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Man`
Chali
ACKNOWLEDGEMENT
PREFACE
We have chosen this Boutique to make our project on it. We had a good
time while doing the survey and gathering the information about the
topics, and then developing a fictitious company into a project.
The project is basically about the Business plan of the day care centre.
We also used the source of internet for gathering information. We think
that we have done our job in making the business plan we hope that
Course name
Introduction to Business
Project Name
Business plan for boutique
Submitted to
MR. Ghulam Ahmad Rana
Group 1
Section D
Submitted by
Shurahbil Bin Nasim
Hafiz Mohammad Haris Qadri
Zeeshan Arshad
Shahbaz Ahmad
Jahazeib Haider
INTRODUCTION
Boutique Name
Man`chali
Our Slogan
Our Objectives
NON-FINANCIAL OBJECTIVE:
.
• To be among the top ten favorite brands.
• To add new design in every season.
FINANCIAL OBJECTIVE:
• To maintain an inflation growth in earning per year at a rate of
12%.
• To obtain a return on equity of at least 30%.
• Providing stitching facilities to other boutiques in 2010 which are
lacking this facility.
Boutique business
Clothing is a beautiful visual demonstration of the social and emotional
needs of people wearing it. It also portrays in a clearly understood
visual manner, what people of different cultures and styles want
socially. Fashion, through times, has gone through so many rapid
changes and bizarre extremes that it has examples of nearly every
kind of clothing function.
However, in a boutique business, the specifications and descriptions of
the designs and clothes are so general that they can fit more than one
costume, which actually are quite different in nature from each other
and this is solely dependent on the taste of the people.
The range of Pakistani dresses is remarkably wide, according to the
vast cultures, geographical differences, purchasing capacities,
influence of the western culture, and bewildering diversities of the
ethnic groups. One has, therefore, to sift and isolate, and then relate
and bring together, the ideas for creating various designs, which can fit
in the context of the fashion in vogue and the culture in practice.
In reference to Pakistan, the Boutique business is quite in vogue but
has yet to be formalized. The market of this enterprise is quite
scattered and unorganized. There are a few major players in Boutique
business and these entrepreneurs have also taken an initiative based
on their caprice and experience in the field of fashion design. However,
there is a massive potential in this field, if one has the ability to design
and market his/her products through introducing innovative designs
both in stitching as well as the fabric sector.
Furthermore, there is massive export potential in this sector, as the
demand of Pakistani dresses, especially in countries like UAE, USA, and
UK, is massive due to a high number of Pakistani expatriates who have
settled in these countries.
Proposed Capacity
The Boutique business capacity is greatly dependent on the market
size and the number of potential clientele one can attract.
Furthermore, the women fashion wear garments will be designed
through a contracted designer and then stitched through in-house
stitching unit. On average, a designer can supply forty designs per
month from which nearly thirty designs are selected on average.
Approximately, total capacity of the defined unit with 5 stitching
machines (basis on 8-10 hours shift) will be about 750 dresses. The
breakup of the total number of dresses will be as follows:
MARKETING PLAN
The marketing of boutique follows the conventional marketing pattern
which is dependent on selection of venue of the outlet/s and the
product mix (designs and sizes), as well as the promotional strategy.
Furthermore, the boutique owner has to marketing techniques like:
• Usage of print media i.e. printing of posters and pamphlets as
well as displaying it and distributing it at proper places
• Advertisement in print media i.e. newspapers and fashion
magazines, etc.
Moreover, in order to keep abreast with the emerging trends and client tastes, surveys
regarding customer satisfaction/needs should be a regular feature of this project. As this
project of Boutique deals in designer women wear, therefore the product mix will
comprise of different styles of the female dresses in different sizes. Whereas, the styles
will be Shalwar Kameez, Q-lots, Pajama Kameez, Frocks, Kurta, Peeshwaz,
Note:
This production also includes additional suits that will be prepared on
orders/outsourcing/CMT (Cutting, Manufacturing] and Trimming) per
month in order to utilize the maximum capacity of the stitching unit.
RAW MATERIAL
Raw Material
The raw-material required for such sort of projects, would be as
follows:
Note:
In case of over-lock stitching, it will be done in-house. The stitching of
buttonholes as well as elastic embedding will be outsourced. This will
cost approximately @Rs.5 per dress.
PRODUCTS
Product Mix
Products will be priced at the high end to reflect the quality and
exclusiveness associated with the brand. High-end materials such as
Crinkle Chiffon, Georjot Chiffon, Chinese Raw Silk, Medium Silk, Leafy
Print Jamawar, Chamose Silk etc will be used. This boutique will offer
following product categories of men wears:
• Casual Wear
• Semi Formal Wear
• Formal Wear
Ethnic Wear
Formal Wear – Party dresses and special occasion dresses.
Contemporary Wear
Fusion Wear – Combination of eastern and western wear, suitable for
the international market as well.
Western Wear
Tops, Pants and various other styles.
Product Mix
Category % Of Total Outfits
Casual Wear 34%
Semi Formal Wear 33%
Formal Wear 33%
Percentage of Cost
Category Cost (percentage of sales)
Casual Wear 35%
Semi Formal Wear 32%
Formal Wear 30%
Staff Salaries
Positions Require Salary per Salary per
d Month Annum
Production Staff
Designer 1 15,000 180,000
Tailor 5 7,000 420,000
MACHINERY/EQUIPMENT DETAILS
The boutique will require a small in-house stitching unit. The cost of the
stitching machinery will be as follows:
Machinery Detail
Stitching Machinery No. Rs/Unit Rs
Single needle lock stitching machine 8 19,900 159,200
Over lock Machine 1 56,800 56,800
Embroidery 1 29,900 29,900
Total 245,900
Note:
Prices have been quoted by SINGER sewing company, Pakistan.
Though the prices here are given of the new machines but second
hand machines are also widely available which can function properly
and can reduce the project cost too.
Office Equipment
Other Equipment No. Rs/Unit Rs
Computers 1 25,000 25,000
Computer printer 1 12,000 12,000
Telephones 2 3,500 7,000
Infrastructure requirements
Description Sq.ft
Main shop 600
Try Room 36
Small Store 100
Kitchen 64
Building for Stitching Unit 10 Marla House
PROJECT ECONOMICS
Project Cost
Project Returns
Internal Rate of Return (IRR) 67%
Payback Period (Years) 1.50
Net Present Value (NPV) 3,684,374
Financing Plan
Financing Rs.
Equity 60% 1,098,066
Debt 40% 732,044
KEY ASSUMPTIONS
Production Assumptions
Number of Stitching Machines 5
Production Capacity (No. of dresses per month) 750
Capacity Utilization for the first year 55%
Self Production (% of total production) 60%
Dresses manufactured on CMT basis (% of total production) 40%
Operating Assumptions
Hours operational per day 8
Days operational per month (Production) 25
Days operational per month (Boutique) 25
Expense Assumptions
Promotion Expenses after Year 1 (% of expected sales) 2%
Machine Maintenance 1%of
machinery
cost
Raw Material Price Growth rate 1%
Payroll growth rate 5%
Machine Maintenance growth rate 5%
Rent growth rate 10%
Financial Assumptions
Project Life 10 Years
Debt: Equity 40:60
Interest Rate on Long Term Debt 14%
Debt Tenure 5Years
Debt Payment per year 2