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Pre-Feasibility Study

(Boutique Women Designer Wear)

Small and Medium Enterprises Development Authority


Ministry of Industries & Production
Government of Pakistan
www.smeda.org.pk
HEAD OFFICE
4th Floor, Building No. 3, Aiwan-e-Iqbal Complex, Egerton Road,
Lahore
Tel: (92 42) 111 111 456, Fax: (92 42) 36304926-7

helpdesk@smeda.org.pk
REGIONAL OFFICE
Punjab

REGIONAL OFFICE
Sindh

REGIONAL OFFICE
Khyber Pakhtunkhwa

REGIONAL OFFICE
Balochistan

3rd Floor, Building No. 3,


Aiwan-e-Iqbal Complex,
Egerton Road Lahore,
Tel: (042) 111-111-456
Fax: (042) 36304926-7
helpdesk.punjab@smeda.org.pk

5th Floor, Bahria


Complex II, M.T. Khan Road,
Karachi.
Tel: (021) 111-111-456
Fax: (021) 35610572
helpdesk-khi@smeda.org.pk

Ground Floor
State Life Building
The Mall, Peshawar.
Tel: (091) 111-111-456
Fax: (091) 5286908
helpdesk-pew@smeda.org.pk

Bungalow No. 15-A


Chaman Housing Scheme
Airport Road, Quetta.
Tel: (081) 2831623, 2831702
Fax: (081) 2831922
helpdesk-qta@smeda.org.pk

Note: All SMEDA Services / information related to PM's Youth Business Loan are Free of Cost
May, 2014

Pre-Feasibility Study

Boutique Women Designer Wear (Rs.1.28 Million)

TABLE OF CONTENTS
1.

DISCLAIMER ........................................................................................................ 2

2.

PURPOSE OF THE DOCUMENT .......................................................................... 3

3.

INTRODUCTION TO SMEDA................................................................................ 3

4.

INTRODUCTION TO SCHEME ............................................................................. 4

5.

EXECUTIVE SUMMARY ....................................................................................... 4

6.

BRIEF DESCRIPTION OF PROJECT & PRODUCT ............................................. 5

7.

CRITICAL FACTORS ............................................................................................ 5

8.

INSTALLED & OPERATIONAL CAPACITIES ...................................................... 6

9.

GEOGRAPHICAL POTENTIAL FOR INVESTMENT AND POTENTIAL TARGET


MARKETS ........................................................................................................... 6

10. PRODUCTION PROCESS FLOW ....................................................................... 7


11. PROJECT COST SUMMARY .............................................................................. 8
11.1. PROJECT ECONOMICS.........................................................................................8
11.2. PROJECT FINANCING...........................................................................................8
11.3. PROJECT COST ..................................................................................................9
11.4. SPACE REQUIREMENT .........................................................................................9
11.5. MACHINERY, EQUIPMENT AND FURNITURE FOR STITCHING UNIT .......................... 10
11.6. FURNITURE AND EQUIPMENT FOR OUTLET.......................................................... 10
11.7. RAW MATERIAL REQUIREMENTS ........................................................................ 11
11.8. HUMAN RESOURCE REQUIREMENT .................................................................... 11
11.9. REVENUE GENERATION ..................................................................................... 12
11.10. OTHER COSTS ................................................................................................ 13
12. CONTACT DETAILS OF EXPERTS & CONSULTANTS ................................... 13
13. ANNEXURES .................................................................................................... 14
13.1. INCOME STATEMENT ......................................................................................... 14
13.2. BALANCE SHEET ............................................................................................... 15
13.3. CASH FLOW STATEMENT ................................................................................... 16
13.4. USEFUL PROJECT MANAGEMENT TIPS ............................................................... 17
13.5. USEFUL LINKS .................................................................................................. 17
14. KEY ASSUMPTION ........................................................................................... 18

SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST

Pre-Feasibility Study

Boutique Women Designer Wear (Rs.1.28 Million)

1. DISCLAIMER
This information memorandum is to introduce the subject matter and provide a
general idea and information on the said subject. Although, the material included
in this document is based on data / information gathered from various reliable
sources; however, it is based upon certain assumptions which may differ from
case to case. The information has been provided on as is where is basis without
any warranties or assertions as to the correctness or soundness thereof.
Although, due care and diligence has been taken to compile this document, the
contained information may vary due to any change in any of the concerned
factors, and the actual results may differ substantially from the presented
information. SMEDA, its employees or agents do not assume any liability for any
financial or other loss resulting from this memorandum in consequence of
undertaking this activity. The contained information does not preclude any further
professional advice. The prospective user of this memorandum is encouraged to
carry out additional diligence and gather any information which is necessary for
making an informed decision; including taking professional advice from a
qualified consultant / technical expert before taking any decision to act upon the
information.
For more information on services offered by SMEDA, please contact our website:
www.smeda.org.pk

SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST

Pre-Feasibility Study

Boutique Women Designer Wear (Rs.1.28 Million)

2. PURPOSE OF THE DOCUMENT


The objective of the pre-feasibility study is primarily to facilitate potential
entrepreneurs in project identification for investment. The project pre-feasibility
may form the basis of an important investment decision and in order to serve this
objective, the document / study covers various aspects of project concept
development, start-up, production, marketing, finance and business
management.
The purpose of this document is to facilitate potential investors in Boutique
Women Designer Wear business by providing them a general understanding of
the business with intention of supporting potential investors in crucial investment
decisions.
The need to come up with pre-feasibility reports for undocumented or minimally
documented sectors attains greater imminence as the research that precedes
such reports reveal certain thumb rules; best practices developed by existing
enterprises by trial and error and certain industrial norms that become a guiding
source regarding various aspects of business set-up and its successful
management.
Apart from carefully studying the whole document, one must consider critical
aspects provided later on, which shall form the basis of any investment decision.

3. INTRODUCTION TO SMEDA
The Small and Medium Enterprises Development Authority (SMEDA) was
established in October 1998 with an objective to provide fresh impetus to the
economy through development of Small and Medium Enterprises (SMEs).
With a mission "to assist in employment generation and value addition to the
national income, through development of the SME sector, by helping increase
the number, scale and competitiveness of SMEs" , SMEDA has carried out
sectoral research to identify policy, access to finance, business development
services, strategic initiatives and institutional collaboration and networking
initiatives.
Preparation and dissemination of prefeasibility studies in key areas of investment
has been a hallmark of SME facilitation by SMEDA.
Concurrent to the prefeasibility studies, a broad spectrum of business
development services is also offered to the SMEs by SMEDA. These services
include identification of experts and consultants and delivery of need based
capacity building programs of different types in addition to business guidance
through help desk services.
SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST

Pre-Feasibility Study

Boutique Women Designer Wear (Rs.1.28 Million)

4. INTRODUCTION TO SCHEME
Prime Ministers Youth Business Loan program, for young entrepreneurs, with
an allocated budget of Rs. 5.0 Billion for the year 2013-14, is designed to provide
subsidised financing at 8% mark-up per annum for one hundred thousand
(100,000) beneficiaries, through designated financial institutions, initially by the
National Bank of Pakistan (NBP) and the First Women Bank Ltd. (FWBL).
Small business loans from Rs. 0.1 million to Rs. 2.0 million with tenure up to 8
years inclusive of 1 year grace period, and a debt : equity of 90 : 10 will be
disbursed to SME beneficiaries across Pakistan, covering; Punjab, Sindh, Khyber
Pakhtunkhwah, Balochistan, Gilgit Baltistan, Azad Jammu & Kashmir and
Federally Administered Tribal Areas (FATA).

5. EXECUTIVE SUMMARY
This pre-feasibility study provides information on key facets of starting a Boutique
business for Women Designer Wear. Growing number of boutiques have
become an emblem of successful clothes business in Pakistan. Most people
especially women prefer them over ordinary garment brands. There has been a
mushroom growth in women designer wear boutiques since the last decade as
they offer versatility and sophistication. This trend is not confined to metropolis
alone but has also spread to small cities and towns. The rise is attributed to a
growing middle class, exposure to media, entertainment, movies, internet and
also to a fleet of qualified fashion designers graduating from fashion schools
every year. Aspiring fashion graduates or potential entrepreneurs may find this
growing sector a good prospect to capitalize on their potential, talent and market
opportunity.
The boutique business venture entails a total investment of about Rs. 1.28
million. This includes a capital investment of Rs.0.73 million and a sum of Rs.
0.55 million as working capital. The project is financed through 90% debt and
10% equity. The Net Present Value (NPV) of the project is around Rs. 5.63
million with an Internal Rate of Return (IRR) of 50% and a payback period of 2.74
years. The project will generate direct employment opportunity for 10 persons.
Higher return on investment and a steady growth of business is expected with
the entrepreneur having some prior experience in the related field of business.
This pre-feasibility encompasses essential information regarding various aspects
of starting a Boutique Women Designer Wear business in Pakistan.

SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST

Pre-Feasibility Study

Boutique Women Designer Wear (Rs.1.28 Million)

6. BRIEF DESCRIPTION OF PROJECT & PRODUCT


Boutique sector (women design wear) has mushroomed over the last few years,
mostly in posh areas of big cities of Pakistan such as Lahore, Islamabad,
Karachi, Peshawar, Quetta, Faisalabad, Sialkot, Multan, etc. This pre-feasibility
study focuses on establishing a women designer wear boutique in any metropolis
of Pakistan. The boutique business venture entails a total investment of about
Rs. 1.28 million. This includes a capital investment of Rs.0.73 million and a sum
of Rs.0.55 million as working capital.
The boutique will offer a wide choice of clothes to its clientele ranging from
traditional dresses, prt a porter casual, semi casual to formal / bridal wear. Both
traditional and western dresses tailored to local needs will be offered to the
customers. There is also a good potential for exports of Pakistani dresses abroad
also as there is a large population of Pakistani expatriates in Canada, KSA, EU,
UAE, USA and UK.

7. CRITICAL FACTORS
Following are the factors critical for the success of this business venture;

Selection of a good location for the outlet.

Ability to produce / acquire unique designs and safe guarding such design
from piracy.

Selection of affordable and quality raw materials i.e. fabric, accessories,


etc.

Emphasis on quality i.e. stitching and finishing, appropriate labelling,


display and packaging.

Marketing and promotion through various channels i.e. catalogues /


pamphlets, outdoor advertisement, hoardings / flex signs, TV & cable ads,
fashion shows, participation in exhibitions, promotion through social media
(facebook etc.).

Right product mix, proper inventory management, emphasis on customer


services.

Employing and retaining skilled labor.

Higher return on investment and a steady growth of business is expected


with the entrepreneur having some prior experience in the related field of
business.

SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST

Pre-Feasibility Study

Boutique Women Designer Wear (Rs.1.28 Million)

8. INSTALLED & OPERATIONAL CAPACITIES


The boutique businesss installed capacity will largely depend on the market size
it will operate in and the potential clientele. The said women designer wear
boutique will have one (1) in-house designer / owner, 1 production manager
(detailed human resource requirement i.e. master tailors, embroidery workers,
sales persons etc. is provided in the human resource section of the document).
The project will require installing 2 machines (single needle), one over-lock
machine, one embroidery machine and 2 generators (1 for the outlet and 1 for
the workshop). The unit will be able to produce 1,125 dresses. On average, a
designer can draw / design 300 designs per annum from which around 100
designs are selected on average.
Breakup of the total number of dresses will be as follows:
Table 1: Installed Capacity of the Boutique

Total designs selected by designer

100

Number of sizes in each design

Number of dresses in each size

Total Number of Ready Made Dresses

900

Made to order as percentage of Ready Made Dresses @ 25%.

225

Total No. of Dresses

9. GEOGRAPHICAL POTENTIAL
POTENTIAL TARGET MARKETS

1,125

FOR

INVESTMENT

AND

The recommended location for setting up a boutique business will be a posh or


semi-posh area of a metropolitan city that can offer easy access of customers to
the outlet. It is further recommended that the proposed location should be taken
on rent.
The target market will be the city in which the sales outlet shall be opened,
however, there is a good potential for exports of Pakistani dresses as there is a
large population of Pakistani expatriates in UAE, USA, Canada and UK.

SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST

Pre-Feasibility Study

10.

Boutique Women Designer Wear (Rs.1.28 Million)

PRODUCTION PROCESS FLOW

The process of converting fabric into designer wear garments mainly follows the
below mentioned sequence:
Purchasing of
Raw Material

Designing

Pattern Making

Stitching

Cutting

Embroidery

Finishing

Presentation /
Display

Market/Clientele

SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST

Pre-Feasibility Study

11.

Boutique Women Designer Wear (Rs.1.28 Million)

PROJECT COST SUMMARY

A detailed financial model has been developed to analyze the commercial


viability of Boutique (Women Designer Wear) under the Prime Ministers Youth
Business Loan program. Various costs and revenue related assumptions along
with results of the analysis are outlined in this section.
The projected Income Statement, Cash Flow Statement and Balance Sheet are
attached as annexures.
11.1.

Project Economics

All the assumptions in this financial model are based upon maximum production
of 1,125 dresses. Whereas, the production target at 75% capacity utilization is
844 dresses.
The following table shows internal rate of return, payback period and Net Present
Value.
Table 2: Project Economics

Description

Details

Internal Rate of Return (IRR)

50%

Payback Period (yrs)

2.74

Net Present Value (NPV)

Rs. 5,632,402

Returns on the project and its profitability are highly dependent on the unique
designs and quality of purchased raw material.

11.2.

Project Financing

Following table provides the details of required equity and variables related to
bank loan;
Table 3: Project Financing

Description

Details

Total Equity (10%)

Rs. 128,623

Bank Loan (90%)

Rs.1,157,611

Markup to the Borrower (%age/annum)

8%

Tenure of the Loan (Years)

Grace Period (Year)

SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST

Pre-Feasibility Study

11.3.

Boutique Women Designer Wear (Rs.1.28 Million)

Project Cost

Following fixed and working capital requirements have been identified for
operations of the proposed business.
Table 4: Capital Investment

Capital Investment

Amount (Rs.)

Machinery & Equipment

228,500

Furniture & fixtures

342,700

Office equipment

112,000

Pre-operating Cost

51,011

Total Capital Cost

734,211

Equipment Spare Parts Inventory

2,695

Raw Material Inventory

85,388

Upfront Building Rent

261,000

Cash

202,941

Initial Working Capital

552,024

Total Project Cost

11.4.

1,286,234

Space Requirement

The area has been calculated on the basis of space requirement for stitching unit
and outlet which has to be taken on rent.
Table 5: Space Requirement

Space Requirement
Stitching Unit Area
Outlet
Total Area

Sq. ft
2,250
300

Rent / Sq.
ft

Rent per
month (Rs.)

13,500

100

30,000

2,550

43,500

Stitching Unit will be rented in the outskirts of big cities where skilled workers are
available.
SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST

Pre-Feasibility Study

11.5.

Boutique Women Designer Wear (Rs.1.28 Million)

Machinery, Equipment and Furniture for Stitching Unit

Following table provides list of machinery, equipment and furniture required for
an average stitching workshop for Boutique.
Table 6: List of Machinery, Equipment and Furniture for Workshop

Description

Quantity

Cost

Total

Rs/unit

Rs.

Single Needle Lock Stitching


Machine with Servomotor

26,000

52,000

Over lock Machine with


Servomotor

33,500

33,500

Embroidery Machine (50 Pattern)


with Servomotor

53,000

53,000

Generator for Workshop

50,000

50,000

Furniture (Iron & Cutting Tables,


Chairs, Cabinet, etc)

37,000

Workshop Accessories
(Embroidery Frame sets,
Scissors, Cutting & Measuring
Scale, etc)

13,400

Lightening and Iron

17,920

Total

11.6.

256,820

Furniture and Equipment for Outlet

Following table provides details of office furniture and equipment required for this
project.
Table 7: List of Office Furniture and Equipment

Quantity

Cost

Amount

Laptop (Used / New)

40,000

80,000

Printers

15,000

30,000

SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST

10

Pre-Feasibility Study

Boutique Women Designer Wear (Rs.1.28 Million)

Telephone Sets

1,000

Furniture including Mannequin,


Hanging & Storage Units, etc
Interior Designing
(including Try Room)

for

Air conditioners

63,600

Shop

147,000
1

55,000

Energy Savers, Fans etc


Generator (2.5 KVA)

2,000

55,000
8,780

Total

40,000
426,380

11.7.

Raw Material Requirements

Normally raw material cost of the dress varies between 15% to 30% of its sales
price, but in this pre-feasibility study, it is assumed that cost of a dress will be
24% of its sales price.
11.8.

Human Resource Requirement

Following table provides details of human resource required for the project along
with monthly salaries;
Table 8: Human Resource Requirement

Description

No. of Employees

Salary per
employee per
month (Rs)

Owner / Manager

25,000

Production Manager

22,000

Master Tailor

13,000

Tailor / Stitching Master

11,000

Embroidery Worker

10,000

Press / Iron Man/ Dyer

12,000

Sales Staff

12,500

Guard

10,000

Total

10

SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST

11

Pre-Feasibility Study

Boutique Women Designer Wear (Rs.1.28 Million)

It is assumed that the owner would have prior experience or knowledge about
Boutique business. Owner will design all the dresses with his team and tnhe
stitching process will start. Other staff stated above will perform as per their
assigned job description. Salaries of all employees are estimated to increase at
10% annually.
11.9.

Revenue Generation

Following tables provide assumption for revenues and costs;


Table 9: Revenue in First Year

Product

Dresses

Sales
Price
(Rs./Unit)

First Year
Production
at 75%
capacity

First Year Sales


Revenue (Rs)

Casual

675

3,000

507

1,521,000

Semi Formal

337

6,600

253

1,669,800

Formal

113

15,000

84

1,260,000

844

4,450,800

(35)

(184,800)

Total Sales
Finished Goods
Inventory Minus

1,125

Total Sales
Revenue

4,266,000*

* Difference in generated revenue from income statement is because of rounding off


the figures
Table 10: Product Mix

Category

% Of Total Outfits

Casual Wear

60%

Semi Formal Wear

30%

Formal Wear

10%

SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST

12

Pre-Feasibility Study

Boutique Women Designer Wear (Rs.1.28 Million)

Table 11: Average Sales

Category

Avg. Price per outfit

Casual Wear

3,000

Semi Formal Wear

6,600

Formal Wear

15,000
Table 12: Precentage of Costs

Category

Cost (percentage of sales)

Casual Wear

24%

Semi Formal Wear

24%

Formal Wear

24%

11.10.

Other Costs

An essential cost to be borne by the Boutique is rent of the outlet and workshop.
A promotional expense in this pre-feasibility study is taken @7.5 % of sales
which is essential for this business as marketing plays an important role in the
growth of this business.

12.

CONTACT DETAILS OF EXPERTS & CONSULTANTS

National College of Arts


4Shahrah-E-Qaid-E-Azam,
Lahore
Tel:
+92
42
99210599,
99210601

Pakistan Readymade Garments


Technical Training Institute
71-L, Gulberg-III, Lahore
Ph: 042-9230756, 9230757

DG, Textile & Clothing, Trade


Development Authority (TDAP),
3rd Floor, Block A, Finance &
Trade
Centre,
Shahrah-eFaisal, Karachi,
Phone: 021-111-444-111

Pakistan
Cotton
Fashion
Apparel
Manufacturers
&
Exporters Association.
5-Amber Court, Shaheed-eMillat Road, Karachi.
www.pcfa.pk
Pakistan Design Council
17 Aziz Avenue, Canal Bank,
Gulberg V, Lahore, Phone: (042)
3576 4592
http://www.pfdc.org/
Fashion Apparel Design &
Training
Institute
24-D
Block-6,P.E.C.H.S,
Karachi
-74500
Tel:4549485-4547607

SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST

13

Pre-Feasibility Study

13.

Boutique Women Designer Wear (Rs.1.28 Million)

ANNEXURES

13.1.

Income Statement

Income Statement
Year 1
4,269,375

Year 2
5,213,588

Year 3
6,094,316

Year 4
7,099,055

Year 5
7,827,079

Year 6
8,609,786

Year 7
9,470,765

Year 8
10,417,842

Year 9
11,459,626

Year 10
12,605,588

1,024,650
908,500
16,172
123,894
2,073,215
2,196,160

1,251,261
1,040,084
19,748
151,294
2,462,388
2,751,200

1,462,636
1,144,269
23,085
176,852
2,806,841
3,287,475

1,703,773
1,258,867
26,890
206,008
3,195,539
3,903,516

1,878,499
1,387,967
29,648
227,135
3,523,249
4,303,830

2,066,349
1,526,763
32,613
249,849
3,875,574
4,734,213

2,272,984
1,679,440
35,874
274,833
4,263,131
5,207,634

2,500,282
1,847,384
39,462
302,317
4,689,444
5,728,397

2,750,310
2,032,122
43,408
332,548
5,158,389
6,301,237

3,025,341
2,235,334
47,748
365,803
5,674,227
6,931,361

720,000
21,600
522,000
123,877
106,734
21,600
14,400
320,203
94,453
5,101
1,949,969
246,191

792,000
23,760
574,200
136,265
130,340
23,760
15,840
391,019
94,453
5,101
2,186,738
564,462

871,200
26,136
631,620
149,891
152,358
26,136
17,424
457,074
94,453
5,101
2,431,393
856,082

958,320
28,750
694,782
164,880
177,476
28,750
19,166
532,429
106,811
5,101
2,716,465
1,187,051

1,054,152
31,625
764,260
181,368
195,677
31,625
21,083
587,031
106,811
5,101
2,978,732
1,325,097

1,159,567
34,787
840,686
199,505
215,245
34,787
23,191
645,734
162,003
5,101
3,320,607
1,413,606

1,275,524
38,266
924,755
219,456
236,769
38,266
25,510
710,307
178,450
5,101
3,652,404
1,555,230

1,403,076
42,092
1,017,230
241,401
260,446
42,092
28,062
781,338
178,450
5,101
3,999,290
1,729,108

1,543,384
46,302
1,118,953
265,541
286,491
46,302
30,868
859,472
178,450
5,101
4,380,864
1,920,374

1,697,722
50,932
1,230,849
292,096
315,140
50,932
33,954
945,419
200,342
5,101
4,822,487
2,108,874

Gain / (loss) on sale of office equipment


Earnings Before Interest & Taxes

246,191

564,462

67,200
923,282

1,187,051

119,945
1,445,042

123,043
1,536,649

1,555,230

1,729,108

180,570
2,100,944

2,108,874

Interest expense on long term debt (Project Loan)


Subtotal
Earnings Before Tax

96,081
96,081
150,109

87,963
87,963
476,499

77,294
77,294
845,989

65,738
65,738
1,121,312

53,224
53,224
1,391,818

39,671
39,671
1,496,978

24,994
24,994
1,530,236

9,097
9,097
1,720,010

2,100,944

2,108,874

Tax
NET PROFIT/(LOSS) AFTER TAX

150,109

7,650
468,849

49,398
796,590

90,697
1,030,615

131,273
1,260,546

147,047
1,349,932

153,547
1,376,689

191,502
1,528,508

267,689
1,833,256

269,275
1,839,600

Revenue
Cost of sales
Cost of goods sold 1
Operation costs 1 (direct labor)
Operating costs 2 (machinery maintenance)
Operating costs 3 (direct electricity)
Total cost of sales
Gross Profit
General administration & selling expenses
Administration expense
Administration benefits expense
Building rental expense
Electricity expense
Travelling expense
Communications expense (phone, fax, mail, internet, etc.)
Office expenses (stationary, entertainment, janitorial services, etc.)
Promotional expense
Depreciation expense
Amortization of pre-operating costs
Subtotal
Operating Income

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14

Pre-Feasibility Study

13.2.

Boutique Women Designer Wear (Rs.1.28 Million)

Balance Sheet

Balance Sheet

Assets
Current assets
Cash & Bank
Accounts receivable
Finished goods inventory
Equipment spare part inventory
Raw material inventory
Pre-paid building rent
Total Current Assets
Fixed assets
Machinery & equipment
Furniture & fixtures
Office equipment
Total Fixed Assets
Intangible assets
Pre-operation costs
Total Intangible Assets
TOTAL ASSETS
Liabilities & Shareholders' Equity
Current liabilities
Accounts payable
Export re-finance facility
Short term debt
Other liabilities
Total Current Liabilities
Other liabilities
Machinery & equipment lease payable
Office equipment lease payable
Office vehicle lease payable
Deferred tax
Long term debt (Project Loan)
Long term debt (Working Capital Loan)
Total Long Term Liabilities
Shareholders' equity
Paid-up capital
Retained earnings
Total Equity
TOTAL CAPITAL AND LIABILITIES

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

202,941

2,695
85,388
261,000
552,024

271,886
81,878
90,140
3,621
114,699
287,100
849,323

638,279
90,933
102,867
4,655
147,482
315,810
1,300,026

1,150,458
108,432
117,239
5,965
188,977
347,391
1,918,462

2,043,460
126,512
133,456
7,235
229,193
382,130
2,921,986

3,144,139
143,127
146,802
8,754
277,323
420,343
4,140,488

4,164,951
157,614
161,482
10,592
335,561
462,377
5,292,578

5,394,446
173,375
177,630
12,817
406,029
508,615
6,672,912

6,738,274
190,713
195,394
15,508
491,295
559,477
8,190,659

8,304,815
209,784
214,933
18,765
594,466
615,424
9,958,187

11,522,321
230,762
236,426
11,989,510

228,500
342,700
112,000
683,200

205,650
308,430
74,667
588,747

182,800
274,160
37,333
494,293

159,950
239,890
149,072
548,912

137,100
205,620
99,381
442,101

114,250
723,272
49,691
887,212

91,400
633,810
198,415
923,624

68,550
544,347
132,277
745,174

45,700
454,885
66,138
566,724

22,850
365,423
264,090
652,363

0
275,961
176,060
452,021

51,011
51,011
1,286,234

45,909
45,909
1,483,980

40,808
40,808
1,835,128

35,707
35,707
2,503,082

30,606
30,606
3,394,693

25,505
25,505
5,053,206

20,404
20,404
6,236,606

15,303
15,303
7,433,389

10,202
10,202
8,767,585

5,101
5,101
10,615,651

12,441,531

47,636
-

58,486
-

69,068
-

80,839
-

90,174
-

100,484
-

112,097
-

125,201
-

140,012
-

126,291
-

47,636

58,486

69,068

80,839

90,174

100,484

112,097

125,201

140,012

126,291

1,157,611
1,157,611

1,029,061
1,029,061

889,841
889,841

739,066
739,066

575,777
575,777

398,935
398,935

207,416
207,416

128,623
150,109
278,733
1,483,980

128,623
618,958
747,582
1,835,128

128,623
1,415,549
1,544,172
2,503,082

128,623
2,446,164
2,574,788
3,394,693

680,545
3,706,710
4,387,255
5,053,206

680,545
5,056,641
5,737,187
6,236,606

680,545
6,433,331
7,113,876
7,433,389

1,157,611
1,157,611

128,623
128,623
1,286,234

SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST

680,545
7,961,839
8,642,384
8,767,585

680,545
9,795,095
10,475,640
10,615,651

680,545
11,634,694
12,315,239
12,441,531

15

Pre-Feasibility Study

13.3.

Boutique Women Designer Wear (Rs.1.28 Million)

Cash Flow Statement

Cash Flow Statement


Year 0
Operating activities
Net profit
Add: depreciation expense
amortization of pre-operating costs
Deferred income tax
Accounts receivable
Finished goods inventory
Equipment inventory
Raw material inventory
Pre-paid building rent
Accounts payable
Cash provided by operations
Financing activities
Project Loan - principal repayment
Additions to Project Loan
Issuance of shares
Purchase of (treasury) shares
Cash provided by / (used for) financing activities
Investing activities
Capital expenditure
Acquisitions
Cash (used for) / provided by investing activities
NET CASH

(2,695)
(85,388)
(261,000)
(349,083)

Year 1

Year 2

Year 3

150,109
94,453
5,101
(81,878)
(90,140)
(925)
(29,311)
(26,100)
47,636
68,945

468,849
94,453
5,101
(9,054)
(12,728)
(1,035)
(32,784)
(28,710)
10,850
494,943

796,590
94,453
5,101
(17,499)
(14,372)
(1,310)
(41,494)
(31,581)
10,583
800,471

1,030,615
106,811
5,101
(18,080)
(16,217)
(1,269)
(40,216)
(34,739)
11,771
1,043,777

Year 4

1,260,546
106,811
5,101
(16,616)
(13,346)
(1,519)
(48,130)
(38,213)
9,334
1,263,968

1,349,932
162,003
5,101
(14,486)
(14,680)
(1,838)
(58,238)
(42,034)
10,311
1,396,069

1,376,689
178,450
5,101
(15,761)
(16,148)
(2,224)
(70,468)
(46,238)
11,613
1,421,014

1,528,508
178,450
5,101
(17,338)
(17,763)
(2,691)
(85,266)
(50,862)
13,103
1,551,244

Year 5

Year 6

Year 7

Year 8

Year 9
1,833,256
178,450
5,101
(19,071)
(19,539)
(3,257)
(103,172)
(55,948)
14,811
1,830,631

Year 10
1,839,600
200,342
5,101
(20,978)
(21,493)
18,765
594,466
615,424
(13,720)
3,217,507

1,157,611
128,623

(128,550)
-

(139,220)
-

(150,775)
-

(163,289)
551,922

(176,842)
-

(191,520)
-

(207,416)
-

1,286,234

(128,550)

(139,220)

(150,775)

388,633

(176,842)

(191,520)

(207,416)

(734,211)

(149,072)

(551,922)

(198,415)

(264,090)

(734,211)

(149,072)

(551,922)

(198,415)

(264,090)

202,941

68,945

366,393

512,180

893,002

SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST

1,100,679

1,020,812

1,229,495

1,343,828

1,566,541

3,217,507

16

Pre-Feasibility Study

13.4.

Boutique Women Designer Wear (Rs.1.28 Million)

Useful Project Management Tips

Marketing

Product Development & Packaging: Expert help may be engaged for


product/service and packaging design & development.

Ads & Point of Sale Promotion: Business promotion and dissemination


through banners and launch events is highly recommended coupled with
utilizing marketing through social media.

13.5.

Useful Links

Prime Ministers Office, www.pmo.gov.pk

Small and Medium Enterprises Development Authority, www.smeda.org.pk

National Bank of Pakistan (NBP), www.nbp.com.pk

First Women Bank Limited (FWBL), www.fwbl.com.pk

Government of Pakistan, www.pakistan.gov.pk

Ministry of Industries & Production, www.moip.gov.pk

Government of Punjab, www.punjab.gov.pk

Government of Sindh, www.sindh.gov.pk

Government of Khyber Pakhtunkhwa, www.khyberpakhtunkhwa.gov.pk

Government of Balochistan, www.balochistan.gov.pk

Government of GilgitBaltistan, www.gilgitbaltistan.gov.pk

Government of Azad Jamu Kashmir, www.ajk.gov.pk

Trade Development Authority of Pakistan (TDAP), www.tdap.gov.pk

Federation of Pakistan Chambers of Commerce and Industry (FPCCI),


www.fpcci.com.pk

Pakistan Institute of Fashion Design (PIFD), www.pifd.edu.pk

Pakistan Fashion Design Council (PFDC), www.pfdc.org

Securities and Exchange Commission of Pakistan, www.secp.gov.pk

Ministry of Textile Industry, www.textile.gov.pk

PREGMEA (Pakistan Readymade Garment Manufacturers and Exporters


Association, www.prgmea.org
SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST

17

Pre-Feasibility Study

14.

Boutique Women Designer Wear (Rs.1.28 Million)

KEY ASSUMPTION
Table 13: Operating Assumptions

Days operational per month (Workshop)

25

Days operational per month (Outlet)

30

Table 14: Cash Flow Assumptions

Accounts Payable (Days)

15

Accounts Receivable (Days)

Raw Material Inventory (Days)

30

Finished Goods Inventory (Days)

15

Table 15: Expense Assumptions

Promotional and Marketing Expense 1


Administration benefit expenses

7.5% of sales
3% on administration expense

Travelling Expense

2.5% of sales

This also includes Labeling, Tags, Branding and Shopping bags.

SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST

18

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