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Business Plan

Of

Establishment of Institute of Personnel


Management

OWNERS
Business Name: Institute of Personnel Management
Address Line 1 PECH Block 2 Main Shahra-e-Faisal
Address Line 2 -----------
City, Karachi
Telephone 0346-3645613 / 0334-3098661
Fax ---------------
E-Mail ahmed_israr01@yahoo.com, initiators_dihe@yahoogroups.com

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I. Table of Contents

I. Table of Contents................................................................................................ 2
II. Letter of Transmittal------------------------------------------------------------------- 4
III. Executive Summary............................................................................................ 5
IV. General Company Description........................................................................... 6
a. Introduction
b. Mission & Short Term Goals
V. Products and Services........................................................................................ 7
a. Types of services
b. Level of training
c. Courses
d. Courses of PGD
e. Duration
f. Criteria of selection
g. Customer need analysis
h. Fee structure
i. Special features
VI. Marketing Plan.................................................................................................. 10
a. Market research-why?
b. Market research How?
c. SWOT analysis
d. Economics
e. Competition
f. Competitive advantage
g. Competitive disadvantages
h. 4 P’s
i. Sales forecast
VII. Operational Plan................................................................................................ 20
a. Production
b. Access
c. Legal environment
d. Personnel

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e. suppliers
VIII. Management and Organization......................................................................... 22
a. Board of Directors
b. Board of Faculty
c. Board of Attorney
d. Insurance Agent
e. Auditor
f. Banker
IX. Startup Expenses and Capitalization................................................................. 24
X. Financial Plan.................................................................................................... 25

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Letter of Transmittal

August 16, 2008


Mr. Shahbaz Ali Baig
Director EDC,
Dadahbhoy Institute of Higher Education.
Karachi

Dear Sir:

We have been authorized to complete this project report titled as per subject of Entrepreneurship
requirement.

We are submitting the Project report on “Establishment of Institute of Personnel Management (IPM)”
with the hope that it fully meets all the requirements set forth by you.

Sincerely

Israr Ahmed (Team Leader)


Initiators Group
Students of Entrepreneurship
MBA IV
Dadahbhoy Institute of Higher Education

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II. Executive Summary

Institute of Personnel Management is an Institute to provide training to business


executives and employees as well as PGD certifications to the individuals with
Internship. It works on two operational plains first is to charge annual charges against
the number of employees trained from any organization, second is to charge per course
fee as to certifications and PGDs to Individuals.

Basically IPM starts as a small business in Service sector with the start up
investment up to 10 millions by the economies of scale and lower capital investment is
to maximize their profit with maintaining the standard of services.

The institute is run by group of members who are expert in their respective fields
(Finance, Marketing, Administration, Operation, and Information Technology). With
the 60% sharing of profit to the investor, who invest fully and enjoy 60% of profit
without taking any part in the operations.

In the first 6 months is to run only evening classes for training to three
organizations in one time with the hiring of professional trainers from that particular
organizations to whom training is conducted. After 6 months IPM starts certifications
and PGDs for the individuals in the morning session.

IPM exists as a new entrant in the competitive market in which many


Government and Private institutions are working as a quality providers but the IPM
only one Institute in which individuals and organizations both satisfying\ their needs.
From the comparative analysis, IPM has more then 60% strengths and opportunities on
the competitors which are the sigh of growth in future.

Institute of Personnel Management is an Entrepreneurial Business, who enjoys


mote than 35% of profit against the investment in start up and projected up to 40% in
next 2-3 years.

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IV. General Description of Institute
1. An Overview of Our Project:
INTRODUCTION:
The IPM (Institute of Personnel Management) would be established in 2008, a fully Chartered
Institute established through a Legislative Act of the Pakistan Assembly and recognized by the
Higher Education Commission (HEC), Pakistan, as a degree granting institution. The Institute
will provide Individuals as well as Professionals, the PGD (Post Graduate Degree) & Trainings
in different Sectors like Banking, Insurance, Trading and Manufacturing Industries, with the
association of all Business sectors who requires Training and Development for their
Professionals & Employees. These businesses and industries acts as the trusties and listed
members of the institute.

All these trainings provided by the large number of Pakistani’s and foreign faculty members,
based on permanent and visiting faculty. These training has two parts first is theory based
including lectures, seminars & workshops and second part is practical implementation in that
particular sector from where the candidates belongs.

The IPM also offers programs in day as well as an Evening Program starting to cater to the needs
of the numerous working executives and managers who are interesting in furthering their careers
through Entrepreneurs, full & part-time business studies.

The Center for Computer Studies in IPM would also be established with the collaboration of
IBM, Pakistan. It initially offered certification and trainings in System Analysis to overcome a
shortage of Software Professionals in the Country.

MISSON (Short Term Goals):


The Institute of Personnel Management is establishing with the objectives of producing highly
qualified, and trained technical personnel to meet the industry, business requirements; in
support of the private and public sector, of providing hi-tech scientific and technological
assistance to the Pakistan industry to enable it to compete with the world industries in global
trading and infrastructure to Pakistan to be able to meet the economic and technological
challenges.

We have to cover all large business organizations which are listed in the stock exchange and
have large numbers of expenses on recruitment and trainings. In the 1st year, we offer PGD &
training to some specific industries from Insurance, banking, trading and manufacturing
sectors.

In the next 2, 3 years we spread out the profile of industry to whom we provide services.

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V. Products and Services

TYPES OF SERVICES:
IPM offers PGD and trainings in following four disciplines.
1. Services
2. Trading
3. Manufacturing

LEVELS OF TRAINING:
1. Lower level management
2. Middle level management.
3. Upper level management.
Courses:
In services sector we offer the following courses:

1. Project cycle management


2. Branch Banking operation (General banking)
3. Property and liability insurance principles
4. Foundation of insurance production
5. Multiple lines insurance production
6. Commercial General Liability
7. How insurance works
8. Ethics for the insurance professionals
9. Advanced equity analysis
10.Financial modeling for mergers and acquisitions
11.Credit scoring model validation and stress testing
12.Emerging market risk analysis
13.Risk management for Basel II
14.Validation ,testing and database construction for Basel II
15.Advanced interest rate risk management
16.Derivative counter party risk and collateral management
17.Managing and measuring operational risk
18.CDO Rating and cash flow modeling
19.Treasury risk management
20.IT security
21.Data warehousing
22.JAVA and advanced JAVA
23. Detecting Bank Counterfeit and Forgery
24. Banking Fraud and Embezzlement
25. Intensive Bank Analysis Community & Regional Banks
26. Early Warning Signals in Insurance Companies

In Manufacturing and trading sector we offer the following courses:

1. Introduction to Software Quality Management


2. Supplier Quality Assurance
3. Strategic Quality Planning

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4. Software Configuration Management(IEEE 828)
5. ISO 9000 & Software Audits
6. Supply Chain Management and e-Procurement
7. Using Supply Chain Management Models
8. Occupational Health & Safety Certificate IV
9. Introduction to RTW (Return to Work) Coordination
10. OHS Risk Management for Supervisors and Managers
11. Managing the Transition to a Value Chain
12. Deploying Six Sigma
13. Value Chain Management Series
14. Total Quality Management Series
15. Geometric Dimensioning
16. Shop Floor Operator courses
17. Logistics Management

Courses of PGD
1. Critical Skills Series Effective Decision Making
2. Business Process Analysis and Optimization
3. Contract Management
4. IT Networking & System Administration
5. Leadership and Development
6. Project Management
7. How the Financial Markets Work
8. Managing and Measuring Operational Risk
9. Mergers & Acquisitions
10. Credit Risk Management
11. Fixed Income Instruments
12. Advanced Interest Rate Risk Management
13. Foreign Exchange

Duration:
We offer 3 courses as per certificate and training duration of certificate are 3 months,
and for training 45 days for business employs. Leads to the certificate additional 3 courses we offer
for PGD, duration is 6 moths.
Four days a week classes in the evening (6-9 p.m) and on Sunday ( 9 a.m to 3 p.m).

Criteria of selection:
Our criteria of selection in the case of corporate bodies are that we only
offer training to listed companies and in the case of individuals we judge them on the basis of aptitude
test.

Customer Needs Analysis:


IPM not only offers the above courses but it also offer courses
as per needs of customer.

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Fee Structure:
Training course
45 days training course for business employees
For any business organization Rs. 1.5 million per year for 120 employs (20 x 6 batches)

Certificate courses
3 Months course
30 Grade Points per course = total 90 grade points.
Per course = Rs. 8,000/= (8000X3)
Registration Fees = Rs. 6,000/=
Total Fee = RS. 30,000/=

PGD 6 months 30 points per course = Total 180 points

Per course Rs. 8,000 (8000X6)


Registration Fees Rs. 6,000
Total Fee RS. 54,000

If the student pays total amount of Rs. 54,000, the IPM will provide 7% to the student.

Special Features:
The special feature of IPM is that the trainee is awarded by a certificate after
the completion of training. Moreover, it also has many unique dimensions such as courses being
offered in IPM are rare in Pakistan. And we are offering courses in a more systemize manner, and
build professional environment in the Institute. We are offering courses at 3 levels.

1. For junior managers


2. For mid-level managers
3. For senior management

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V. Marketing Plan
Market research - Why?

The purpose of establishing Institute of Personnel Management is to provide skilled, trained and
qualified employees and managers to the businesses. A large number of organizations in Pakistan and
abroad spend hundred of millions annually on the training and development of their employees to
maximize their proficiency but study shows the nominal percentage of employees meets such
requirement which is expected. The basic reason behind the low intention towards training is the
major organization conduct training own in their organizations. Employees does not gets motivation to
attain these trainings because as they think no reward after the training. The IPM not only provide
only the high level training to employees but give him certificate which is recognized and chartered by
the government, and also offer Post Graduate Diploma (PGD) with the internship in particular
organization. That’s why the candidate put their attentions and motivations to us.

On the other hand the organizations those spend their valuable time and money to conduct trainings
and bear higher salaries of trainers and training department. Institute of Personnel Management (IPM)
not only solve their training needs at on spot but also decrease their trainings cost up to 50%.

Market research - How?

Generally Institute of Personnel Management is a new entrant in the competitive market with new
offerings. There are many institutes all over the country offers training and professional courses to the
organizations and individuals, but IPM is one who offers training and PGD in different way.
Mostly students in IPM belong to business organization from four sectors, Banking, Trading, IT
services and Manufacturing as well as individuals.
We offer training to the different organization’s employees and managers with certificates which is
very beneficial for them. Training procedure consist on two parts.
One is based on lectures, workshops and seminars to increase the knowledge and familiar to new
techniques, provided in the Institute by professional trainers.
Second part consists on the practical implementations, including the software usage, techniques
learning, implementation, and on job assessments, based on particular job for which training
conducted. This could be performed by the professional trainer form that particular organization for
which training conducted.

. SWOT Analysis:
Strengths:
• Chartered by Govt. of Sindh
• Ranked as a (A Category) HEC Recognized
• Foreign Qualified Faculty
• Unique Courses
• Infrastructure
• Students Scholarships

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Weaknesses:
• Limited Resources
• Administration
• Cross-functional communication
• Customers counseling
• No transport facility
• Lack of Infrastructure

Opportunities:
• Develop Personnel as assets for Organizations.
• As a training provider institution to Govt. as a chartered University.
• Provide Internship to current students at different organizations.
• Influence of Hi-Tech Education.
• Collaborations with International Training Providing Institutes.

Threats:
• Political Influence
• Inflation
• Attitude towards career
• Threat of International Training Institutes
• Increase in Private numbers of Institutes
• Lower Positioning

Economics
Facts about your industry:
• What is the total size of your market?
We are consisting on organizations and Industries in Karachi in phase 1 (1st year), later on we spread
out our market all over the country.

• What percent share of the market will you have? (This is important only if you think you will be a
major factor in the market.)
In start up we will capture 60% of the market from service sector (Banking and Insurance). After 6
months, we will concentrate on the manufacturing, trading and also individuals students (for whom we
are offering PGD)

• Current demand in target market.


Training is the basic requirement of every organization to maximize their proficiency. As we analyze
through survey that every big organization like Banks and Insurance, etc requires more than 200

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employees to be trained annually, as well as for the other sectors. As individuals are concern, there are
huge number of individuals graduates annually and requires professional training and certifications.

• Trends in target market—growth trends, trends in consumer preferences, and trends in product
development.
Trends plays very important role in the economy of the country and as we know that the growth in the
service sector is 9.6% annually, the growth in the Manufacturing sector is 10.7% annually and the
growth in the Trading sector is 4.6% annually. (Source: Pakistan Times Website.) it create the
opportunity to employment and training.

• Growth potential and opportunity for a business of your size.


Over all Investment is 10 Million in which initially we just start Institute of Personnel Management
with 6 million. After 6 month we extend our training and certification profile with additional
investment of remaining 4 million. We seek approx 35% profit against investment in 6 months and
also it improves with the additional investment.

• What barriers to entry do you face in entering this market with your new company? Some typical
barriers are:
O High capital costs
To reduce this barrier we start IPM with low capital and do not much invest on purchasing the land
and fixed assets.

O High marketing costs


As marketing concern initially we fixed our marketing budget and run 3 months marketing campaign,
to capture our required share.

O Consumer acceptance and brand recognition.


We will conduct open seminars, and workshops at different places to attract our customers, with the
help of our edges over competitors, and additional services that we offer.

O Training and skills


at startup we have low number of qualified professional faculty, that’s why we hire visiting trainers
and professional faculty form that organization to whom we offer services.

O Unique technology and patents


Institute of Personnel Management has to start their services with new technologies and new pattern
of training as to international standard. As we mentioned in the offering section our training and
certification based on two parts one is on the lectures seminars and workshops. And other one based
on the practical implementation of the new techniques that we delivered in the first part of the
training.

Competition

Which institutions will compete with you?


Following institutes will compete with IPM:
1. IBA
2. LUMS

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3. Time lenders
4. Govt. institutions
5. IBP

Major competitors:
Following are the major competitors of IPM:

1. IBA
2. LUMS
3. Time lenders
4. Govt. institutions
5. IBP

How will your products or services compare with the competition?


Table 1:
Competitiv
Competitor Competitor Importance
e Analysis Me Strength Weakness
A B to customer
Factor
IPM will IPM is more
offer important to
training for customer
This factor
all 3sectors. Govt. because it
Service is strength LUMS
i.e.: Institutions offers
for IPM.
Trading, training in
Manufacturi all
ng, service disciplines.
Average This factor Advantage
Time
Price price as to is weakness LUMS of long time
Lenders
competitors. for IPM. existence.
IPM will
This factor Quality
provide Govt.
Quality is strength LUMS proves the
quality Institutions
for IPM. success.
education.
Selects only
listed
companies Hard
and in case selection
This factor
of Govt. provides the
Selection is strength LUMS
individuals Institutions best quality
for IPM
selection of
depends on education.
aptitude
test.

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IPM has
expertise Newly
This factor
but not up Govt. formed &
Expertise is weakness LUMS
to the level Institutions low
for IPM.
of expertise.
competitors.
Newly This factor Low
Company Govt.
formed is weakness LUMS positioning
Reputation Institutions
institution. for IPM. at start up.
This factor
At Shahrah- Govt. Easy access
Location is strength LUMS
e -Faisal Institutions to all.
for IPM
IPM
This factor Start up as a
consists of a Govt.
Appearance is weakness LUMS small
small Institutions
for IPM. business.
building.
Small
At the start number of
This factor
there will Govt. customers
Customer is strength . LUMS
be fewer Institutions with high
for IPM
customers. level of
quality.
Services in
IPM This factor minimum
Sales Time
provides the is strength LUMS time with
Method Lenders
direct sale. for IPM maximum
satisfaction.
-Print media
Competitors
-Bill board This factor
Govt. has already
Advertising -Seminars is weakness LUMS
Institutions established
-E- for IPM.
network
Marketing
Has to build This factor Positioning
Govt.
Image the image in is weakness LUMS built with
Institutions
future. for IPM. the time.

Competitive Advantage:
Following are the competitive advantages of IPM:
1. Offers unique courses
2. Break up of training for 3 levels
3. Offer courses in all 3 sectors

Competitive Disadvantage:

Following are the competitive disadvantages:

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1. Limited resources
2. Lack of infrastructure
3. Need for image building

Niche
Now that we have systematically analyzed our industry, our product, our customers, and the
competition, we should have a clear picture of where our company fits into the world.

Our niche market is banking, Insurance and software companies from service sector and export import
business from trading and large scale manufacturers.

Strategy
Now outline a marketing strategy that is consistent with our niche.

Product
Features and Benefits
BENEFITS:
For individuals
1. IPM Designed To Develop Advanced Management Skills For Frontline And Middle
Managers.
2. EMPLOYMENT OPPORTUNITIES: Graduates are able to seek employment with the
knowledge that their skills are those demanded by industry

3. ASSESSMENT METHODS: Continuous assessment throughout the Course Duration as well


as individual presentations, simulated workplace case studies and exams will be done.

For Industries:
1. A student of the IPM is completely trained and qualified who is fit for the particular job, for
which he is trained is beneficial for that industry.
2. The cost of trainee in IPM is lower as compared to training in industry.
3. We have to provide skilled personnel to the business sector as well as industrial sector, who
have to spend a lot of money and time on employees to recruit & training. After the
completion of study their students should able to work as self managed personnel with that
organization who invests on them.

Customers

Identify your targeted customers, their characteristics, and their geographic locations, otherwise
known as their demographics.
The description will be completely different depending on whether you plan to sell to other businesses
or directly to consumers. If you sell a consumer product, but sell it through a channel of distributors,

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wholesalers, and retailers, you must carefully analyze both the end consumer and the middleman
businesses to which you sell.
You may have more than one customer group. Identify the most important groups. Then, for each
customer group, construct what is called a demographic profile:
• Age
We have two customer groups.
Business organizations: Name age limit at three levels (lower, middle & upper level management).
Individuals who passed graduation with age of 25 – 30 years, to whom we offer PGD.
• Gender
Male & female
• Location
PECHS Karachi.
• Income level
No discrimination of income at business level but for individual 20,000 – 25,000 rupees per month.
• Social class and occupation
Related Form business sector
• Education
Minimum graduation.

Promotion
Total Customer Satisfaction
Customers are at the heart of our success. They have placed their trust and confidence in us. In return,
we strive to anticipate their needs and deliver service, quality and value beyond their expectations.

Business Excellence
IPM strives for excellence in all that we do. We aspire to the highest standards and raise the bar for
ourselves everyday. This commitment to delivering world-class quality translates into unmatched
service and value for our customers and all stakeholders.

Trust & Integrity


At IPM, we take pride in practicing the highest ethical standards in an open and honest environment,
and by honoring our commitments. We take personal responsibility for our actions, and treat everyone
fairly, and with trust and respect.

Respect for People


Our relationships drive our bet education. We respect and esteem our employees and all stakeholders.
We believe in teamwork, empowerment and honor.

Corporate Social Responsibility


IPM recognizes and fulfills our responsibility towards our country and the environment we operate
in. We contribute to worthy causes and are dedicated to the development and progress of the society.

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PROMOTIONAL BUDGET (TOTAL BUDGET

For E-Marketing Web Site RS. 50,000/=

PRINT MEDIA (FOR 6 MONTHS) RS.200, 000/=

(SUNDAY NEWSPAPER)

BILL BOARD EXPENSE RS.180, 000/=

(SHAHRA-E-FAISAL,I.I. CHUNDRIGAR

NIPA)

COST OF PROSPECTIS (1000 Copies) RS.100.000/=

SEMINAR (FOR CORPORATE SECTOR) RS.100.000/=

PRICING
3 Months
30 Grade Points per course = total 90 grade points.
Per course = Rs. 8,000/= (8000X3)
Registration Fees = Rs. 6,000/=
Total Fee = RS. 30,000/=

DIPLOMA 6 months 30 points per course = Total 180 points

Per course Rs. 8,000 (8000X6)


Registration Fees Rs. 6,000
Total Fee RS. 54,000

If the student pays total amount of Rs. 54,000, the IPM will provide 7% to the student.

PLACE.
IPM Main campus is situated at P.E.C/H.S back of NURSERY. The IPM is present on 1000 square
yards bungalow of 2 floors and IPM occupies this place on rent basis and made some amendments
according to their requirements which are suitable for every. One big advantage of IPM place is that it
is situated at Shahrah-e-Faisal which is appropriate location for each and every corporate as well as
individual.

DISTRIBUTION CHANNEL
DIRECT (MAIL ORDER, WEB, CATALOGUE)

OWN SALE FORCE

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For E-Marketing Web Site

IPM will establish a web site which provide the information about the background, admission, fee
structure, events, training, also information about the corporate clients, semester wise information
about the course, 45 days training information, PGD and other services that we offer

PRINT MEDIA (FOR 6 MONTHS)

IPM every Sunday Newspapers (Jang & Dawn) will give the advertisement regarding admission also
inform the events information.

BILL BOARD EXPENSE

IPM will fix the 3 bill board in difference location of the city (i.e. Shahrah-e-Faisal, I.I. Chundrigar
Road, Nipa Chowrangi), and their will focus to the customers to get admission in IPM.

COST OF PROSPECTIS

IPM will print of prospects book for the guidance of the students which provide all the information
about the admission, fee structure, courses,

SEMINAR (FOR CORPORATE SECTOR)

IPM will arrange a seminar for corporate sector, IPM will inform the background of the institute, why
it is the difference for others, provide the knowledge about the courses and training information which
will be given in IPM institute and also provide the information about the operational system.

OWN SALE FORCE

IPM all depart including Receptionist, Accounts Dept, Admission, Examination Depart, are IPM own
sale force

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Sales Forecast (12 Months)
Institute of Personnel Management

Fiscal Year Begins Jan-09


12-month Sales Forecast Sales History

Current
Month
Annual Ending
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Totals mm/yy 2008 2007 2006
Cat 1 units sold 0
Sale price @ unit
Cat 1 TOTAL 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Cat 2 units sold 0


Sale price @ unit
Cat 2 TOTAL 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Cat 3 units sold 0


Sale price @ unit
Cat 3 TOTAL 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Cat 4 units sold 0


Sale price @ unit
Cat 4 TOTAL 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Cat 5 units sold 0


Sale price @ unit
Cat 5 TOTAL 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Cat 6 units sold 0


Sale price @ unit
Cat 6 TOTAL 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Cat 7 units sold 0


Sale price @ unit
Cat 7 TOTAL 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Monthly totals: 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

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VI. Operational Plan
Operations are given vital importance to display professional environment. All operational procedures
are discussed and maintained in structured formats.

Production:
Our outputs are skilled managers with sound knowledge of ever-performing challenging business
needs.

Our products and services are produced under supervision of highly qualified faculty.

The services are produced under one roof with best available facilities.

A production technique depends on sharing of knowledge and professional experiences.

Quality control is ensured by completing structured procedure of training & examination.

Facilities are provided with latest equipments & environment.

Access:
Our vicinity is within commercial center with convenient of transportation and Suppliers.

Easy walk-in-access is available in visual order.

Parking is available for more than 50 cars. The location has direct routes to Airport, Railroads and
public transport as well.

The Building is acquired on rent before startup.

The business hours at start up would be in evening for four days a week from 6:00 to 9:00 pm and on
Sundays 9:00 am to 3:00 pm.

On initiation of PGD degree program the classes will be held in morning from 9:00 am to 5:00 pm.

Legal Environment:
Our Institute is affiliated with HEC. All preliminary requirements are fulfilled.

Ultimate target is to get ‘Y’ category.

Permission is obtained by Ministry of Education and S.E.C.P (Security Exchange Commission of


Pakistan).

All provision of CDGP is fulfilled and implemented.

Our institute is insured with EFU (EFU Insurance)

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Personnel:
Our team members share the workforce requirement according to their expertise.
Initially we require
2 Administration
2 Human Resource
2 Accounts & Finance
2 Student counselor
1 Marketing

The security guards and sweepers are obtained by contracting companies.

The quality of hired staff is being guaranteed by constant in-house training and orientation.

SOP (Standard Operating Procedures) are made before opening of Institute.

It is mandatory practice of our Institute to make job descriptions before announcing any vacant
position.

Suppliers:
We searched for those suppliers who agreed to support us in development of our Institute.

Our Institute displays the name of suppliers that support our idea.

For example Liberty & Asaish Furniture, X-pert computers, Azam Book depot, Isamil Printers are
supplying all office supplies and printing materials like leaflets, brouchers, vouchers, etc.

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VII. Management and Organization
Initiators team manages the business of IPM. The team has finance, operation and marketing
professionals who have much experience into their field. Initiators are the attorney body that enjoys
40% of profit from IPM and remaining 60% goes to the financer, who is a sleeping partner to invest as
whole.

• Board of directors

S.No. Name Designation/Nomination


Correlation
1. Mr. Israr Ahmed Chairman Chairman
2. Ms. Sana Nazir Head of Academic Affairs Member
3. Mr. M. Naushad Alam Head of Regulation & Examination Member
4. Mr. Mohammad. Ali Aabdani Head of Information Technology Member
5. Mr. Rehan Khan Head of Public Relation Secretary
6. Mr. Naveed Razzak Financial Consultant Member
7. Mr. Mohsin Khan Chief Financial Officer Member
8. Mr. Abdul Rehman Operational Head Member
9. Mr. Tajjamul Hussain Hashmi Head of Marketing Member
10. Mr. Mehtab Uzaman Khan Head of Human Resource Member

• Faculty Board

S.No. Name Designation/Nomination Correlation


1. Dr. Azmat Ansari Dean Faculty
2. Mr. Israr Ahmed Chairman Faculty
3. Ms. Sana Nazir Head of Academic Affairs Faculty
4. Mr. M. Naushad Alam Head of Regulation & Examination Faculty
5. Mr. Mohammad Ali Aabdani Head of Information Technology Faculty
6. Mr. Rehan Khan Head of Public Relation Faculty
7. Mr. Naveed Razzak Financial Consultant Faculty
8. Mr. Abdul Rehman Operational Head Faculty
9. Professional Trainer External Faculty
10. Professional Trainer External Faculty
11. Professional Trainer External Faculty

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• Attorney

S.No. Name Designation/Nomination


Correlation
1. Mr. Israr Ahmed Chairman Chairman
2. Mr. Shahbaz Ali Baig Consultant Member
3. Mr. Ghaffar Saith Chandi Wala Chief Advisor Member

• Auditors

Baig & Co.

• Insurance agent

EFU Insurance

• Banker

Askari Bank Ltd.

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IX. Startup Expenses and Capitalization
Startup Expenses
Enter your company name here

Sources of Capital

Owners' Investment (name and


percent ownership)
Gafar Seth $ 6,000,000

Total Investment $ 6,000,000

Other Loans
Memon Federation $ 4,000,000
Total Other Loans $ 4,000,000

Startup Expenses

Buildings/Real Estate
Remodeling 2,100,000
Total Buildings/Real Estate $ 2,100,000

Capital Equipment List


Furniture & Fixtures $ 284,000
Equipment 2,024,000
Total Capital Equipment $ 2,308,000

Location and Admin Expenses


Rental $ 40,000
Prepaid insurance 100,000
Total Location and Admin Expenses $ 140,000

Advertising and Promotional Expenses


Advertising $ 1,500,000
Total Advertising/Promotional
Expenses $ 1,500,000

Other Expenses
Other expense 1 $ -
Other expense 2 -
Total Other Expenses $ -

Reserve for Contingencies $ -

Working Capital $ -

Summary Statement

Sources of Capital
Owners' and other investments $ 6,000,000
Other loans 4,000,000
Total Source of Funds $ 10,000,000

Startup Expenses
Buildings/real estate $ 2,100,000
Capital equipment 2,308,000
Location/administration expenses 140,000
Advertising/promotional expenses 1,500,000
Other expenses -
Contingency fund -
Working capital -
Total Startup Expenses $ 6,048,000

Security and Collateral for Loan Proposal

Collateral for Loans Value Description


Real estate $ -
Other collateral -
Other collateral -
Other collateral -

Owners
Your name here
Other owner
Other owner

Loan Guarantors (other than owners)


Loan guarantor 1
Loan guarantor 2
Loan guarantor 3

25
X. Financial Plan
Opening Day Balance Sheet
Institute of Personnel Management

Assets

Current Assets
Cash in Bank $ 4,000,000
Prepaid Insurance 100,000
Office Supplies 30,000
Prepaid Advertising Expense 1,400,000
Prepaid Rent 80,000

Other -
Total Current Assets $ 5,610,000

Fixed Assets
Machinery & Equipment $ 2,196,000
Furniture & Fixtures 364,000
Capital Expenditure 1,830,000
Total Fixed Assets $ 4,390,000

Total Assets $ 10,000,000

Liabilities & Net Worth

Long-term Liabilities
Bank Loans Payable (greater than 12
months) $ 4,000,000
Total Long-term Liabilities $ 4,000,000

Total Liabilities $ 4,000,000

Owners' Equity (Net Worth) $ 6,000,000

Total Liabilities & Net Worth $ 10,000,000

A balance sheet is one of the fundamental financial reports that any business needs for reporting and
financial management. A balance sheet shows what items of value are under;

26
Breakeven Analysis
Institute of Personnel Management

Cost Description Fixed Costs ($) Variable Costs (%)


Variable Costs
Cost of Goods Sold 0.0%
Inventory 0.0%
Raw Materials 0.0%
Direct Labor (Includes Payroll Taxes) 0.0%

Fixed Costs
Salaries (includes payroll taxes) $ -
Supplies $ -
Repairs & maintenance $ -
Advertising $ -
Car, delivery and travel $ -
Accounting and legal $ -
Rent $ -
Telephone $ -
Utilities $ -
Insurance $ -
Taxes (Real estate, etc.) $ -
Interest $ -
Depreciation $ -
Other (specify) $ -
Other (specify) $ -
Miscellaneous expenses $ -
Principal portion of debt payment $ -
Owner's draw $ -

Total Fixed Costs $ -

Total Variable Costs 0.0

Breakeven Sales level = 0

A break-even analysis predicts the sales volume, at a given price, required to recover total costs. In
other words, it’s the sales level that is the dividing line between operating at a loss and operating at a
profit.

27
Institute of Personnel Management
Income Statement
for the Year End 2008

Revenue:
Annual Aggregate Revenue $4,500,000.00
Less: Sales Returns and Allowances $0.00
Net Sales $4,500,000.00

Gross Profit (Loss) $4,500,000.00

Expenses:
Marketing & Advertising $800,000.00
Trainer's Paid Fee $864,000.00
Dean Salary $600,000.00
Depreciation (Machinery & Equipments) $219,600.00
Depreciation (Furniture & Fixture) $32,760.00
Insurance $8,333.00
Rent $200,000.00
Utilities $600,000.00
Office Supplies Expense $12,000.00
Total Expenses $3,324,693.00

Net Operating Income $1,175,307.00

Other Income:
Interest Income $520,000.00
Total Other Income $520,000.00

Net Income (Loss) $1,695,307.00

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