General Store.0

8/7/2019 General Store.0

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Table of Contents

1. INTRODUCTION ............................................................................................................................ ...... ....2

1.1 FIRMS NAME............................................................................................................................................2

1.2 FIRMS SPONSOR........................................................................................................................................2

1.3 FIRMS LOCATION......................................................................................................................................2

1.4 OPPORTUNITYRATIONALE............................................................................................................................3

2. TECHNICAL ASPECTS ...........................................................................................................................3

2.1 PRODUCTS................................................................................................................................................3

2.2 PRODUCTMIX...........................................................................................................................................4

2.3 EQUIPMENT & MACHINERY........................................................................................................................4

2.4 FURNITURE & FIXTURES............................................................................................................................4

2.5 LOCATION & SIZE.....................................................................................................................................5

2.6 BUILDING & FACILITIES.............................................................................................................................5

3. SOCIAL & REGIONAL ASPECTS ................................................................................................. ...... ..6

3.1 HUMAN RESOURC REQUIREMENT..............................................................................................6

3.2 LEGAL REQUIREMENTS...............................................................................................................................6

4. MANAGERIAL ASPECTS .......................................................................................................................7

4.1 MANAGEMENT CONVENIENCE......................................................................................................................7

4.2 MANAGEMENT STRUCTURE.........................................................................................................................7

5. FINANCIAL ASPECTS ............................................................................................................................7

5.1 SOURCESOF CAPITAL................................................................................................................................7

5.2 ESTIMATED BENEFIT..................................................................................................................................7

6. ECONOMICAL ASPECTS ................................................................................................................... ..8

6.1 ONE TIME COST ......................................................................................................................................8

6.2 MONTHLY COST.......................................................................................................................................8

6.3 YEARLY COST..........................................................................................................................................9

6.4 PRICING...................................................................................................................................................9

7. ENVIRONMENTAL ASPECTS ...............................................................................................................9

7.1 NATIONAL ANALYSIS.................................................................................................................................9


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GENERAL DEPARTMENTAL STORE

PROJECT SUMMARY

1. INTRODUCTION

This particular feasibility is regarding General Departmental Store, which comes

under rural area for the people of Islamabad where the lowest income group of

people are living. This rural area has huge population there is no big General

Departmental Store where each and every type of products are available.

People to go far different places to fulfill our needs which is a big problem for the

residential rural area. So, the objective of the feasibility is primarily to facilitate

potential entrepreneurs in project identification for investment and in order to

serve this objective; the document covers various aspects of the project concept

development, startup, marketing, and finance and business management.

1.1 Firms Name

The proposed name ofthe firm is "GENETRAL DEPARTMENTAL STORE". The

owner will registerthe firm with the Federal body and also with the Provincial and

Local Government body if needed. The firm will be registered as single

proprietorship. General Departmental store is a large retail store organized into

departments offering a variety of merchandize, commonly part of retail chain

under one roof.

1.2 Firms Sponsor

The firm has single ownerwhose name is "Raja Gul Zuhrab". He will selfsponsor

the business if estimated cost is blow orup to Five Million Rupees (50 Lac). If the

cost is above that limit he will get loan from Bank/Financial Institution, Corporate

body etc.

1.3 Firms Location

The departmental store should be centrally and conveniently located within rural

area (Ali Pur Farash) of Islamabad.


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1.4 Opportunity rationale

In Pakistan concept of departmental store has gained popularity in late eighties

after the emergence of UTILITY STORES by the government. Though due to

lack of proper management and planning but private sector made it one of the

successful businesses in Pakistan. Public has liked this concept due to the

availability of all basic utilities under one roof which saves their time about which

people are more conscious these days. The factors that make this project viable

in Pakistan are:

Easy access to wholesale markets

Plentiful availability of resources/salesman

No process/transformation involve

No specialized/technical knowledge required for entrepreneur

Variety of goods under one roof

Margin for innovation

Easy diversification towards new product mix

2. TECHNICAL ASPECTS

In this section, I will discuss the products, services, furniture & fixtures, shop

location & size and building & facilities ofmy business including theirrequirements

with estimated costs.

2.1 Products

The proposed General Departmental Store will provide variety of goods ranges

from grocery to garments and alike to customers under one roof. The proposed

project is a single floor departmental store on an area of approximately 3000 sq.

ft. The project will offer following broad categories of goods to its customers:

Groceries and food items Fruits and vegetables

Crockery and plastic items

Soaps detergents and chemicals

General items


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2.2 Product mix

The store will offer the following broad categories of goods to its customer:

Category of item Proportion Average Gross Margin

Groceries and food items 55% 30%

Crockery and plastic items 8% 10%

Soaps detergents and chemicals 3% 10%

Fruits and vegetables 40% 15%

General items 4% 15%

2.3 Equipment & Machinery

Electronic Equipment Brand Description Amount

Air Conditioners LG 1 unit 30,000

Computer Intel 1 unit 25,000

Printer HP Laser jet 1 unit 10,000

Fans Royal 4 unit 10,000

Photocopy Machine Samsung 1 unit 12,000

Telephone Set Ptcl 2 units 2,000

UPS Korea 2 units 15,000

Heaters 2 units 6,000

Total Equipment & Machinery Rs. 110,000

2.4 Furniture & FixturesOffice Equipment Description Amount

Showcases 6 units 100,000

Cabinets 5 units 40,000

Chairs 10 units 12,000

Doors 2 units 10,000

Tables 5 units 15,000

Total Furniture & Fixtures Rs. 177,000


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2.5 Location & Size

This store will be open in easily access able place for each and everyone.

Location of stores is of primary concern with any retail organization. Spending

time and money wisely in the process of site selection is of primary importance.

For this purpose the store will open in Ali Pur Farash, rural area Islamabad.

2.6 Building & Facilities

The proposed shop will be on Ground floor of main road on Ali Pur Farash,

having total size 3,000 sq ft with estimated rent of 20,000 Rupees per month.

The proposed project building& facilities will have following one time cost.

S. No Description Amount

1. Shop Security 100,000

2. Decoration 200,000

3. Wiring 40,000

4. Other construction 10,000

Total Rs.350,000

2.7 Market Analysis

Regular market analysis is required for a successful business of departmental

store. The important marketing channels would be used for marketing billboards,

signboards etc. Regular advertisement expense should be at least 0.5% to 1% of

sales in the departmental store business. Some marketing and promotional tips

are as under:

Existing customers are best referrals.

Know customers needs.

Introduce home delivery services.

Frequent clearance sales


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3. SOCIAL & REGIONAL ASPECTS

In this section, I will discuss the job opportunities/hiring requirements, Hunam

Resource requirement/labor requirements and legal requirements with their

estimated costs.

3.1 HUMAN RESOURC REQUIREMENT

Skilled salesmen are easily available at competitive wage rates. Number of

workers required for each department is given below:

Positions Number Salary/Month Annual Salary

Manager 1 15,000 180,000

Salesmen 10 4,500 540,000

Cashiers 2 8,000 192,000

Helpers/Cleaners 2 4,000 96,000

Accounts officer 1 8,000 96,000

Security Guard 1 4,500 54,000

Total 17 96,500 1,158,000

3.2 Legal Requirements

Firm must complete following legal requirements

1. Business Tax Registration (NTN Number)

2. Firm Name Registration

3. Registration with Computer Bureau

4. Shop Permit from local Body

Estimated Registration Cost will be as following

Requirement Fee

NTN Registration 10,000

Firm Name Registration 20,000Computer Bureau Registration 10,000

Shop Permit 25,000

Total Registration Fee Rs. 65,000


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4. MANAGERIAL ASPECTS

In this section, I will discuss the convenience and structure of the management.

4.1 Management Convenience

All the three location under observation are convenient with respect to

3. Labor is also easily available

4. Monitoring is easy

5. Route from supplier to store is good one

6. Supply vehicle can reach store easily

4.2 Management Structure

Management structure of the shop is very simple because there is only one

Manager that is also the boss as well as owner of the company. All management

activities are under his control. He will have 16 staff members under his authority,

all of them are for specific purposes like salesman, cashier, helper, account

officer, security guard.

5. FINANCIAL ASPECTS

In this section, I will discuss the cost of starting the business, monthly

expenditures and annual expenditures

5.1 Sources of CapitalThe owner of the company has enough money of 5 Million Rupees (50 lac) to

open and support the business. But some alternatives are also listed if there is a

need of capital.

1. Self financing by Owners equity

2. Bank financing by NBP on 10% annual interest rate

3. Bank financing by MCB on 12% annual interest rate

5.2 Estimated BenefitThe owner expects 1 lac profit per month for that purpose with average profit

margin of 20%. Shop must have monthly sales revenue of 5 lac.


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6. ECONOMICAL ASPECTS

In this section, I will discuss the cost of starting the business, monthly

expenditures, annual expenditures and product & service pricing.

6.1 One Time Cost

The proposed project is going to have following one time starting cost.

Description Amount

Product Supplier Security 2,000,000

Shop Security & Other Charges 1,250,000

Equipment & Machinery Cost 120,000

Furniture & Fixture Cost 177,000

Building & Facilities Cost 10,000

Registration Cost 65,000

Total (OTC) Rs. 3,622,000

6.2 Monthly Cost

The proposed project is going to have following monthly estimated expenditures.

Description Amount

Salary Payment (17 Persons) 96,500

Rent Per Month 40,000

Electricity Bill 4,000

Internet Bill 1,000

Phone Bill 2,000

Stationary Bill 1,000

Water Bill 1,000

Rent of Building 15,000

Total (OTC) Rs. 160,500


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6.3 Yearly Cost

The proposed project is going to have following yearly estimated expenditures.

Description Amount

Business Tax 15,000

Shop License Fee 5,000

Total (OTC) Rs. 20,000

6.4 Pricing

I will try to use economical price policy for sale with average 20% profit margin.

7. ENVIRONMENTAL ASPECTS

7.1 National Analysis

Departmental stores business is emerging as one of the good business ventures

in Pakistan as it provides all the basic merchandise under one roof.

In late eighties a paradigm shift in grocery store science occurred. The concept

of the "Self-Serving Store" was started. Customers entered the revolutionary

store and walked through a narrow maze of shelves containing groceries. They

selected their goods as they continued through the maze to a cashier.

This phenomenon grew rapidly; and today thousands of stores exist in the bigcities.These stores also began to offer products beyond the normal scope of the

dry-good grocery store. They added meat, dairy, fruit and vegetables, and breads

to their offerings (which had formerly been offered by individual stores such as

butchers,bakeries, and the "milk man").

Over the decades, the departmental stores have evolved even further. Now, one

sees that offer greeting cards, flowers, video rental, fast food, childcare, and

much more.

General Store.0

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