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EVALUATION OF BUSINESS IDEA

STEPS TO DETERMINE BUSINESS IDEA

1-PROFILE OF OUR PAYING CUSTOMER.AGE OF 10-60

INCOME LEVEL FROM 5000 AND MORE

Gender male and females both.

2-FEATURES OF OUR PRODUCT

-We are offering good quality in terms of life of cds.

-nice and attractive packing to attract more and more customers.

-Availability in all type of stuff like(music,games,movies,naats etc)

3-GEOGRAPHICALLY AREA WHERE WE INTEND TO SELL DURING FIRST

YEAR

During first year of our business we will sell our product inwapda town.

4- COMPETITORS IN THAT GEOGRAPHIC AREA

-Shehzad music store is the main competitor who is offering such

products to that geographically area

5-PRICE THAT OUR COMPETITORS CHARGE

-RS-100 per DVD

-RS-200 per audio disc

-also offering buy 2 get 1 free packages

6-ESTIMATED PRICE THAT WE CHARGE AND REMAIN COMPETITIVE

RS-80 per dvd

Rs-150 per audio disc

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And we also offer packages like

Buy 2 get 1 free

Buy 5 get 3 free

7-OUR COMPETITIVE ADVANTAGE

-lower prices

-after sale services(in case of any defect or inconvenience we will

entertain our customers.)

-more quality and features at low prices.

-attractive packing and displaying

8-TRENDS OF MARKET

In the past there were cassettes but now trend has moved towards cds

and dvds.in future it will move to blue-ray disc and tera-dvd forms.It is a

future oriented business.

9-GROWTH POTENTIAL OF THE MARKET

this market is growing more and more as peaking. Generally, we will bemore successful as part of a growing market.

10-MAKE OUR CUSTOMERS AWARED OBOUT US

-We will distribute leaflets

-Also advertise by cable adds

-we will conduct an activity to advertise our business

11-SALES OF THE FIRST YEAR

Our estimated sales of the year will be 500000.

12- GOVERNMENT APPROVALS NECESSARY TO LAUNCH SUCH BUSINESS

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Yes government approvals are required in the form of license to run this

business.

13-PURCHASING PROCESS

We will purchase from wholsellers.at very minor marginal price to

manufacturer.

14- HOW OUR CUSTOMER GETS THEIR ORDER AND HOW WE GET PAID

We will only deal in cash payments.

15-Estimated capacity of operation in the first year

At start we will open our single outlet in wapda town .And the capacity of

our stock will be according to the demand of our customers .we have

also decided to meet our sales forcast . Also planned to open another

outlet in liberty market.

16- POTENTIAL SUPPLIERS

Our major suppliers are the wholesalers in the hall road market.

17- RESOURCES REQUIRE TO START BUSINESS.

At initial we need finance,market place,shop,labour,decoration,sound

systems,.

18- RESOURCES WE WILL FINANCE, LEASE OR RENT

We just rent a shop in the market at good location.

19- STRENGTHS AND WEAKNESSES

a-Only few competitors in that area.

b-Chance to attain more and more customers by offering them good

quality and services.

a-no experience related to this field

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b-we are new in the market so it will take time to stand in the market.

20- MONTHLY CASH FLOW FORECAST FOR YOUR FIRST YEAR OF

OPERATION

OPPERATING EXPENSES

Rent----------------------1200012=144000

Utility bills----------------500012=60000

Salaries of labors---1500012=180000

Purchase of stock on weekly bases -----2000012=240000

Packing ----------------20000

Advertisement-------40000

COMPETITORS ANALYSIS

1. WHO ARE THE NEW VENTURES CURRENT COMPETITORS?Now at the current situation we have to face our two major competitors

which exists in our area of interest for our business.these are

a-Shehzad dvd store

b-Home theater dvd store

2-WHAT RESOURCES DO THEY CONTROL?

They having appropriate finance for their business.as well aslabour ,market place,and work experience.

3-WHAT ARE THEIR STRENGTHS AND WEAKNESSES?

Strengths

They have experience

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They are holding major share of that area

They have already build brand name from years.

Weaknesses

Very high competition in ths industry

They are maintaining only brand not customers.

1. HOW WILL THEY RESPOND TO THE NEW VENTURES DECISION TOENTER THE INDUSTRY?

They will try hard to improve their product and compete with all

existing and upcoming competitors.

1. HOW CAN THE NEW VENTURE RESPOND?If any new venture put step into thisindustry will try to improve quality

and try to provide what customers actually wants.and compete thecompetitors.

1. WHO ELSE MIGHT BE ABLE TO OBSERVE AND EXPLOIT THE SAMEOPPORTUNITY?

2.ARE THERE WAYS TO CO-OPT POTENTIAL OR ACTUALCOMPETITORS BY FORMING ALLIANCES?