ACKNOWLEDGEMENT

We would like to thank Allah for being our pillar of strength and for His guidance
through this project. We would also like to thank Him for making it possible for us
to reach this far, and for helping us on all stages.

We wish to express our deepest gratitude to Sir Faisal Dhedi, lecturer at PAF-
KIET for her valuable guidance and support, without his, this project could not
have been completed.

Finally, we thank to PAF-KIET for providing us a truly inspiring and conductive

environment for studies.
SECTION I- EXECUTIVE SUMMARY
Families need photographs to capture the special moments of their lives. Families need
photographs of their child special moment that they can save their special moments. While
everyone has a camera for snap shots, people need professional quality photo when they will be
shown to an important audience, and when people want to best in the best light. When these
professional need photos to preserve memories or to preserve family photos when they entertain
at home they have the budget and desire for similarly high quality photos. Most people use
professional photo studio only on rare occasions, such as wedding, family photos, birthday
parties, year book picture or baby portraits. This photography business plan shows how
“Foto Phactory” will meets the needs of its customer for capturing their special moment of their
lives we will take the best analysis of external and internal environment of our business and will
maintain strong relations with our customer and digital file of photos will be provide on their e-
mails.

Rs

Equity 90% 1,757,400

Loan 10% 200,000 (From bank KIBOR + risk premium

11%+5%=15%)

Total 1,957,400

Business Investment 1,557,400 loan + equity (200,000+1,357,400)

Stocks 400,000 only equity

SECTION II-PHOTOGRAPHY BUSINESS OVERVIEW:

Photography business is one of the businesses that can unarguably survive in any part of the
world as long as the business is well positioned. The photography industry can boast of creating
jobs directly or indirectly for countless numbers of people all over the globe. One good thing
about the photography industry is that it has various areas of specialization ranging from
wedding or portrait photography to wildlife photography or travel photography, amongst many
others.

Over and above, starting a photography business is what we have chosen to do because having
done our due diligence and research, we have realized that it is a business that is highly
profitable if well planned and managed. Without a shadow of doubt, there is a high rate of
competition in the industry, but we have been able to create a unique business model that will
help us gain market acceptance and also work our way to the top of the ladder in the city where
our photography business is to be located.

Some of the things that will help us stand out in the industry include that we will ensure we
deliver quality photography jobs at rock bottom prices in our city at all times. Much more than
delivering quality photography jobs to clients at rock bottom prices, we have further gone to
invest in a CRM software that will help us effectively win new clients over and also help us
effectively manage our existing clients. We intend exploring referrals from loyal clients as a
means of generating leads that we will eventually work hard to convert to loyal customers.
COMPANY SUMMARY:

We are a top-notch, all round Photography Company and have a great vision to become the one
stop shop when it comes to photography in Karachi city and we intend to expand it all around
Pakistan.

We also intend to go beyond just making memories, but also will build relationships such that
will offer all round photography services. This means that we will cover wedding photography,
child photography- where we capture the milestone of every baby from infancy to late childhood,
capturing of nature and landscapes, beauty coverage- pageants, modeling shows as well as other
areas too numerous to mention.

VISION:

To be the best event photographer of the Pakistan and to have the most loyal customers

MISSION:

To make topnotch photography services available to a wide range of clients that cuts across
different classes of people at affordable price

OBJECTIVES:

 To generate a comfortable net profit by the third year

 To generate a database that will keep record of every clients special day and will wish
them to keep the connection strong
 Foto Phactory aims to provide its clients with their best shots and capture them such a
way that their moments become timeless
 We thrive on repeat business by developing strong relationship with our clients by
sending them timely reminders for new photos and wishing them their special days
 Foto Phactory keeps its prices reasonable and customize the package according to the
client’s need
SECTION III- MACRO AND MICRO ENVIRONMENTAL ANALYSIS

Political Factor

The conservative government’s tactics focus on the large companies, business and
corporations. This could make difficult for those who are newly starting their business.
Taxation will become hurdle in the business of photographs
Political uncertainty, high labor cost or wages rate will impact the business.

Economic Factor

Current economy is weak – people do not want to spend money on photographs

However it is slowly improving so cash spending may increase in the future.
Inflation is causing to increase a labor costs so it impact on the business of photography.

Social Factor

Customer opinions and preferences will impact this business, because some time customers want
more value in product and sometimes don’t see why they have to pay for your service

Technological Factor

Our innovative approach makes the most of consumers' fascination with the latest digital
imagery. We gain new customers and provide added value with high-quality and small file-size
images which can easily be shared with friends and family members.

Foto Phactory will use digital cameras and will require a computer fully loaded with image
manipulating software, such as Adobe Photoshop, FreeHand software. We will also need an
ongoing maintenance agreement for the computer and software, and nightly backups of image
files, in the event of computer failure, theft or fire.

Demographics
This is the world of photography, every second person is so conscious about their photographs.
As we are offering child photography so the demographics will start from infants to the teens
(age 13 to 19), young ones (age 20 to 35) and elder professionals (age 35 to 60), all age groups
are included in our demographics.

SECTION IV-MARKET ANALYSIS:

Industry Analysis

The competition is divided between Luxury Magazine photographers, Moderate Professional

photographers who mostly pose their subjects, and Same-Day Photo Studios.

Foto Phactory is not a luxury, magazine-quality studio but our service and photo quality is highly
compared to other moderate professional photographers. Our rates are comparable to theirs, but
we add value through personal contact and easy dissemination of digital images.

Industry Participants

Foto Phactory is run by professional photographers with various levels of education and
experience. There is considerable variation in quality and taste according to the ability of the
individual photographer. This is a highly individualized, creative process that makes it difficult
for large corporations to enter the market or to create "chain stores." The participants are mostly
individual photographers.

SECTION V-CUSTOMER ANALYSIS

Our Target customer

No doubt the target market for the photography industry is pretty wide, but in order to easily stay
focused and pursue our target, we have clearly defined our target market as:

 Young Executives
 Intended couples planning to get married
  Schools
 Wedding planners
 Corporate Executives
 Event Planners
 Families

Market Trends

There is always a readily available market for the photography industry, and whoever is hard
working and can produce decent photography, jobs will always make headway in the industry.
But in recent times, because of the advancement of technology, it is now a lot easier for non-
professional photographers to take cool shots or ‘selfies’ that can be processed to classic portraits
from their smart phones or other computer devices like iPad’s and even digital cameras.

It has been observed that people only engage the services of professional photographers on rare
occasions. We are quite aware of this; which is why we took our time to study the market and we
have been able to identify marketing and sales strategies that will help us generate profits from
the business.

Marketing and Sales strategies that we will adopt are:

 Mouthwatering promos for the first 12 months and afterwards when the need arises
 Participate in photography exhibitions and expos
 Neighborhood, door to door and mouth to ear adverts to introduce our business
 Engage in roadshows to introduce our business
 Leverage on social media platforms cum online marketing to source for clients
 Create a loyalty program that will help us convert leads to loyal customers

Customer Needs

Families have photos taken to preserve memories. Most photos are taken by consumers with
their own cameras, which are increasingly digital and are even part of their cell phones. Most of
these photos are low quality but no one cares because only the family views them.
Consumers generally engage professional portrait photographers when the photos will be viewed
outside the family and when quality matters. People who are to get married soon and specially
who are much social and like sharing and showing their photos to their social circle as well as the
Professionals, such as those in our target market, often have business needs for quality photos
and have acquired a taste for them. These professionals have families, too. They have the budget
and the need to use them for their families because they often entertain at home and their family
photos will be on display. Just as they appoint their homes with fine furniture and decorations,
the photos on their walls need to exhibit quality.

Specifically, some of their needs include:

 Wedding pictures
 Baby pictures
 Portraits for home or office
 Family pictures to send to family members
 Portraits for business cards, such as for real estate agents
 Portraits for brochures and annual reports

The world has become increasingly digital, but many professional photo studios have made it
difficult for people to enter the digital age. The traditional practice of retaining negatives to
require clients to return for prints has been carried over to charging high fees for releasing digital
files of their portraits.

The need to capture memories lasts for people's entire lives, and business portraits require a
regular update. But people generally don’t look forward to seeing a photographer. In fact, they
find it a burdensome expense, have not established a relationship with a photographer and don't
think often about going to one. As a result, a lot of memories are lost and ancient portraits of
professionals continue to be hung on walls and portrayed in publications. This makes them
appear to be trying to preserve their youth instead of embracing their maturity and experience,
and doesn't show them in the best light.
SECTION VI-MARKETING PLAN

Products

Wedding Photography:

Travel Photography:

Birthday party photography:

College / universities event photography:

Portraits

Marketing Strategy and Sales Strategy

We will adopt the aggressive marketing approach because we believe that for us to win over
clients in the already saturated market, we must be aggressive. As our marketing process is to get
the contacts (phone numbers or email addresses) of leads, and send introductory emails or
messages to introduce our businesses to them. After a week or thereabout, we should follow up
with another email or message to remind them with our services.

We are quite aware that we don’t have the financial capacity to hire enough employees that can
cover the entire city and beyond therefore we will engage freelance marketers to help us market
our services. They will be paid commission based on the number of clients and the amount of the
tasks done. In a nut shell, we will explore the following marketing and sales strategies to
promote our business:

 Direct Marketing
 Online Marketing
 Social Media Marketing
 Email Marketing
 Referral / Network Marketing
 Through Website
Publicity and Advertising Strategy

From the analysis of our feasibility, we have been able to identify some platforms that will help
us effectively create awareness and promote our photography business. Here are the platforms
we intend to promote and advertise our business:

 Leverage on the internet and social media platforms like Instagram, Facebook etc
 Attend photography exhibitions and conferences
 Engage in roadshow from time to time
 word of mouth promotions

Website Marketing Strategies

We will register the local chamber of commerce, which will include a link to our website from
their own. We will hand out business cards with our URL and name. We will advertise our
website and address with filters.

SALES LITERATURE:

Foto Phactory Printing will develop the logo, business cards, brochures and website. All will
contain branding information around the theme of capturing the special moments of our
lives. This theme is the backdrop of our program to maintain customer relationships and to
schedule photo shoots at our clients' homes, or in nature to preserve their special moments

SWOT ANALYSIS:

Strength:

 Professional photographer

 Creative mind

 Certified trainings from professional institutes i.e. KSA & Nikon School

 Photography skills

 Good communication skills

Weakness:

 New to photography field

 Less contacts & connections

Opportunities:

 Less competition in female photographers

 Female clients will be comfortable

 Can easily approach to schools & institutes

 Exposure in field

 Online marketing

Threats:

 Competitors of field

 Self-safety & security

 Chitchat of relatives

 Advancement in technology
SECTION VII-FINANCIAL ANALYSIS

Here is all the information provided of capital investment of project

CAPITAL INVESTMENT FOR PROJECT

Capital Investment Amounts (Rs.)
Office Equipment (5 Yrs) 851,000
Furniture & Fixture (10 Yrs) 229,900
Pre-paid Annual Rent 420,000
Pre-Operational Assets 1,500,900
Pre-Operational Expenses 56,500
Total Project Cost 1,557,400
Below information is mentioned about pre-operational expenses, office equipment, furniture and
Fixture, expenses, human resource requirement and forecasted sale.

WORKING
PRE-OPERATIONAL EXPENSES
Amounts
Description Quantity
(Rs.)
Business Cards 5,000 4,000
Brochures 5,000 4,500
Bill Board (Shop name) 1 48,000
Total Pre-Operational Expenses 56,500

OFFICE EQUIPMENTS
Per Unit Amounts
Description Quantity
Cost (Rs.)
Nikon 7100 semi professional camera 2 83,000 166,000
Flash gun 3 12,000 36,000
24/70 mm lens 2 55,000 110,000
100 mm lens 2 82,000 164,000
50 mm lens 3 15,000 45,000
Computers 2 28,000 56,000
Color Printer 2 52,000 104,000
Portrait studio light kit (3 lights) 2 85,000 170,000
Total Office Equipment 18 851,000
 FURNITURE & FIXTURE

Per Unit Amounts

Description Quantity
Cost (Rs.)
Chairs & Sofa Set 5 5,500 27,500
Counter Tables & Cabinets 5 9,000 45,000
Ceiling Fans 2 4,200 8,400
Split Air Conditioner (1.5-Tonns) 2 29,500 59,000
Security Camera CCTV (4 Camera Set) 3 30,000 90,000
Total Furniture & Fixture 17 229,900

MAINTENANCE EXPENSE
Per Six
Yearly
Description Months
(Rs.)
(Rs.)
Furniture & Fixture 15,000 30,000
Office Equipments 10,000 20,000
Total Maintenance Expense 25,000 50,000

HUMAN RESOURCE REQUIREMENTS

Salary per
No. Of Salary per
Description Employee per
Employees Year (Rs.)
Month (Rs.)
Staff / Team 4 20,000 80,000
Total Human Resource 4 20,000 80,000
 SALES FORECAST 2020 2021 2022 2023 2024
Wedding Photography (75%) 4,055,462 4,136,571 4,219,302 4,303,688 4,389,762
Birthday Parties (10%) 540,728 551,543 562,574 573,825 585,302
Corporate Events (9%) 486,655 496,388 506,316 516,443 526,771
Travel / Land escape
324,437 330,926 337,544 344,295 351,181
Photography (6%)
Net Sales 5,407,282 5,515,428 5,625,736 5,738,251 5,853,016

FORECASTING 2020 2021 2022 2023 2024

Net Sales 5,407,282 5,515,428 5,625,736 5,738,251 5,853,016
Cost of Sales (42%) 2,271,058 2,316,480 2,362,809 2,410,065 2,458,267
Gross Profit Margin
3,136,224 3,198,948 3,262,927 3,328,186 3,394,749
(58%)
 Information about income statement and balance sheet.

INCOME STATEMENT
2020 2021 2022 2023 2024
REVENUE
Revenue/Sales 5,407,282 5,515,428 5,625,736 5,738,251 5,853,016
Less: Cost of Sales (2,271,058) (2,316,480) (2,362,809) (2,410,065) (2,458,267)
Gross Profit 3,136,224 3,198,948 3,262,927 3,328,186 3,394,749
OPERATIONAL EXPENSES
Utilities Expense 540,000 540,000 540,000 540,000 540,000
Salary Expense 80,000 96,000 115,200 138,240 165,888
Rental Expense 420,000 420,000 420,000 420,000 420,000
Communication Expense 60,000 60,000 63,000 66,150 69,458
Advertisement Expense 10,000 11,000 12,100 13,310 14,641
Loan Repayment 172,117 0 0 0 0
Interest Expense 47,858 0 0 0 0
Maintenance Expense 50,000 50,000 50,000 50,000 50,000
Depreciation Expense 216,180 172,944 181,591 179,862 180,208
Pre-Operational Expense 56,500 28,250 28,250 28,250 28,250
Total Operational Expenses 1,652,654 1,378,194 1,410,141 1,435,812 1,468,445
Income/(Loss) Before Taxation 1,483,569 1,820,754 1,852,786 1,892,374 1,926,305
Less: Income Tax 370,892 455,189 463,196 473,093 481,576
Net Income/(Loss) After
1,112,677 1,365,566 1,389,589 1,419,280 1,444,728
Taxation
 BALANCE SHEET

2020 2021 2022 2023 2024

Assets
Current Assets
Cash 1,385,357 1,692,291 1,806,389 2,016,230 2,582,128
Pre-paid Rent 420,000 420,000 420,000 420,000 420,000
Total Current Assets 1,805,357 2,112,291 2,226,389 2,436,230 3,002,128
Fixed Assets
Furniture & Fixture (10 Yrs) 183,920 172,425 153,267 114,950 0
Office Equipments (5 Yrs) 680,800 638,250 567,333 425,500 0
Total Fixed Assets 864,720 810,675 720,600 540,450 0

Total Assets 2,670,077 2,922,966 2,946,989 2,976,680 3,002,128

Liabilities & Owner's Equity

Current Liabilities
Accounts payable 0 0 0 0 0

Other Liabilities
- - - - -
TOTAL LIABILITIES 0 0 0 0 0
Owner's Equity
Paid-up Capital 1,557,400 1,557,400 1,557,400 1,557,400 1,557,400
Net Income/Retain Earning 1,112,677 1,365,566 1,389,589 1,419,280 1,444,728
Total Owners Equity 2,670,077 2,922,966 2,946,989 2,976,680 3,002,128

TOTAL LIABILITIES & EQUITY 2,670,077 2,922,966 2,946,989 2,976,680 3,002,128

Investment in Stocks
The objective is to invest 2 lac in 3 stocks. The following are the selected stocks.

1. Dawood Hercules

2. Honda Atlas Car Corporation

3. Attock Petroleum Corporation

The following are the reasons and information about to select the above mention stocks.

1. Dawood Hercules Corporation Limited

Fertilizer industries increase production of fertilizers which are very important for
increasing agriculture production.....it contributes 7% to the GDP and provides
employment.
24% of the country’s GDP
65% of the country’s total export earnings making it the largest source of FX earnings
Forms the basis for over 50% of industrial production
Has growth rate of 3-4% per annum
It made the manufacturing facilities more energy efficient and environment friendly.
In recent years, Dawood Hercules has made a colossal investment to incorporate the
latest technology; the most significant are the construction of new Prilling tower in a
record time; the tallest industrial structure in Pakistan, replacement of Primary Waste
Heat Exchanger. Primary Reformer Harps Assemblies and conventional instrumentation
(with Distributed Control System).
Dawood Hercules has the privilege of becoming the first fertilizer manufacturing
company to obtain ISO-9000:2000 certification. Dawood Hercules also won numerous
safety and excellence awards
2. Honda Atlas Cars (Pakistan) Limited

Honda Atlas Cars Pakistan Limited is a joint venture between Honda Motor Company
Limited Japan, and the Atlas Group of Companies, Pakistan
Continuously increase in growth, sale and profit
The firm has seen solid earnings estimate revision activity over the past month,
suggesting analysts are becoming a bit more bullish on the firm’s prospects in both the
short and long term.
Over the past month, current quarter estimates have risen from 58 cents per share to 63
cents per share, while current year estimates have risen from $3.01 per share to $3.25 per
share. This has helped HMC to earn a Zacks Rank #1 (Strong Buy), further underscoring
the company’s solid position.

3. Attock Petroleum Corporation

Petroleum sector revenue grew by 32% year on year.

Government encouraged oil and gas Exploration and Production (E&P) companies by
providing maximum incentives.
LPG volumes on the other hand increased by around 24% in 6 month period.
High demand from customer.
High prices
Large investment in petroleum sector due to immense growth and business potential.
Business investment from neighbor country Saudi Arabia.
Chinese significant contribution to explore oil and gas reserved.
 TARGET PRICE DPS
COMPANY P0
(P1) FY19(DIV1)
Dawood Hercules 128.452 10 117.66
Honda Atlas Car corp. 250 18.57 218
Attock Petroleum Corp. 373 40 368.43

R= DIV1+P1-P0
P0

COMPANY RETURN

Dawood Hercules 17.0%

Honda Atlas Car corp. 23.2%
Attock Petroleum Corp. 12.1%

R(avg)= rA+rB+rC
3
R(avg)= 17.43%
 WACC

AMOUNT WIEGHTS RETURNS

DEBT 200,000 10% 15.0%

STOCKS 400,000 90% 17.43%
Total 1,957,400 1

WACC= 10%*15%(1-25%)+90%*17.43%

WACC= 16.81%

The weighted average cost of capital (WACC) is the average after-tax cost of a company’s
various capital sources, including common stock, preferred stock, bonds, and any other long-
term debt. In other words, WACC is the average rate a company expects to pay to finance its
assets.