1|Page

Contents
1. COMPANY DESCRIPTION:.............................................................................................................4
a) ABOUT US:....................................................................................................................................4
b) OWNERSHIP:.................................................................................................................................4
c) LEGAL FORM:...............................................................................................................................4
d) STARTUP SUMMARY:.................................................................................................................4
e) LOCATION AND FACILITIES:....................................................................................................5
2. SERVICES:.........................................................................................................................................6
a) DAILY OPERATIONS AND PRODUCTION:..............................................................................6
b) COMPETITIVE COMPARISON:...................................................................................................6
c) SUPPLIER:.....................................................................................................................................6
d) MANAGEMENT CONTROLS:......................................................................................................7
e) ADMINISTRATIVE SYSTEM:......................................................................................................7
f) FUTURE SERVICES......................................................................................................................7
3. MARKET ANALYSIS:.......................................................................................................................8
a) INDUSTRY ANALYSIS................................................................................................................8
PORTER’S FIVE FORCES MODEL......................................................................................................8
THREAT OF POTENTIAL ENTRANTS...............................................................................................8
BARGAINING POWER OF BUYERS..................................................................................................9
BARGAINING POWER OF SUPPLIER................................................................................................9
THREAT OF SUBSTITUTE...................................................................................................................9
b) MARKET SIZE:..............................................................................................................................9
c) INDUSTRY PARTICIPANTS:.....................................................................................................10
d) COMPETITORS:..........................................................................................................................10
e) MARKET TEST:...........................................................................................................................10
f) TARGET MARKET AND SEGMENTATION:...........................................................................10
g) MARKET TRENDS:.....................................................................................................................11
4. MARKET STRATEGY AND IMPLEMENTATION:......................................................................12
a) STRENGTHS:...............................................................................................................................12
b) WEAKNESSES:............................................................................................................................12
 2|Page

c) OPPORTUNITIES:.......................................................................................................................12
d) THREATS:....................................................................................................................................12
e) STRATEGY PYRAMIDS:............................................................................................................13
f) UNIQUE SELLING PROPOSITION:...........................................................................................13
g) COMPETITIVE EDGE:................................................................................................................13
h) MARKET STRATEGY & POSITIONING:..................................................................................14
i) POSITIONING STATEMENT:....................................................................................................14
j) PRICING STRATEGY:................................................................................................................14
k) PROMOTION AND ADVERTISING STRATEGY:....................................................................15
l) WEBSITE:.....................................................................................................................................15
m) MARKETING PROGRAMS:....................................................................................................15
5. SALES STRATEGY:........................................................................................................................17
a) SALES FORECAST:.....................................................................................................................17
b) SALES PROGRAM:.....................................................................................................................17
c) MARKETING PLAN:.......................................................................................................................17
d) OVERALL MARKETING STRATEGY:.....................................................................................18
PRODUCT, PRICE, PROMOTIONS AND DISTRIBUTIONS...........................................................18
SALES CYCLE:....................................................................................................................................18
6. DESIGN AND DEVELOPMENT PLAN:........................................................................................21
CHALLENGES AND RISKS:..............................................................................................................21
PROPRIETARY ISSUES:.....................................................................................................................21
7. OPERATIONS PLAN:......................................................................................................................22
BUSINESS LOCATION.......................................................................................................................22
FACILITIES AND EQUIPMENT........................................................................................................22
8. MANAGEMENT TEAM AND COMPANY STRUCTURE:...........................................................23
ORGANZATIONAL HEIRARCHY:....................................................................................................23
MANAGEMENT TEAM:.....................................................................................................................23
BOARD OF DIRECTORS:...................................................................................................................24
BOARD OF ADVISORS:.....................................................................................................................24
COMPANY STRUCTURE:..................................................................................................................25
9. OVERALL SCHEDULE:..................................................................................................................26
10. FINANCIAL PROJECTIONS:......................................................................................................27
 3|Page

SOURCES AND USES OF FUNDS STATEMENT:............................................................................27

PERFORMA INCOME STATEMENT:...............................................................................................28
STARTUP BALANCE SHEET:...........................................................................................................29
PRO FORMA YEAR END BALANCE SHEET:.................................................................................29
PERFORMA CASH FLOW STATEMENT:........................................................................................30
 4|Page

1. COMPANY DESCRIPTION:

a) ABOUT US:
We are starting an online business under the name of solemate. It will be an online platform
which will provide people with wide variety of footwear and related accessories. Our sole
purpose is to provide people with the ease to shop to fulfill their footwear needs. We will provide
footwear of every kind for all age groups. People from different walks of life can take advantage
from our services. Another factor which motivated us to start this sort of business is that in
Pakistan people suffer from online websites in the form of size differences sometimes and
sometimes the payment method is too ambiguous and people don’t opt for online shopping due
to these reasons in. To counter this we are creating a website which will have an easy to
understand and use interface. The payment method will be finalized in a few clicks and
additionally we provide our customers with the option to replace if the order doesn’t match their
requirements and the fault lies at our end. The terms and conditions for this are provided in the
policy guide of our business.

b) OWNERSHIP:
As we are establishing something new partnership is the most suitable option for us. The
business will be owned by four partners. Each Partner will have equal share of 25% in the
business.

c) LEGAL FORM:
The legal form of this business is partnership with each partner having similar number of shares
in the business. Profits and losses will be divided with equal ratios and the legal form will
considered to be limited liability.

d) STARTUP SUMMARY:
We came up with this idea as we consider it would be beneficial for the general public as they
will get a chance to choose and purchase from a variety of shoes which would be time saving for
them. To setup this Online Business we invested from our personal savings which enabled us to
carry out our business operations at initial stage. Furthermore the revenue generated from our
business operations will be utilized for the enhancement of our services and if need be we will
 5|Page

acquire loan from Banks or a reliable source to invest for the expansion of our business
operations.

e) LOCATION AND FACILITIES:

As we are carrying out an online business there is no physical presence of our yet but if the
response turns out in our favor we are looking forward to setup our office. As far as facilities are
concerned we are providing a wide variety of footwear for all i.e for men, women and children.
We are providing shoes for every occasion such as for parties, formal meetings, sports events
and we also have a variety of footwear which is suitable to be used at home like Flip Flops and
comfortable sandals.
 6|Page

2. SERVICES:

a) DAILY OPERATIONS AND PRODUCTION:

Our team believes in providing best services to its customers so we update out websites on
regular bases so that our customers feel accustomed to modern trends in footwear so that they
stand out from others and we try our level best to provide customers the best available in the
market. For this purpose out team keeps an eye on prevailing trends in the industry and explore
our options for the benefit of people and the company as well.

As for as production is concerned, we hear at Soulmate don’t have any production unit because
we have vendors that provide us with footwear variety and our job is to make sure that those
products that we display on our website are always in stock so that we can build our customer
base stronger because the competition in Online Business is fierce and in order to survive and
sustain we are always ready and want the best for our customers.

b) COMPETITIVE COMPARISON:
Now a days the trend is shifting towards E-commerce as people lead a very busy life and they
don’t have time to go to markets for purchasing. So the presence of Businesses Online as
increased rapidly and the competition there is very tough competition, If we compare our Online
Business with our competitors the thing which differentiate us from them is commitment and a
team which is willing to take risk and does not shy away from delegations. In the Pakistani
Market many Online Businesses behave unethically such as not delivering what the customer
ordered or by making his personal information vulnerable which makes the customer to lose his
trust in Online stores, but here at Soulmate we make sure that customer get what they see at
reasonable price and we tend to provide them ease of transaction and replacement if the fault lies
at our end.

c) SUPPLIER:
Our company aims to provide customers with products that are in reach for almost every
segment of society. We have engaged with suppliers that provide footwear which is somewhat
expensive for the people who are willing to spend more on footwear but at the same time we
have contacted with some local suppliers who manufactures good shoes at reasonable price so
that people with limited financial resources can also avail our services. Another reason we want
to involves local suppliers is that they are not being paid what they deserve from other online
 7|Page

firms and are exploited mercilessly. We want to uplift that deprived portion of suppliers so that it
benefits are economy and general people.

d) MANAGEMENT CONTROLS:
Control, or controlling, is one of the managerial functions like planning, organizing, staffing and
directing. It is an important function because it helps to check the errors and to take the
corrective action so that deviation from standards are minimized and stated goals of the
organization are achieved in a desired manner. Our management control will include a set
standards which will be followed strictly in order to meet our objectives like planning short term
as well as long term goals and hiring suitable persons for the job who are vigorous and ready to
work diligently for the company. We will try to make the best use of technology for keeping
track of our activities and customer base through different technological tools and with the help
of sheets and graphical representations, so that we can take notice of our shortcomings and
devise plans accordingly to cater these challenges.

e) ADMINISTRATIVE SYSTEM:
Our Administrative System is formulated in such a way that it enables us to create a smooth flow
of business operations. The duties and responsibilities of everyone are descripted so that it clears
the ambiguity regarding the job. As we are starting from scratch, we tend to have limited number
of people involved as we have limited financial resources but as we will grow we will expand
our team and involve ambitious people who are willing to perform their duty diligently. Our aim
is to focus on efficiency and effectiveness at the same time, If need be we will be willing to cut
our workforce or increase it. Whichever will be in our favor.

f) FUTURE SERVICES
In future we look forward to increase our product line and also introduce accessories associated
with footwear and likewise other clothing items. This will enable us to increase our customer
base and reach out to people who are willing to contact us regarding other clothing options.
 8|Page

3. MARKET ANALYSIS:

a) INDUSTRY ANALYSIS
Industry analysis is a market assessment tool used by businesses and analysts to understand the
competitive dynamics of an industry. It helps them get a sense of what is happening in an
industry, i.e., demand-supply statistics, degree of competition within the industry, state of
competition of the industry with other emerging industries, future prospects of the industry
taking into account technological changes, credit system within the industry, and the influence of
external factors on the industry.

PORTER’S FIVE FORCES MODEL

This model analyzes different variables involved in the industry such as threat of potential
entrants, bargaining power of suppliers, bargaining power of customers, threat of substitutes

THREAT OF POTENTIAL ENTRANTS

In online business, the threat of new entrants is quite high as it is very easy to start business
here. We will have to work very hard and provide value to our customers in order to sustain.
 9|Page

The competitive advantage we will have is that we will deliver what we promise and provide
after sale services as this facility is seen to be almost nowhere in the online business sector.

BARGAINING POWER OF BUYERS

Bargaining power of buyers will be very low here as in online business the rates are fixed for
the products and the buyer has very little leverage there. But as the competition is very fierce
we will have to set our prices at such a level that we can compete with our competitors.

BARGAINING POWER OF SUPPLIER

At the initial stage, the bargaining power of supplier would be high as we will try to keep our
prices low to attract more customers but if the situation turns out in our favor the bargaining
power will be reduced if our customer base increases.

THREAT OF SUBSTITUTE
Threat of substitute is very high here as there are plenty of options for the consumer
nowadays to shop online. To counter this threat we will have to focus on quality and
commitment to our customers so that they remain loyal to us and do not shift to other
options.

b) MARKET SIZE:
Global Footwear Market is expected to garner $371.8 billion by 2020, registering a CAGR of
5.5% during the forecast period 2015 - 2020. Footwear industry is growing at a steady pace since
the past few years. Analysis of the report includes various types of footwear including athletic
and non-athletic shoes used by individuals of all age groups and gender. The rising demand for
fancy, trendy yet comfortable footwear among all age groups is a key factor driving the global
footwear industry. The global footwear market is segmented by type of footwear, end users of
footwear, various platforms for sale of footwear, material used, and their sales across various
geographies. Asian countries, such as China and India are major exporters of leather footwear
across developed countries (UK and US). The report explains material used for manufacturing
footwear, which includes leather and non-leather; and analyzes the market for both types of
footwear.

Leather footwear are premium products occupying a significant market share in the global
market for footwear. Additionally, rising health concerns are influencing individuals to perform
indoor and outdoor physical activities. This trend has generated a high demand for athletic shoes,
in turn increasing the demand for footwear. Over the past decade, the global market for footwear
has witnessed a steady growth and is anticipated to continue at the same pace in the years to
 10 | P a g e

come. The estimation of global market is based on revenue generated by the sale of footwear
across different geographic regions.

Market players are also focusing on expanding their sales channels through different web portals
across various regions. Online platforms for purchase of footwear are gaining steady popularity
among teenagers and youths, thereby occupying a significant share among all distribution
channels. Presently, manufacturers are focusing on developing and innovating new products, to
maintain their market positions. Leading companies operating in the market, such as Adidas,
Timberland, Nike, and ECCO among others are constantly devising new solutions and focusing
on providing better services while upgrading the designs of their existing footwear models.

We will try make our mark in this steady and prevailing industry.

c) INDUSTRY PARTICIPANTS:
In this sector the ratio of participants is very high as a lot of people are involved in this business
already. The competition is very throat-cutting here. We will have to focus on our services and
facilities if we want to outrun them.

d) COMPETITORS:
Our core objective will be to cater the Pakistani market. In Pakistan the number of online stores
are limited so the competition is not that much. It is at the international level. Online stores such
as penguin pop and chapter 13 and the like of these would be our competitors.

e) MARKET TEST:
The Market Test is an experiment conducted before the commercialization (launch) of a new
product to find out the facts about the product such as Is the product the right one? Is the product
reasonably priced? etc. On the basis of such findings, the firm may either accept or drop the
product idea. For the market test we will reach out to general public through conventional and
unconventional means such as emails and field survey in order to get the public opinion about
our business.

f) TARGET MARKET AND SEGMENTATION:

Our target market would be those people who lead a busy life such as working 9 to 5 in an
organisation and don’t have the time to visit the market for their footwear needs. We will also
target those women who have difficulty to visit the market as there is no one around to take them
and in our society it becomes difficult for the ladies to visit the market. It will be convenient for
 11 | P a g e

them to purchase shoes sitting in their homes and also for the older generation who find it
difficult to go for shopping due to medical conditions.

g) MARKET TRENDS:
The market trends have been shifting a lot lately due to the advancement in the technological
sector, people now prefer ease and convenience in their lives. By considering that trend we have
decided to enter into the online market as it has a huge intangible existence. We have introduced
our product line in accordance with the market trends as people prefer more trendy shoes but we
didn’t forget the segment which requires formal or sportswear shoes.
 12 | P a g e

4. MARKET STRATEGY AND IMPLEMENTATION:

a) STRENGTHS:
The strengths which we possess are first of all we will be online which means we will be
available to a greater customer base countrywide. Secondly, we will start discussion forums so
that people can give their recommendations and opinions about our products which will enable
us to overcome our shortcomings. We will create an ecosystem which will reduce the distance
between the manufacturer and the customer through our online existence. We will help the
retailer and producer to meet through our medium.

b) WEAKNESSES:
As we are developing a new startup the thing which we lack is that we have limited financial
resources and the market competitiveness is another considerable factor as people are already
involved in this business type. Another weakness which bothers us is that still people are in our
country have less awareness about e-commerce. People are shifting now to e-commerce but at
large they still are not much interested in this form of business as they fear it would make their
personal information vulnerable and consider at some kind of spam.

c) OPPORTUNITIES:
There are plenty of opportunities for us in the online market. We can trigger greater customer
base and engage them with ourselves. We can provide our customers with incentives through
discounts and promotions. Another opportunity which we have is that the role of middleman in
our business is almost non existing, as we will be in direct contact with the manufacturer and the
customer as well.

d) THREATS:
The first and foremost threat to our startup is the existence of other online firms. Although the
number of them are scarce but still it is a factor which deserves to be addressed. Another threat
which we will face is the role of supplier and manufacturer, as they play an important role in the
online market. If the manufacturer doesn’t provide the products as we display on our website it
will affect the level of interest people in our website or if the supplier delays the delivery it can
 13 | P a g e

be a problem for us. And customer satisfaction is most important because in modern times word
of mouth affects the business in a great manner. If a customer is not satisfied from our services
he will advise others not to contact us which can be a problem for our business and as we are
starting a business from scratch we would have to be extremely cautious so that we don’t offend
our customers.

e) STRATEGY PYRAMIDS:
The term "strategy pyramid" refers both to a methodological approach to running a marketing
organization and to a particular document that captures and reflects that approach. The notion of
a strategy pyramid is not specific to marketing, but it is a general way of planning a business’s
activities. In a strategy pyramid, a business plan is divided into three layers, which are referred to
as the strategy, tactics and programs layers. The strategy pyramid of a marketing plan takes the
basic system and applies it specifically to marketing.

Our strategy is to engage as much as customers we can while providing them with the best
possible services and give them value. The tactics which we will use for it are as follows

 Price differentiation
 Speedy service
 After sale services

For this we have devised a program which will keep track of changing modern trends and the
inclination of customers will be studied regularly. We will stay in touch with the manufacturers
and suppliers so that the quality of our products remain immaculate.

f) UNIQUE SELLING PROPOSITION:

Unique selling proposition differentiates you from the rest and it helps the business to standout.
It can be a service which the others are not offering or some sort of added value. Our unique
selling proposition is that we will donate ten percent of each sale made to a social cause. Usually
online businesses don’t do this. In this way we will fulfill our social responsibility and people
will prefer to purchase from us as they would feel contentment by helping the society as well as
fulfilling their footwear needs.

g) COMPETITIVE EDGE:
This factor holds an important status in defining the path of a business. As the competition is
fierce in this field, if one wants to cover a huge segment of customer base it has to have a
competitive advantage. We all face an issue while ordering shoes online that the size of the shoe
 14 | P a g e

doesn’t fit according to our measurements and in Pakistan it is a tiring ordeal to get it replaced or
get redeemed for it. Here our competitive edge lies we will allocate a specific department for it
which will deal with this impediment. Our customers will have the opportunity to get their order
replaced within a specific time frame if it doesn’t match their requirements. Another edge we
have is that we will introduce different size measuring parameters i.e UK, USA and EURO styles
on our website.

h) MARKET STRATEGY & POSITIONING:

Positioning is a marketing concept that outlines what a business should do to market its product
or service to its customers. In positioning, the marketing department creates an image for the
product based on its intended audience. This is created through the use of promotion, price, place
and product.

We will utilize online platforms for the marketing of our business like putting banner ads on
other websites and we will also use social platforms like facebook and instagram for promotion.
We will publish our newsletter on regular basis so that people can get familiar with our business
operations and with the online business as well.

i) POSITIONING STATEMENT:
A positioning statement is an expression of how a given product, service or brand fills a
particular consumer need in a way that its competitors don’t. Positioning is the process of
identifying an appropriate market niche for a product (or service or brand) and getting it
established in that area.

Our positioning statement will cover Pakistan at initial stage, We will provide quality footwear
within nominal price range depending upon the requirement of the customer as we have a wide
variety of footwear and related accessories to it. The segment which we will cater will be
normally that fragment of society which leads a busy life or find it difficult to move into the
market easily.

j) PRICING STRATEGY:
Pricing strategy is a way of finding a competitive price of a product or a service. This strategy is
combined with the other marketing pricing strategies that are the 4P strategy (products, price,
place and promotion) economic patterns, competition, market demand and finally product
characteristic. This strategy comprises of one of the most significant ingredients of the mix of
marketing as it is focused on generating and increasing the revenue for an organization, which
ultimately becomes profit making for the company. Understanding the market conditions and the
 15 | P a g e

unmet desires of the consumers along with the price that the consumer is willing to pay to fulfill
his unmet desires is the ultimate way of gaining success in the pricing strategy of a product or a
service.

We will use a combination of different pricing strategies namely penetration pricing, economic
strategy and psychological strategy. Penetration strategy will help us to seep through the market
and economic strategy will help us to cater a greater segment of society as most people have
limited financial resources. Psychological strategy is another good strategy like keeping the price
99 instead of 100 so that the customer doesn’t feel being charged overpriced. The combination of
these three strategies will help us engage more customers and enhance our customer base.

k) PROMOTION AND ADVERTISING STRATEGY:

The Promotion strategy which we will use will majorly by advertising and marketing. We will
place our ads on different websites and online platforms. Our newsletter will help create
awareness in the general public and we will attract more potential customers. We will also
consider the 5 Ps of marketing which are namely personal selling, advertising, sales promotion,
direct marketing, and publicity. By considering these elements it will be helpful for us to engage
as much customers which will resultantly be beneficial for us and enhance our business growth.

l) WEBSITE:
Website plays a pivotal role in e-commerce. It is a pre-requisite for anyone who is willing to start
an online business. Keeping in view the importance of website in the online business we created
a website by the name of solemate.pk. It carries the product line which we are offering and a
catalogue as well. It also provides the customers with the ease to place order without any hustle.
The interface is designed in such a way that anyone can use it easily as mostly people hesitate
from shopping online as the interface and selection of the product become tiresome for them as
not everyone in Pakistan is proficient enough to use the technology effectively. We have also
placed an option where the customer can log in and enter his details to get the product at his
doorstep.

m) MARKETING PROGRAMS:
A marketing program is a coordinated and well-designed set of activities to achieve marketing
objectives. Marketing objectives are strategic sales goals that fit the products’ strengths and are
based on various characteristics of the product. One may follow different marketing programs
according to the situation.
 16 | P a g e

For the articulation of an effective program firstly we have to define our goal and our goal is to
deliver quality products within nominal prices and. For this, we will use different marketing
programs such as creating a positive brand image through providing quality products. We will
use different social channels such as online websites and social sites as well for the marketing of
our product and as we will progress further we will reach out to influencers to endorse our
website as it has a positive psychological trickle down to effect in the masses.
 17 | P a g e

5. SALES STRATEGY:

A sales strategy is an approach to selling that allows an organization’s sales force to position the
company and its product(s) to target customers in a meaningful, differentiated way. Most
strategies involve a detailed plan of best practices and processes set out by management.

a) SALES FORECAST:
As we are starting something from scratch, the sales at start will not be of very high proportion
as first we have to establish a link with people and make them believe that we are a reliable
source which can be trusted. If all goes according to plan we will be able to break-even within
the first six to eight months and with persistence and dedication we will be able to increase our
revenues over the time.

b) SALES PROGRAM:
A plan containing an assessment of current sales for a product in a given region or market, a
statement of sales objectives, strategies for achieving the stated sales objectives, and resources
available for achieving this goal. We will examine the record of our sales in different regions and
concentrate where the sales are less and what are the factors which are holding them back.
Likewise we will also keep a record of where the sales are healthier and what steps can be taken
to maintain the streak and even make them better. We will use different technological tools for
this purpose such as analytical softwares.

c) MARKETING PLAN:
A marketing plan is a report that outlines marketing strategy for the coming year, quarter or
month. Typically, a marketing plan will include:

 An overview of the business marketing and advertising goals.

 A description of the business current marketing position.
 A timeline of when tasks will be completed.
 Key performance indicators that will be tracked.
 A description of business’s target market and customer needs.
 18 | P a g e

d) OVERALL MARKETING STRATEGY:

A marketing strategy is a business's overall game plan for reaching people and turning them into
customers of the product or service that the business provides. Value Proposition plays an
important role in determining the marketing strategy of a business. Our key value proposition is
providing our customers with ease of transaction and another value which we are looking
forward to provide our customers with is the option of exchanging the product if it doesn’t match
their requirements on delivery. Usually online stores don’t do this once you receive your order
you cannot exchange it whether it suites you or not. Our marketing strategy will revolve around
these value propositions we will highlight these issues and will tell people that with us you don’t
have to face this. For this purpose we will design brochures and also propagate our slogan online
as well.

PRODUCT, PRICE, PROMOTIONS AND DISTRIBUTIONS

These elements hold a very important place as far as the process of marketing is concerned. The
product which we will offer is footwear which is an everyday need for everyone. We will
introduce our product in such a way that it catches public attention.

Price is the most important factor while marketing because people perceive the quality offered
through the price of product. We will set the price of products by keeping in view in the market
trends and competition. We don’t want to set our price at such a scale that it becomes
unreachable for most and nor we want to set it too low that it becomes difficult for us to survive.
The main thing which we will focus on is setting a price which is justifiable by the quality of the
product .

As far as promotions our concerned, we will promote our product at every possible forum, be it
online or by distributing brochures. Another tool which we will use for promotion will be our
newsletter. It will create awareness about our business among the masses and they can see our
business activities and future programs.

Distribution in our business would be made possible by reaching an agreement with a courier
service agency so that our customer can receive their order at their doorstep.

SALES CYCLE:
Sales cycle refers to the act of optimizing ones sales. It helps the business to make their sale in an
effective and efficient manner. This cycle has seven stages which are as follows.
 19 | P a g e

 Sales prospecting
 Making Contact
 Qualifying the lead
 Nurturing the lead
 Making an offer
 Handling objections
 Closing the sale

In sales prospecting we will analyze our potential clients and collect information about them.
Now, at the second stage which is making contact we will devise a plan that how to reach out to
them. As we are an online business we will reach out to them through emails and by text
messages on their cellphones. We will also formulate interactive ads which will help us gather
information about the people interested. One we have selected our potential customer net we will
analyze that how much each of them is willing to spend on our products.

Making an offer in our business is not restricted to the ones who qualify to be the ones willing to
invest their money in our products. Through our website we will target almost everyone so that
the one who is not willing at the start to invest may change his mind by seeing our product line.
20 | P a g e
 21 | P a g e

6. DESIGN AND DEVELOPMENT PLAN:

The purpose of the design and development plan section is to provide investors with a
description of the product's design, chart its development within the context of production,
marketing, and the company itself, and create a development budget that will enable the
company to reach its goals.

CHALLENGES AND RISKS:

The challenges which our business will face are mainly the existence of other online footwear
stores. Another challenge is to make our website and product range eye-catching so that it
attracts people towards our business.

The risk factor involved in our business is not that much grave. But there are some minor risks
involved such as delayed delivery. For this we will enter into an agreement with a courier service
so that our customers get their products timely. There are some other risk factors such as
economic stability of our country and the overall well-being of the masses. If people are earning
appropriately then they will spend on our products.

PROPRIETARY ISSUES:
Proprietary issue is very serious in the online business as if your proprietary rights are not
secured others can easily copy your name and style in order to cut down your customer base as
all customers are not that loyal. If they see someone similar offering the same services in your
style they will switch over to them and sometimes it becomes difficult even for the loyal ones to
differentiate between the original and the imposter.

To secure our proprietary rights we are registered our domain so that others cannot copy our
name or slogan.
 22 | P a g e

7. OPERATIONS PLAN:

Operations plan section describes the physical necessities of your business's operation, such as
your business's physical location, facilities, and equipment. Depending on what kind of business
you'll be operating, it may also include information about inventory requirements, suppliers, and
a description of the manufacturing process.

Our operations plan will comprise of schedule which will cover our inventory requirements such
as shoes and other footwear items. We would require a list of competent suppliers who can cater
our needs and as far as the physical location of the firm is considered at present we would not
need it unless the response turns out in our favour. Facilities such as a small warehouse to stock
our inventory and a reliable courier source will be needed.

BUSINESS LOCATION
As far as the physical location is concerned we don’t have any as we are operating online. But
we would require a small warehouse where we can keep our inventory so that it can be used
when required.

FACILITIES AND EQUIPMENT

The equipment which we will need would be something related to the packaging of our product
with the help of which our customers find their order in the best of their shape.
 23 | P a g e

8. MANAGEMENT TEAM AND COMPANY STRUCTURE:

ORGANZATIONAL HEIRARCHY:

MANAGEMENT TEAM:

In every business management team holds an important place. It is the management team which
formulates ways that help the business to grow. Our management team comprises of four key
members.

 Osama Brar
 Asfand Ahmad
 Noman Aftab
 Zohaib Ahmad

Osama Brar, Managing Director

 24 | P a g e

He is currently a student of business administration. By utilizing the business concepts

studied throughout the degree he will try to steer the firm towards greater prospects by
engaging all the members in a constructive manner to cover greater milestones.

Asfand Ahmad, Chief Financial Officer

He is a business student pursuing his major in finance and has also done some financial
management courses. He will be in-charge of the financial matters of the business. It will
be his responsibility to look after the financial prospects of the business and how to
utilize the resources most efficiently.

Noman Aftab, Marketing Director

A marketing student, noman aftab will be looking after the marketing of the products so
that people get more inclined towards our business. He will devise marketing plans in
order to reach out greater customer base

Zohaib Ahmad, Human Resource manager

He is also a business student majoring in Human Resource and has adequate skill set
required for this business. As business will grow it will be his responsibility to induct
more human capital and place them according to their skills and strengths.

BOARD OF DIRECTORS:
Board of directors comprise of a group of people responsible for taking key decisions for
the company. With their mutual consent any change is implemented. Our board of
directors will consist of four members at present, We will increase it in the future if need
be. Currently the board of directors members would be namely
 Osama Brar
 Asfand Ahmad
 Noman Aftab
 Zohaib Ahmad

BOARD OF ADVISORS:
It is a group of people hired by the entrepreneur which counsel him on business decisions
and activities but their recommendation is not a binding upon the entrepreneur. Our board
of advisors will consist of three members at present namely
 Awais Fareed
 25 | P a g e

 Abdullah Kamran
 Subhan Ahmad

These three are currently running their own businesses and have deep insight in how the
business world works. There counsel would be of prime importance to us.

COMPANY STRUCTURE:
The company structure which we have adopted is partnership. Currently there are four
partners. As we are planning a startup so this form of company structure would be
appropriate for us. As through partnership each partner has equal stake mostly and thus
works diligently for his own good which eventually helps the company to stand and grow.
 26 | P a g e

9. OVERALL SCHEDULE:

We have planned to start our operations by the end of next month. Product testing is underway
and hopefully we will complete all the required procedures will be completed within this
timeframe. The marketing campaign has already kicked off. We have contacted different
websites for online marketing purpose. Within the first eight months we look forward to break-
even as footwear is everyone’s need and people are nowadays shifting towards online shopping
more. If things go as the way we have planned, within the first one and a half years we will be
able to expand our team so that the operations can be carried out effectively.
 27 | P a g e

10. FINANCIAL PROJECTIONS:

SOURCES AND USES OF FUNDS STATEMENT:

Sources of Funds Amount Usage of Funds Amount

Domain & Hosting 3000
Equity 45000 Marketing /Promotions
• Online Promotions 2500
• Broacher +Flexes 7000

Website Development 8000

Documented Booklet 1500

Stall Charges 9000
Other Expenses 5000
 28 | P a g e

PERFORMA INCOME STATEMENT:

INCOME STATEMENT / PROFIT & LOSS

year 1

Revenue   615000
Operating Expenses    

Salaries & Wages 300000

Employee Related Expenses 0
Insurance 0

Equipment 10000

Marketing 140000

Rent 3500

Website Development 8000

Utilities 22000

Write off Preliminary Expenses 9333.33

Total Operating Expenses   492833

Net Operating Income 122167

Less: Dividend 22167
Retained Earing 99999.7
 29 | P a g e

STARTUP BALANCE SHEET:

Start Up Balance Sheet

Assets Rs. Liabilities Rs.
Current Assets      
Cash 9,000    
    Equity  
Intangible Assets   Capital 45,000
Website Development 8,000    
Preliminary Expenses 28,000    
       
  45000   45000

PRO FORMA YEAR END BALANCE SHEET:

Year End Balance Sheet

Assets Rs. Liabilities Rs.
Current Assets   Expenses Payable 17833
Cash 126,833    
    Equity  
Intangible Assets   Capital 45,000
Website Development 8,000 Retained Earnings 100000
Preliminary Expenses 28,000    
       
  162833   162833
 30 | P a g e

PERFORMA CASH FLOW STATEMENT:

SOLEMATE.PK
Cash Flow Operations
Operating Activities
Earning Of Year 615000
615000
General And Administrative Expense 175000
Salary/Wages Expenses 300000
Income Tax Paid 0 475000
Net Cash Flow Operations 140000

Cash Flow Investment Activity

Capital 0

Net Cash Flow Investing Activity 0

Cash Flow Financial Activity

Equity 0
Dividends 22167 22167
Net Cash Flow Financial Activities -22167

Net Cash Flow 117833

Cash In Hand At The Beginning Of The Year 9000
Closing Balance Of Cash At The End Of The Year 126833