ECO130-S'14

Assignment 2
Business &
Marketing plan

The
Hardware
Store

Fawad Ejaz Bhatti

2011-NUST-SEECS-BE-EE-037
Section D

Table of Content:
1.
2.
3.
4.
5.
6.
7.

Statement of Purpose
Summary
Executive Summary
Business Description
Total Financial Requirements
Organization & Management
Potential Risks

Statement of Purpose:
The latest Electronics and Robotics Store in Pakistan. We carry a large
range of development boards such as Arduino boards, PIC boards, and
atmel boards. We deal the best electronics products in Pakistan for
students projects with best price and quality.

Summary:
Through the progressive daily life, a variety of people come across
the need of buying electrical equipment and like in most cities there is
only a single market place for such Electrical and Electronics
Equipment and that too not catalogue correctly. There we come across a
dilemma of traveling to market searching each shops out for exactly what
we need.
There comes THE HARDWARE SHOP, where you can exactly find
what you need using our online catalogue, you can easily find, buy & get
delivered everything. In case you need something specific that you cannot
find you can also request us for an item, we will look for it and get it to
you within 5 working days thats a promise meant to be kept.

Executive Summary:
The Hardware Store is a new corporation which is going to
establish a retail hardware store in a strip mall in Islamabad, Pakistan. The
store will sell Electronic hardware of all kinds & quality tools. The business
will make revenue and a profit by servicing its customers not only with
needed hardware but also with expert advice in the use of any product it
sells.

The stated business is individual startup plan revolving around a

fresh graduate, in hopes of being initially funded by investors and preorders of the product if any. The hierarchal structure of the company is
discussed below but in short the small portions of the product would not
be outsourced but a proper team of developers will be hired in order to
startup the company, no plans for partnership are to be included at the
initial stage at least. Customers will buy our products because we
will provide free advice on the use of all of our products and will
also furnish a full refund warranty.

The company, will sell its products in the Islamabad store as well as
throughout Pakistan using the online store, staffed by three sales
representatives. No additional employees will be needed to achieve its
short and long range goals. The primary short range goal is to open the
store by January 1st 2015. In order to achieve this goal a lease must be
signed by July 1st, 2014 and the complete inventory ordered by December
1st 2014.

Fawad Ejaz Bhatti will invest $30,000 in the business. In addition the
company will have to borrow $ 150,000 during the first year to cover the
investment in inventory, accounts receivable, and furniture and
equipment. The company will be profitable after six months of
operation and should be able to start repayment of the loan with in the
second year.

Sales and Market:

Expected Sales Ratio wrt Universities

NUST
UET, GIKI & FAST
Other Universties
NON Students

The Hardware Store will target

mostly students and staff of big universities throughout Pakistan, leading
in the field of electrical engineering in hopes of attracting the students
toward our wide variety and range of products.

Expected Sales by Approch

Direct Shoping
Refrenced
Social Media (Facebook)
Search Engines (Google)

Expected Sales by time

Direct Shoping
Direct/Online via Reference

Online Shoping

Total Financial Requirement:

TFR of the business can be divided into 2 part, initial capital and
running capital; estimating that the product would have positive feedback
with in at least 2 months.
Initial Cost

Low

High

Lease Hold + Rent *

20,000

100,000

Machinery + Equipment

10,000

30,000

100,000

200,000

50,000

80,000

10,000

20,000

190,000/=

330,000/=

Inventory

Wages

Miscellaneous Expenses

Total Initial Fixed Capital

* Leasehold Estimated costs to finish the leased space include carpeting,

electrical, plumbing, lighting, track lighting, interior walls, special ceiling
treatments, sprinkler systems, exterior signing, etc.

Running Cost

Low

High

Rent + Bills

20,000

50,000

Wages

50,000

80,000

Miscellaneous Expenses

10,000

20,000

Total Running Capital

80,000/=

150,000/=

TFR = Total Fixed Capital + Total Running Capital = 180,000 (low)

400,000 (high)