giants i.e. big firms who take orders in the
quantities of millions. Therefore my firm will not face direct competition from those big
firms. The business model of these firms does not support the orders for lower
quantities for example, even in the quantities of thousands. Whereas coming towards
the individual shirt providers who are providing customized t-shirts, their numbers are
comparatively very low. So I see a gap here and wanted to target the individuals as well
as the people who wanted shirts in low and medium quantities.
The T-shirt design industry is a primarily brick and mortar based industry. Most
companies offer either silk-screening or sublimation services to typically local
customers. While most of the products are T-shirts, there is a niche of companies that
offer these printing services for uniforms, team jerseys, etc. Most of the participants in
the industry fall into two categories, those that sell to individuals and those that sell in
multi-unit production runs. The companies that sell to individuals are almost always silk-
screeners who have a limited number of silk-screens already developed. The customer
chooses which one they want and a T-shirt is made. This type of vendor is often the
typical T-shirt maker that you see at fairs. The second type of companies sells most of
their products in larger production lots. This can be explained by the fact that for
custom work, whether silk-screens or sublimations, it is not cost effective to produce in
small lots.
Recently, a number of companies began offering computer-based sublimation
enabling them to offer low production runs. The technology the various companies are
using is the garment transfer paper technologies. There are certain disadvantages to this
technology of printing which includes low durability which means the colors of the
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Business Plan

printing does not lasts long after 2 or 3 washings. Another disadvantage is being the
limitation of size which is A4 and the third thing is if the size of the printing increases its
price would become double or triple. The image quality that they transfer through heat
on the shirt is average at best. TeeBay will have an exception from all these companies
because the technology that my company will use to transfer the image on a T-shirt will
be one of its own kind. According to my personal experience in this industry, no
company in Lahore has the direct to garment printer because of its higher cost of the
whole setup.
The uniqueness of my business as compared to my competitors will be that the
most of the individual shirt providers use the garment transfer technology because of its
low initial setup cost. TeeBay will be able to have a competitive edge in this small and
new emerging industry. The initial cost that TeeBay will bear is comparatively higher
than the other small T-shirt printing setups. But this new printer has a comparatively
very low operational costs and the per shirt printing costs which will help the company
to earn more than other customized t-shirt printers.
Analyzing the competition:
TeeBay has identified three major competitors, one is the local company and
second is to local and internet based company and the third is totally an Internet-based
company that provides customized shirts. Due to my prior experience in this field I have
worked many times with this company and have many insights of this brand and for the
reason that I have critically analyzed their strengths and weaknesses


1. Insta Print:
This is a local competitor that has two retail outlets in Lahore.
They have a well established brand name and a strong customer base
and they also have a huge range of printing services that they provide
for example flex printing, Photo printing and enlargements, souvenirs
like mug printing and T-shirt printing.
Their strength is that they have a strong customer base and a
well established brand name and their other major strength is that they have two main
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Business Plan

outlets in Lahore which are already on the prime locations like Gulberg and Defense
with a great number of customer footfall.
Their main weakness is the poor service levels and the always out of stock
attitude. Besides it they charge comparatively very higher charges because of their
brand equity. They make the customized T-shirts by direct to garment printing
technology. Secondly, they do not have an online ordering system.
The important fact about Insta print is that their brand perception is for flexes
and photo printings of the large format and not as a specialized T-shirt printer.
2. Print online:
Print online is also a small business who deals with many kinds
of printing line mug printing, tile printing, cards printing and T-shirt
printing. Their brand name is not established as such but they are providing the printing
services at very low prices. The major weaknesses include poor customer base and low
brand awareness and they are also using garment transfer paper technology.
3. Techno chameleon:
This is an Internet-based retailer that
primarily offers customized skins for computers,
laptops, mobile phones and other gadgets. They
have also offered a wide range of customized
products like T-shirts, Mugs, key chains, wall
papers etc. they have a catalog of approximately
500 images for the customer to choose from. They do allow customers to use their own
graphic. The quality of the printing they are offering is mediocre at best because they
are also using the garment transfer technologies. They have a strong online marketing
campaign and have online ordering system and a good supply chain.
I am supplying plain T-shirts to this company for the past 1 year and due to that I
have many insights about the company and TeeBay will likely to face a major and a
strong competition with this company.
Another minor source of competition comes from home kits that turn your ink jet
printer into a T-shirt making machine. While these kits do offer some competition, the
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Business Plan

image quality is not good, therefore this will only appeal to children or the home
hobbyist, someone not very concerned with image quality.
Taking about the other players in the market which are the main source of
competition to TeeBay is the T-shirt printing service providers in the Karim Block market
Allama Iqbal Town, that are specialized in silk-screening. 70% of their business is silk-
screening with the remaining 30% sublimation. They require a minimum order of 30
pieces with a 2-3 week lead time. They do fairly good work but are rigid regarding
custom work.
Competitive Edge
TeeBay has two sustainable competitive edges to assist them in market
penetration. The first edge is an enormous catalog of graphic images. By establishing
strategic partnerships with companies that have existing graphic image libraries, TeeBay
is able to offer an unprecedented number of options. Our second edge is the high
quality of direct to garment T-shirt printing that we have offered. From my previous
work experience, I have established close business and personal ties with T-shirt
manufacturers that will help me to make superior quality of fabric at very low prices as
compared to my competitors.

Future directions:
Future directions are the second main part of a business plan. It deals with the strategic
influences and the strategic directions of the new business. Basically this part answers
the question of where do we intend going.
Strategic influences:

Strengths: TeeBays internal environment strength will be its higher quality and higher
customer satisfactions. The company will take into account the socio-economic trends in
the market place and will adapt its marketing campaign according to it.
Weaknesses: The company has a low initial capital base therefore it is very hard for
TeeBay to set the goals and make the strategies in order to achieve those goals
effectively. The low finances could be a weakness for the company.
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Opportunities: TeeBay will have to take advantage of all the opportunities in the
external environment in which the company is going to operate. These opportunities
include taking the benefits of all the previous experience and the business opportunities
that prevail in the market TeeBay need to grab all those opportunities. For example
there is an emerging election campaign in Pakistan in this year therefore this is a big
opportunity to increase the sales by offering the signs and slogans of any political party
on the T-shirts.
Threats: TeeBays major threat in the external environment deals with the political and
the economic conditions of the country like if there is any political uncertainty occur,
the sales of the company will drop sharply and low sales in the first 2 years will make the
situations very difficult to survive. Besides this external threats include any sort of
customs issue in importing of the specialized printer or the ink of that printer.
Furthermore, the external threats also deals with the power issue of the country when
there is no electricity and gas in the country or there is immense load shedding the
situation will lead to a huge financial crisis and lack of the availability of raw materials
will halt the processing of the customer orders.
Strategic direction:
Strategic direction for a company deals with the objectives and mission of the company
and it also deals with the key success factors that will lead to achieve those objectives
and goals.
Objectives:
To become known as the premier brand for providing the customized and
personalized T-shirts through the best online services.
To achieve profitability within 12 months.
Design and implement strict financial controls to help and ensure success.
Mission:
TeeBay's mission is to offer the finest quality of personalized shirts with the finest
quality in the customer service. TeeBay will offer its customers the best product at the
best price, with the promise of being always beyond the customers expectations.
Keys to Success:
Leverage cutting edge technology as a competitive advantage.
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Exceed customer expectations by offering high quality products at reasonable
prices with quick turnaround times.
Offer variety of designing in the fabric in term of styles, colors and sizes.
Employ careful financial and accounting analysis to ensure efficiency and proper
controls.
Sales Strategy
The sales strategy will emphasize the fact that ordering a shirt from TeeBay is a very
easy and pleasing experience. The sales effort will work on the continual development
of the website which will be the main tool used for ordering. It will be quite important
to have a friendly, easy to use web interface for two main reasons which are as follows:
One, there are so many choices available that it could become daunting to the
customer.
The second reason is that a large portion of sales will be placed on the website.
It is very important to make the website so easy that people don't stop in a part way
through ordering due to cumbersome or difficult instructions. The website embraces
the philosophy of making the experience so easy and pleasing that the customer comes
back to buy more.
TeeBay will also rely on three other factors to help boost sales which are as follows:
The first is exemplary customer service. Having excellent service will provide the
customer with the feeling that the business is looking out for the customer's
interest.
Second, when a customer places an order, they will probably be excited to see
the finished product, so TeeBay will ensure the fastest turnaround time possible.
Lastly, sales will be boosted by offering customers a high quality product. We will
use high grade cotton shirts and state-of-the-art digital printing materials to
make the buying experience of the customer excellent and exciting.
Activities and Milestones:
TeeBay has identified several milestones and activities that are tangible and achievable.
The milestones will serve as goals that the organization must reach to be successful.
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Business Plan

Following are some of the activities that are decided to held on the respective proposed
date
Table: Milestones
Milestone Start Date End Date Budget
Website
completion
05/1/2012 05/30/2012 Rs.50,000
Home Based
office
06/1/2012 06/15/2012 Rs.20,000
Printer delivery 07/15/2012 07/31/2012 Rs.400,000
40K in sales 09/1/2012 09/15/2012 0
80K in sales 12/1/2012 12/31/2012 0

The action plan that has been decided is achievable is everything goes smooth. One the
first may I have to place the order for the Direct to garment printer to a supplier in
China which will be delivered to me in Lahore after 2 months. During this delivery time I
have to work with the web development team to design the website for the company I
have allocated a whole month for this designing phase. Then after this designing the
next step is to develop a small home based office and the duration for this activity will
be 15 days. The activity between 15 June to 15 July will be the printing of advertizing
material like brochures and fliers. 15
th
July will be the expected date of delivery of the
printer and then the business startup and the inauguration will take place. Then after
some test runs the final order taking will start.

Implementation of aims
This is the 3
rd
and the final stage of the business plan. It deals with all those measures
and activities that will be going to take place in order to achieve the objectives that are
set in the previous stage. This phase deals which the question of how do we get there.
This part will explain the management of recourses, the marketing and the advertizing
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Business Plan

plan that the company will follow and then give the forecasts for the financial situation
of the company.
Management of resources:
In order to start the business I have a total capital of 7 lackh rupees and the things that I
need to start this business and their proposed budget has been described as follows as a
startup summary
Start-up Summary

TeeBay will incur the following expenses for start up:
A computer with up to the mark specification to utilize the software like
Microsoft Office, Adobe Photoshop and Illustrator, Macromedia FreeHand,
expression web and Dream Viewer.
A direct to garment digital T-shirt printer.
A running Broadband Internet connection, a mobile connection will be more
convenient like PTCL Evo.
Website -- This will be used for information disbursement as well as order taking.
Small shirt inventory -- Inventory will be kept small to lower overhead. This will
be accomplished by getting T-shirts from the parent company which Cluster
Fashions. Using a transfer pricing strategy to effectively practice just-in-time (JIT)
system for managing inventory for TeeBay.
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Business Plan

A desk, chair and office supplies sets.
HP Desk Jet 3 in one Printer for the purpose of printing of invoices and other
useful accounting details
Table1 Start-up In rupees
Requirements
Start-up Expenses
Legal 8,000
Stationery etc. 1000
Brochures 20,000
Computer equipment 50,000
DTG Printer 400,000
Rent 0
Insurance 0
Office furniture 20,000
Desk jet printer 5,000
Website development 100,000
Total Start-up Expenses 604,000
Premises:
The location premises for TeeBay are firstly the home based office with a computer,
website and a direct to garment printer. As far as the premises of the business are
concerned initially as a startup the premises for TeeBays business will be limited to
Lahore only and after the developments in the delivery process and the online ordering
process the scope of the business
will be expanded to other cities as
well.
Web Plan Summary:
TeeBay will have a website
developed that is based on the
philosophy that the site must be
user-friendly. TeeBay's entire
product catalog will be available
on the site for customers to place
orders. Because of the large
volume of graphic image choices,
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Business Plan

it will be imperative that the site is easy to navigate through all the different options.
Some prototypes for the website are also shown in the adjacent pictures.
The website will have an easy and a friendly interface. There are many varieties that are
displayed in the form of pictures. The plain t-shirts are of different types, from here the
customer will choose the desired style. Some of the main styles are short sleeves, long
sleeves, polos, sleeveless then youth tees and hoodies etc.
The next unique and exiting feature that our website will have will be the customized t-
shirt designing lab. This concept has been taken from a foreign website and up till now
no Pakistani website have such a user friendly interface of creating and designing the t-
shirt.

For example in the above picture there is a whole lay out of the t-shirt designing
window. This is software which we will be calling the designing lab. Through this
window you can create any kind of T-shirt that you want you can change the style of the
shirt by swap item option. T-shirt color can be changed and any text or picture can be
added through this designing lab
Below are the buttons for getting quote and buy now options that will lead to a window
which shows the payment option and delivery options. The customer will choose each
from both of the tabs and the order confirmation E-mail will be sent to the customers
address. Again a prototype design has been shown in the following pictures
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Business Plan



Development Requirements
The initial cost of the website will be comparatively high. Monthly maintenance costs
will be marginal relative to the development and design costs. A computer
programmer/designer has been identified as a candidate to manage the design,
implementation, and maintenance of the website. The majority of the tasks will be
completed by him; a few tasks that are outside of his skill set will be subcontracted to
his associates.
Website Marketing Strategy
The website will be an integral in TeeBay's marketing effort as initially as a startup the
website is the only sales tool for both local and distant customers. The URL address will
always be used in promotional material, encouraging people to check out the company,
the new Design lab concept, and the exciting layout of the website. In additional to
inclusion in the traditional marketing campaigns, TeeBay will submit their website to a
variety of search engines, significantly increasing the number of inquiries from people
searching out custom shirts.
Startup Personnel Plan:
TeeBay will require the following personnel for operations:
Joun Ali -- Business development, finance and high level accounting, customer
service, shirt printing
Printer a personnel who is responsible for the T-shirt printing from the printer
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Business Plan

The web developer
Independent contractor The graphic artist

Personnel Plan
Year 1 Year 2 Year 3
Printer 96,000 96,000 96,000
Web developer (part time) 60,000 60,000 60,000
In-store employee 48,000 96,000 288,000
Total People 3 3 5

Total Payroll 276,000 372000 696,000

The above table shows that TeeBay have assumed to have 3 permanent employees i.e.
the printer who has a monthly pay of 8,000 will be responsible for the printing of the
shirts from the printer and the second and the important person will be the web
developer with a monthly pay of 5,000. Who will work part time and will be responsible
to update the website on daily basis and he will be the one person who will take into
account all the e-marketing activity that TeeBay will do daily. And the third person will
be the in-store shop employee who will be hired in the 5
th
month of the business having
a monthly salary of 8,000. He will have a computer and will help the customers to
display the designs of the gallery and will also act as a customer services representative.
The store will have a computer kiosk for customers to access the graphics catalog. The
customer can then place the order online or take the information from the in-store
employee to place the order.
Marketing plan:
The marketing plan for TeeBay will include the strategies and tactics to increase the
sales and the brand awareness some of the main highlights of the marketing plan are as
follows:
Competitive edge:
TeeBay will leverage their two competitive edges to quickly gain market share. The
competitive edges are an unprecedented catalog of graphic images and the color and
fabric quality of their computerized digital direct to garment printing technology. The
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Business Plan

marketing campaign will emphasize the ability to completely customize a shirt. Youth
events and student groups will be targeted. The sales campaign will emphasize making
the experience as easy and pleasing and as exciting as possible to encourage repeated
customers and word of mouth referrals.
The two Competitive Edges that TeeBay will use to their advantage to achieve market
penetration are:
Large catalog of graphics TeeBay is developing several strategic relationships
with existing graphics companies that have extensive images catalogs. It would
be difficult and expensive for TeeBay to create its own library of graphics but by
developing relationships with companies who own existing libraries, the company
will be able to offer its customers an expansive array of imagery. TeeBay will pay
a royalty for use of these graphics.
Quality of the Printing Due to the market research in China TeeBay will import
the state of the art technology of digital printing which is Direct to garment; the
company will be able to produce sublimations of much higher quality than any of
their competitors. This gives TeeBay a fantastic competitive edge. At some point
within the next two years this technology may be available to the public in lower
prices, however because of the continuous search for new technologies in the
related field TeeBay will always have cutting edge technology available, well in
advance of any public release.
The sales strategy will emphasize the fact that ordering a shirt from TeeBay is a
very easy and pleasing experience. The sales effort will work on the continual
development of the website which will be the main tool used for ordering. It will be
quite important to have a friendly, easy to use web interface for two main reasons one,
there are so many choices available that it could become daunting to the customer. The
second reason is that a large portion of sales will be placed on the website. It is very
important to make the website so easy that people don't stop in a part way through
ordering due to cumbersome or difficult instructions. The website embraces the
philosophy of making the experience so easy and pleasing that the customer comes
back to buy more.
TeeBay will also rely on three other factors to help boost sales; the first is
exemplary customer service. Having excellent service will provide the customer with the
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Business Plan

feeling that the business is looking out for the customer's interest. Second, when a
customer places an order, they will probably be excited to see the finished product, so
TeeBay will ensure the fastest turnaround time possible. Lastly, sales will be boosted by
offering customers a high quality product. We will use high grade cotton shirts and
state-of-the-art digital printing materials to make the buying experience of the customer
excellent and exciting.
4 Ps of marketing:
Product:
The core product on which we are focusing on
is the customized and personalized T-shirts. The main
focus of the marketing campaign will create the
awareness about TeeBay and its products. The aim of
the management is to provide the best possible
quality through the state of the art technology of
direct to garment printer.
Price:
Price will be a key decision factor in the start-up of the
business. Price will be the amount of money that will be
charged to customers on purchasing the customized T-shirt.
The pricing is very important in determining the companys
profitability. The equilibrium price has been set by the
mechanism of price elasticity of demand and the supply.
The convenience factor that customer will get from TeeBay
will be that they will place an order for the T-shirt from their homes using the internet
and they will get it delivered at their door step and if they are in big cities like Lahore,
Karachi, Islamabad and Faisalabad etc. then they have to pay after getting the shirt and
the service is called the cash on delivery. Other competitors in the market are also
providing this facility.
Before setting the equilibrium price a detailed analysis has been done on the gap
between the customers perceived value and the actual costs of the product.
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Market penetration pricing strategy has been adopted and the initial price of the T-
shirts has been kept low by giving opening discounts to grab the market share and the
sales volume.
After doing the competitor analysis the reference value has also been kept into the
mind i.e. in which customers compare the perceived value of the product with the other
similar products in the competition.
TeeBays price will include the cost of the materials, the printing cost and the delivery
charges to the customers mailing address and lastly the price will include a certain
amount of profit as well. The equilibrium price came out to be Rs.650.
Place:
Place refers to the physical placement of the product. In the case of TeeBay
initially the placement will be only on the online store and then after 6 months
computer kiosks will be installed in different locations from where the in-store
employee will take orders and help the customers to place the orders for the
customized T-shirts.
Promotion:
Promotion represents all of the methods of communication that we will use to
provide information to different parties about the product. Promotion comprises of the
elements such as: advertising, public relations, personal selling and sales promotion
which will be further explained in this report.
Brand positioning
In marketing of TeeBay, brand positioning deals with the process by which the
company will try to create an image or identity in the minds of their target market for its
customized T-shirts, the overall brand perception, or organization as a whole. The
perceptual positioning map has been used to identify the brand positioning of TeeBay.




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According to the perceptual map the companies are rated on two scales i.e. low to high
price and low to high quality. Insta print charges high prices but the quality that they
provide is not up to the mark and print online uses low pricing strategy but their quality
specially regarding T-shirt printing is not very good and in fact the average at the best.
Then comes the major competitor Techno Chameleon which has a brand positioning of
high quality and high price up till now. Whereas I want to position TeeBay above techno
chameleon when it comes to quality because of the new technology and below when it
comes to the price range.
Marketing methods:
The marketing campaign will seek to increase visibility for TeeBay, emphasizing the
ability of the customer to completely customize their design. TeeBay will use several
different venues to communicate this message through promotional campaigns. The
total advertizing budget kept for the advertisement of this brand is kept to 1.5 lackh
rupees. The further division of the costs and the advertizing and the promotional
methods are listed below:
Above The Line:
Magazine ads TeeBay will run ads in several teen/young adult magazines whose
readership demographics are similar to TeeBay's demographic characteristics.
The examples of those magazines especially in Lahore are student blog and radio
city etc. the advertisement rates are as follows
High quality
Low quality
High price
Low price



TeeBay
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Business Plan

Student Blog Rs. 7000
Radio city Rs. 9000

The advertisement schedule for the magazine ads will be that there will be ads
for 3 consecutive months after the inauguration and then after those 3 months
printed advertisements in these magazines will be given in the alternate months.
Fliers fliers are a very cost effective method to convey the message of the
company. The cost per reader came out to be only 1 rupee. 10,000 fliers will be
printed in the first round of advertisement which will be for the first 3 months.
These fliers will be mainly distributed in all the major universities, colleges and
schools of Lahore. The main list of these institution are given bellow:
1. Lahore School of Economics.
2. LUMS
3. PCBA
4. Lahore university
5. Superior university
6. Punjab University
7. Govt. college university
8. NCA
9. LGS
10. LACAS
Online Marketing The website will be integral in TeeBay's marketing effort as
the site is a key sales tool for both local and distant customers. The URL address
will always be used in promotional material, encouraging people to check out the
company, concept, and the products. In additional to inclusion in the traditional
marketing campaigns, TeeBay will submit the website to a variety of search
engines, significantly increasing the number of inquiries from people searching
out custom shirts. Besides this the company will have a Facebook Page for the
advertisement purposes and display of the products and to gather more and
more audience. The primary purpose of this page will be to keep the customers
up to date with the latest offerings and the promotions that are offered by
TeeBay. Moreover, the company ads will be places on some important and
popular classified websites for example olx, hafeezcenter and pakwheels etc.
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www.facebook.com
www.olx.com.pk
www.hafeezcenter.com.pk
www.pakwheels.com
The costs for advertisements on these
websites are very low and some of they are free but most popular like olx which have
the highest level of traffic. Pakwheels is also free and hafeezcenter.com.pk charge
rupees 600 for 15 days to keep the advertisement on the front page whereas facebook
has both the options like free and paid.
Youth events on many different youth related in different colleges and
universities there will be stalls for TeeBay with a computer kiosk and giving
certain amount of discounts on ordering from there this will be done as a mean
of increasing visibility.

Distribution Channel:
The distribution channel that TeeBay will use, will be the courier company who
provides cash on delivery services and have lowest delivery time and also the lower
prices. When the customer order is received and after the processing the ready shirt will
be handed over to the service provider which in my case is the courier company. Then
that company will be responsible for delivering the shirt to the customer and receiving
the payment and then that company will send the money to my account.
Financial analysis:
The following sections will outline important financial information about TeeBay
in the form of break-even analysis, cash flow statements, the proposed balance sheet
and the financial ratios but before that some assumptions need to be made regarding a
starting point to conduct the financial analysis:
a. Startup sales for the first months will be 50 shirts
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b. The sales forecast is reasonably conservative so that goals will be achievable.
Sales will be slow initially; a function of the fact that TeeBay is a start up
organization and it will take time to build a sufficient foundation.
c. Tax rate 15%
Start-up capital summary:
In rupees

Start-up Expenses
Legal 8,000
Stationery etc. 1000
Brochures 20,000
Computer equipment 50,000
DTG Printer 400,000
Rent 0
Insurance 0
Office furniture 20,000
Desk jet printer 5,000
Website development 100,000
Total Start-up Expenses 604,000


Payback period:
Initial cash outflow (NICO): Rs. 600,000/-
CASH FLOWS:
YEAR1 YEAR2 YEAR3
(23,000) 305,700

651,480


The payback period will be 2.3 years

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Break even analysis:
The break even point in a business occurs when its total revenue from sales will be
equal to the total costs of the company. Teebays breakeven point will be the point in
the form of no. of T-shirts that the company needs to sell to cover its costs. This will be
calculated by a formula i.e.
Breakeven point= fixed cost unit price variable costs
Fixed cost in our case the fixed costs are only the wages payable that are given to the
3 permanent employees i.e. the printer= 8000, the part time web developer = 5000
and the in-store employee= 8000
Fixed cost= 21,000
Unit price= Rs. 650/-
Variable costs are the costs that are incurred to make one unit of the product this will
include plain T-shirt cost which is 150 rupees. The printing cost which is around 100
rupees and the delivery charges which is also 100 rupees therefore the variable costs=
350 rupees.
Break even point= 21000 650 350 = 70 units
The break-even point for the first 6 months before opening the outlet near expo
center there will be no need to hire the in-store employee and I myself will be taking
the printouts on the shirt so the printer costs will also be saved leaving the fixed cost
of only 5000 which, will be for the web-developer charges for part time maintaining
the site now the breakeven point came out to be only
17 shirts.




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Business Plan

TeeBay
Income statement
For the year 2012, 2013 and 2014
ITEMS/TITLES 2012 2013 2014
SALES Rs. 487,000/- Rs. 1,560,000/- Rs. 2,100,000
(150 shirts* Rate
Rs. 650) = Rs.97,500
(Monthly) * 5
Months =487,000
(200 shirts* Rate
Rs. 650) = Rs.
130,000 (Monthly)
* 12 Months
(250 *700) = Rs.
161,000 (Monthly)
* 12 Months
DIRECT COST OF
MATERIALS
assumed cost to be
350 per shirt
262,500 840,000 966,000
SELLING &
ADMINISTRATIVE
EXPENSES

RENT EXPENSES 0 0 0
SALARIES Rs. 105,000 Rs. 372,000 Rs. 400,000/-
TELEPHONE,
INTERNET AND
COMMUNICATIONS
2000 PER MONTH
Rs. 12,000/-

Rs. 24, 000/- Rs. 24, 000/-
PRINTER
MAINTENANCE
EXPENSES
Rs. 0/- Rs. 10,000/- Rs 0/-
OFFICE OPERATING
EXPENSES 1000/
MONTH
Rs. 5000/- Rs. 12,000/- Rs. 1,200/-
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ADVERTISING
EXPENSES
Rs. 80, 000/- Rs. 60, 000/- Rs. 60, 000/-
EBIT Rs.23,000/- Rs.342,000/- Rs. 6748,800/-
TAX EXPENSE (15%) Rs. (0) Rs. (36300) Rs. (97320)
OPERATING INCOME
/ NET INCOME
Rs. 23,000/- Rs. 305,700/- Rs. 651,480/-


TeeBay
Balance sheet
For the first year, 2012
ASSETS AMOUNT IN RS. LIABILITIES AMOUNT IN RS.
Cash Rs. 96,000 OWNERS EQUITY Rs. 700,000/-
Current assets Rs.29,000/- TOTAL LIABILITIES &
OWNERS EQUITY
Rs. 700,000
FIXED ASSETS 575000
TOTAL ASSETS Rs. 700,000







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Business Plan

TeeBay
Cash flow statement
Year 2012
CASH FLOWS FROM OPERATING
ACTIVITIES
YEAR 2012
INFLOWS
CASH RECEIVED FROM CUSTOMERS Rs. 487,000/-
OUTFLOWS
RENT EXPENSES Rs. 0/-
SALARIES Rs. 105,000/-
TELEPHONE, INTERNET and
COMMUNICATIONS
Rs. 12000/-
OFFICE OPERATING EXPENSES (PRINTING) Rs. 5000/-
ADVERTISING EXPENSES Rs. 80, 000/-
TAX EXPENSE (15%) Rs. 0
NET CASH PROVIDED FROM OPERATING
ACTIVITIES
Rs. 23,000/-
CASH FLOWS FROM INVESTING
ACTIVITIES

INFLOWS
OUTFLOWS Rs. 0
NET CASH PROVIDED FROM INVESTING
ACTIVITIES
Rs. 0
CASH FLOWS FROM FINANCING
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Business Plan

ACTIVITIES
INFLOWS 0
FROM SALE OF EQUITY SECURITIES. 0
FROM ISSUANCE OF DEBT (BONDS AND
NOTES).
0.00
OUTFLOWS
To Stock Holders As Dividends 0.00
To Redeem Long Term Debt Or Reacquire
Capital Stock.
0.00
Net Cash Provided From Financing
Activities
0.00

INCREASE (DECREASE) IN CASH OR
EQUIVALENTS

Rs. 23,000

Gross profit analysis:
Profit and Loss analysis
Year 1 Year 2 Year 3
Sales 487,000 1,560,000 2,100,000
Direct Cost of Sales 262,500 840,000 966,000
Other Costs of Goods 0 0 0
Gross Margin 224,500 720,000 1,134,000
Gross Margin % 46% 46.% 50.%

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Payroll summary:
Payroll summary
Year 1 Year 2 Year 3
Printer 96,000 96,000 96,000
Web developer (part time) 60,000 60,000 60,000
In-store employee 48,000 96,000 288,000
Total People 3 3 5

Total Payroll 276,000 372000 696,000