entrepreneurship project report gray febriks
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market conditions, competitors analysis, government policies and the economic and
political conditions we cant lay down the foundation of a successful business. The
reason is that today we are competing against all the companies of the world due to the
implementation of the WTO. Now the concept of war has been changed from the
battlefield to the field of business and the economic growth.
Today businessmen are confronted with the problem of generating the finance for
establishing the business. Usually this problem arises for the small entrepreneurs. But our
report elaborates such kind of business, which does not require too much finance rather
than communication skill and public relations. During the internship period we thought
about this idea of Gray Fabric Indenting.
We have chosen the location for our business office in the Yarn Market, Montgomery
Bazar, Ghanta Ghar, Faisal Abad. The reasons for choosing this area are
y Nearly all the textile-marketing offices are there.
y This area is basically a plate form for the buyer and seller of the every type of
clothe
y This market is considered as the biggest Asian yarn market
Introduction
Indenting is the business which used to saved time of the exporter when an exporter and
he does not have enough time to go in the market for the research of that specific cloth
order, then the exporter contact with the indenter to manage the cloth, then the duty of
indenter start and he search the cloth from the market and get delivered the cloth to
exporter and he charge the commission Rs.50 to Rs.2 meter. This type of business is
called Gray Fabric Indenting.
Business Background
Due to the rising needs of the exporters a need of indenter was realized. Sometimes the
exporters do not have the enough time to contact with the manufacturers of the Gray
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Fabric. Thats why to bring together the exporter and the manufacturer with in very less
time an intermediate party (indenter) came into existence, which has the contact not only
with the exporters but also with the manufacturer of the Fabric
Feasibility Report Indenting business started approximately with the finance of rupees
y Office Security 200,000 Rs.
y Computer P4 17500 Rs.
y Laptop 17000 Rs.
y Printer 9000 Rs.
y Fax Machine 20000 Rs.
y Tele Phone Set 700 Rs.y Mobile Phone Set 10000 Rs.
y Furniture office 60000 Rs.
y Stationery 2000 Rs.
y Eclectic Fan 1400 Rs.
y Exhaust 1900 Rs.
y A/C 23000 Rs.
y Registration exp. 20000 Rs.
y Reserve Fund 400000 Rs.
(4 month) y Motor Bike 54000 Rs.
y Pick glasses (3)* 3000 Rs.
* Pick glasses are used to count the number of warp and weft per inch
Approximate Budget The approximately budget for the purpose of keeping reserve that is under
y Salary Marketing Manger Rs 25,000
y Salary Inspector 15,000
y Field Boy (2) 20,000
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y Office Boy 5,000
y Telephone Bill 8,000
y Electricity Charges 5,000
y Traveling + Fuel 7,000y Stationery 1,500
y Internet 1,500
y Courier 5,000
y Water 1,000
y Office rent 3,000
y Depreciation* 1,000
y Miscellaneous 2,000
* Depreciation is charged by fixed method 5 % per annum.
General Management
We use the simple structure
y Free flow of communication
y Decentralization
y Informal reporting system
y Task specialization is there
y Informal relationship
y Owner and manager is same
Comparative Advantage To get the above average return it is compulsory for a firm to get the competitive
advantage over its business rivals.
Our competitive advantage over our competitors will be
y On time delivery
y Our inspection services
y After sales services
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MarketMainly focus is on the exporters. Because we have the mainly concern with the exporters
and we have a strong focus on the exporters because that community provides us the
business and they can flourish our business.
Competitors y Hamad Textile
y Arva Textile
y Rehmat Textile
y A.N Textile Solutions
y Zahid Gi Textile
y Tanveer Traders
Segmentation
As the textile sector is very much broad and it would be very difficult to have the holdon the whole sector. So our specialty would be in gray fabric.
Gray Fabric
Interlacement of warp and weft yarn
W arp
The length wise yarn used in weaving is called warp
weft
The width wise yarn used in weaving is called weft
Services Our business is related to services.
Followings are the main key services provided by our firm to the different parties
y Searching Fabric on the behalf of the party
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y Cash Delivery
y Problem Resolving
y Sampling
y Provide Information
y Provide the Looms to Exporter at Conversion
S E A RCHI N G F A BRIC ON THE BEH A LF O F THE P A RTY .
Thats our main responsibility to arrange the fabric for the buyer party from the seller
party.
C AS H DELIVERY
It is our duty to take the thecash from buyer party and give it to the seller because the
seller sells the fabric on our behalf. So , it is our responsibility to provide the cash to the
seller.
PR O BLEM RE SO LVI N G
If any problem occurs it will be our responsibility to solve that problem . if the buyer
party reject the fabric due to any fault it will be our duty to make that transaction happen
And to satisfy the buyer.
SA MPLI N G
The other service we have provide is to send the sample of the fabric to the buyer party
and if someone need the fabric of specific type then we have to provide the full
information to the producer.
Warp count * weft count, No. Of warp/inch , No. Of weft / inch, width of fabric
PR O VIDE I N FO RM A TI ON
If any party require any type of information then we have to provide that party he wholeinformation after consulting it from the concerned party. Such as if any exporter demand
the rate of the specific quality fabric then we have to provide him the total rate list of the
fabric weaved on the different looms.
PR O VIDE THE L OO M S T O EXP O RTER A T C ON VER S ION.
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If the quality demanded by the exporter is not available in the market then we have to
arrange the looms for him at conversion in which the exporter provides the yarn and we
have to look after the production process.
COST BENIFIT ANALYSIS
The total amount to established that business is Rs.839500 while in that amount Rs.
400000 is the reserve fund, which is the liability of the business. Which will be returned
to the businessman. And the per month expenses are Rs.100000.
If the average commission charged by us is Rs. 1 then we can achieve the breakeven
point by doing the business of 1935715-meter fabric. If we do the business of 25000-
meter fabric in 1 st month and forecast to make the growth of the business by 25000 meter
per month and it will lead to a 5 % increase in the variable expense.
Break-Even Analysis.
We achieve the break-even point by doing the business of 1935715 meters fabric in one
year.
Break-even point:
Quantity = variable expenses + fixed expenses + Profit
1Q = .37Q + 1219500 + 0
1Q- .37Q = 1219500
.63Q = 1219500Q = 1219500 / .63
Q = 1935715
Breakeven Analysis The breakeven point is where the total revenue is equal to total expense and here profit is
always zero
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Sales = variable
expense + fix
expense + profit
BALANCE
SHEET
FIVE STAR TEXTILE SOLUTIONS BALANCE SHEET
FOR THE YEAR ENDED 31DEC.2006 ASSETS
FIX ASSETS OFFICE SECURITY 200,000
CO MPUTER 17,500 LABTOP 17,000 PRINTER 9,000 FAX MACHINE 20,000 TELEPHONE SET 700 MOBILE 10,000 FURNITURE 60,000 STATIONARY 2,000 FAN 1,400 EXHAUST FAN 1,900 MOTOR BIKE 54,000 PICK GLASSES 3,000 A.C 23,000 REGISTRATION 20,000 TOT AL FIXED ASSE T S 439,500 CURRENT ASSETS CASH 400,000
A/R 0 TOTAL ASSETS 839,500
LIABILITIES + O .EOWNER EQUITY
439500
LIABILITIES 400,000
TOTAL LIABILITIES 839500
Conclusion
Fix expensive
1935715 m Sale Volume
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The business of indenting made its scope when the number o exporter increasing. As the
textile industry is contributing a lot in the exports of the Pakistan. so that business is
emerging as fast growing business . Thats the business which does not require the so
much finance it just require your knowledge about the industry and your repute in that
industry. Thats the business through which you can earn the huge profits by investing
very less finance. Indenting is a business in which the indenter can establish the long term
relation ships with the exporters and the gray fabric producer which will help him
through out his business time period. Thats the business about which a lay man does not
has much knowledge through this report every person can easily under stand the
indenting business.