Preparing Business Plan

The Marketing, Organizational and Financial Plan

Nouman Dar

Today s Topics
Marketing Plan Organization Plan Financial Plan

Outlines of Marketing Plan

Situation Analysis
    Background of Venture Strength & Weakness of Venture Market Opportunities & Threats Competitors Analysis

Marketing Objectives and Goals Marketing Strategy and Action Programs Budgets Controls

Characteristics of Marketing Plan

Provide strategy for accomplishing the company goals Based on facts and valid assumptions Use of existing resources Continuity of plan Should be simple and short Flexible Should specify performance criteria that will be monitored and controlled

Preparing Marketing Plan

Defining Business Situation Defining Target Market and Segmentation SWOT Analysis Establishing Goals and Objectives Defining Marketing Strategy Budgeting Marketing Strategy Implementation of Marketing Plan Monitoring Progress

Defining Target Market and Segmentation

Decide what general market or industry you wish to pursue Divide market into smaller groups based on
 Characteristics of customer (Geographic, Demographic, Psychographics)  Buying Situations (Desired benefits, Usage, Buying conditions, Awareness of buying intentions)

Select segment or segment to target Develop a marketing plan integrating 4P s

Legal Structures
Sole Proprietorship - Is a form of doing business where one person owns and runs a business under a specific business name. Partnership Is a voluntary association of two or more persons to carry on a business to share the profits & losses of a business Company - Is a legal entity admitted by law to do business, own properties, sue and be sued for the recovery of properties, monies, enter into contracts etc. in its own name and independent to its member

Partnership Firm
A firm is a relationship between two or more persons who have agreed to share profits of a business according to their participation. Persons who entered into partnership with one another are called individually partners and collectively a firm name under which they do business is called the firm name Any two or more persons (up to 20) can form a partnership to do any one or more businesses through an agreement in writing. It is not compulsory in law to register a partnership. However, a registered partnership has more advantages than an un-registered partnership Partnership is registered under provision of Partnership Act 1932

Types of Partnerships
Partnership at Will
 No provision of time period for termination or continuation is made by contract between partners  Partnership for indefinite time period  Partnership may be dissolved at any point by giving notice to partners

Particular Partnership
 Partners agreed to do a particular business business or undertaking  This partnership shall stand dissolved completion of such business and undertaking

on

the

Partnership Deed
The mutual rights and obligations of all partners must must be documented in the shape of a Partnership Deed 1. Name of the firm 2. Nature of business 3. Business addresses 4. Amount of capital each partner contribute 5. Name & addresses of each partners 6. Duration of partnership if any 7. Ratio of sharing profit & loss 8. Percentage of interest if any, on capital 9. The manner in which partnership is to be dissolved & subsequent distribution of property among partners including goodwill

Partnership Deed
10. Valuation and treatment of goodwill 11. Provisions regarding accounting system and fiscal year to be used 12. Rules to follow in case of retirement, death and admission to new partner 13. Method of setting disputes 14. Methods of calculating amount issued to deceased partner 15. In the case of breach of duty by one partner, power of other partner to expel him from the firm 16. Any provision to prevent any future misunderstanding and ill will

Company
Any one or more persons can form a company by fulfilling the formalities required by law To be a company in law it must be registered under the Companies Ordinance, 1984.

Companies Ordinance 1984

Most potent statute dealing with the company registration process in Pakistan Its primary purpose is the promotion of investments & development of economy of Pakistan Healthy growth of the corporate enterprises Protection of investors and creditors

Kind of Companies
Private Limited Company Public Limited Company
 Listed Company  Non Listed Company Guarantee Limited Company

Basic Tax Obligations/Liabilities

Income Tax  Governed by the Income Tax Ordinance 2001  Is a federal annual tax on the total income of a person excluding the deduction allowed by the ordinance for one tax year  Every person who is liable to pay income tax, must apply for an NTN ( National Tax Number) without which it will not be possible to file income tax returns Central Excise Duty  Excise duty refers to any sum payable under the provision of the Federal Excise Act, 2005 on: Goods produced or manufactured in Pakistan Goods imported into Pakistan Such other goods notified by federal in the official gazette Services, provided or rendered in Pakistan.  If your goods/services become excisable then you are required to be registered with the excise authorities under the Act.  If you are a registered person then at the close of every month you are required to deposit the excise duty

Basic Tax Obligations/Liabilities

Custom Duty  Customs duty is levied in accordance with the First and Second Schedule of the Customs Act, 1969 on: Goods imported into Pakistan Goods exported from Pakistan Sales Tax  Sales tax is a tax payable under the Sales Tax Act, 1990  The rate of sales tax presently applicable is fifteen (15%) of the value of taxable supplies  For persons liable to be registered and procedure for registration

Licensing Requirements
Import License Export License Excise License Sales Tax Registration

Labor Laws
Industrial Relations Ordinance, 2003 - Laws that regulate the relations between an employer and an employee Laws that require contributions to be paid by the employers; they are:
      

Employees Old Age Benefits Act,1976 Provincial Employees Social Security Ordinance,1965 Workers Welfare Funds Ordinance, 1971 West Pakistan Maternity Benefits Ordinance, 1972 Workers Children (Education) Ordinance ,1972 Companies Profit (Workers Participation) Act, 1972 Workers Compensation Act, 1923

Labor Laws
Labor Laws that fix standards for wages:
 The payment of wages act, 1936  The minimum wages ordinance, 1961  Pakistan minimum wages for unskilled Ordinance, 1969

workers

Labor Laws setting standards for workplace:

      

The Shops and Establishment Ordinance, 1965 West Pakistan Industrials and Commercial Employment(Standing Order) Ordinance,1968 The Factories Act,1934 The Employment (Record of Services) Act, 1951 The Employment of Children Act,1991 The Apprenticeship Ordnance, 1962

Business Issues
Intellectual Property Rights
The Trade Marks Ordinance 2001 The Patent Ordinance 2001 The Copy Wright Ordinance 1962

Planning Human Resources

Identification and requirements of HR Organizational structures Recruitment, selection, training and policies etc

HR

Financial Plan
Operating and Capital Budgeting Pro Forma Income Statements Pro Forma Cash Flow Statements Pro Forma Balance Sheet Break Even Analysis

Why Some Plans Fails

Lack of real plan Lack of an adequate situation analysis Unrealistic goals Unanticipated competitive move

Thank You