ENTREPRENEURSHIP

BUSINESS PLAN
Group Members: (BBA-6A)
Ahmed Saeed
Ahsen Ehsan
Syed Umair Asif
Ahmed Akhtar
Ahmed Ali
Ali Syed
Ahtesham Khan
Hassan Shahzad Mughal

Submitted to:
Ms. Amna Sadaf
ENTREPRENEURSHIP
Business Plan
 ENTREPRENEURSHIP
Business Plan

Table of Contents
Table of Contents ..........................................................................................................3
GROUP MEMBERS’ EVALUATION.........................................................................4
Executive Summary.......................................................................................................1
Description of the venture..............................................................................................2
Product and Services......................................................................................................3
Products......................................................................................................................4
Services......................................................................................................................4
INDUSTRY ANALYSIS...............................................................................................7
Market Analysis.........................................................................................................7
Competitive Analysis ................................................................................................8
Market Segmentation ....................................................................................................9
Production Plan............................................................................................................11
Suppliers.......................................................................................................................11
Urdu Bazaar..........................................................................................................11
Waseem Stationers...............................................................................................11
Physical Plant showroom cum gallery.........................................................................13
The Interior Décor................................................................................................13
Marketing Plan.............................................................................................................15
Situation Analysis....................................................................................................15
Price..........................................................................................................................15
Promotion.....................................................................................................................18
Cradle SWOT Analyses...............................................................................................21
Location........................................................................................................................23
Address.........................................................................................................................24
Organizational Plan......................................................................................................24
Designation And Responsibilities ...........................................................................25
Salary Package.........................................................................................................27
Organizational Structure..............................................................................................28
Timings.....................................................................................................................28
Operations Plan............................................................................................................28
Quotation For The Outlet.........................................................................................30
Day To Day Activity................................................................................................31
Inventory Control ........................................................................................................33
Financial Plan...............................................................................................................35
Payback Period.........................................................................................................36
Internal Rate Of Return............................................................................................36
CRADLE IN The Future .............................................................................................38
 ENTREPRENEURSHIP
Business Plan

GROUP MEMBERS’ EVALUATION

Group Leader:
• Ahmed Saeed (Came up with the idea, logo and strategies to
implement in each part of the Market Plan, Management Plan,
Operational and Financial Plan. In the end did the final
compilation of the business plan after getting the data from
the team members).

Associates:
• Ali Syed (Worked on the Marketing Plan)
• Ahmed Akhtar (Worked on the Management Plan and helped
me come up with the logo design)
• Ahtesham Khan (Worked on the Operational and Financial
Plan)

Followers:
• Syed Umair Asif (Worked with Ali on the Swot Analysis and
Competitive Analysis by Analyizing our Market i.e. both
consumers and producers).
• Ahsen Ehsan (Worked with the group leader Ahmed Saeed on
the Marketing Mix Strategies on Promotion, Price, Products
and Services, and Place)
• Ahmed Ali (Worked with Ahmed Akhtar to come up with our
Management Plan and to structure our organization).
• Hassan Shahzad Mughal (Helped Ahtesham in the operational
aspects of the company by highlighting the vendors and the
inventory levels of day to day activities).
 ENTREPRENEURSHIP
Business Plan

The history of the craft of hand made paper echoes

in many ways the story of civilization, yet its actual
development is conjecture.

A civilized world is inconceivable without paper.

The uses of paper as a medium for storing and
conveying information go far beyond the dreams of its
inventors.

The artistic aspect; paper as a mean of self

expression, from notebook, diaries to other forms of fine
arts, from the exciting decorative uses of lampshades to
picture frames.

We at Cradle believe in caring & enhancing of this

centuries old ancient craft of paper making.
 ENTREPRENEURSHIP
Business Plan

Executive Summary

Cradle is a small outlet for paper products and an Art Gallery

providing an exposure to display their talents. Owned by a zealous
artist, Cradle was a vision that was developed in 2006, and took a
physical shape in may 2009. Dealing with customized cards, paper
products, packing services and supporting an art gallery, this shop
is one of its kinds in an evolving market of Islamabad. The market of
Islamabad provides multi audience who want to experiment with
new ideas. Starting from teenagers to elders Cradle offers its
services to everyone. Supporting a classical medieval interior giving
it a unique and feminine nature, females would be more interested.
Cradle, being in F-7/2, can cash up on its location with Jinnah Super
right around the corner and the street having an official importance
attached to it due to the WHO office. Cradle has a management
staff consisting of six dedicated employees, who work together to
make it a successful business by providing customized services to
everyone alike.

1
 ENTREPRENEURSHIP
Business Plan

Description of the venture

Cradle a small business set up by a zealous and an aspiring artist.

The business is setup in pursuance of a hobby that became a
passion i.e. Arts. Although this passion is now a small business
setup in the shape of a retail outlet, its main objective is to share,
inspire and to give others with the opportunity to grow.

The concept of Cradle generated in 2006 with the first greeting

cards being supplied to different shops such as Feelings in F-10
Markaz. Due to the academic obligations and rawness in the
business field, we were unable to act upon the idea of owing an
outlet for these unique thoughts. In 2009, an opportunity arose
when a young and bright architect who also had a vision for such an
activity, Mr. Ali Syed (a Graduate from Indus Valley) encouraged
opening up an Art Gallery in the district of Islamabad.

Cradle would be made functional on the 1st of May 2009, by holding

an exhibition and inviting friends and family. It would start its
function from the first of May, with an accounting cycle starting from
that very date. Cradle offers a variety of products to its clients,
mainly operating on a personal basis. The main product offered by
the business is hand made cards; these are usually made to the
requirement of the clients, even though a variety of cards are
already made to suit different taste for different occasions,
personalized cards is always recommended.

Other products offered by cradle include hand made diaries, note

pads and other paper related products using usually recycled papers
or hand made papers, designed and available in different colors and
styles.

2
 ENTREPRENEURSHIP
Business Plan

A number of services are also offered by the business that includes

an art gallery to upcoming and young amateur artists. As this is a
passion of the owner, who wants to provide a platform and to
promote arts, these artists will display their work at minimal cost.
Finally a unique service offered by cradle is a gift wrapping service.
This is the first of its kind in Pakistan. The service deals with
providing a packaging service using different forms of papers in all
styles according to the customers wishes and would be based on
themes such as for weddings, special occasions such as valentines.

The customers for Cradle include all the art lovers from teenagers to
elders from all classes and gender. But due to personalized services,
the costs would evidently be high, making the privileged class
providing the target clientele to Cradle. Cradle would also be
offering their Gallery services to the needy artists who can’t afford
to rent a place but have the talent to prove them.

At the moment it is a sole proprietorship with the sponsorship from

Mr.Ali Syed. The entrepreneur Ahmed Saeed would be handling the
operations for the initial period in the capital. They plan to open
outlets in Karachi and Lahore upon the Islamabad’s success which
may be handled by the entrepreneur himself backed by the funding
provided by Mr. Ali Syed. The business due to its nature of
operations has no intention of becoming a publicly owned business
venture at any stage of time.

Product and Services

Cradle is a unique concept dealing with paper and its products. Also
the services offered are a one of its kinds in Islamabad. A number of
product and services offered by Cradle as listed below

3
 ENTREPRENEURSHIP
Business Plan

PRODUCTS

1. Cards: all customized made for special occasions

2. Chart Papers: (used to make cards, wrapping material
and for selling purposes)
a. Fabric Sheets (local and imported)
b. Pastel Sheets (local and imported)
c. Every Card (white, pink, light green, blue, yellow)
d. Graph Sheets
e. Crepe Paper (local and imported)
f. Kite Paper
g. Corrugated Paper (imported)
h. Color Card (imported)
3. Hand made diaries
4. Paper Mache
5. Paper Boxes: used to pack different things such as
shirts, clothes, any gift items
6. Jewellery Boxes

Cradle has a conscious approach towards the environment and

works with 100% wood free recycled natural fiber. Handmade paper
are made from the waste scraps of cotton fabric, waste paper and
agriculture waste turning into exquisite sheets of paper. Submitting
to a social responsibility to care of environment, this paper is
biodegradable; therefore using handmade paper is the simple way
to protect the environment.

SERVICES

1. Gallery
The art gallery is a small room where the potential artists would be
displaying their creations to either hold exhibitions or use it to work
on their projects. The art gallery would be providing the amateur
artists with an opening into their own private world to work on their

4
 ENTREPRENEURSHIP
Business Plan

creations and in turn giving them a haven for their talents to

cultivate in a nestled environment. Also after the initial period is
over and the company produces a name in the market, different
lectures would be held inviting different artists from Pakistan to give
their input to the amateur artist new in this field.

2. Wrapping and packing

The trend for packing gifts in a tasteful fashion has become “in”
classified by the fashion gurus. Fashion stricken people who are
cautious about presentation have become aware about getting their
purchases packed in chic ways for their loved ones. This practice is
common when it comes to birthday gifts, valentines (where girls
spend hours packing small gifts to give them a personalized as well
as an impressive touch to it) or in the corporate world if the
companies want to get their packages designed. Through its
packaging, the outer look, the value of the gift changes all together.
Taking care of the needs of the people Cradle has introduced its
services for packing gifts to make them more meaningful and
memorable.

The elaboration of weddings has exceeded all limits, and people

take care of very minutest details. In consideration of this fact,
Cradle provides it services to the people involved in getting married
to pack their gifts bought for exchanging (dowry) purposes pack
according to the clients desire and the theme set up for the wedding
day. The packaging services are customized according to the
customers’ wishes, thus giving the presents a personalized touch.
The tradition of giving sweets on occasions can be fancied by Cradle
offering Sweet baskets for the customers on joyous occasions such

5
 ENTREPRENEURSHIP
Business Plan

as weddings. Along with the packed gifts the customers can also
buy cards or other paper product at a discounted rate.

6
 ENTREPRENEURSHIP
Business Plan

INDUSTRY ANALYSIS
MARKET ANALYSIS

The market in which Cradle would function is an evolving market,

which holds a lot of opportunities for new businesses to flourish. The
trend in similar products such as hand made products have seen a
favorable attitude by customers. Such items have been seen by the
customers as stylish and in fashion products hence their demand
has increased creditably.

The city of Islamabad is as mentioned above going through a phase

of evolving, as new trends and many fashion gurus have focused
their attention to the city. The demographic changes and the incline
towards celebrating different occasions such as, ‘valentines’ and
‘mother days’ also show positive trait for Cradle. Similar trends like
that of Cradle, coming from other cities alike or being successful in
other cities, such as Papier-mâché in Lahore, has already created a
mind set in the residents of Islamabad, who now are starving for
new innovative and creative ideas; especially in hand made
products.

The current business environment is very favorable for a business

like Cradle to be introduced; the customers are willing to try and
become in vogue with the new trends and styles so to experience
unique and creative things. Yet the fact that the not so bright
success rate of business in Islamabad is always a risk is kept in
mind. The trend in Islamabad is very unpredictable; if the business
‘clicks’ in the initial stages it is sure to be a success, otherwise a
closure is guaranteed.

7
 ENTREPRENEURSHIP
Business Plan

COMPETITIVE ANALYSIS

Cradle is a business offering a combination of one of its kind, unique

products and services. The company faces every little competition
in the city as there is no other shop or designer specializing in
similar product or services.

Cradle is expected to face some competition from different shops

selling cards and similar products at the time of launch and the
initial stages, till it establishes a fair footing and builds a name for it
self. The competition is considered more of an in-direct competition
rather than direct as these bookshops and other shop sell cards and
other paper products as a part of their retail mix. They do not
specialize in any of these products or hold a wide variety. While
Cradle specializes in its product offering a wide variety of
personalized and unique products, rather than the generic products
offered by these shops.
Some of the competitors (in-direct) for Cradle identified are:

• Illusions
• Haroon’s
• Saeed Book Bank
• Book Nook
• Durrani’s
• Waseem Stationers
• And main bookshops
• Nomad Gallery

While Cradle faces some indirect competition in its product range

there is no competition for its service side. Again if other schools or
academies such as Nomad, Hunerkada are studied, they provide
indirect competition to Cradle. All in all their services are quite

8
 ENTREPRENEURSHIP
Business Plan

different from that of Cradle. Nomad supports an Art gallery but its
target market is completely different from that of Cardle; while
Nomad supports established artist, Cradle has its door open to
amateur artists seeking their way in to success. There are other
galleries in Islamabad but as Cradle offers its different services
alongside the gallery, it is safe from competition. While the
wrapping papers and packing service is a unique service which has
no competition until now.

Market Segmentation

The nature of the product and service makes it hard but also
impractical to be segmented; hence Cradle does not limit its
clientele to specific groups. But keeping in line with the nature of
the business and the product and service offered certain segments
would be more attracted towards the business, making them the
segment for the business.

The concept of the business is considered as a very stylish and

fashionable setup, hence, would build a perception in the eyes of
the customer to be an expensive shop. Although our cost is low it
will still be high in some cases compared to many products offered
by our competitors and other retailers, most of our products would
be at reasonable cost justifying the service and products. This would
attract a certain segment that is willing to spend more than usual.

The main audience would be the people who would want to go a

step further in what they do and how they do it. Making personal
cards and other services would initially attract art lovers or people
who really want to make an impact or who just want to be different.

9
 ENTREPRENEURSHIP
Business Plan

As the business establishes it self, the market would increase

attracting more segments. Although Cradle’s services would not
attract the young customers but the main audience identified at this
point would be the segment aged between the ages of 16 to 50 or
above. At the initial stages and for some services such as packaging
gifts, higher income clients are expected, those who dare to be
different or are scarce in time. This can also be predicted as the
gallery would attract a more sophisticated and higher class
audience, who like to spend on such luxuries products or have a
passion for arts.

The cards on the other hand would cater for a broader segment in
terms of income as many customers are expected to be in late
teens or young adults. Keeping this segment in mind, prices of all
products especially cards would be set. The music session would
also attract these segments.

Another segment that is expected to be attracted in the initial

launch stage is gender related. Females are expected to be more
inclined towards Cradle in terms of its products and services offered
as compared to men. Hence many designs and styles would directly
target them.

The segment of the gallery includes the students who want to

launch themselves. Also different corporations such as Chen One or
restaurants such as Civil Junction, Blue Lagoon, or interior designers
would be catered to. The people involved in the restaurant business
are looking for creative pictures usually buying from the students at
a cheaper price when they refurnish their outlet. They would be
given invitations to visit Cradle if they wish to redecorate. Cradle
would also target interior decorators that are in constant search for
finding nice things for a lesser price and buy them from students.

10
 ENTREPRENEURSHIP
Business Plan

Production Plan
SUPPLIERS
The inventory for Cradle is all the paper and paper material involved
in the packing services. The inventory would be bought from either
Urdu Bazaar or Waseem Stationers. The transportation would be
borne by Cradle itself for the initial purchase. Deals will be made by
some suppliers sitting in Urdu Bazaar to deliver themselves. The
costs for transportation include the fuel expense which comes down
to Rs. 250 on gas for one trip. The re-order quantity would depend
on the level of sales and demand for that product. The distributors
for paints are Wamiq and Pablo. The key suppliers of paper would
be from:

URDU BAZAAR

There are different suppliers sitting in Urdu Bazaar, Rawalpindi, who

deal with paper products. They would be bought from there and
would be brought to the outlet. The transportation cost would be Rs.
250 on gas and the things would be ordered twice a month
depending on the level of sales and the demands of the customers.

WASEEM STATIONERS

Waseem Stationers is a stationary shop in Jinnah Super market F-7

Islamabad. It has a wide variety of paper and other products. The
pens and paints would be bought from here for the cards and the
packing services at the convenience of the owner and the number of
orders. Waseem Stationers due to its ideal location is a back up
supplier for Cradle in case of emergency of meeting the deadline for
the order.

11
 ENTREPRENEURSHIP
Business Plan

12
 ENTREPRENEURSHIP
Business Plan

Physical Plant showroom cum gallery

The annex is a 2 room house which has two halls. It requires little
renovation; the layout can be easily and effectively used to suit
Cradle’s needs.

THE INTERIOR DÉCOR

The outlet is a small setup consisting of two rooms; one devoted to

the gallery with an office and the other one handling the cards and
the paper products. The office is for the entrepreneur where the
clients would be discussing their demands of how to make the cards
or themes for packing service.

The interior follows an ancient medieval European setup with heavy

draperies. The only modern touch comes in the color scheme of the
gallery. Not following a traditional red color associated with
medieval times, Cradle follows an oceanic theme blended in with
the chic touch of classical times.

13
 ENTREPRENEURSHIP
Business Plan

The walls of the gallery would be painted a nice soft cream color so
as to make the paintings stand out during an exhibition. The sofas
on the left side placed in an L shape, are blue leather couches. The
office is decorated in combination of blue and oceanic green, which
is the theme for the outlet.

The card section is furnished with wood (dark oak) dominating the
room due to the lining of the shelves placed on all three walls. A
centre table made of dark oak wood is placed for displaying the
paper products such as diaries, notebooks, albums, frames etc.

To fill up the gaps and make the place lively the walls of the card
shop would be painted dark blue contrasting against the deep
brown of the wood, and blended by the green of the plants that will
be placed on all the corners in a symmetrical way. The dark colors,
representing the medieval times, would be accentuated by the use
of spot lights and lamps. The use of lamps would soften the touch
and would highlight all the paintings displayed in the gallery section.

The gallery would also be made lively due to the plants used. Lamps
would be used to give the required lighting making it give an
elegant look. Spotlights would be placed in a way that draws
attention to the paintings.

14
 ENTREPRENEURSHIP
Business Plan

Marketing Plan

SITUATION ANALYSIS

It is important to understand the environment Cradle would function

in. Although the sole purpose of the business is not to be a
commercial venture, different aspects have to be taken in mind to
attract clients and attention to the business.

PRICE

The price per month for each item is included in the chart along with
its selling price.
(The quantity of the products is listed down in ranges so as to be
flexible to demand.)

Item Products Quantit Price Price Suppli

No. y (Rs.) (Rs.) ers
Ordere Purchase Total
d d Price Sale
Price
00001 Chart 150-200 1200- 1500-
papers(Local) 1600 2000
All Colors (Rs. 8 (Rs. 10
each) each)
00002 Papyrus Paper 50-100 2000- 2500-
4000 5000
(Rs. 40 (Rs. 50
each) each)
00003 Glaze 20-50 100-250 240-600
Paper(Local) (Rs. 5 (Rs. 12
Urdu
each) each)

15
 ENTREPRENEURSHIP
Business Plan

00004 Fabric 15-30 300-600 375-750 Bazaar

00004 Sheets(local) 15-30 375-750 450-900 Wasee
a (Import (Rs. 20 (Rs. 25 m
ed) local Rs. local Station
25 Rs. 30 ers
imported) imported)
00005 Pastel Sheets 15-30 750-1500 825-1650
(Imported) (Rs. 50 (Rs. 55
each) each)
00006 Every Card 20-50 100-250 200-500
(white, pink, (Rs. 5 (Rs. 10
light green, each) each)
blue, yellow)
00007 Graph Sheets 20-50 100-250 200-500
(Rs. 5 (Rs. 10
each) each)
00008 Crepe Paper 15-30 75-150 150-300
00008 (local) 15-30 1650- 1875-
a (Import 3300 3750
ed) (Rs. 5 (Rs. 10
local , Rs. local
110 Rs. 125
imported) imported)
00009 Kite Paper 20-30 20-30 40-60
(Re. 1 (Rs 2
each) each)
00010 Corrugated 15-30 1650- 1875-
Paper 3300 3750
(imported) (Rs. 110 (Rs. 125
each) each)
00011 Color Card 15-30 600-1200 750-1500
(imported) (Rs. 40 (Rs. 50
each) each)
Accessories for Urdu
making cards Bazaar

16
 ENTREPRENEURSHIP
Business Plan

and packing
00012 services: 100-150 3000-
00013 Paints(WaterCol 100-150 4500
00014 ors) 100-150 2000-
00015 (Glass 20 3000
00016 Paints) 10 2500-
00017 (Fabric 10 3750
00018 Paints) 50 2000
Crayons Sets 3000
Glitter Pens 4000
Sets 100-250
Pastels
Ribbons
00019 Paper Diaries 20-50 Rs. 150- Rs. 250-
550 650
00020 Notebooks 20-50 Rs. 200- Rs. 250-
450 500
China
00021 Photo Albums 15-30 Rs. 150- Rs. 250-
Market
1200 1500
00022 Photo Frames 10-30 Rs. 150- Rs. 250-
550 800
00023 Paper Mache 15-30 Rs. 200- Rs 350-
1000 1500
00024 Paper Boxes 50-100 Rs. 20- Rs. 50-
250 500
00025 Jewellery Box 50-100 Rs. 20- Rs. 50-
250 500

The above table fives an estimate of how much would be bought in

one month at the initial stage for Cradle to equip itself. In the
coming months, the inventory stock would either increase or
decrease depending on how much would be sold. This would also
determine which product is sold the most and so according to that
the inventory would be bought.

17
 ENTREPRENEURSHIP
Business Plan

Promotion
Cradle as it is a new concept in a developing market; it needs to
promote itself to a higher level. Targeting artists, the elite class who
are willing to pay higher prices for the unique idea, Cradle needs to
promote at that level. Different procedures would be undertaken for
promoting this new idea.

Cradle needs to promote effectively. For launching itself first in the

market, Cradle would be putting up banners all over Islamabad,
especially in the vicinity of F-6, F-7, F-8 and F-10 where more of its
clients reside. Hype has to be created in order to attract the
market, so teasers would be used to advertise. In order to do so
banners with just one word such as “Cradle--- For the Artist Inside
You” can be put up for the initial period that would arose a desire
and a curiosity about the whole product.

Advertisements would be printed in the local Newspapers and

magazines. This method of advertisements is comparatively
cheaper but would be giving a regional coverage, the detail of the
product and the services can be provided and also the readers can
refer back to the advertisements. Advertisements in magazines
such as Home and Décor, Brides, Asian Brides, In Vogue, Wedding
Affair can run color advertisements targeting a specific market
segment, women, and these ads may be referred to at a later stage.

Also brochures would be circulated in the locality of F-7 and F-8

where more of the target audience resides. In order to lobby
diplomats, invitation cards would be sent to them in order to gain
their support and invite them to visit the gallery.

18
 ENTREPRENEURSHIP
Business Plan

After a few months’ intervals, this process would be repeated in

other localities. The entrepreneur’s friends working as DJs on FM
99, 101 would be asked to talk about this shop on their shows so as
to cover up a larger audience and to inform them of the latest
happenings of the shop.

Cradle’s operations are such that it requires support form its

clientele. For this purpose it depends on positive word of mouth to
be the biggest form of promotion. Once a customer is satisfied with
its service and becomes loyal, he would be providing us with more
clients. Positive word of mouth would be providing Cradle with the
base for establishing itself as a brand. In order to keep a service
unique, personalized yet public is very important for a business like
Cradle to do in order to build up a positive perception about the
outlet. So word of mouth is an important tool for Cradle as art feeds
on appreciation, and Cradle needs appreciation and criticism to
improve itself and emerge as a brand.

There would be exhibitions held at the Gallery by known artists.

Local artists who have established a name for themselves would be
invited to launch the shop and an exhibition would be held. The
costs associated with advertisements, refreshments and invitations
would be borne by Cradle but the price of the package would
include all these costs. Cards and other products would also be
displayed in order to get the customers know about these products.
These exhibitions by known artists would be held on a quarterly
basis per year in order to keep the audiences know about the
happenings of Cradle and keep them in constant touch with its
procedures.

19
 ENTREPRENEURSHIP
Business Plan

At the inception, Cradle plans to make contracts with certain

universities like Iqra (for students who have graduated and want a
base to display their standings in market) to use the premises of
Cradle to hold their students exhibitions at a 10% discount. This
would give Cradle a boost from the students’ side as well as to
them, as they would be allowed to expose their creations in front of
the masses.

Direct marketing would also be used to promote Cradle. Invitation

letters would be sending to many different people with mini samples
for the exhibitions. When going to different universities and
academies, the entrepreneur would be advertising personally.

Alongside the exhibition a party would also be arranged where the

diplomats and dignitaries from different corporations would be
invited as in Islamabad, they are the biggest potential buyers for art
work.

The following table shows the rates and the time intervals for the
different promotions used:
Type of Promotion Time Interval Rate
Banners (12’ by 4’, 2 weeks before Rs. 75000
Multicolor, 30) initial launch (Rs. 2500 each)
Newspaper Initial launch and
Advertisements then after 4 months Rs. 25000
The News (Banner on top for telling
of the page - 5cm x 8col) customers about Rs. 5000
2cm x 4col.Leisure Page
new products
Banner
Rs. 22500
The Post (Banner)
Rs. 20000
Three Months
Strips on Regular
pages (Section A,

20
 ENTREPRENEURSHIP
Business Plan

page 1) Color
Magazine Interval of 5 months
Advertisements Rs. 40000
The Post (Red) Front Rs. 18000
inside
(Angels)Ordi
nary
Full Page
Advertisements
Exhibition cum Party Launch Rs. 100,000

Cradle SWOT Analyses

To clearly understand Cradles standing against its competitors, it is
vital to understand the strengths, weakness, opportunities and
threat of the company. Analyzing these vital areas for the
businesses would also help in better understanding the market
situation faced by Cradle.

STRENGTHS WEAKNESS
• Wide Variety of paper • High Costs
products and services • Slow growth
• Avoiding direct competition • Not well known
• Profit not the main aim • Limited budget
• Unique and personal service • A new concept of packing
and products service for which a market
• Art gallery has to be created: idea to be
• Strong social network accepted by a large crowd
• A socially responsible • Art is appreciated but without
company compensation
• Working to preserve art and
culture

21
 ENTREPRENEURSHIP
Business Plan

OPPORTUNITIES THREATS
• To grow the business and
product line • Indirect competition
• New line of business, new • New stores opening up
idea of packing service so • Well known stores increasing
would create a monopoly in product range (clay works)
the market • Lobbies and groupings of
• Opening the gallery for Artists who have their own
membership services for the galleries
clients who exhibit in a
routine

Cradle’s strengths come in the shape of personalized services that

creates a sense of belonging for the clients as they know that their
needs would be taken care of. This is the first shop of its kind that
offers paper made products. It is a socially responsible company
working to promote art culture. The students are given maximum
opportunity to display their talents and get a solid foundation.

Cradle would be focusing on enlarging its products so as to cater to

all the segments of the market. Due to its unique nature, it enjoys a
monopoly in the market due to its services. Even though it is faced
with the threat of new stores opening up and the previous ones
increasing their product range, but still Cradle has its uniqueness in
the packaging service. Another threat faced by Cradle as an Art
Gallery is that in Islamabad there are different groupings of people
who own a gallery. They avoid competition to come in the market
and thus don’t support such an activity which could take their sales
away. In order to avoid such lobbyists, Cradle would concentrate
more on its products and services of providing packing services until
it establishes a name for itself. In the meantime, it would be holding
exhibitions for students and running its operations without getting
into competition. Cradle’s art gallery in order to become a brand

22
 ENTREPRENEURSHIP
Business Plan

would be needing support from influential people. Mr. Iftikhar, the

Director of Media Visibility at KISP an Ngo, former founder of
Takshila, an Ngo working for cultural preservation, would be an
influential support for Cradle.

The initial period of setting up would be costly and maintaining it

would require additional costs. Also an Art gallery would be used by
students mostly who would not be able to pay up a heavy amount.
Nevertheless once Cradle starts providing membership services, a
subscription fee would be charged on a monthly basis. The growth
in such an industry is usually slow, with a few people getting to
know about it. It would be functioning on word of mouth mostly so
that would be a slower process.

Location
Location is a very important and vital point for Cradle. It is important
to select the right location that would help build customer
perception and attract the customers to Cradle, while being easily
accessible. Finance is a hindering factor in the business and network
and social circle a strong point.

Keeping these facts in mind, the entrepreneur decided to utilize the

space of in the annexe of his own house to be used as the shop cum
gallery for the business. The annexe is located in sector F-7 in a
busy street with the WHO office at the corner end. At the back of
the house is the Egyptian Embassy, providing this area an official
importance and openings for diplomats to come in. the house is
built on a 100’ to 90’ plot area, having a value of fourteen crore. The
Annexe has 10 by 12, two rooms with a bathroom attached with a
rental value of Rs. 20000.

23
 ENTREPRENEURSHIP
Business Plan

This sector and the location is the prime location for Cradle as it can
set the perception plus being in house gives it a different
atmosphere than a shop, which was vital to create. The open-end
street with Jinnah Supper right around the corner makes it
accessible and an attractive location for the business.

This annexe, separate from the house, is a two room setup which
was previously used as a servants quarter. With the servants
shifting to the backside of the house, this space provides ideal
utilization for Cradle to set up. The two rooms are being renovated
and painted to provide the right set up. At this moment, the
renovating work for Cradle is taking place which is fixing spot lights
on all the right places for the gallery and the shop. The shop has a
separate gate making it easily accessible for the clients to walk in.

Address
Cradle
House No. 17, Street No. 20, F-7/2, Islamabad

Organizational Plan

Working in a creative environment demands freedom, with no

chains of structure tying anyone in its hold. In order to keep the
ideas following for all the artists working, Cradle does not have any
hierarchical structure. But for the state of affairs to run smoothly the
employees would be given designations but only to identify their
roles and level of responsibility. The main responsibility for all the
employees would be to build strong customer relationships by
providing exceptional customer service and ensuring quality results.

24
 ENTREPRENEURSHIP
Business Plan

DESIGNATION AND RESPONSIBILITIES

The following management team would be functional:

Owner and Entrepreneur: Ahmed Saeed
Ahmed would be the owner of the small outlet in Islamabad,
handling the main functions of managing the shop in the initial
stages. He would be the head coordinator for designing the layout of
the shop and thus putting the foundation of the art gallery, as well
as decorating the interior to make it functional. He is also the brains
behind making the cards in his own unique way that stand different
from his competitor. Also he would be involved in providing all the
services and working through it himself, such as for packing or for
holding exhibitions, he would be managing them along with his
other staff.

Manager: Ahmed Akhtar

The owner would be running most of the operations with the help of
a friend Ahmed Akhar who would be the acting Manager of the
company. Both the owner and the manager would work together
through the initial stages of setting up the outlet. Hiring of the staff
would be done on a mutual consensus wanting two helpers
preferably having some creative background. Ahmed Akhtar,
possessing a creative mind, one who finds inspirations in small
things is an ideal person to manage the operations of the gallery. He
will take a full time role as an administrative manager, from
maintaining the books to taking care of the inventories.

Creative Designer: Ali Syed

An Indus Valley Graduate, who at the current moment is an
architect, would be helping in designing the layout of the outlet
along with helping in interior décor of the outlet. The Creative
Designer is supposed to keep the shop updated at all the times,
keeping it changing with the current trends of the market. Also

25
 ENTREPRENEURSHIP
Business Plan

designing the cards and assisting the packing service. The Creative
Director would also be looking after the gallery section when an
exhibition is held.

Creative Designers
As for helping with every day operations, two assistants would be
hired, one maintaining the Gallery section while the other
overlooking the other services; taking care of card orders and the
daily sales of chart papers and paper made products. The following
is the Job Description designed for the Assistants:

• Designation

o Creative Directors/ Assistants

• Roles and Responsibilities

o Would be responsible for maintaining day to day

operations of the outlet.
o Taking care of the clients and fulfilling their orders.
o Looking after the gallery, keeping it up to date,
changing décor from time to time
o Helping in designing cards, paper products and packing
processes
o Taking care of the accounts for every day transaction
and orders

• Qualifications

o Preferable art students (amateur artists) who have a

knack fro creativity

26
 ENTREPRENEURSHIP
Business Plan

o Holding a bachelors degree, either in Fine Arts or should

have done (diploma) courses in Arts

Opportunities
Cradle would be providing an opportunity to the students looking for
internships during summers to combine their creativity with the
management side of the business by taking care of handling and
maintaining records. Also they would benefit by holding exhibitions
in the Gallery for their own creations. Lectures from famous artists
would benefit them with their growth. Also the students would be
given the opportunity to go for courses through the sponsorship of
Cradle to different institutions in Islamabad for example Nomad.
This in turn would be training them for the future and would provide
more creative ideas to Cradle for its growth too.

Supporting Staff (Sweeper and Guard)

The basic job for the sweeper would be to keep the outlet clean at
all times. A local cleaning lady would be hired for this purpose. A
guard from the company Gabor Knot would be hired on a full day
and night basis. The food, shelter would be provided by Cradle.

SALARY PACKAGE

Designation Salary/ Compensation Package

(monthly basis)
Manager Rs. 28000
Creative Director Rs. 30000
Creative Designers Rs.10000 each
• If they apply for courses
under training, the
Company would be taking
care of the expenses
• 5% commission on every
exhibition held if they bring
in the clients

27
 ENTREPRENEURSHIP
Business Plan

Sweeper Rs. 2000

Guard Rs. 5000

Organizational Structure

Even though Cradle doesn’t function on any form of hierarchy, but

for reference purposes, the following is the organizational structure.
The clerical staff comes under the creative assistants but they are
directly under the supervision of the entrepreneur.

TIMINGS

The working hours for Cradle are as follows:

Weekdays: 11:00 am to 8:00 pm
Fridays: 11:00 am to 8:00 pm, but would be closed for 2 hours for
Prayers

Operations Plan

At first the outlet needs to be renovated to make it functional. As

already mentioned, the walls ate being painted and purchasing the
furniture has started. The quotations from different furniture shops
28
 ENTREPRENEURSHIP
Business Plan

were taken in order to determine which ones were the best and
most suitable for Cradle.

29
 ENTREPRENEURSHIP
Business Plan

QUOTATION FOR THE OUTLET

Description Furnishing Fine Wood Art

of Furniture Quanti Pavilion Furniture
ty Unit Total Unit Total Unit Total
Pric Price Pric Price Pric Price
e e e
Reception 1 1800 1800 2400 2400 2200 2200
Counter 0 0 0 0 0 0
Revolving 2 6000 1200 8000 1600 7200 1440
Chairs 0 0 0
Office Table 1 1450 1450 1450 1450 1450 1450
0 0 0 0 0 0
Card Shelf 4 1400 5600 1850 7400 1750 7000
0 0 0 0 0 0
Couch (5 1 1500 1500 1200 1200 1200 1200
Seats) 0 0 0 0 0 0
Centre Table 1 4500 4500 4400 4400 5000 4600
0 0 0 0 0 0
Total 1605 1845 1789
00 00 00

The furniture would be acquired from Furnishing Pavilion as they are

offering the most compatible rates. The fittings and fixtures would
be acquired from Hanman Fittings on Murree Road Rawalpindi from
where the spotlights would be purchased costing Rs. 300 each for a
set of three spotlights. 10 sets of spotlights would be ordered
costing Rs. 3000.

Two Split Conditioners would be ordered of the company Super

National of one and a half ton costing Rs. 23000 each.

The car used for transportation purposes is a City 99 model with a

cost of Rs. 6 lakhs. The car is owned by the entrepreneur and would
be used for Cradle’s purposes, following a 5% depreciation rate per
year using the reducing net balance method.

30
 ENTREPRENEURSHIP
Business Plan

DAY TO DAY ACTIVITY

The day to day activity in Cradle would start from inventory

counting and finish with taking another round of inventory checking.
All the sales and the material used would be recorded in the
accounting ledger under different headings of sales of cards and
paper products and the other account for the material used in
packing service. The assistants would be maintaining those
accounts which will be checked by the manager.

All the orders would be taken by any of the three; manager, or the
assistants in charge there. These orders will be discussed with the
entrepreneur and the work would be done by the collaboration of all
four people involved in the operations.

The exhibitions would be handled by the entrepreneur with the

assistance from the manager and the assistants. The media,
advertisements and refreshments would be handled by them in the
initial stages. Then with the business moving along, a specialized
staff would be hired to arrange the exhibitions.

Cradle would be working for establishing itself as a brand. It

provides personalized services due to which its prices would be
higher than the normal outlets. The prices offered at Cradle are as
follows:

Products and Services Price Offered

Cards (normal) Rs. 25
Cards for special occasions that Rs.50
are fancy with wordings
Hand made diaries (depending Rs. 250-650
on size)
Notebooks Rs. 250-500
Photo Albums Rs. 250-1500
Photo Frames Rs. 250-800
Paper Mache Rs 350-1500

31
 ENTREPRENEURSHIP
Business Plan

Gift Box Rs. 50-500

Jewellery Box Rs. 50-500
Packing Service (small gift item Rs. 100-250
along with box)
Packing gift for weddings Rs. 1000-2500
Art Gallery (exhibition held for Rs. 15000-25000
one day on regular working
hours including the cost for
advertisements, refreshments
and invitations)

32
 ENTREPRENEURSHIP
Business Plan

Inventory Control

Cradle operations are based on strict inventory control system. In

order to maintain strict control and total quality maintenance, the
Manager, Mr. Ahsan is responsible for maintaining records of each
inventory purchased, used and remaining left at the end of each
day. Thus maintaining a record of daily sales and being kept
informed of when to re-order. As the inventory includes office
supplies, chart papers, other accessories, each have to be kept in
order as these are very intricate dealings that tend to be of high
maintenance such as paints, pastels.

Also inventory control is important in order to determine how many

cards are made out of one chart paper so as to keep a monthly
check for forecasting before reordering. Also the packing service
requires a lot of little stuff, it should be noted how much it is used so
as to estimate its quantities used and by keeping that into
consideration, a price for the package would be determined.

The following table shows how the inventory would be counted at

the closing time.

33
 ENTREPRENEURSHIP
Business Plan

Item Description Quantity Quantity Quantity Total

No. Purchased Used Remainin Amount
g Consumed
00001 Chart Papers 12 rolls 6 rolls 6 rolls Rs. 60
00002 Papyrus
Paper
00003 Glaze Paper
00004 Fabric Sheets
00005 Pastel Sheets
00006 Every Card
00007 Graph Sheets
00008 Crepe Paper
00009 Kite Paper
00010 Corrugated
Paper
00011 Color Card
00019 Hand made
diaries
00020 Notebooks
00021 Photo Album
00022 Photo Frames
00023 Paper Mache
00024 Paper Boxes
00025 Jewellery
Boxes
00012 Watercolor
Paints
00013 Glass Paints
00014 Fabric Paints
00015 Crayon sets
00016 Glitter Pens
00017 Pastels
00018 Ribbons
01000 Office
Supplies such
as Pens,
Pencils,
Notebooks
02000 Cards
02000a (Normal
34 Fancy
 ENTREPRENEURSHIP
Business Plan

Financial Plan
The business would be financed by the owner and would be
functioning on loan from the bank. A 70:30 debt ratio is determined
for the loan. The bank chosen for such a purpose is NIB where the
entrepreneur holds a fixed deposit account termed for five years. On
this a fixed rate of 10.5% is the profit given to the account holder.
1% would be the deferential pay point which adds up to an 11.5%
markup paid on that loan. The bank would be adjusting the loan
itself by giving 10.5 % from the fixed term deposit and 1% from the
entrepreneur’s pocket.

As this loan is for an individual business the following documents

have to be given:
1. Basic Borrowers Bank Sheet
2. Identity Card of the entrepreneur and two references
3. Reason to meet Working Capital Requirement
4. Balance Sheet for 6 months or a year
5. Income Statement
6. Cash Flow Statements
The payback period initiated by NIB is for 365 days whereas the
markup is paid on a quarterly basis.
The list of assets, liabilities and equity for the business is as follows:

Fixed Assets:
1. Furniture
• Reception Counter Rs. 18,000
• Revolving Chairs Rs. 12,000
• Office Table Rs. 14,500
• Card Shelf Rs. 56,000
• Couch (5 Seats) Rs. 15,000
• Centre Table Rs. 45,000
• Total Rs. 160,500

35
 ENTREPRENEURSHIP
Business Plan

2. Computer and Equipment Rs. 45,000

3. Car Rs. 6,00,000
4. Premises Rs. 1,866,000

Current Assets
1. Cash Rs. 4,90,350
2. Inventory Rs. 38,630
3. Accounts Receivables -

Current Liabilities
1. Accounts Payable -
Long Term Loans
Loan from Bank (30%) Rs. 941019

Equity Rs. 2195711

PAYBACK PERIOD

Initial Investment: Rs. 3136730

Years Cash Flows Payback (Rs.)

(Rs.)
2009 2497032 2497032
2010 1907903 4704935
2012 1316745 6021680
2013 723458 6745136
2014 127935 6873071

The payback period is 1 year and 3 months.

INTERNAL RATE OF RETURN

Year Cash Discount Net Cash Discounte Net Cash

s Flows ed Cash Flows d Cash Flows
Flows Flows
12%
2009 2497032 0.893 0.869

36
 ENTREPRENEURSHIP
Business Plan

2010 1907903 0.797 0.756

2011 1316745 0.711 0.657
2012 723458 0.635 0.571
2013 127935 0.567 0.497

Internal Rate of Return= lower rate+ (difference between two

rates*NPV with lower)
Difference between 2 rates
= 12% + [23% (2081858)
1543051
= 12%+31%
IRR = 43%

NET PRESENT VALUE

INITIAL INVESTMENT: Rs. 3136730
Years Cash Flows Discounted Cash Net Cash Flows
Flows 43%
2009 2497032 0.699 1745425
2010 1907903 0.489 932964.6
2011 1316745 0.314 413457.9
2012 723458 0.239 172906.5
2013 127935 0.167 21365.15

37
 ENTREPRENEURSHIP
Business Plan

CRADLE IN The Future

Cradle would be looking for opportunities to expand once it has
established its standings in the Islamabad market. The future as
Cradle predicts is bright for such a venture as people would be more
acceptable and reciprocate to such an idea. The following are some
of the things Cradle would look into after three years of operations:
• Start its membership for the Gallery as it would have
established some key and regular customers

• Keep a record of all their customers’ data that have been

regular so as to make cards for them before any special
occasions such as keeping track of their birthdays. This would
personalize the service and show that Cradle cares for its
customers more

• Expand the outlet and go into F-11 area which is an upcoming

market segment

• Expand the paper products providing more customized

products for the customers

38