Table of Contents

Executive
Summary
IV
Industrial
Analysis
..VI
Description of
venture
IX
Operational
Plan
.XI
Marketing Mix................................................................................................... 19
Product & Pricing:.......................................................................................... 19
Famous products from far-flung areas:..........................................................19
Second hand household products:................................................................21
To be sold directly:..................................................................................... 21
Product forecast............................................................................................... 22
Promotion......................................................................................................... 22
Placemnt.......................................................................................................... 23
Controls............................................................................................................ 24
Organizational
Plan
.25
Multi-divisional hierarchy...........................................................................25
Functions of departments..........................................................................26
Operations department:............................................................................. 26

Supervision.......................................................................................... 26

Inventory handling............................................................................... 26

Analysis............................................................................................... 26

Up- grading and Maintenance..............................................................26

Functioning.......................................................................................... 26

Auction arrangement...........................................................................26

Marketing Communications Department.......................................................28

Sales Department......................................................................................... 28
1

Operation Management ...........................................................................29

Role and Responsibility:............................................................................. 29
Assesment of
risk
.. 31
Break even analysis......................................................................................... 36

Thrift Enclave, Inc.

Growing Community Needs

+Thrift Enclave is an idea established by the students of Bahria

University (Islamabad); highlight group to start up a new venture in
2015 in F-10.We offer a friendly, professional, reliable and prompt
service. We have over 1,200 lots on offer every week with Monday sales
and viewings over the weekends. With over 12 antiques sales yearly and
regular specialized sales; we offer an eclectic array of antique and
contemporary furniture, art, jewelry, clothing, porcelain, household
items, collectables and unusual decorative items. We have a team of
experienced staff who ensure you will receive the highest level of
service whether buying or selling.

Business contact and profile

Registered name and its structure
Thrift Enclave, Inc. The company is registered as a partnership in
Islamabad-Pakistan.
Phone: 03455613171, 03337810598.
Address: House no. 47, street no 59.f0-10/3 Islamabad.
Website: www.thriftenclave.com
Principals: Hafsa ,Maryiam, Taniya
Customer contact: 03455613171
Type of business: Auctioneers
Nature of business: This Companys business is providing household
and clothing auctions.
Required funds: At this time, the thrift enclave requires rs.500, 000 of
debt funds.
Confidentiality statement
This document is a business plan and does not constitute an offer to sell
or a solicitation to purchase. This business plan, "the plan", is
confidential and contains proprietary information including trade secrets
of thrift enclave, inc. Neither the plan nor any of the information
contained in the plan may be reproduced or disclosed to any person
under any circumstances without the express written permission of thrift
enclave, inc and/or the highlight group.
3

Executive summary
The purpose of thrift enclaves business plan is to start up a new thrift
enclave (household and clothing auction sales platform) in Islamabad,
Pakistan while showcasing the expected financials and operations over
the next three months. Potentially we would provide discount on
products onto people who are regular on some specific days in order to
facilitate the customers. The profits made by us would be helpful in
expanding the business in the future. Strategies we plan to implement
within this business plan include:

Obtaining sales of Rs.100, 000 by the end of every month while

providing special discounts to certain groups.

Implementing a training process to the fortunate employees.

Donate few percentages of the profits to the charitable

organization to help serve the country.

The primary revenue center for the thrift enclave will come from hosting
and managing auctions i.e. Sales of unique, antique and other
household goods that our market is wanted for. Our business will
maintain a classically decorated showroom that will be used for hosting
auction events and will also develop an online portal so that people can
place bids for auctions as they are occurring at the thrift enclave
location. The businesss secondary revenue center stream will come
from the management of second hand sales directly from the homes
where items are being sold at auction. This is an extremely important
4

part of the companys income stream. The third section of the business
plan is the coffee bar which will further describe the services offered by
the thrift enclave.
Mission statement
Thrift enclaves mission is to become the recognized leader in its
targeted market for auction and sale services. To provide the public with
low priced clothing and accessories as well as the less fortunate with job
opportunities, which includes a high quality working environment. We
are determined to enhance the value of life for individuals who have
special needs and who are willing partake in the local community.
The financing
We are seeking to raise Rs.1000, 000 from as a bank loan,
entrepreneurs personal savings and to hunt for sponsors and investors
to help us in our idea. The interest rate and loan agreement are to be
further discussed during negotiation. This business plan assumes that
the business will receive a 10 year loan with a 9% fixed interest rate.
The financing will be used for the following: development of the
auction sales at thrift enclave financing for the first six months of
operation. Capital to develop an online auction portal.

Management team
The company was founded by Hafsa, Maryiam and Taniya we have
experiences in different organizations as internees which can help them
to establish a healthy business through this expertise; we will be able to
bring the operations of the business to profitability within its first year of
operations Insha-Allah.
Management equity: We three own 100% of the thrift enclave, inc.
Sales forecasts
We expect a strong rate of growth at the start of operations. Financial
plan ahead explains the expected financials over the next three months.
Expansion plan

We expect that the business will aggressively expand during the first
three to four years of operation as our auction sales would market the
community needs. We intend to implement marketing campaigns that
will effectively target individuals within the target market.
Investor equity
Thrift enclave is seeking an investment from a third party at this time in
order to finance our idea.
Exit strategy
If the business is very successful, we may seek to sell the business to a
third party for a significant earnings multiple. Most likely, the company
will hire a qualified business broker to sell the business on behalf of the
thrift enclave. Based on historical numbers, the business could fetch a
sales premium of up to 4 times earnings.
Basic control procedure

We would keep a comment box at check out register to maintain

customer satisfaction

Seek volunteers to be secret shoppers and suggest any changes

to be implemented in the store.

Ensure employee satisfaction through a quality and efficient

training process.

Conclusion
Through our insightful strategies mentioned in the plan, we will be able
to successfully operate a thrift enclave store, Islamabad. With the
business and social objectives thrift enclave will increase sales in special
discounts and donations and therefore make the thrift enclave
successful.

Industry analysis
Identify problems and opportunities:
Major problems that are restricting or impeding the growth

The odds of surviving in business greatly improve if you decide to

franchise instead of doing it all on your own. If your goal is to start
an auction house, it's worthwhile to determine whether purchasing
a franchise might simplify your entering the business but for that
reason it requires a lot of startup cost and one should be
financially stable.

The existing competition in Islamabad such as alvi auctions is

going to be initially a source of threat before one gains stability
and credibility in the eyes of public.

Earning an auctioneer's license can be strenuous and is no bed of

roses.

We need to handle our finances very carefully since the budget is

not that high and we need to include the travelling and
transportation expenses too, when we get items from other cities.

Heavy taxation / start up costs.

Marketing expenditure since 1/3 of the supplies depend on it.

Opportunities:

We have developed a unique networking process that will organize

auctioneers, appraisers, members, trainers, marketers, and
service professionals on international standards.

In near future we shall be seeking help and sponsorship from

various stakeholders in the market so as to expand our setup.

There are no costs or obligations to participate but the revenue

would be shared according to the prescribed rule and the amount
of sales.

Auction sites always operate in credible manner. There is always a

feedback system that will guide you to the best people to deal
with. Because you are just starting, you may always deal with
people who have high ratings. So advertising would also help
people get acquainted with it.

Improving the efficiency of our operations:

Having a deep insight and knowledge about the existing market

and market trends.
7

Catering to the customers needs and meeting their expectations.

Creating differentiation from its competitors and giving the best

and different to its customers.

Improved communication and coordination.

Allotting / assigning responsibilities at each hierarchical level

according to everyones capabilities and aptitude.

Proper feedback and appraisal mechanism.

Cutting down irrelevant cost and expenditure.

Proper record and book keeping.

Define specific and realistic business objectives:

Level of economic activity:

We shall expand our network and generate more capital.

To sell surplus inventory, often at a profit, and eliminate the

expense of storing older merchandise and make money.

Auctions can help new businessesor those offering new products

to establish market prices based on supply and demand.

It would help in the economy of the country, since we are also

promoting cottage or small scale industry and getting stuff from
other cities.

Level of industry activity:

As part of your due diligence on opening an auctioneers and

auction house, the next step is to talk to somebody who is already
in the business.

However, an entrepreneur who owns an auctioneers and auction

house outside of your community can be a great learning resource
for you, as long as they don't view you as a competitive threat. In
that case, the business owner may be more than happy to discuss
the industry with you. It can take a while to find an entrepreneur
who is willing to talk, but its well worth the effort.
8

This industry has bright future prospects to flourish since people

are in dire need of such companies and in the future one can
predict the inflation and economic instability, so its need would be
highly acknowledged.

The need for second hand items would increase.

Changes in customer needs:

People would need less expensive and costly items.

We would try to create a need.

It would vary with seasonal needs.

We would make amendments according to the market trends so as

to blend in with the customers taste and latest fashion since
people would be intimidated by the latest trends.

They would opt for more practicality in their lives and accordingly
would intimate for such products bringing convenience and cost
effectiveness.

Changes in distribution channel:

Would try to expand horizontally with the passage of time.

Would open up various sales points at such areas where the

customer base is saturated and that place would be beneficial for
an auction house.

In near future, after sustaining stability and success, we would aim

to expand it internationally and extend our business globally.

Changes beyond our control:

In case of natural calamities / disasters.

Recession.

Inflation when the cost of living would be significantly expensive.

9

Economic instability.

Political instability.

Government policies either impeding or promoting our business.

Market trends tend to fluctuate with time.

Primary marketing objectives:

The foremost objective is to attract customers.

Advertising so as to make people aware about it.

Its purpose is to create a niche in the market.

To create differentiation from its competitors.

Enhance customer service.

Establish a solid reputation.

Engender pride and loyalty among staff (and vendors).

Establish name recognition.

Control and review procedures:

Feedback mechanism:

An appointed officer pertaining to the department concerned with

feedback and appraisal mechanism.

A suggestion box or a survey done by the administration people

from the customers so as to obtain feedback and consequently
trying to put things right as per their demands.

Feedback information should be gathered pertaining to the

selection of items, proper advertising techniques, prices of the
products, operations, other facilities at the auction house etc.

The feedback information about the initial event that is the basis
for subsequent modification of the event.

10

The causal path that leads from the initial generation of the
feedback signal to the subsequent modification of the event.

Upward feedback occurs when associates provide information or

feedback to a manager or supervisor to whom they are
directly/indirectly reporting.

Intended to identify ways to increase management effectiveness

and enhance organizational performance.

Leadership is a skill by which a person is responsible to influence

or motivate his co-workers to accomplish a defined objective &
strategy and to manage the organization in a way that makes it
more cohesive and coherent in terms of profit, growth and profile.

First one should try to identify the problems, review and evaluate
it and accordingly give weightage or preference to it, ensure
implementation of the revised procedures and then eventually
continuing to promote the revised and good procedures.

Description of venture
Mission statement:
Thrift enclave is an idea generated by our group highlights to start up a
new venture in 2015 in Islamabad working on the motto growing
community needs. The ways that ideas and values are communicated
within communities are important to the induction of new members, the
formulation of agendas, the selection of leaders and many other
aspects. We, as a team are determined to bring a change within our
community while establishing our own identity via this business
structure and learn to function in a group setting which will prove as a
turning point in our careers and lead to our successful entrepreneurial
advancement. Creativity is our first priority and we aim to target the
women of our society by attracting them with our unique modified
product lines.
Products:
Categories
11

 Household items
Cutlery and crockery
Antique furniture
Wedding Dresses
Bedspreads, cushions
Leather products i.e. Ladies bags, shoes and jackets.

Services:
A coffee corner serving free coffees.
Discount offers every week on Sundays and even auctioning on
weekends with a specified time allotted to bidding.
Means of transportation can be provided for delivery purposes at
reasonable rates within the city or to the outskirt areas of
Islamabad.
A copyright protects a form of expression thus our group logo as
well as our business logo are fully copyrighted and our trademark
sticker of thrift enclave will be put on the products as well as the
vehicle used for delivery purposes thus ensuring full protection
.

Size of business:
As we are the pioneers of starting this new venture of an auction house
within Islamabad, our market share of the business is as yet on a scale
of zero and the number of employees including seven of us sums up to
7 people. The value of our business if it were to be sold would be
immense as the value of capital invested on our business assets is also
a large number thus indicating that our business size ranges from
medium to large.
The auction house we intend to start will be in a house we rented in f10/3 mainly because of the market research we conducted showed that
many business class families live there and that f-6 and f-7 sectors are
already providing facilities which are somewhat similar to our new
venture. The sector f-10 being a spacious area with convenience of carparking and the house itself is very well designed by an architect is
providing all adequate amenities of electricity and a nicely maintained

12

garden ,which is then again eye-catching for the ladies and for their
little chat sessions.
The house is in a good condition and requires average maintenance
from our side but there are some innovative ideas that we are planning
of doing to give the house a more aesthetic appeal and to expand it
accordingly as par our buyers and sellers needs. Secondly this sector we
chose is situated in the middle of Islamabad and its known for its beauty
as being close to the margalla hills as well as the main center for
business purposes and will provide us great opportunities to advertise
about our venture.
Office equipment:
We as potential entrepreneurs are looking for investors because the
amount of money we will spend on buying the office equipment ranging
from
Chairs and desks
Computers ,laptops (internet and landline connections)
Telephone extensions
Stationary items
A well monitored television screen in the main office and etc is
definitely not negligible and these office tools are essential to start
off a business and to be a part of the professional world these
days.

Background of entrepreneur(s):
As business students we are new in business i.e. Potential entrepreneurs
and our resumes just about consist of our work experiences with
different organizations and this is our first time to start off something of
our own, formulate an organization and a venture on our feet and enter
the business market and make a name and achieve recognition .

Operational Plan
General:
Time of opening: 1 PM
13

Time of closing: 9 PM
Days of operation: 6 days a week
Days off: Friday and national holidays
Operation:
The business shall operate as a simple business entity except the
weekends. The weekends are reserved for auctions. The auction type
used will be buyout auction.
Inventory type:
Our inventory type would be to-stock. Well buy potential products and
display them in auctions and otherwise, until they are sold. Shop-keeper
Storekeeping:
In the initial start-up of our business, the partners themselves would be
attending shop. This is necessary to give our business the enhancement
it needs subsequent to the launch. This will also serve the us purpose of
familiarizing ourselves with the an idea of customer needs. Further on,
when were established to some extent, well hire representatives to
take our places.
Auction type:
Weve chosen Buyout auction as our standard auction type. Buyout
auction is an auction with a set price (the 'buyout' price) that any bidder
can accept at any time during the auction, thereby immediately ending
the auction and winning the item

Seasonal buildups:
We anticipate that a part of business will experience a boost in the
months of November and December owing to the common trend of
marriages being arranged in that period. The acceleration would be
generally experienced in every product-type were offering because
almost every product of ours will posses potential to be included in the
matrimonial process on some level or other.
Pay structure:
Our pay structure will be completely based on the profit earned. The
partners will share the profits equally. The details are provided in the
financial statements.
14

Freight time:
Were using a Shehzore to make most of our transference. The factors
that could affect delivery time could be:

Weather

Absence of drivers

Vehicle condition

Vehicle availability (if its required for more important tasks)

Fuel availability

Official movements

Assets:

Building

A Shehzore

Capital

Office Equipment

Selection of products with high potential:

The selection and buying of pieces or products with the potential to
fetch a suitable price will be carried out by the managers. To gain
adequate experience which would prove useful in selecting the best
prospects, we have divided our managers according to who has
aesthetic sense concerning what. It's as following:
Hafsa

Wedding dresses

Hafsa

Furniture

Maryiam

Household items and Kitchenware

Taniya

Leather Products

Taniya

Overseer and general advisor

Physical Plant:
15

Location:
House # 47, Street # 53, F-10\3.

Space:
6600 Sq. Feat
Type of building:
The building we have chosen for our business stands 2 stories high and
is in good condition. It is owned by an acquaintance which is an added
benefit because the factor will provide us more maneuvering space in
the start-up.
Power and other utilities:
The basic utilities, that is, power, gas and all the other utilities are
available and working.
Access:
Favorability:
We have chosen this location because we have seen that there is a
trend for auction houses in the area. We shall use this to our advantage
and extend the trend to used things whilst simultaneously utilizing the
Parking:
Garage and adequate space in the proximity as well.
Rent:
2.25 lakhs.
Layout:
First Floor:
Room No.1: Furniture
Room No. 2: Wedding dresses
Room No. 3: Coffee Shop

Second Floor:
16

Room No. 1: Leather Products

Room No. 2: Household items
Room No. 3: Kitchenware
Manufacturing process:
Our business does not have a manufacturing plant as such as we deal in
used products of different categories. The process we will have related
to this category is the renovation, repairing and revamp of used
products. This function will be outsourced to specialists whom we will
hire on a need basis. We have located individuals involved in the
business of renovation who have adequate experience in the field.

Suppliers
Cutlery:
City: Gujranwala
Name: Tariq Industries, Manufacturers and exporter of Table Cutlery and
Kitchenware
Address: Sialkot Road, Islamabad More, Opposite Jinnah Colony,
Wazirabad, Gujranwala
Owner

: Sajjad Farooq

Contact No. +92-55-6601496

Name: A One Cutlery Works (Manufacturer And Exporter of Table
Cutlery And Kitchen Ware
Address: Mohallah Islamabad,Islamabad Mor, Sailkot Road, Wazirabad,
Gujranwala
Owner

: Haji Naseer Ahmad (CEO) / Amer Naseer (M D)

Equipment:
The lower staff will be responsible for the proper segregation of cutlery
and placement. They will also make sure that the products remain
sparkly clean. They will be provided with the adequate equipment which
will include:
Rust-removing sprays
Soft-clothes
17

Cleaning solvents
Special requirements:
The cutlery will be have to be taken care of properly because any sort of
rust or decadence will devalue it highly. So, steps must be taken to
ensure that this does not occur.
Materials: Tell where you're going to get the materials you need to
produce your product or service, and explain what terms you've
negotiated with suppliers.
Production:
The cutlery will be bought from Gujranwala and the mode of
transportation will be the organizations Shezore. It will have to be
equipped with suitable containers to ensure that it gets here without
damaging the freight.
Time taken:
The time taken to make a single trip would be approximately 4.45 hours.

Leather Products
City: Silakot
Name: Al Qasim Trading Company
Address: PO Box 1221, GPO Sialkot
Owner

: Mr. Allah Rahan Awan

Contact No. +92-52-3223119

Name: Leather Shine

Address: Mundair Syedain, Sialkot, Pakistan
Owner

Mr. Syed Nayyer Iqbal

Contact No. +92-52-3510783

Name: Excellent Craft Centre

Address: Cheema Street, Noor Pura, Model Town, Khadim Ali Road,
Sialkot, Pakistan
Owner

Mr. M. Ishaq (CEO)

18

Contact No. +92-52-3551385

Equipment:
The equipment required keeping the leather lustrous and elegant are
mainly Leather Sprays.
Production:
The leather will be brought in from Sialkot from the above mentioned
suppliers. The shehzore will be used, this time covering the loaded
freight with an appropriate sheet to protect the products from
environmental damages.
Time taken:
Approximately 7.5 hours

Furniture
City: Chiniot
Name: Tajmahal Furniture
Address: Main Shahra-e-Quaid-e-Azam, Near Library Park, Chiniot
Contact No. +92-321-7707726

Name: Al Rehman Furniture

Address: Shop No.1 Funpara Plaza, Chiniot
Owner

Mr.Nasir Ali

Contact No. +92-301-7961770

Name: Haq bahoo furnitures

Address: Funpara Centre, Sharah-e-Quaid-e-Azam, Chinniot, Pakistan
Owner

: Aziz Ur rehman

Contact No. +92-47-5058177

Equipment:
19

The suppliers will provide us with furniture thats in mint condition. Just
in case, there is any type of defects or damages in the products, we will
hire specialists from a reliable source to carry out the repairs as the
process is too delicate and the risk too great to be trusted with anyone
except a specialist.
Special requirements:
Renovations would have be on a regular basis to keep the furniture in a
desirable condition.
Production:
The furniture will be brought in from the most prestigious suppliers of
the epitome of furniture in Pakistan, Chiniot. The Shehzore will be
utilized if its feasible, otherwise, a more spacious vehicle will be hired
from the locality.
Time taken:
The time taken to make a single trip would be approximately 6 hours.

Bed spreads, cushions and bags

City: Lahore
Name: 3 Star Collection
Address: Shop # G-2, Nazir Centre, Near Bank Al-Habib, 146-Ferozepur
Road, Ichhra, Lahore
Owner: Muhammad Aslam
Contact No. +92-42-37554420

Name: Ahsan Textile Mills Limited

Address: 5th floor, Liberty heights, 75/A-d-1 Main Boulevard, Gulberg
III, Lahore
Owner

Shahzad Ahsan Ashraf

Contact No. +92-42-35782935

Name: Aamir cut piece & cloth house

20

Address: Shop# 1, Dr. Rasheed Market, Chowk Yateem Khana, Multan

Road, Lahore
Owner

Dr. Shabbir

Contact No. +92-42-37572343

Equipment:
An adept tailor shall be hired who will make regular visits and overlook
this product-type and make any repairs or upkeep that may be required.
Production:
The cutlery will be bought from Lahore and the mode of transportation
will be the organizations Shezore.
Time taken:
The time taken to make a single trip would be approximately 6 hours.

Wedding Dresses
The wedding dresses will be acquired through housewives or other
potential customers willing to sell off their dresses at a suitable price.
These prospective sellers we would attract by pervasive marketing as
explained in the marketing process.

21

Marketing Plan
Marketing Mix
Product & Pricing:
Thrift enclave would include a variety of household products related to
households which mainly can be categorized into two types
a) Famous products from far-flung areas.
b) Second hand household products
Famous products from far-flung areas:
The basic purpose is creating an outlet which provides an opportunity to its
valuable customers to buy products which are available only from specific
markets away from Islamabad and Rawalpindi. The core benefit of these
products is to cut down the hassle, travelling cost and time of customer to
buy such products. The table on the next page will provide a better
understanding of the products available under this category

Location

Products

Name of Markets

Price range

22

Sialkot

Leather products Waliant leather JACKETS

i.e. boots and industries
In cow leather 4200
jackets.
Wall
street 4700
enterprises
In buffalo leather 2900
Leather Shine
3300
Zitex
International

BOOTS
Genuine leather boots
(readymade
customized)

Rs. 3,000 7,000

Gujranwala

Chinot

Cutlery
Crockery

and Tariq industries

Antique furniture

A One
Works

Stainless Steel

Cutlery 85 pieces : 3000 4200

32 pieces : 2200 2700

Areeca antique

Shesham Wood

Haq
furniture

Bahoo Bed set

60,000

25,000

Taj
Furniture

Mahal Console and chairs

18,000 20,000

Other
items
are
exhibited
on
the
catalogue and website of
Thrift Enclave along with
their prices.
Lahore

Bedspreads.
Abdul
Rehman Bedspreads and quilts
Cushions
and and co.
Rs. 1500 3,000
Bags
Monoo group of
Handmade cushions (2
companies
pieces)
Rs. 900 1500

23

Second hand household products:

The second category of products Thrift enclave would be offering is second
hand household products. For example

Wedding dresses
Appliances (TV, fridge, microwave, grinders, food factories, stoves,
heaters)
Antique items (decoration pieces, furniture, jewellery)
Crockery and cutlery
Furniture ( sofa sets, tables, bed sets, cupboards)

Theses would be acquired by both embassies and households willing to get

rid of their belongings for some cash payment in return. These products once
acquired will be further categorized into two types
1. To be amended and fixed.
2. To be sold directly
3. To be amended and fixed:
If any product needs some eminence or fixing we will hire professional
technicians on need basis to improve the condition of the stock. We may
contact the following for this
Tailors
Electricians
Polishers
Painters
Carpenters
Embroiders
Reupholster

24

To be sold directly:
If the product is in fairly a good condition it will directly be sold to
customers.
Coffee corner:
Another important feature of thrift enclave would be a small kiosk with
in the outlet that would be selling beverages and snacks along with
some seating space in order to encourage our customers to frequently
visit our outlet and take a look at our new stock from time to time.

Product forecast
The target market of ours would be households belonging from the middle to
upper middle class having monthly salaries ranging from 25,000 rupees
onwards. Thrift enclave will be able to serve such a markets needs by
providing stylish fashionable and trendy household products at a rate much
lower then the open market.
The alarming economic conditions of Pakistan have resulted in reduced
buying power; in order to solve this problem we are introducing the idea of
buying old but renewed products. Presently, our target market isnt familiar
or comfortable with the thought of second hand products because of the low
quality available with our competitors (indirect), but with the ideas and
quality provided by thrift enclave we will ensure that customer is sure about
the quality standards.
Thus the future holds a great chance for second hand products market to
expand widely among the middle class.
In addition to the economic conditions of Pakistan the growing Fashion
industry will also contribute to our growth. Housewives are becoming more
and more aware about the latest trends; this awareness will create a need for
trendy household products. Thrift enclave will make sure that the old goods
are modified in a way that the current fashion trends are kept in mind.
Promotion

25

Thrift enclave will concentrate more on creating awareness and need for our
products, we will advertise through the following channels

Newspaper classified ads section

Radio ads
Our below the line advertisements would include the following

Branding buses
Brochures/ pamphlets
SMS
Posters
Face book fan page
Company Website
Ads on different websites for example yellow pages, news channels .etc
Word of mouth
Once our Thrift enclave would be operating we will introduce the idea of

Auctions o Sundays with a specific time frame to enhance the chances of

our sales
Coupon system:
o A type coupon- these coupons can be ripped Thrifts newspaper
ad, when a customer will bring the coupon at the time of purchase
they will get a few percent off by these coupons will help us analyse
the response rate of our ads.
o B type coupons- these coupons will be given to customer every
time he or she will visit the outlet, when a customer will be able to
gather 5 coupons he will be offered a special discount the next time
he buys an item from the shop. This incentive is just to enhance the
number of visits to the outlet as our products will be different every
week.

Placemnt
Thrift Enclave would be an exclusive outlet in Islamabad which will sell its
products directly to the customers, the purpose is to create a hub where one

26

may be able to get both second hand products and products from far flung
areas all under single roof.
The current market condition suggests that introducing more channel
members would reduce our profits, therefore delivery of furniture will be a
part of our after sale services.
Another reason for our exclusive outlet is to compete with our competitors;
under one roof strategy, this strategy will also help us create an
identity/niche in the market and the consumers will be able to create an
image of thrift enclave in their mind. This awareness is extremely necessary
as we wont be having a single signature product.

Controls
An appointed officer pertaining to the department concerned with feedback
and appraisal mechanism.A suggestion box or a survey done by the
administration people from the customers so as to obtain feedback and
consequently trying to put things right as per their demands.Feedback
information should be gathered pertaining to the selection of items, proper
advertising techniques, prices of the products, operations, other facilities at
the auction house etc.The feedback information about the initial event that is
the basis for subsequent modification of the event.The causal path that leads
from the initial generation of the feedback signal to the subsequent
modification of the event.Upward feedback occurs when associates provide
information or feedback to a manager or supervisor to whom they are
directly/indirectly reporting.Intended to identify ways to increase
management
effectiveness
and
enhance
organizational
performance.Leadership is a skill by which a person is responsible to
influence or motivate his co-workers to accomplish a defined objective &
strategy and to manage the organization in a way that makes it more
cohesive and coherent in terms of profit, growth and profile.First one should
try to identify the problems, review and evaluate it and accordingly give
weightage or preference to it, ensure implementation of the revised
procedures and then eventually continuing to promote the revised and good
procedures.

27

Organizational Plan
Type of ownership:
The Auction house is general partnership between 3 partners having
unlimited liability who have pooled resources to own the business. They have
equal ownership in the business. All the individuals are liable for business
liabilities. A partner can transfer his/her interest only with consent of all other
partners. Al partners have equal control and majority rules. The profits and
losses would be distributed equally among the members. Capital gain to the
partnership will be taxed as a capital gain to the partner.

28

Management
Director

Administrative

Finance

Marketing

Marketing
Communicatio
ns
Department

Operations

Sales and
promotion

Multi-divisional hierarchy
1. Senior management (or "top management" or "upper management")
2. Middle management
3. Low-level management, such as supervisors or team-leaders
Top-level management
Have an extensive knowledge of management roles and skills.
We have to be very aware of external factors such as markets.
Our decisions are generally of a long-term nature
Our decisions are made using analytic, directive, conceptual and/or
behavioral/participative processes
We are responsible for strategic decisions.
We chalk out the plan and see that plan may be effective in the future.
W are executive in nature.
Middle management
Mid-level managers have a specialized understanding of certain
managerial tasks.
We are responsible for carrying out the decisions made by top-level
management.
Finance, marketing etc comes under middle level management
Lower management
This level of management ensures that the decisions and plans taken
by the other two are carried out.
Lower-level managers' decisions are generally short-term ones.
29

Functions of departments
Operations department:
The aim of the operation department is the overall management and general
administration of the core operations of the company. This department keeps
a check on the personnel, legal matters and regular operations of the
venture.
Supervision
Inventory handling
Analysis
Up- grading and Maintenance
Functioning
Auction arrangement

Administrative department:
The Administration Department deals with all Buying and supplying and
office and database management. It is also responsible for managing and
proactively implementing service delivery.
In short, Admin. Involves:

Training and evaluation of employees.

Rewards and promotions
Human resource
Purchasing and shipping
Security
Housekeeping service
Cafeteria services
Arranging and organizing within the auction house.
Building/Office maintenance (Civil/Carpentry/Electrical
services/office renovation/repair/painting/polishing)
Handling customers/clients/visitors/employees
Class 4 staff handling (peons, gardeners, drivers, pantry boys,
guards, etc)
Guest relations/hospitality management
Pricing
Marketing department:
30

Purpose: Creating Sales And Marketing Strategy

Marketing involves a range of processes concerned with finding out what

consumers want, and then providing it for them. This involves four key
elements, which are referred to as the 4P's (the marketing mix). A useful
starting point therefore is to carry out market research to find out about
customer requirements in relation to the 4Ps.

Marketing Communications Department

This department is separate from the marketing department and is headed
by the director of marketing communications. Departments within the
marketing communications department, usually include public relations,
public affairs, and media relations. General responsibilities include
development of all annual reports, press releases and media inquiries. Deals
in consumerism, product recalls, crisis and reputation management and
corporate social responsibility. The Communications & Marketing Department
includes, web site management, creative & graphic functions and media
relations
Sales Department
Advertising and promotions come under this department. The sales
department is responsible for meeting the sales and volume goals as set
forth by the chief marketing manager. The department is usually headed by
the director of sales. The sales department works closely with the marketing
department, providing vital insights and feedback on customer needs,
issues, and the competition. Most of their work is external. They are charged
to develop strong sustainable relationships with retailers and key clients and
increase sales orders. Feedback from the sales department is critical and
greatly relied upon in new, analyzing pricing, and identifying new channels
for distribution, sales and marketing efforts.
Finance Department:
The finance department is responsible for the following Activities :
31

Budgeting

Book keeping

Receipts and invoices

Payments

Salaries disbursements

Liabilities (investor)

Backgrounds and Authority of Managers:

The managers are all students of Bahria University currently Masters in
Business administration.
Hafsa is a finance major and the managing director and co-coordinator
responsible for effective running of all the departments.
Role and Responsibility: She oversees a company's daily operations in
every department in the organization. The role of managing director is not
specific to any one operation, but rather includes implementation of policies
and procedures that affect the performance of all departments.
She majoring in Finance and have excellence over their work and in-depth
knowledge of their field, however has experience in banking
Role and Responsibility: They Take care of all the inflows and outflows of
the venture. They are responsible for finance, accounting, payroll, billing,
taxes and other matters related to sales and revenue budget.
The Marketing Department is run under Maryiam.
Role and Responsibility: she is responsible for creating promotional
activities, monitoring sales and establishing effective strategies for creating
awareness of business. Also responsible for design and distribution of all
direct marketing.
32

Operation Management is also supervised by maryiam.

Role and Responsibility: She is also responsible for in-house activities. She
ensures smooth running of all operations most importantly auction
arrangements, Up- grading and Maintenance.
Taniya is the Administrative and HR manager. She is also working for
sales and promotion.
Role and Responsibility: she is also responsible for PR, retailer
negotiations and customer needs. Furthermore he also supervises buying
and supplying of inventory. She makes the marketing strategies along with
Maryiam.
HR duties : Her responsibilities include the hiring, firing of employees as
well as training and supervising. Periodic employee evaluations are also a
part of this. On the basis of the evaluation rewards in the form of bonuses,
promotions are given.

Assessment of risk:
The primary risks are:
The first and least security and trust issue in Pakistan.
To handle the large demand of customers in the starting few days.
To determine and maintain the quality of products and services.

Risk in taking loan from the bank.

Some potential risks that we fear are due to lack of experience and as
juvenile entrepreneurs we see the first few stages of starting this venture as
a challenge even though we are up for it to the best of our abilities. The
maintenance involved with the house e rent ,the furniture we buy and sell
,the products under our control need to be monitored and checked on a daily
basis and this might take time for us to get used to as it requires far greater
responsibility and check and balance than we can think off.
Market risk is another risk that if the market will develop differently than
expected. Sometimes markets take too long to develop, and cash runs out
while a company is waiting for customers. Most importantly financial risk is

33

the risk that a company will run out of money or mismanage their money in
some way.
New technology:
New technology in our business refers to up gradation in the products i.e.
Bags, shoes, furniture and design of the products. It also includes different
programs used in our business for order taking. For this there are
professionals who are willing to help us and will lead us that how can we
develop our business so that in future if technology changes we dont have
much problem to switch to the new ways and techniques.
Contingency plan:
The following are the plans in future.
For a certain period of time we are not going to increase our prices as
we are new and we want more and more customers.
In order to satisfy our customers special initiative shall be taken for
them. (for those who are regular)

Financial plan
Underlying Assumptions
Thrift Enclave will have an annual revenue growth rate of 16% per
year.
Partners will acquire Rs.5000, 000 of debt funds to develop the
business.
The loan will have a 10 year term with a 9% interest rate.
Sensitivity Analysis
In the event of an economic downturn, the business may have a decline in its
revenues. However, demand for household and clothing auction services
tends to increase during deleterious economic conditions as
individuals/businesses seek to raise capital.
Source of Funds via following statements generated in the following
pages:

Pro forma income statement

34

Thrift Enclave Company

For 1st quarter, 2015

Sales
Less: COGS
Gross profit
Operating expenses
Rent
Coffee bar
Utilities
Advertising
Insurance
Office expenses
Total operating
expenses
Gross profit

Jan

Feb

Mar

Total

5100000
3000000

7700000
4500000

9900000
5500000

22700000
13000000

250000
150000
205000
350000
0
100000
1055000
1045000

250000
150000
1445000
550000
0
350000
2045000
1155000

250000
150000
1300000
550000
0
350000
1900000
2500000

750000
450000
2950000
1450000
0
800000
5000000
4700000

Pro forma cash flow

Thrift Enclave Company
For 1st quarter, 2015
Receipts
Sales
Disbursements
Equipment purchase
Cost of goods
Rent
Coffee bar
Utilities
Advertising
Tax
Office expenses

Jan

Feb

Mar

5100000

7700000

9900000

1200000
3000000
250000
150000
205000
350000
50000
100000

850000
4500000
250000
150000
1445000
550000
50000
350000

0
5500000
250000
150000
1300000
550000
50000
350000
35

Total disbursements
Cash flow
Beginning balance
Ending balance

5305000
205000
5000000
4795000

8145000
445000
4795000
4350000

8150000
1750000
4350000
2600000

Sources of funds
Personal funds of founders
Net income (loss) from operations

Rs. 5000000
(800000)

Total funds provided

4200000

Application of funds
Purchase of equipment

2050000

Total funds expended

2050000
Net increase in working capital
2150000

36

4200000

Pro forma balance sheet

Thrift Enclave Company

37

Assets
Current assets
Cash

Rs.2600000

A/R

Total current assets

Fixed assets

Rs.2600000

Equipment
Total assets
Liabilities and Owners
equity

2050000
Rs.4650000

A/P
Total liabilities
Owners equity

Rs. 450000
Rs. 450000

Zainab
Mohammad

625000

Maleeha

625000

Sidrah

625000

Fizzah

625000

Kinza

625000

Harris

625000

Retained earnings

625000

Total Owners equity

(800000)

Total liabilities and

owners equity

4200000
Rs. 4650000

End of 1st quarter, 2015

38

Break even analysis

B/E (Q) =

Total Fixed cost

Sales price-variable cost/unit

5000000
Rs.100-Rs.75

200,000 units

Any units sold beyond 200,000 that are sold by the venture will result in a
profit of Rs. 25 per unit.

39