Table of Contents

1. INTRODUCTION......................................................................................................................................2
1.1 FIRM’S NAME............................................................................................................................................2
1.2 FIRM’S SPONSOR........................................................................................................................................2
1.3 FIRM’S LOCATION......................................................................................................................................2
1.4 OPPORTUNITY RATIONALE............................................................................................................................3
2. TECHNICAL ASPECTS...........................................................................................................................3
2.1 PRODUCTS................................................................................................................................................3
2.2 PRODUCT MIX...........................................................................................................................................4
2.3 EQUIPMENT & MACHINERY........................................................................................................................4
2.4 FURNITURE & FIXTURES............................................................................................................................4
2.5 LOCATION & SIZE.....................................................................................................................................5
2.6 BUILDING & FACILITIES.............................................................................................................................5
3. SOCIAL & REGIONAL ASPECTS.........................................................................................................6
3.1 HUMAN RESOURC REQUIREMENT..............................................................................................6
3.2 LEGAL REQUIREMENTS...............................................................................................................................6
4. MANAGERIAL ASPECTS.......................................................................................................................7
4.1 MANAGEMENT CONVENIENCE......................................................................................................................7
4.2 MANAGEMENT STRUCTURE.........................................................................................................................7
5. FINANCIAL ASPECTS............................................................................................................................7
5.1 SOURCES OF CAPITAL................................................................................................................................7
5.2 ESTIMATED BENEFIT..................................................................................................................................7
6. ECONOMICAL ASPECTS.....................................................................................................................8
6.1 ONE TIME COST ......................................................................................................................................8
6.2 MONTHLY COST.......................................................................................................................................8
6.3 YEARLY COST..........................................................................................................................................9
6.4 PRICING...................................................................................................................................................9
7. ENVIRONMENTAL ASPECTS...............................................................................................................9
7.1 NATIONAL ANALYSIS.................................................................................................................................9
 GENERAL DEPARTMENTAL STORE
PROJECT SUMMARY

1. INTRODUCTION

This particular feasibility is regarding General Departmental Store, which comes

under rural area for the people of Islamabad where the lowest income group of
people are living. This rural area has huge population there is no big “General
Departmental Store” where each and every type of products are available.
People to go far different places to fulfill our needs which is a big problem for the
residential rural area. So, the objective of the feasibility is primarily to facilitate
potential entrepreneurs in project identification for investment and in order to
serve this objective; the document covers various aspects of the project concept
development, startup, marketing, and finance and business management.

1.1 Firm’s Name

The proposed name of the firm is "GENETRAL DEPARTMENTAL STORE". The
owner will register the firm with the Federal body and also with the Provincial and
Local Government body if needed. The firm will be registered as single
proprietorship. General Departmental store is a large retail store organized into
departments offering a variety of merchandize, commonly part of retail chain
under one roof.

1.2 Firm’s Sponsor

The firm has single owner whose name is "Raja Gul Zuhrab". He will self sponsor
the business if estimated cost is blow or up to Five Million Rupees (50 Lac). If the
cost is above that limit he will get loan from Bank/Financial Institution, Corporate
body etc.

1.3 Firm’s Location

The departmental store should be centrally and conveniently located within rural
area (Ali Pur Farash) of Islamabad.
1.4 Opportunity rationale
In Pakistan concept of departmental store has gained popularity in late eighties
after the emergence of UTILITY STORES by the government. Though due to
lack of proper management and planning but private sector made it one of the
successful businesses in Pakistan. Public has liked this concept due to the
availability of all basic utilities under one roof which saves their time about which
people are more conscious these days. The factors that make this project viable
in Pakistan are:
• Easy access to wholesale markets
• Plentiful availability of resources/salesman
• No process/transformation involve
• No specialized/technical knowledge required for entrepreneur
• Variety of goods under one roof
• Margin for innovation
• Easy diversification towards new product mix

2. TECHNICAL ASPECTS

In this section, I will discuss the products, services, furniture & fixtures, shop
location & size and building & facilities of my business including their requirements
with estimated costs.

2.1 Products
The proposed General Departmental Store will provide variety of goods ranges
from grocery to garments and alike to customers under one roof. The proposed
project is a single floor departmental store on an area of approximately 3000 sq.
ft. The project will offer following broad categories of goods to its customers:
• Groceries and food items
• Fruits and vegetables
• Crockery and plastic items
• Soaps detergents and chemicals
• General items
 2.2 Product mix
The store will offer the following broad categories of goods to its customer:
Category of item Proportion Average Gross Margin

Groceries and food items 55% 30%

Crockery and plastic items 8% 10%
Soaps detergents and chemicals 3% 10%

Fruits and vegetables 40% 15%

General items 4% 15%

2.3 Equipment & Machinery

Electronic Equipment Brand Description Amount

Air Conditioners LG 1 unit 30,000

Computer Intel 1 unit 25,000
Printer HP Laser jet 1 unit 10,000
Fans Royal 4 unit 10,000
Photocopy Machine Samsung 1 unit 12,000
Telephone Set Ptcl 2 units 2,000
UPS Korea 2 units 15,000
Heaters 2 units 6,000
Total Equipment & Machinery Rs. 110,000

2.4 Furniture & Fixtures

Office Equipment Description Amount

Showcases 6 units 100,000

Cabinets 5 units 40,000
Chairs 10 units 12,000
Doors 2 units 10,000
Tables 5 units 15,000

Total Furniture & Fixtures Rs. 177,000

 2.5 Location & Size
This store will be open in easily access able place for each and everyone.
Location of stores is of primary concern with any retail organization. Spending
time and money wisely in the process of site selection is of primary importance.
For this purpose the store will open in Ali Pur Farash, rural area Islamabad.

2.6 Building & Facilities

The proposed shop will be on Ground floor of main road on Ali Pur Farash,
having total size 3,000 sq ft with estimated rent of 20,000 Rupees per month.

The proposed project building & facilities will have following one time cost.
S. No Description Amount
1. Shop Security 100,000
2. Decoration 200,000
3. Wiring 40,000
4. Other construction 10,000
Total Rs.350,000

2.7 Market Analysis

Regular market analysis is required for a successful business of departmental
store. The important marketing channels would be used for marketing billboards,
signboards etc. Regular advertisement expense should be at least 0.5% to 1% of
sales in the departmental store business. Some marketing and promotional tips
are as under:
• Existing customers are best referrals.
• Know customers’ needs.
• Introduce home delivery services.
• Frequent clearance sales
 3. SOCIAL & REGIONAL ASPECTS

In this section, I will discuss the job opportunities/hiring requirements, Hunam

Resource requirement/labor requirements and legal requirements with their
estimated costs.

3.1 HUMAN RESOURC REQUIREMENT

Skilled salesmen are easily available at competitive wage rates. Number of
workers required for each department is given below:
Positions Number Salary/Month Annual Salary
Manager 1 15,000 180,000

Salesmen 10 4,500 540,000

Cashiers 2 8,000 192,000

Helpers/Cleaners 2 4,000 96,000

Accounts officer 1 8,000 96,000

Security Guard 1 4,500 54,000

Total 17 96,500 1,158,000

3.2 Legal Requirements

Firm must complete following legal requirements
1. Business Tax Registration (NTN Number)
2. Firm Name Registration
3. Registration with Computer Bureau
4. Shop Permit from local Body
Estimated Registration Cost will be as following
Requirement Fee

NTN Registration 10,000

Firm Name Registration 20,000
Computer Bureau Registration 10,000
Shop Permit 25,000
Total Registration Fee Rs. 65,000
 4. MANAGERIAL ASPECTS

In this section, I will discuss the convenience and structure of the management.

4.1 Management Convenience

All the three location under observation are convenient with respect to
3. Labor is also easily available
4. Monitoring is easy
5. Route from supplier to store is good one
6. Supply vehicle can reach store easily

4.2 Management Structure

Management structure of the shop is very simple because there is only one
Manager that is also the boss as well as owner of the company. All management
activities are under his control. He will have 16 staff members under his authority,
all of them are for specific purposes like salesman, cashier, helper, account
officer, security guard.

5. FINANCIAL ASPECTS

In this section, I will discuss the cost of starting the business, monthly
expenditures and annual expenditures

5.1 Sources of Capital

The owner of the company has enough money of 5 Million Rupees (50 lac) to
open and support the business. But some alternatives are also listed if there is a
need of capital.
1. Self financing by Owners’ equity
2. Bank financing by NBP on 10% annual interest rate
3. Bank financing by MCB on 12% annual interest rate

5.2 Estimated Benefit

The owner expects 1 lac profit per month for that purpose with average profit
margin of 20%. Shop must have monthly sales revenue of 5 lac.
 6. ECONOMICAL ASPECTS

In this section, I will discuss the cost of starting the business, monthly
expenditures, annual expenditures and product & service pricing.

6.1 One Time Cost

The proposed project is going to have following one time starting cost.
Description Amount
Product Supplier Security 2,000,000
Shop Security & Other Charges 1,250,000
Equipment & Machinery Cost 120,000
Furniture & Fixture Cost 177,000
Building & Facilities Cost 10,000
Registration Cost 65,000
Total (OTC) Rs. 3,622,000

6.2 Monthly Cost

The proposed project is going to have following monthly estimated expenditures.
Description Amount

Salary Payment (17 Persons) 96,500

Rent Per Month 40,000
Electricity Bill 4,000
Internet Bill 1,000
Phone Bill 2,000
Stationary Bill 1,000
Water Bill 1,000
Rent of Building 15,000
Total (OTC) Rs. 160,500
 6.3 Yearly Cost
The proposed project is going to have following yearly estimated expenditures.
Description Amount

Business Tax 15,000

Shop License Fee 5,000

Total (OTC) Rs. 20,000

6.4 Pricing
I will try to use economical price policy for sale with average 20% profit margin.

7. ENVIRONMENTAL ASPECTS

7.1 National Analysis

Departmental stores business is emerging as one of the good business ventures
in Pakistan as it provides all the basic merchandise under one roof.
In late eighties a paradigm shift in grocery store science occurred. The concept
of the "Self-Serving Store" was started. Customers entered the revolutionary
store and walked through a narrow maze of shelves containing groceries. They
selected their goods as they continued through the maze to a cashier.
This phenomenon grew rapidly; and today thousands of stores exist in the big
cities.These stores also began to offer products beyond the normal scope of the
dry-good grocery store. They added meat, dairy, fruit and vegetables, and breads
to their offerings (which had formerly been offered by individual stores such as
butchers,bakeries, and the "milk man").
Over the decades, the departmental stores have evolved even further. Now, one
sees that offer greeting cards, flowers, video rental, fast food, childcare, and
much more.