Page 1 of 53

Royal Stitch

Business Plan
Pearl Continental Hotel, PIDC, Karachi

Page 2 of 53

Acknowledgement

I thank the Almighty for giving us the strength and persistence to complete this report. The many
friends and family members who have contributed directly or indirectly to the completion of this
report; I am thankful for their support, which helped me stay focus.

Special thanks to our teacher Mr. Mir Asghar Ali who has been very kind and helpful with us
throughout the semester. Due to his keen words and the way of teaching, he inspired us in
countless different ways.

Page 3 of 53

Executive Summary:
Mission: mission is to provide the unique style to every

Management: FSK &

client.

ZS CO.

Description: Royal Stitch is an upscale women's clothing boutique that

will open in August 2010. Royal Stitch that means, "Honor" defines the
boutique and its essence of inclusion. Royal Stitch clothing selections and
exclusive personal style services, which include a detailed Style
Assessment, will ensure that our customers are well dressed.

Contact:
Admin Dept
Karachi

Products/Services: Royal Stitch will carry Ready-to-Wear (RTW)

designer, formal, casual, party wear and especially bridal apparel for
women. Royal Stitch will feature other choice selections by Pakistanis
traditional and western females taste such as Shalwar Kurta, Weekend
Maxi and short dresses for party wear, Designer Tops in casual collection.
Unique & innovative Royal Stitch will provide services such as Style
Assessments, alterations, personal shopping, and special ordering to
customers during store hours and by personal appointments. Style
Concierges who are trained within the image industry will be available to
customers on a daily basis. Royal Stitch's innovative Style Assessments
and educational emphasis in helping women develop their personal styles
will enhance our reputation as a truly unique boutique.

URL:http://iqra.edu.pk

Advisors/Board
Members:

Markets: The Royal Stitch customer is a busy professional woman, university student, rich housewives who lives in the
Metropolitan City of Pakistan Karachi with a household income over _____. She enjoys the boutique fashions and
wants a place where she can get unique style meet her lifestyle need.
Competition: Royal Stitch has stiff local competition with the many wonderful boutiques in Karachi. Direct competitors
include those boutiques that carry some of the concepts that Royal Stitch plans on carrying or could move easily into
carrying, and are located in the Valley. Indirect competitors are those boutiques in Karachi that focus on a different target
market or do not focus on unique design that Royal Stitch will carry, in addition to well-known boutiques in other
metropolitan areas.
Financial Projections:

FY 2010-11

FY 2011-12

FY 2012-13

FY 2013-14

FY 2014-15

Sales

11,573,283

14,977,190

19,769,890

27,183,599

43,856,206

Net Profit

206,853

3,561,923

5,865,050

9,536,261

18,073,279

Page 4 of 53

General Company Description

We are in a Business of Boutique in which we design clothes for women and each design
will be unique Each design is original, focusing on individual style, each person
privileged as our unique royal pattern having their own personal authentic design with no
duplicate "royal stitch patronizing royalty Initially launching only in Karachi, we will
have four outlets, one each in the major 5 star hotels of the city (Pearl Continental,
Marriot, Sheraton and Avari) but in the beginning we will only set up the PC outlet and
once it works out then we will invest on the rest.
The basic maintained theme of our outlets will be personified with the color pink; the
decor shall be of light colored walls supported with diamond-like stones and curtains.
Each outlet will have a fairly sized lounged that will include beverages and refreshments
for the waiting customers. Soft soothing music will accompany the ambience of the
shops.
Mission Statement:
The mission of Royal Stitch is to provide uniqueness to every woman. We never
comprise towards the style and individualistic of our every single client.
Company Goals and Objectives
Royal Stitch goal is to take a place of Bejan in US.
Legal form of ownership: Partnership
Products and Services
Our shop will have four types of clothing lines casuals, formals, party wear and bridal.
The clothes in our shop will not have any duplicates, just one piece; if bought by a
customer, there wont be a spare lot and will not be designed again. This way each of our
customers will have a unique piece of clothing that no other will share anywhere. This is
the driving selling proposition that we shall market.

Page 5 of 53

1) Marketing Plan
a. Market research - Why?
In the Questionnaire we asked questions that if you get a chance to wear a dress which is
unique and nobody can have it so most of the ladies said yes, so through small survey we
identified the need of such boutique which should offer dresses to its clientele which no one
else can have it.

b. Market Size:
We have a market size of approximately 300,000 females from the age group of 1550.

c. Market Share:
Being very realistic we are targeting 1% of our total target market, which is 50,000,
due to the fact that has to be considered like, is the target audience aware of our
product and do they believe on us.

d. Consumer Analysis (Current situation)

Nature of buying decision: Usually the buying decisions of women in this case are very
choosy. Customers are mostly likely to make a purchase while they find something very
different when they come across such boutique outlets; otherwise previously visited
customers who have made purchases tend to turn into retention. If we are to properly
differentiate these two natures of buying; the casual and semi formal clothes are usually
bought out of uniqueness and party wear, formal and bridal clothes require the customers to
make prolonged periods of decision making time.

e.

Barriers in entering this market with the new company:

High marketing costs

Consumer acceptance and brand recognition

Unique technology and patents

f.

Solution to these Barriers:

Use resources efficiently so that there will no wastage on unnecessary marketing.

Page 6 of 53

Organizing events to develop clientele acceptance for our product. Going into universities
arranging fashion shows.

We dont publish our catalog so that no one can copy our designs, plus we also save our cost
by not making copyrights of these designs.

Product from the client:

Royal Stitch will carry from Ready-to-Wear (RTW) and made to order suits of different designs, diffusion
lines and casual, formal, party wear apparel & bridal dress for women. Royal Stitch will carry four main
RTW and MTO lines (Royal Formal Collections, Royal Casual Collections, Royal Party wear & Royal
Bridal Collections) these collection have sub categories with various fabrics around the world such as
Velvet, Georgette, Chiffon, Cotton, Silk, Polyester Cotton, Lillian, Crepe and Organza/
APPAREL LINES
Royal Formal Velvet Collection
Royal Formal Georgette Collection
Royal Formal Chiffon Collection
Royal Formal Cotton Collection
Royal Formal Silk Collection
Royal Formal PC Collection
Royal Formal Crepe Collection
Royal Formal Organza Collection
Royal Casual Cotton
Royal Casual Lillian
Royal Casual Crepe
Royal Party Velvet
Royal party Silk
Royal party Crepe
Royal party Organza
Royal Bridal Fashion
Royal Traditional Bridal
Royal Classical Bridal
Royal Modern Bridal
Some of the key lines are detailed below:
Royal Formal Collections:
Royal Formal Collection is actually designed contemporary cuts to keep a different style. Detailed, delicate
and sparkling embroideries are done on luscious Velvet, Georgette, Chiffon, Cotton, Silk, PC, Crepe, and
Organza, creating the perfect evening wears for our clients. In this category we will also cater office-going
ladies by providing them subtle or bright colors to make their day perfect.
"Epitomizing elegance like no other"
Royal Casual Collections:

Page 7 of 53

Royal Casual Collections is of unique cut in classic styles. They are designed in a way that there can be no
other alternate for casual wear. Keeping the weather in mind Cotton, Lillian and crepe are used. Casual tops
will be designed that can be worn with a pair of jeans, Capri's, trousers or anything of clients choice. Royal
Collection very well knows how to dress a woman.
Royal Party Wear:
Royal party wear brings innovative ideas in party wear. Unique styles of clothing that will glamorize
evening and make our clients look the most beautiful. This category will include long sleek dresses with
different designs; it will also have short dresses. Royal collection designs are considered feminine and
elegant so we will also design according to the desire and a requirement of our clients as the attention is on
individualism.
Royal Bridal Collections:

Only once in a lifetime a girl experiences the special day of her life that is her wedding
day and we are here to make this day more special for our clients by designing a dress
that is specially made for their personality. Royal bridal collection presents an amazing
Bridal Collection, best suited for the Asian brides, enhancing the beauty and look of
innocence yet presenting a picture of elegance.

Customer and Market Research:

Market Needs
If you were to overhear women talking in a dressing room, you would more than likely hear them
comment on something they've tried on and question how they should wear it or what it will go
with in their closet. Research has shown that women are stressed, have little time to shop, and
would generally like help in determining the right clothes and styles to wear. With over 15
million1 Pakistani women between the ages of 15-49 spending over 2.43% 2 out the total
consumption which is equals to 337 rupees3 in apparel each year, there are sure to be some
mistakes made in clothing choices. Television shows such as Style 360 "FYI" shows updates
regarding the current fashion and trying to reduce woman's confusion about what looks best on
her. Even women who can afford a professional stylist feel helpless and often jokingly request
that their stylist unable help them get dressed.
One gender in particular influences the majority of the retail marketplace: women. Women
comprise 48.6% (89 million) of the Pakistani population4 and control or influence. Research
indicates that women approach retail shopping uniquely by evaluating purchases based on
product and company information derived from both personal and expert sources. The table
1

Statistics: PSLSM 07-08 PERCENTAGE DISTRIBUTION OF POPULATION BY AGE, SEX AND AREA 2007-08.

http://www.statpak.gov.pk/depts/fbs/statistics/hies05_06/complete.pdf (4.9% * 48.6% female population)

www.statpak.gov.pk/depts/fbs/statistics/hies07_08/table17.pdf (693.69*48.6%)

Statistics: Female Population percentages from (PSLSM 07-08 PERCENTAGE DISTRIBUTION OF POPULATION BY AGE, SEX

AND AREA 2007-08) * Population of Pakistan; 183,329,300*48.6%.

Page 8 of 53

below shows that out of the ten characteristics consumers find important in deciding where to
shop, four were attributed to customer service.
Top Ten Factors in Deciding Where to Shop5:

Reason
1. Has reasonable prices
2. Treats customers with respect
3. Carries quality merchandise
4. Doesn't pressure me to buy anything
5. Convenient store hours
6. Handles merchandise returns fairly
7. I can always find what I want
8. Carries a wide variety of items (e.g. colors,
sizes)
9. Has outstanding customer service
10. Makes it quick and easy to shop

2000
78%
66
66
61
61
60
61
57

2002
85%
74
72
70
68
66
65
64

Change
+7
+8
+6
+9
+7
+6
+4
+7

55
53

63
61

+8
+8

Market Size:
To check how many women purchase their outfits from boutiques for this we had several
statistics from government of Pakistan which indicates that the population of women in Karachi
is around 1.5 million and the average household expenditure on readymade garments was around
16% thus we get the idea that in 1.5 million of population around 0.23 million of population
purchases their outfit from boutiques or same type of shops. 6
Market Size 1

Market Size2

Average

495,832

259,760

377,796

The above method is the one way to check the market size, thought we not stick to these statistics
we design a questionnaire and design a sample of 30 respondents from them we asked different
questions regarding their buying habits and behavior from them we get to know that from
different areas of people they rate their purchasing 55% from boutique and 45% they design their
5

"Getting the Goods," May 2003

Percentages of population from Labor Force Survey 2007-08

Spending: http://www.statpak.gov.pk/depts/fbs/statistics/hies07_08/table17.pdf

Page 9 of 53

own clothes from tailor. Thus we use that research to calculate the market size of the Karachi,
which is around 0.4 million.7

Industry Size:
Due to unavailability of the data we have to count the major market leaders operated in the busy
streets of Karachi, thus we get to know that approximately there are 50 big players who are
catering the need of designer wear for around 0.03 million females.

Penetration Rate:
Since there were total 1,534,319 from the age of 15-50 and there are 377,796 females currently
purchasing outfits from different boutiques so by dividing total population of females with the
females currently purchasing their outfits from boutique we get 24.6% of market penetration rate.

Small Survey Results

Customer needs, expectations and buying patterns
The Royal Stitch customer loves to shop and enjoys going to boutiques by showing their yearly expenditure
on an average has 100,000. She is knowledgeable about designer fashions and tends to shop for seasonal
wardrobes twice a year plus picks up various fashion and basic pieces throughout the year. Many times she
shops to "browse." By offering fashionable accessories and wardrobe organization items, Royal Stitch will
be able to grab a larger share of her wardrobe budget. She is used to coming into the store and browsing
through the clothing items and trying on what interests her. She expects a warm and comfortable
environment and nice dressing rooms. She enjoys being left alone but also enjoys the special touches of
personal shopping assistance and having the ability to special order items.

Market Segmentation:
Karachi is rated amongst the top Pakistani markets in economic and educational achievements. At an
average age of 21, the Karachi professional is highly affluent, with an average monthly family household
income of all the quintiles is 12,326 Rs.8 According to our small survey of 30 respondent we found that
Close to 50% are studying and 17% are housewife, 13% have running their own business and 20% are
working women. The clothing market can be segmented into various sectors of customers who differ in
style, color and cloth preferences. These people can be safely segregated from demographics involving the
ages of 15 to 50 particularly talking about the female customer base. The young girls from the age span of
15 to 20 adopts a preference of a specific palette of colour range that includes bright and playful colors for
example shades of yellow, shocking pink and shades of light green. This segment prefers a more
contemporary mode of clothing that involves jeans, skirts, frocks and trendy variations of shalwar kameez
The segment that follows from the ages of 21 to 25 categorizes those girls who adopt the clothing involving
the same types of the younger segment but keep a tendency to incline towards formal wear since a
7

Questionnaire Filled Out form Excel File sheet Name (Table 1.1 and Table 1.12)
OUTPUT of cross tabulation Excel file Sheet name (results)

2007-08 Household Integrated Survey

Page 10 of 53

percentage of these girls are married and workingwomen. The ages from 26 to 35 include mature women
who have the tendency to sway from various modes of clothing. They tend to either fall into a very simple
and normal mode of dressing. At some point these women start to adopt a nature of being adventurous and
experimental in their preferences. 36 to 50 and onwards is categorized as a segment that involves middle
aged married women and old matured independent ladies who are studied to be the most experimental in
their dressings. This segment does not include all the ladies of this age in the pertaining age group but only
includes the upper class social classes. The segmentation is further simplified in tabular form in the
Consumer Analysis section.

Demographics

Age
Gender

15-50
Female

Race Ethnic Group

Asians.

Education

Most likely students of high schools & universities or

those who have completed their academic qualifications.
Non-Educated rich mothers/wives.
A yearly income of 150,000 Above.
Business Executive women, student of higher education,
working women or housewives.
All religions (all those who prefer trendy or modern
cloths)
Residents of posh areas such as Clifton, Defence,
P.E.C.H.S & K.D.A
Major is Pakistan, than all around the world.

Income
Occupations
Religion

Geographic
Segmentation

Urban

Psychographic
Segmentation

Lifestyles
(Activities &
attitudes)

Going to parties, clubs, launches, openings, etc.

They like being in latest trends

Personality

Non-stingy, extrovert, outgoing, image conscious.

Functional

The cloth material, embroidery, color, stitching and

design, quality and uniqueness.
Personality/Ego boost, Pride. Uniqueness will represent
every customers individuality.

Benefits

Country

Non-Functional

Competitions:
Royal Stitch has stiff local competition with the many wonderful boutiques in Karachi. Direct competitors
include those boutiques that carry some of the concepts that Royal Stitch plans on carrying or could move
easily into carrying, and are located in the Valley. Indirect competitors are those boutiques in Karachi that
focus on a different target market or do not focus on unique design that Royal Stitch will carry, in addition
to well-known boutiques in other metropolitan areas.

Page 11 of 53

The following are the list of potential direct and indirect competitors present in the market catering to the
mentioned target audience.

Direct Competitors:
Outlets and designer shops will be the direct competitor of our brand since they cater to the same
target market. These shops mostly cater to customized preferences of the customers and also
release their own designs in the dressing categories.
Ego
Deepak Parwani
Aisha Varsey
Maria B
Rizwan Beig
Imran Qureshi
Stone Age
Funk Asia

Indirect competitors:
The indirect competitors include all low-end and low priced outlets including shops at Tariq
Road, Dolmen Mall and Zainab Market that cater to all classes from lower to the upper middle.

Competition Analysis:
Direct Competition
Company Name

Brand Name

Price Range

Maria B

Maria B

Casual 8,000-12,000
Party 9000-30,000
Formal 23,000-100,000

Ego

Ego

Casual
1550-2750

Deepak Perwani

Deepak
Perwani

Aisha Varsey

Aisha Varsey

Funk Asia

Funk Asia

Casual
3000-8000

USP
Captures all the youth
and has also has a lawn
company with the same
brand name.
They come up with new
clothing range every
week and they dont
repeat previous designs
again.
He arranges various
fashion shows in
foreign countries and
has a great brand name
for upper upper class.
Is known for all white
range in clothing and
she herself wears white
all the time.
Has a great back of
Amir Adnan and it
captures all the upper
class youth girls.

Page 12 of 53

Imran Qureshi

has private clients and

often deals with
Karachi and Pakistan
Fashion Week

Rizwan Beig

has private clients and

often deals with
Karachi and Pakistan
Fashion Week

In-Direct Competition
Company Name
Brand Name
Stone age
Stone age

Nomi ansai

All those boutiques

that share a certain
percentage of market
share in our target
market.

Tag Line

Nomi ansari

Could be any

Could be any

USP
Targets youth majorly
Known for making
colorful cloths, captures
youth as well as other
age groups and deals
with part and bridal
wear.
Could be any and also
those who can try
copying our idea and
designs.

Target Market:
Demographics
Female.
Spending 86% of their household income.
Professional woman, Housewife, university Students and Students of O and A Levels

(age 15-50)
Household income over
College-educated and currently studying
Lives in a higher-income Karachi Neighborhood. Defence, Clifton, Johar, Gulshan and
PECHS.

Psychographics

Looks for something new, willing to spend money on quality, core items
Would like more time or help in understanding what clothing is right for her
She wants to look her best because she wants to feel good about herself as well as make a
good impression at her job

Leisure Activities
Supports the Arts
Reads Vogue, Visgae, Pink and She
Watches Style 360

Page 13 of 53

Internet savvy
Travels, owns a passport
She enjoys eating out as well as taking time for herself at the beauty saloon or getting a
mani-pedi

Clothes Shopping Behaviors

Spends over 100,000 for clothes each year 9
Shops at Boutiques.
Buys mostly tops
Looks for classic, basic items each season, with 1-2 trendy items
She cares about how she presents herself, enjoys fashion, and looks for quality over

quantity

Niche
Our target market would be those females who lives in Defence, Clifton, Gulshan,
PECHS and they spend more than 800010 per month on readymade clothing and they are
lies in the 5th quintile of expenditure and income group.

Strategy
Based on small research conducted on women's shopping behaviors as well as our own research for
Karachi women, the following marketing strategies will be employed:

Develop strong relationships with customers by utilizing Style Assessment and offering
services to help each woman determine the right clothes for her.

Provide educational materials and programs that enable customers greater decisionmaking confidence.

Build awareness of brand and services to exemplify strong store reputation.

Provide customers with a sense of access to "inside information" and harness the power
of a woman's personal network by leveraging marketing collateral designed for sharing
and encouraging referrals.

Utilize personal referrals and stylists to build traffic.

Objective #1: Launch of Royal Stitch

Strategies:

Build awareness of brand and services to exemplify strong store

reputation

Supported by our small survey of 30 respondents.

10

Supported by our survey taken the averages of spending on clothes in a year and

than divided it for months

Page 14 of 53

Provide customers with a sense of access to "inside information" and

harness the power of a woman's personal network
Utilize personal referrals and stylists to build traffic
Tactics:

Promotion:

Strengthen the customer relationship via events and special

communications
Hold two large sales a year: winter and summer

Web:

Promote key merchandise & events on the website

Direct:

Send out monthly email newsletter to customers. Expense*

Personal
Selling:

Develop working relationships with 2-3 personal stylists

Provide personal appointments
Train Style Concierges to provide exceptional service and exhibit
patience in the selling process with women

Events:

Hold Launch event/party - Invite VIPs and Karachi Socialites

Hold unique after-hours shopping events (Mother-Daughter night,
Travel Planning, Girls Night Out, etc.)
Hold Fall & Spring events

PR:

Get voted as one of best places to shop on Yello and in Vogue

Magazine.

Objective # - Garner In-Depth Understanding of Customers

Develop strong relationships with customers by utilizing Style Assessment

Strategies: and offering services to help them determine the right clothes for them

Provide educational materials and programs that enable customers greater

decision making confidence
Tactics:

Promote gift giving during key holidays (Eid, Valentine's & Mother's Day)

Promotion: and utilize assessments to assist gift givers in purchasing the appropriate
gift. Expense*

Direct:

Integrate style personalities and other key information into customer

database and develop customer segments
Create awareness of assessment through emails to customers

In-Store:

List the style personality numbers on each merchandise tag to generate

interest and awareness of the Style Assessment
Provide overview of Style Assessment in dressing rooms
Tailor merchandise offerings to specific Style personalities

Events:

Hold monthly Style Assessment workshops. Expense*

Page 15 of 53

Marketing Plan
Marketing Strategy
Positioning Statement
Royal Stitch provides women with upscale designer clothing and exclusive personal services. Our main
competitive advantage is the unique Style helping women develop their personal style.
Brand Positioning
'Royal Stitch' is Pakistani Mughal image. Building on the meaning of "Royal," Prestige will memorize the
pride of Mughal Emperor, which defines the boutique, and its essence of inclusion. Style Studio is added to
the overall name to suggest that women can come to the boutique to learn about themselves and experiment
with their personal style. By combining these two meanings, Royal Stitch Style Studio semms to be the
leader in providing exceptional service and assistance for women's fashion needs. The elegance of the name
suggests the types of clothing and accessories that will be featured.
BRAND PERSONALITY
Innovative | Stylish | Contemporary | Modern | Fresh | Approachable | Elegant | Cultural
The overall brand personality of Royal Stitch aspires to be fashionable, customer-oriented, innovative,
refreshing, stylish and educational. The boutique is a place where women can go to transform themselves
with beautiful clothes and take advantage of the Style Assessment and other services that help them
determine the right clothes for their unique selves. We are a shop that educates. We help women learn about
the designers, gather with their friends, and have fun during the process. We not only carry items that help
them look good, but we also help our customers maintain these items.

Promotional Plan:
With respect to our strategies from which we make objective, our launch will start with
teasers around the city in the form of billboards on major locations of the city. This will
then be followed by a main billboard design that will have our advertising message and
original color theme. Press and Magazine advertising shall at once be our first
advertising campaign that shall be placed in popular magazines such as Pink, Visage,
Libaas, She, Sensation, Womens Own and Zinq. Major newspapers such as Dawn, The
News and the Nation will contain our press ads highlighting details of our outlets.
The initial campaign shall last for 3 months after which no more advertising will be done
for our brand. Our advertising will depend on our brand champions and advocates
(satisfied customers) using the pull effort. With word of mouth and social networking
marketing, mainstream advertising will not be required. Calendar and non-calendar
based strategy for below the line activities like fashion shows will also be practiced.
Promotion Summary:
The following promotional tactics for generating buzz and awareness about Royal Stitch will be
implemented:
Personal selling and word of mouth via networks of friends, stylists and customers
Unique visual displays in storefront on a weekly basis
PR (local and national)
Boutique email newsletters
Direct mail such as postcard notices that are targeted specifically to the customer
Sales Promotion such as store events.

Page 16 of 53

Royal Stitch Web Site

Advertising will be at a minimum with regular ad placements in the Magazines
Fashion Shows
Magazines cover pages.
Advertising on Facebook
Affiliation with www.yellow.pk.

Other important marketing strategies, such as developing strong customer relationships (retention), will
utilize a different mix of marketing programs.
Promotional Tools
TV
Cable TV
No
Press
Dailies
Magazines /
Periodicals

No
Pink
Visage
Libas
Women Magazine
Vogue
She

Radio
FM
Outdoor
Hoarding

Vehicles
Pole Signs +
Banners
Internet
Web Banners

No

Airport
Teen Talwar
Zamzama

30*60
20*60
20*60

No
No
www.royalstitch.com expense 1100; including registration and

maintenance per year.

Others
Non Traditional
Media
BTL Communication Vehicles
Event Based
Non Calendar
Events
Calendar Event
Non Event Based
Floats, Stalls etc.

Participating in shows such as Pakistan fashion week and Karachi fashion

week, Charges are contigency
Arranging shows on valentines day, Eid etc. cost allocated by outside event
management company
No

Page 17 of 53

Budget: Monthly

Magazines

City

Size

Position

C/B&W

Times

Cost

Pink

Khi

Full page

Inside

Color

1.00

2000

Visage

Khi

Full page

Inside

Color

1.00

80,000

Libas

Khi

Full page

Inside

Color

1.00

80,000

Women
Magazine

Khi

Full page

Inside

Color

1.00

25,000

Vogue

Khi

Full page

Inside

Color

1.00

80,000

She

Khi

Full page

Inside

Color

1.00

25,000

Billboards Media Plan for October 2010

Area

Airport
Teen Talwar
Zamzama

Size

30*60
20*60
20*60

Grand Total

Total with 16% GST

Launch
Party
Sending
Newsletter
Promotions
Gift
Events

Cost
280,000
115,000
115,000
510,000
591600

Other Expenses Budget

2,000,000 Show at PC
50,000
100,000
1,000,000

Facebook 50 dollar for 1 day: 50*83*30 for starting 1

Ad
month =124,500 PKR

Page 18 of 53

Pricing
55% of respondent, which are already purchasing outfits from different boutiques with a 117 thousand
income, agree, "When we asked will you purchase an outfit which is unique and no can have it than really
they want something, as they said yes price is no object.
At Royal Stitch Style Studio, we are very committed to bringing high quality clothing to women and the
prices will reflect a range of mid-to-high pricing. Average price points will be around
Formal
Casual
Party Wear
Bridal

7,950
1,250
4,850
81,250

Location
It is recommended that the proposed location for the said enterprise be a posh area, where
people have the buying capacity for women fashion wear. As the idea of business is very
unique Royal Stitch Style Studio will be located in an upscale neighborhood in Karachi.
A significant proportion of the target market lives in this area. Royal stitch will work with
the local merchants association as well as local publications to generate PR and shopping
in the neighborhood. Royal Stitch will also attract women from throughout other Karachi
neighborhoods as well as the few women who come to Karachi from out of town to shop.
As we dont need to have random customers we have chosen Pearl Continental Hotel as a
location a shop will be taken there on rent. The size of the shop would be at least 300
Sq.ft approximately 20 feet front and 15 feet depth. Furthermore, a small place will be
required to establish the stitching unit. One viable option is to rent a small place for this
purpose because the stitching cannot be done in PC as it will only be our selling point.
The shop will be obtained on rental basis, and the rent for the shop is Rs. 125 per sq.ft
that is 37500 and 16 percent GST will be charged on the rent that will be 6000.
According to the prevailing practice, six months rent as security, as security would be
required for renting the shop so security deposit will be given and one month rent. It is
assumed that security deposit is a one-time expenditure whereas rent will be paid on
monthly basis.
The cost estimates for setting up the Boutique are as follows:

Security for renting shop is 6 months rent (Rent Rs.37,500 per month plus
16% * 6 months rent as security)

261,000

Page 19 of 53

Interior decoration (installing lighting, mannequins, hanging racks, mirrors,

glass panes, cash counter, and other furnitures, etc.)

500,000

Rent for the stitching unit (Rent @ Rs30,000 per month)

30,000

Shop and Stitching unit Design

The project will have the following infrastructure components:
INFRASTRUCTURE REQUIREMENTS
Main shop covered area
Try room
Shop floor
Building for stitching unit

Sq .fts
300
10 (2rooms)
280
1000

PRODUCTION PROCESS FLOW:

The process for converting fabric in designer wear garments follows the below mentioned
sequence:
Design:
The initial process starts from the designing phase. Various patterns of clothing and the fashions
in vogue, which also relate to the tastes of the concerned clientele, are designed. The contracted
designer as does this he/she will provide the basic designs of which the fabric will be converted
into the designer wear garment. On average, a designer is supposed to provide 40 designs per
month or 100-120 designs per season i.e. three months. From these designs, approximately 50%
of the designs are selected for further development of clothes.
Pattern Making/Cutting:
Based on the designs selected, patterns for cutting are developed and based on these patterns,
fabric is cut, embodied, block printed, and processed accordingly.
Stitching:
The cutting is followed by stitching of fabric, which can either be done by the in-house stitching
unit or by outsourcing it.
Labeling

Page 20 of 53

Labels are also attached to the apparels in the process of stitching.

Finishing:
The final phase is that of finishing, in which the garment will be checked for quality control and
will cleaned (if required) for final presentation at the outlet. The garments will also be tagged for
identification of sizes, prices, addresses, handling instructions, etc.
Presentation/Market:
Once the designer wears garment is ready after going through the above-mentioned process, it is
presented at the outlet/shop for sale to the clientele.

Pattern making /

Designing

Market / Clientele

Stitching

cutting

Presentation

Finishing

Human Resource Plan

Introduction
We will be recruiting and selecting people who are well qualified and possess numerous skills
within their respective fields. They will be working on our predefined quality assurance
standards. There will be strict policies on which we will shortlist applied candidate and finally
form a proper workforce.

Employment structure Year 1, 2 3, 4 & 5)

Employee Structure in Royal Stitch Style Studio:
H.R Plan

Page 21 of 53

Employees
Required

Cost Per
Employee

Total

Sales
representative

Manager

15000 15000

Purchaser

12000 12000

Designer

40,000 40000

Accountant

12,000 12000

Tailor

35000 35000

Peon

7000

6000

7000

6000

Job Descriptions:
Sales representative:

Job Description

The main task of a sales representative is to sell the products design by the boutique.

Essential Duties

A sales representative must perform the following duties and responsibilities:

Solicit orders from new and prospective customers in a certain geographical area

Provide samples, and illustrations of the company's product line

Handle product inquiries of clients

Listen to customer concerns
Address product-related issues
Enlarge client base by developing excellent customer relations
Survey, analyze and prepare proposals for new prospects and old clients

Manager

Per
Month
Per
Month
Per
Month
Per
Month
Per
Month
Per
Month
Per
Month

Page 22 of 53

Job of the manager is to resolve the problems, which a customer may have. Keep a check on
the employees.
Essential Duties:

Supervise Maintenance and keep a check on overall performance of other employees

and security guards.
Cash inflow and out flow management.
Feedback from customers
Lead and motivate all employees
Control any crisis situations.

Experience:
Minimum two years of experience in a customer service centre with good communication
skills and appearance.
Knowledge and skills required:

Self Motivator.
Communication Skills

Education:
Bachelors with Cambridge schooling.
Accountant
Accountant should have a perfect knowledge of keeping the books of accounts and posses a
suitable degree of Accountancy.
Key Responsibilities:

To keep the proper books of accounts.

To keep an account of the daily cash expenses and ( Cash inflows and Out flows)
To make all the financial statements required
Making bills

Qualification:

Peon:

Must possess an Bachelors degree (B.COM).

Page 23 of 53

He will be serving Tea, Coffee and snacks to the customers

Designer:
Designing the clothes and materialize her imaginations for the customers that have unique sense
of styling.
Tailor:
He will be stitching the clothes as directed by the designer , he will be available all day so that if
there is any alteration he can alter it for the customer.
Purchaser:
The purchaser will be getting everything from the market for the clothes for example laces ,
buttons , fabric , cloth dying etc.
Recruitment procedure
Every candidate will go through a comprehensive test regarding the job nature; all of them will be
tested practically and would be selected on the basis of their skills and knowledge.
Training Development:
After Selection a comprehensive training would be provided so to ensure quality standards for a
better working environment.

Critical Risk Analysis

Consequenc
Critical
Risk
Analysis
ITEM
Likelihood
e

Risk

No Clients

10

20

Copy of designs

16

56
Rental
Politicalinsecurity
situation

15

(Strikes)

9
3

Power Breakdown

Page 24 of 53

No Clients:
As we did the survey and according to that 55% of ladies purchase their dresses from
boutique where as almost 95% of female responded that they would be interested if a
dress is specially made for them so there are very little chances that there will be no
clients so we took the likelihood of this situation as 2 and if it happens than of course
there will be no business so consequences is rated as 10.
Back Up plan:
High promotion and advertisements will be done so that everyone can know about our
business and come to us.
Copy of designs:
As our business is all about uniqueness so if someone gets successful in copying our
design it will be a problem for our business. so for this we will not advertise our designs
and make animated ads for our business.
Backup plan for copy of our designs:
For this problem we will not advertise our designs and make animated ads for our
business.
Rental insecurity:
As the shop is on rent so that is an insecurity that the shop might have to be vacated on
the demand of owners. As we are taking the shop in PC so they will be doing contract so
the likelihood of happening of such situation will be less so we took it 2 and if this
happens of course it will affect our business so consequences are marked as 5.
Backup plan for rent insecurity:
We will do the contract for atleast two years and if after that ye have to vacate the shop
we will shift to Marriot.

Page 25 of 53

Political situation (Strikes)

As we know that in Pakistan political situations are going worst day by day so the
likelihood of its occurrence is marked 6 where as the consequences are 6 as well because
the business will remain closed and suffer loss.
Back up plan for Political situation:
Employees will stay at the workplace and keep working on the strikes day.
Power Breakdown:
There is a great shortage of electricity in Karachi, we won't have any problem with this
issue at the shop located in PC but the place where the production is taking place will
stop if electricity is not there. The likelihood is 7 and consequences are 8.
Backup plan for power breakdown:
We will have a complete arrangement of generator by which on only the sewing
machines will work but the relates items needed such as iron etc will also work.

Exit Strategy:
Every business has chances of having problems once it comes into existence, as our business is
not a very complicated so if it faces any problem we will have backup plan for handling the
situation. Following can be the problems that our business can face:
Copy of Designs:
As the concept of our business is uniqueness so it will be necessary for us to protect our designs
from getting copied because if they will be copied they will their value.
Changing fashion and trends:
As the fashion industry is changing day by day and new fashions are coming in so it can be
possible that if we dont design according to changing fashions we will have to close down
because no one will be willing to buy old designs.
Culture and Environment:
As we are making clothes also for people who are modern and wear western type of clothing,
which is not our culture, so this might create a problem for us from the side of religious extremist
Political instability:

Page 26 of 53

As there is a lot of political instability in our country so this might affect business by the strikes
and other issues.
Back up Plans:
Copy of Designs:
For saving our designs we will not hang all the designs in our outlet and mostly make clothes on
order. We will not print any catalogue or booklets through which people can copy our designs and
even the ads in the magazine will be animated so that no
One can copy our designs.
Changing fashion and trends:
As we have stepped into this business so we are prepared for this changing fashions and trends so
to overcome this problem we will be looking all upcoming and current fashion trends in detail
and design our collection according to that. Furthermore we will also send our designer abroad
for training and development.

Culture and Environment:

To save from the consequences of any party which may go against our western design we will not
advertise revealing dresses.
Political instability:
As there would be strikes due to political unrest our shop is in PC so it would hardly affect our
business and we will also tell the workers to stay in the working area and work there even if its
holiday in this way our production will not stop and we will also deliver the clothes to the client if
the situation allows us.
Fight or Flight:
As our business is not a very complicated one so the problem it will face will also be manageable
and as we have made back up plans so we will fight if any such problem arises.

Milestone:
June 01: Designing of clothes will be started.
June 30: Purchasing fixed assets of stitching unit
July 1: Stitching building
July 15: Fashion Show

Page 27 of 53

July 16: Billboards & shop availability

July 17-29: Renovation of shop
July 28: Newsletters to people about opening on 1st July and others ads
Aug 1: Inauguration party Facebook ads and other promotions.

Page 28 of 53

Financials and
Sales Figures:

Page 29 of 53

Initial Investment
initial Balance sheet
Assets
Fixed Assets

Cash for Marketing

Rent Advance
for Material

Total

Amortization of Loan

Liabilities
1,661,300
Loan

80%

4,106,096

Capital

20%

1,026,524

3,058,100
261,000
152219.9333

5,132,620

Total

5,132,620

Page 30 of 53
Loan Amount

4,106,096

Tenure

Rate

16%

Discount Factor

3.2743

Installment Amount

1254040

Formula
Year

IA

Interest

Payments

P.Remainig

4,106,096

1,254,040

656,975

597,065

3,509,031

1,254,040

561,445

692,595

2,816,436

1,254,040

450,630

803,410

2,013,025

1,254,040

322,084

931,956

1,081,069

1,254,040

172,971

1,081,069

Page 31 of 53

Partners Share
Equity Holder
Partner 1
Partner 2
Partner 3

%
35%
35%
30%

Total

100%

Share
359,283
359,283
307,957
1,026,52
4

2010-2011
72,399
72,399
62,056
206,853

Yearly Share
2011-2012
2012-2013
2013-2014
1,246,673
2,052,767
3,337,691
1,246,673
2,052,767
3,337,691
1,068,577
1,759,515
2,860,878
3,561,923

5,865,050

Fixed Asset
Stiching Asset

Unit

Rate

Amount

Life

Depreciatio
n

Monthl
y

Sewing Machine single needle

10,000

40,000

8,000

667

Over lock Stitch Machine

50,000

50,000

10,000

833

9,536,261

2014-2015
6,325,648
6,325,648
5,421,984
18,073,279

Page 32 of 53

Acessories

50,000

50,000

Total

23,333

140,000

10,000

833

28,000

2,333

Admin

Unit

Rate

Amount

Life

Depreciation

Monthly

Telephone

2,500

5,000

2,500

208

Computer and Printer

35,000

35,000

11,667

972

Computer (Table and counter

10,000

10,000

5,000

417

Fire System

50,000

50,000

10,000

833

Computers for Designer

50,000

200,000

66,667

5,556

Total

33,333

300,000

95,833

7,986

Shop Asset

Unit

Rate

Amount

Life

Depreciation

Monthly

Energy Savers

80

210

16,800

8,400

700

Security Cameras

56,000

168,000

56,000

4,667

Page 33 of 53
L.C.D 52"*

228,500

228,500

45,700

3,808

Sound System*

50,000

50,000

10,000

833

Shelves

10,000

30,000

6,000

500

Display Shelves

14,000

56,000

18,667

1,556

Dummy

8,000

48,000

9,600

800

Interior renovations

500,000

500,000

250,000

20,833

Suit Iron

70,000

70,000

17,500

1,458

Ac

27,000

54,000

18,000

1,500

Total

102

11,974

1,221,300

439,867

36,656

Grand Total

117

14,199

1,661,300

Expense for 2010-2011

2010-2011
manufacturing

Cost

Monthly

Yearly

Allocation

Labor

192,000

2,304,000

100%

2,304,000

Oh

116,500

1,398,000

82%

1,140,000

Op&Selling

346,508

4,158,100

0%

563,700

46,975

Page 34 of 53

Depreciation
Total

36,656

439,867

80%

351,893

655,008

7,860,100

44%

3,444,000

2010-2011
Cost

Monthly

Yearly

Allocation

Labor

192,000

2,304,000

0%

Oh

116,500

1,398,000

18%

258,000

Op&Selling

346,508

4,158,100

100%

4,158,100

Depreciation

36,656

439,867

20%

87,973

655,008

7,860,100

56%

4,416,100

Admin

Total

Expense for 2011-2012

2011-2012
Cost

Yearly

Allocation

Labor

2,534,400

100%

2,534,400

Oh

1,537,800

82%

1,254,000

Op&Selling

1,486,200

0%

Depreciation

563,700

80%

450,960

manufacturing

Page 35 of 53

Total

5,558,400

68%

3,788,400

2011-2012
Cost

Yearly

Allocation

Labor

2,534,400

0%

Oh

1,537,800

18%

283,800

Op&Selling

1,486,200

100%

1,486,200

Depreciation

563,700

20%

112,740

5,558,400

32%

1,770,000

Admin

Total

Expense for 2012-2013

2012-2013
Cost

Yearly

Allocation

Labor

2,787,840

100%

2,787,840

Oh

1,691,580

82%

1,379,400

Op&Selling

1,534,820

0%

Depreciation

567,700

80%

454,160

6,014,240

69%

4,167,240

manufacturing

Total

Page 36 of 53

2012-2013
Cost

Yearly

Allocation

Labor

2,787,840

0%

Oh

1,691,580

18%

312,180

Op&Selling

1,534,820

100%

1,534,820

Depreciation

567,700

20%

113,540

6,014,240

31%

1,847,000

Admin

Total

Expense for 2013-2014

2013-2014
Cost

Yearly

Allocation

Labor

3,066,624

100%

3,066,624

Oh

1,860,738

82%

1,517,340

Op&Selling

1,588,302

0%

Depreciation

567,700

80%

454,160

6,515,664

70%

4,583,964

manufacturing

Total

2013-2014

Page 37 of 53

Cost

Yearly

Allocation

Labor

3,066,624

0%

Oh

1,860,738

18%

343,398

Op&Selling

1,588,302

100%

1,588,302

Depreciation

567,700

20%

113,540

6,515,664

30%

1,931,700

Admin

Total

Expense for the Year 2014-2015

2014-2015
Cost

Yearly

Allocation

Labor

3,373,286

100%

3,373,286

Oh

2,046,812

82%

1,669,074

Op&Selling

1,647,132

0%

Depreciation

571,700

80%

457,360

7,067,230

71%

5,042,360

manufacturing

Total

2011
Admin

Cost

Yearly

Allocation

Page 38 of 53

Labor

3,373,286

0%

Oh

2,046,812

18%

377,738

Op&Selling

1,647,132

100%

1,647,132

Depreciation

571,700

20%

114,340

7,067,230

29%

2,024,870

Total

Product Detail:
Product Details
Serial #

Name

Category

Type

Description

Royal Formal Valvet

Collection

Formal

Type1

Valvet Used for Shirt and shalwar is from (Cotton, Silk and Gourgette) and dupatta is of (Cotton, Silk and
Gourgette)

Royal Formal Gourgette

Collection

Formal

Type2

Gourgette Used for Shirt and shalwar is from (Silk and Gourgette) and dupatta is of Gorjette

Royal Formal Shffon

Collection

Formal

Type3

Shiffon Used for Shirt plus slip (Shameez) and shalwar is from (Silk and Gourgette) and dupatta is of Shifon

Royal Formal Cotton

Collection

Formal

Type4

All Shirt, Shalwar and Duppata is from cotton

Royal Formal Silk Collection

Formal

Type5

Silk Used for Shirt plus slip (Shameez) and shalwar is from (Silk) and dupatta is of Shiffon and Gourgette

Royal Formal PC Collection

Formal

Type6

All Shirt, Shalwar and Duppata is from polyester cotton

Page 39 of 53

Royal Formal Crepe

Collection

Formal

Type7

Crepe Used for Shirt and shalwar is from (Gourgette) and dupatta is of Gourgette and Shiffon

Royal Formal Organza

Collection

Formal

Type8

Organza Used for Shirt plus Slip and shalwar is from Silk, Gourgette and cotton and dupatta is of Gourgette,
Silk and Shiffon

Royal Casual Cotton

Casual

Type1

Cotton Used for Top

10

Royal Casual Lillen

Casual

Type2

Lillen Used for Top

11

Name
Royal Casual Crepe

Category
Casual

Type
Type3

Crepe Used for Top

12

Royal Party Valvet

Partwear

Type1

Short Dress

13

Royal party Silk

Partwear

Type2

Mexi

14

Royal party Crepe

Partwear

Type3

Mexi

15

Royal party Organza

Partwear

Type4

Mexi

16

Royal Bridal Fashion

Bridal

Type1

Avg price of Fabric, Stones, Heaby Thread, Ulta Light Work

17

Royal Traditional Bridal

Bridal

Type2

Avg price of Fabric, Stones, Heaby Thread, Light Work

18

Royal Classical Bridal

Bridal

Type3

Avg price of Fabric, Stones, Heaby Thread, Medium Work

19

Royal Modern Bridal

Bridal

Type4

Avg price of Fabric, Stones, Heaby Thread, Heavy Work

Serial #

Description

Page 40 of 53

Cost Summary of 1st Year:

Year1

Type1

Type2

Type3

Type4

Formal

2379

1832

2470

Casual

599

696

746

2113

1993

1553

27590

27122

27122

Partywear
Brdial

Type5
2300

Type6
1492

Type7
1492

Type8
1662

Total
1662

Avg
15288

1911

2041

680

1773

7430

1858

27392

109224

27306

Page 41 of 53

Production Capacity:
For stitching unit
From

To
12:30:00 PM

From
5:00:00 PM

To

5:30:00 PM

Total Hours
10.00

11:00:00 PM

For shop
From

To
12:30:00 PM

From
5:00:00 PM

Unit
Formal

To

5:30:00 PM
Per day

Total Hours
9.00

10:00:00 PM
Discription

0.015

13.0

260

Hours

Casual

PartyWear

0.01

Bridal

0.01

Total machines

Working hrs 1month

0.01

9
20

hours

36

hours

29

Casual in a month

26

days in month

29

Partywear

hours
fomal in a month

Page 42 of 53

Maximum Production:

50% increae
Production

Year 10-11

year 11-12

year 12-13

50% increae
year 13-14

year 14-15

Formal

296

296

444

444

592

Casual

416

416

624

624

832

Party Wear

347

347

520

520

693

49

49

74

74

98

1108

1108

1662

1662

2216

Bridal
Total

Page 43 of 53

Sales Strategy:
We sale according to the demand pattern
Since we assume that 2% of our target will be our 1year customer from there it will increase

Target Market

52,497

2%

850

Year 10-11

year 11-12

year 12-13

year 13-14

year 14-15

850

1000

1200

1500

2200

Production

1108

1108

1662

1662

2216

Sales %

77%

90%

72%

90%

99%

Sales

Page 44 of 53

Sales Units:

Summary

Year 10-11

year 11-12

year 12-13

year 13-14

year 14-15

Formal

227

267

321

401

588

Casual

319

376

451

563

826

Partywear

266

313

376

469

688

38

44

53

66

98

Bridal

Page 45 of 53

Revenue Year1:

Year 1

1. Year One Revenue Expectancy

Formal

Casual

PartyWear

Bridal

Annual revenue per financial product

PKR 1,805,615

PKR 1,063,992

PKR 2,580,181

PKR 6,123,495

Total year one product (noninterest) revenue

PKR 11,573,283

3. Annual Tax Rate

Revenue Year 2

35%

Page 46 of 53

Year 2

1. Year One Revenue Expectancy

Formal

Casual

PartyWear

Bridal

Annual revenue per financial product

PKR 2,336,678

PKR 1,376,931

PKR 3,339,057

PKR 7,924,524

Total year one product (noninterest) revenue

PKR 14,977,190

3. Annual Tax Rate

Year 3:

35%

Page 47 of 53
Year 3

1. Year One Revenue Expectancy

Formal

Casual

PartyWear

Bridal

Annual revenue per financial product

PKR 3,084,415

PKR 1,817,549

PKR 4,407,555

PKR 10,460,371

Total year one product (noninterest) revenue

PKR 19,769,890

3. Annual Tax Rate

Year 4:
Year 4

35%

Page 48 of 53
1. Year One Revenue Expectancy

Formal

Casual

PartyWear

Bridal

Annual revenue per financial product

PKR 4,241,071

PKR 2,499,129

PKR 6,060,389

PKR 14,383,010

Total year one product (noninterest) revenue

PKR 27,183,599

3. Annual Tax Rate

Year 5:

Year 5

35%

Page 49 of 53
1. Year One Revenue Expectancy

Formal

Casual

PartyWear

Bridal

Annual revenue per financial product

PKR 6,842,261

PKR 4,031,929

PKR 9,777,427

PKR 23,204,590

Total year one product (noninterest) revenue

PKR 43,856,206

3. Annual Tax Rate

35%

Profit and Loss Statement:

Months

Year 10-11

year 11-12

year 12-13

year 13-14

year 14-15

Revenues
Formal

1,805,615

2,336,678

3,084,415

4,241,071

6,842,261

Casual

1,063,992

1,376,931

1,817,549

2,499,129

4,031,929

Page 50 of 53
PartyWear

2,580,181

3,339,057

4,407,555

6,060,389

9,777,427

Bridal

6,123,495

7,924,524

10,460,371

14,383,010

23,204,590

11,573,283

14,977,190

19,769,890

27,183,599

43,856,206

Formal

434,018

561,670

741,404

1,019,431

1,644,682

Casual

217,187

281,066

371,007

510,135

823,017

PartyWear

494,091

639,412

844,024

1,160,533

1,872,327

Bridal

1,028,975

1,331,615

1,757,732

2,416,881

3,899,235

Total COGS

2,174,271

2,813,763

3,714,167

5,106,980

8,239,261

9,399,011

12,163,427

16,055,723

22,076,619

35,616,946

Labor Cost

2,304,000

2,534,400

2,787,840

3,066,624

3,373,286

OH

1,398,000

1,537,800

1,691,580

1,860,738

2,046,812

Marketing

4,158,100

1,486,200

1,534,820

1,588,302

1,647,132

563,700

563,700

567,700

567,700

571,700

975,211

6,041,327

9,473,783

14,993,255

27,978,015

656,975

561,445

450,630

322,084

172,971

318,236

5,479,882

9,023,153

14,671,171

27,805,044

111,383

1,917,959

3,158,104

5,134,910

9,731,765

Total Sales
Less COGS

Gross Profit
Less Expenses

Depreciation
EBIT
Less Interest
EBT
less Tax

Page 51 of 53

EAT/ Net Income

206,853

3,561,923

5,865,050

9,536,261

18,073,279

Balance Sheet:
Assets
Current Assets
Cash
Secuirity
Total current assets
Fixed (Long-Term) Assets
Other Fixed Asset
Depreciation
Net Worth
Total fixed assets

yr 2010-2011

yr 2011-2012

yr 2012-2013

yr 2013-2014

yr 2014-2015

3,382,748
261,000
3,643,748

6,788,227
261,000
7,049,227

11,675,859
261,000
11,936,859

20,022,785
261,000
20,283,785

36,444,302
261,000
36,705,302

1,661,300
563,700
1,097,600

1,097,600
563,700
533,900

1,085,700
567,700
518,000

1,031,000
567,700
463,300

1,085,100
571,700
513,400

4,741,348

7,583,127

12,454,859

20,747,085

37,218,702

Page 52 of 53

Total Assets

4,741,348

7,583,127

12,454,859

20,747,085

37,218,702

9,282
9,282

159,830
159,830

263,175
263,175

427,909
427,909

810,980
810,980

4,106,096
597,065
3,509,031
3,509,031

3,509,031
692,595
2,816,436
2,816,436

2,816,436
803,410
2,013,025
2,013,025

2,013,025
931,956
1,081,069
1,081,069

1,081,069
1,081,069
-

1,026,524
206,853
(10,343)
1,223,035

1,223,035
3,561,923
(178,096)
4,606,862

4,606,862
5,865,050
(293,252)
10,178,659

10,178,659
9,536,261
(476,813)
19,238,107

19,238,107
18,073,279
(903,664)
36,407,722

4,741,348

7,583,127

12,454,859

20,747,085

37,218,702

Liabilities and Owner's Equity

Current Liabilities
Tax Payable
Total current liabilities
Long-Term Liabilities
Long-term debt
Less Payment
Net Worth
Total long-term liabilities
Owner's Equity
Owner's Capital
Retained earnings
Drawings
Owners Equity
Total Liabilities and Owner's Equity

NPV:
Initial Year

2010-2011

2011-2012

2012-2013

2013-2014

2014-2015

-5132620

-551800

-513000

-621800

-5132619.933

-551800

-513000

-621800

Net profit

206,853

3,561,923

5,865,050

9,536,261

18,073,279

add: dep

563,700

563,700

567,700

567,700

571,700

770,553

4,125,623

6,432,750

10,103,961

18,644,979

Increase in C.L

9,282

150,548

103,345

164,734

5,863,415

Payment of loan

-597065

-692595

-803410

-931956

-1296836

182,770

3,031,776

5,219,685

8,714,939

23,211,558

Investment
C.f from Investing Activities

Ocf

NCF

-5,132,620

Page 53 of 53
Wacc Disc Use 17.52
DCF
II

1.00000

0.85092

0.72406

0.61612

0.52427

0.44611

(5132620)

155523

2195197

3215947

4568959

10354887

(5,132,620)

IRR

DCF

20490513

67%

68%

NPV

$15,357,893

92078.79318

-20364.82384

IRR

67.82

Profit Index

3.99

%+ (H.V-0) / (H.v-L.v)
IRR

67.82