INTRODUCTION OF BUSINESS

Name:
Ready to Rice.
Address:
A-124, block-124, Gulshan -e - Iqbal, Karachi.

Name and addresses of principals:

Muhammad usman minhas.

Shoaib mehmood.
Ahsan ali khan suri
Ahsan noor.
Umra khan.

Nature of business:

Provide service (that is provision of rice at your door step on

less than retail price).

Statement of financial needs:

We required a finance of

Statement of confidentiality report:

This agreement is to acknowledge that the information

provided by Ready to Rice Company in this business plan is
unique to this business and confidential

 EXECUTIVE SUMMARY
Summary of marketing plan:
Age
Gender
Family size
Family life cycle
Income
Occupation

18 to 65+
Male & female.
3 to 5+
Young & older married with child & without child.
15,000 & above.
All occupations except farmers & persons who trade
in rice.
Education
No matter.
Religion
All.
Race
All.
Generation
All.
Nationality
Pakistani (if export than all nations of the world).
class
MiddleMonthly
& upper class.
Day/kg.Social
Daily
Weekly
Lifestyle
Sale
profit
profitAll.
profit
Personality
All.
50
1000
25000 50
Type
5
10
206000 30
40
Occasions
Regular
& special
both.
100
12000
50000
kg. 2000
kg.
kg.
kg
kg.
kg.
Benefits
Quality,
service, economy & convenience.
150
3000
18000
72000
(1%) (2%)
(3%) (4%)
(5%)
User4000
status
All. 96000
200
24000
. Steps
User5000
rates
All. 120000Modes of
250
30000
B-1 400
792
1568
2328
3072 strong
3800
advertisem
Loyalty
status36000 Medium,
& absolute.
300
6000
144000
B-2 450
881
1764
2619
3456
4275
ent.
Readiness stage
All.
B-3 500
990
1960
2910
3840
4750
Attitude
positive
& indifferent.
1Enthusiastic,
Pamphlets
& social
B-4 550
1089 2156 3290 4224 5225
media.
1 2
Banners /
B-5 600
1188
2352
3492
4608
5700
Summary of marketing
mix:
whoadings.
3
4

Newspaper.
Radio/tv.

Summary of organizational plan:

Summary of operational, financial & Production plan:

S.
no
1

Designation
Md.

Quanti
ty
1

Qualification
-

Experie
nce
-

Marketing
1
Mba/bs/bba (in
3 years
manager.
marketing).
3
Finance
1
Mba/bs/m.com (in
2 years
manager.
finance).
4
Warehouse
1
Intermediate/gradua 1 year
manager.
te.
5
Telephone
1
Matric/intermidiate. 1 year
operator.
6
Packing
2
Middle/matric.
persons.
7
Delivery
2
Matric/intermidiate. 1 year
persons.
Assets
Liabilities
Current assets:
Current liability:
Cash
140000
Bank
Long term liability:
120000
Inventory
Note payable (meezan)
1000000
1000000
Supplies (pen, invoice books,
tape ,etc) 5000
Fixed assets:
Equities:
Prepaid rent of 2 Shops
Capital
(14000*12)
168000
500000
Fixture (5 fans, 8 energy savers,
etc.)
17000
Furniture (4 tables,10 chairs)
20000
Office equipments (3 pcs)
20000
Major equipment (weighing
machine, 10000
calculator ,etc.)
1500000

1500000

Salary
23000
rs.
15000
15000
8000
7000
7000
9000

yea
rs
0
201
4
201
5
201
6
201
7
201
8
Tota
l

yearly Sale

Profit/loss

Sale kg / year

3480000

-47000
-862400

0
34800

4920000

-2074600

49200

6360000

-2130400

63600

7800000

-1807400

78000

9240000

+195600

92400

31800000

+195600

318000

INDUSTRY ANALYSIS
Future outlook & trends:

If our business got success, than we also provide pulses, sugar,

cooking oil, etc.
If business got success than we will also interested in export of
rice.

Analysis of competitors:

Our competitors are sub retailers of rice.

Approximately a sub retailer can earn 10000 to 30000 with
rice.

Market segmentation:

 Details regarding market segmentation are given in marketing

plan section.

Industry & market forecast:

After industry analysis we conclude that, retail industry of rice

increasing in Pakistan.
Retail rice business is profitable & supportable in Pakistan
conditions.
Pakistan is in top 10 world largest producers of rice.
Pakistan produced approximately 9.4 million tons of rice in
2012 (dawn).
Pakistan exports approximately 4.5 million tons of rice in 2012
(dawn).
All the retailers of rice are our competitors.
If business rises, than also a good opportunity of export of
rice.

DESCRIPTION OF VENTURE
Product:

Rice.

 Service:

To provide rice at your door on less than retail price.

Size of business:
Our size of business increases step by step by step.
Firstly in our area, zone, city & then on country level.
We start our business with 1 small warehouse & 1 office.
More details regarding size of business are given in
organizational plan.

Office equipment & personnel:

Information related to office equipment & personnel are in

organizational plan.

Background of entrepreneur:

No background of entrepreneur of this type of business.

MARKETING PLAN
Objective:
Quantitative:
We want to achieve great market share, sale & profit in our
area,

Zone, city & world step by step. But it is required some time.
More details regarding quantitative objective are given in
organizational plan.
(Sale, profit approximately estimation is given in evaluation).

Qualitative:
We want to achieve great goodwill, image, brand equity in our
area,
Zone, city & world step by step. But it is required some time.

Segmentation:
Demography:
Age
Gender
Family size
Family life cycle
Income
Occupation
Education
Religion
Race
Generation
Nationality

18 to 65+
Male & female.
3 to 5+
Young & older married with child & without child.
15,000 & above.
All occupations except farmers & persons who
trade in rice.
No matter.
All.
All.
All.
Pakistani (if export than all nations of the world).

Demographics details:
We target every age customer, except minor.
We target all genders.
We target all family size greater than 2 persons.
We target family life cycle of married customers with & without
children.
We target all customer income greater than 15000 rupees.
We target all customers related to any occupation, except
farmers & persons who trading in rice.
We target all customers, no matter regarding education.
We target all persons, no matter related to any religion
We target all persons, no matter related to any race or cast.
We target all generations.
We target all persons in our targeted area, belongs to any
nation.
Psychographics:
Social class
Middle & upper class.

Lifestyle
Personality

All.
All.

Psychographics details:

We target social class that is middle & upper classes.

We target all lifestyles.
We target all personalities.
Behavior:
Occasions
Benefits
User status
User rates
Loyalty status
Readiness
stage
Attitude

Regular & special both.

Quality, service, economy & convenience.
All.
All.
Medium, strong & absolute.
All.
Enthusiastic, positive & indifferent.

Behavioral details :
We target all occasions, because rice is commonly used in
every party or gathering.
We target all customers who required these benefits that are
quality, service, convenience & economical prices.
We target all kind of user status, except non users.
We target all kind of user rates.
We target medium, strong & absolute types of loyalty status.
We target all types of readiness stages.
We target peoples have an enthusiastic, positive & an
indifferent types of an attitude.

 MARKETING MIX
Product types:
In starting we provide 5 types of basmati rice, to capture more
classes.

Product prices:

In starting we provide 80, 90, 100, 110 & 120 prices of rice per
kg., with different qualities.

Product weights:

We provide rice packets of 5, 10, 20, 30, 40 & 50 kg. on less

than retail price & also with discounted prices.

Product discounts:

We provide 1%, 2%, 3%, 4% & 5% discounts on 10, 20, 30, 40 &
50 kg. respectively.
Typ
e

5
kg.

10
kg.
(1%)

20
kg.
(2%)

B-1
B-2
B-3
B-4

400
450
500
550

792
881
990
1089

1568
1764
1960
2156

30
kg
(3%)
.
2328
2619
2910
3290
1
3492

40
kg.
(4%)

50
kg.
(5%)

3072
3456
3840
4224

3800
4275
4750
5225

Place:

B-5 600
1188 2352
4608 5700

Channel:
We provide rice to our customers through bikes in starting.
But if need arises then we hired car (pickup) also.

Storage:
In starting we store rice in small warehouse (shop), if need
arises then we hired warehouse also.

 Promotion:
Advertising:
In starting we advertise through pamphlets, social media &
internet.
If need arises than we advertise through banners, newspaper,
radio & television respectively.
We advertise
Day/kg.
Daily
Weekly
Monthly
our ad in
Sale
profit
profit
profit
jang
50
1000
6000
25000
Ste Modes of
100
2000
12000
50000
ps
advertisement.
150
3000
18000
72000
1
Pamphlets & social
200
4000
24000
96000
250
5000
30000
120000 media.
2
Banners / whoadings.
300
6000
36000
144000
3
350
7000
42000
168000 Newspaper.
4
Radio/tv.
400
8000
48000
192000
newspaper
450
on every
Sunday.

Type
Classified
Front
page
Back
page

Rates
150 / line.
7cm * 1 column 5250/
insertion.
7cm * 1 column 3500/
insertion.

Evaluation:

 Evaluation details:
If daily approximately 100 kg. of sale than 2000, 12000 &
50000 rupees of profit daily, weekly & monthly respectively.
If daily approximately 150 kg. of sale than 3000, 18000 &
72000 rupees of profit daily, weekly & monthly respectively.
If daily approximately 200 kg. of sale than 4000, 24000 &
96000 rupees of profit daily, weekly & monthly respectively.
If daily approximately 250 kg. of sale than 5000, 30000 &
120000 rupees of profit daily, weekly & monthly respectively.
If daily approximately 300 kg. of sale than 6000, 36000 &
144000 rupees of profit daily, weekly & monthly respectively.

ORGANIZATIONAL PLAN:

Staff information:

S.
no
1

Designation

Marketing
manager.
Finance
manager.
Warehouse
manager.
Telephone
operator.
Packing
persons.
Delivery
persons.

3
4
5
6
7

Md.

Quanti
ty
1

Qualification

3 years
2 years

15000

1 year

8000

Mba/bs/bba (in
marketing).
Mba/bs/m.com (in
finance).
Intermediate/gradua
te.
Matric/intermidiate.

23000
rs.
15000

1 year

7000

Middle/matric.

7000

Matric/intermidiate.

1 year

9000

1
1

Experie
nce
-

Salary

Staff details:
I own operate the responsibilities of MD, with 23000 rupees of
salary.

 We hired 1 marketing manager, have an Mba/bs/bba in

marketing with 2 years of experience & 15000 rupees of salary.
We hired 1 finance manager, have an Mba/bs/m.com in finance
with 2 years of experience & 15000 rupees of salary.
We hired 1 warehouse person, have an intermediate/graduate
with 1 years of experience & 8000 rupees of salary.
We hired 1 telephone operator, have an intermediate with 1
years of experience & 7000 rupees of salary.
We hired 2 packing persons, with 7000 rupees of salary.
We hired 2 delivery persons, have an intermediate with 1 years
of experience & 9000 rupees of salary.
Monthly salaries expense 100000.

Assets
Current assets:
Cash
140000
Bank
120000
Inventory
1000000
Supplies (pen, invoice books,
tape,etc) 5000
Fixed assets:
Prepaid rent of 2 Shops
(14000*12)
168000
Fixture (5 fans, 8 energy savers,
etc.)
17000
Furniture (4 tables,10 chairs)
20000
Office equipments (3 pcs)
20000
Major equipment (weighing

Liabilities
Current liability:
Long term liability:
Note payable (meezan)
1000000

Equities:
Capital
500000

machine, 10000
calculator ,etc.)
1500000

1500000

Performa balance sheet (1500000):

Balance sheet details:
Current assets:
Cash 140000, for payment of expense.
Bank 120000, for reserve.
Inventory of 1000000, because of main & useful asset of our
business.
Supplies 5000, for pen, invoice books, tape, etc.
Fixed assets:
Prepaid rent 168000 for 2 shops of 1 year, 8000 for office &
6000 for warehouse per month.
Fixture for 17000, 5 fans, 8 energy savers, wall clock ,etc.
(OLX).
Furniture for 20000, 4 tables, 10 chairs. (OLX).
Office equipment for 20000, 3 pcs. (OLX).
Major equipment for 10000,weighing machine, calculator ,etc.
(A-ONE SCALE, BUFFER ZONE)
.
Long term liability:
Five years note payable of 1000000 of inventory provided by
meezan bank, on easy installments & 50% of profit share.
Capital:
500000 of owner investment.

PRODUCTIONAL, FINANCIAL AND OPERATIONAL

PLAN
Basic loan information about banks:
1. Standard chartered:
Account is necessary in our bank.
Personal loan from 30,000 to 2 millions depends on your
strength, for 1 to 5 years.

 Copy of valid cnic with salary slip for documentation.

Additional charges:
Up to 100k 1500
100 250k 2500
250k+ - 1% of loan amount.
Your loan will be disbursed within 10 working days post receipt
of the all required documents.
No security, collateral or guarantors are required for obtaining
a Personal Loan.
You can repay the loan by depositing Equal Monthly
Installments (EMI's) in your account prescribed account.
10% of amount prepaid if prepaid within 12 months.
5% of amount prepaid if prepaid after 12 months.

Rates:

Employee Banking*
Non Employee Banking

Installment Factors
Mark up Rate
27
%
29
%
31
%
32
%
33
%
36
2.
%
Meezan bank:

Gross Salary < 50k

29% - 36% p.a
31% to 36% p.a

Gross Salary >= 50k

27% to 33% p.a
29% to 36% p.a

Repayment Period in Years

1
2
3
0.0960 0.05438 0.04083
2
0.097
0.0554
0.04191
0.0979
8
0.0984
7
0.0989
7
0.1004
6

4
0.03428

5
0.03054

0.03543

0.03174

0.05643

0.043

0.03659

0.03297

0.05695

0.04355

0.03718

0.03359

0.05747

0.04411

0.03777

0.03422

0.05905

0.0458

0.03958

0.03613

Account is necessary in our bank.

Goodwill, market existence and value of customer is necessary.
Provide minimum 1 million cost of inventory for business.
No interest charges.
Commonly 50% of profit and loss share of your business.
If loss, than also bear by bank.

Mortgage is necessary.
Paid by EMI (equal monthly installments).
Amount paid to bank than you entitled of whole profit or loss.
Only principal amount paid to the bank.

3. Pakistan Currency exchange co. ltd. :

Not allowed by the SBP for lending loans.
Provide loans only to our employees only on without interest
basis.

UNITED BANK
Business Loan

Collateral free facility with a minimum of Rs. 500,000 and Maximum

Rs. 2,000,000

Repayment tenure from one year to three years

Loan Eligibility Criteria:

Age: 18 58 years, Maximum for repeat clients: 65 years.

Income: Atleast two year running Business.
Permanent resident of the locality for 2 years
Resident for 2 years.
Nadra nic holder.
Interest Rate

Less than 1 million

Kibor +8.5

Greater than 1 million

Kibor +7.5

After survey:
After a survey, we conclude that no bank will assist us in
finance.

 Because they required salary slip or goodwill of person and

market existence.

Companys Decision:
If we eligible, than we got amount from meezan bank.

Reasons:

Because of no interest charges.

Easy and low installments, comparing with other non Islamic
banks.
Incase of loss, also compensate by bank.
Incase of shut down point, bank only recover their principal
amount through mortgage.
After payment of amount to the bank, you entitled of whole
profit.
Because they provide inventory, which is the main asset of our
business.
Inventory until in the existence of bank, could secure by bank.
Only principal amount paid to the bank.
Our inventory that is rice is also non perishable item.
Our inventory is also easily storable.
Our inventory prices increases commonly.
Incase of shut down, good resale of our inventory (low risk).

Cost of product (for 100 rs of rice):

Cost
=
73 =

Direct
material +
70
Day/kg.
Sale
50
100
150
200
250
300
350

Daily
sale
5000
10000
15000
20000
25000
30000
35000

Direct
labor +
Weekly
sale
30000
60000
90000
120000
150000
180000
210000

Factory over
head
3
Monthly
sale
120000
240000
360000
480000
600000
720000
840000

Yearly sale
1440000
2880000
4320000
5760000
7200000
8640000
10080000

Estimation of sale:

Evaluation of monthly sale:

Symbo
ls
E*
E
R.A
R
M
Year
s
2014

Jan

Feb
B.E

3600
00(r.
a)

2400
00

Islamic occasions
Eid -ul- azha.
Eid -ul- fitar.
Rabi -ul- awwal.
Ramzan -ulmubarak.
Muharram -ulharam.
MarBreak
Apreven
May
point.
2400
00

2400
00

2400
00

June

July

Aug

Sep

Oct

Nov

3600
00(r)

3600
00(e)

2400
00

3600
00(e*
)

3600
00(m
)

2400
00

201
5

3600
00

3600
00

3600
00

3600
00

3600
00

4800
00(r)

4800
00(e)

3600
00

201
6

4800
00

4800
00

4800
00

4800
00

6000
00(r)

6000
00(e)

4800
00

201
7

6000
00

6000
00

6000
00

6000
00

7200
00(r)

7200
00(e)

6000
00

201
8

7200
00

7200
00

7200
00

7200
00
(B.E)

8400
00(r)

8400
00(e)

7200
00

6000
00(e*
)
7200
00(e*
)
8400
00(e*
)

4800
00(e*
)
4800
00
7200
00(m
)
8400
00(m
)

0 year income statement:

Sale.
Fixed cost.
Fixture (5 fans, 8 energy savers, etc).
Office equipments (3 pcs).
Major equipment (weighing machine, calculator ,etc).
Total fixed cost (loss).

17000
20000
+10000
-47000

2014

income statement:

Sale.
Cost (73%).
Gross profit.
Operational expense:
Salaries expense (100000 * 12).
Rent expense (14000 * 12).
Bank installment expense (20834 *
12).
Fuel expense (5000 * 12).
Electricity bill expense (3000 * 12).
Telephone bill expense (1000 * 12).
Internet charges (1000 * 12).
Supplies expense.

3480000
-2540400
939600
1200000
168000
250000
60000
36000
12000
12000
5000

4800
00(m
)
6000
00(m
)
6000
00
7200
00

3600
00
4800
00
7200
00(r.
a)
8400
00(r.
a)

Advertising expense (1000 * 12)

Total expense.
Operating loss.

+12000
-1755000
815400

Add fixed cost (0 year).

+
47000

Net loss.
- 862400

2015 income statement:

Sale.
Cost (73%).
Gross profit.
Operational expense:
Salaries expense (100000 * 12).
Rent expense (14000 * 12).
Bank installment expense (20834 *
12).
Electricity bill expense (3000 * 12).
Fuel expense (5000 * 12).
Telephone bill expense (1000 * 12).
Internet charges (1000 * 12).
Supplies expense.
Advertising expense (1667 * 12)
Total expense.
Operating loss.
Add loss (2014 year).
Net loss.

4920000
-3591600
1328400
1200000
168000
250000
36000
60000
12000
12000
5000
+20000
-1763000
434600
+1251200
- 2074600

Sale.
Cost (73%).
Gross profit.

6360000
-4642800
1717200

Operational expense:
Salaries expense (100000 * 12).
Rent expense (14000 * 12).
Bank installment expense (20834 *
12).
Electricity bill expense (3000 * 12).
Telephone bill expense (1000 * 12).
Internet charges (1000 * 12).
Supplies expense.
Fuel expense (5000 * 12)
Advertising expense (2500 * 12)
Total expense.
Operating loss.
Add loss (2015 year).
Net loss.

1200000
168000
250000
36000
12000
12000
5000
60000
+30000
-1773000
55800
+2074600
- 2130400

2016 income statement:

2017 income statement:

Sale.
Cost (73%).
Gross profit.
Operational expense:
Salaries expense (100000 * 12).
Rent expense (14000 * 12).
Bank installment expense (20834 *
12).
Electricity bill expense (3000 * 12).
Telephone bill expense (1000 * 12).
Internet charges (1000 * 12).
Supplies expense.
Fuel expense (5000 * 12)
Advertising expense (3334 * 12)
Total expense.
Operating profit.

7800000
-5694000
2106000
1200000
168000
250000
36000
12000
12000
5000
60000
40000
-1783000
323000

Less loss (2016 year).

-2130400
Net loss.
-1807400

2018 income statement:

Sale.
Cost (73%).
Gross profit.
Operational expense:
Salaries expense (100000 * 12).
Rent expense (14000 * 12).
Electricity bill expense (3000 * 12).
Telephone bill expense (1000 * 12).
Internet charges (1000 * 12).
Supplies expense.
Fuel expense (5000 * 12)
Advertising expense (4167 * 12)
Total expense.
Operating profit

9240000
-5694000
3546000
1200000
168000
36000
12000
12000
5000
60000
50000
-1543000
2003000

Less loss (2017 year).

-1807400
Net profit.
+19560
0

Summary of all years income statement:

yea
rs
0
201
4
201
5
201
6
201
7
201
8
Tota
l

yearly Sale

Profit/loss

Sale kg / year

3480000

-47000
-862400

0
34800

4920000

-2074600

49200

6360000

-2130400

63600

7800000

-1807400

78000

9240000

+195600

92400

31800000

+195600

318000

even point:

Br
ea
k

 Break even point occurs in the 4th month of 2018.

Inventory:
Inventory first time purchases on cash of 1 million by

supplier.
After that when need arises inventory purchased on
credit by supplier on weekly & monthly basis.

RISK:
o Operational & production:
We have no production risk, because our company is

not manufacture product.

Supplier, warehouse, etc is our operational risk.

o Marketing:
If competitors also low their prices.
If we not deliver product on time.

o Finance:
If bank not provide finance to us.
If supplier not provide inventory on credit.

o Management:
If delivery & packing person not work properly.

o Government:
Rules & regulations and law & order situation.

o Political:
Extortion money.

GROWTH:
o Franchise:
In the situation of Pakistan & Karachi franchise
mode is best.

Get fees, profit share & patents remain in your

hand.
Spread business easily in whole city, country &
world easily.

ENDING THE VENTURE:

o Sale off:

If we ending the business then we sale off it.