Pre-Feasibility Study

Prime Ministers Small Business Loan

Scheme
(Boutique Women Designer Wear)

Small and Medium Enterprises Development Authority

Ministry of Industries & Production
Government of Pakistan
www.smeda.org.pk
HEAD
OFFICE
4th Floor, Building No. 3, Aiwan e Iqbal, Egerton
Road, Lahore
Tel 92 42 111 111 456, Fax 92 42 363049267 helpdesk@smeda.org.pk
REGIONAL OFFICE PUNJAB
3rd Floor, Building No.
3,

REGIONAL
OFFICE
SINDH
5TH Floor,
Bahria

REGIONAL
OFFICE

Aiwan e Iqbal, Egerton

Road
Lahore
,

Complex II, M.T. Khan

Road, Karachi.

Tel: (042) 111-111456

Fax: (021) 5610572

Tel: (021) 111-111456

REGIONAL
OFFICE
BALOCHISTA
Bungalow No. 15-A

Ground
Floor
KPK
State Life

Chaman Housing

Building The

Scheme

Mall, Peshawar.
Tel: (091) 921304647
Fax: (091) 286908

September 2013

Airport Road,
Quetta. Tel: (081)
831623, 831702

Pre-Feasibility Study
Boutique Women Designer Wear

Table of Contents
1. PURPOSE OF THE REPORT.. ......................................................................................................... 1
2. INTRODUCTION TO SMEDA .............................................................................................................. 13
3. INTRODUCTION TO SCHEME ........................................................................................................... 4
4. EXECUTIVE SUMMARY ...................................................................................................................... 4
5. BRIEF DESCRIPTION OF PROJECT & PRODUCT ........................................................................ 5
6. CRITICAL FACTORS ............................................................................................................................ 5
7. INSTALLED & OPERATIONAL CAPACITIES................................................................................. 6
8. GEOGRAPHICAL POTENTIAL FOR
INVESTMENT AND POTENTIAL
TARGET MARKETS
..............................................................................
...................................................................... 6
9.
PRODUCTION PROCESS FLOW
................................................................................
.................. 7
10.
PROJECT COST SUMMARY
................................................................................
......................... 8
10.1. PROJECT ECONOMICS
...............................................................................
.................................... 8
10.2. PROJECT FINANCING
...............................................................................
..................................... 8
10.3. PROJECT COST
...............................................................................
.............................................. 9
10.4.

SPACE REQUIREMENT .................................................................................................................. 9

10.5.
11

MACHINERY, EQUIPMENT AND FURNITURE FOR WORKSHOP ......................................................10-

10.6.

OFFICE FURNITURE AND EQUIPMENT ..........................................................................................10

10.7.

RAW MATERIAL REQUIREMENTS ................................................................................................11

10.8.

HUMAN RESOURCE REQUIREMENT .............................................................................................11

10.9.

REVENUE GENERATION...............................................................................................................12

11.10.
11.
11.1.

OTHER COSTS .........................................................................................................................13

ANNEXURE ..................................................................................................................................... 14
INCOME STATEMENT ...................................................................................................................14

Pre-Feasibility Study
Boutique Women Designer Wear
11.2.

CASH FLOW STATEMENT ............................................................................................................15

11.3.

BALANCE SHEET .........................................................................................................................16

11.4.

USEFUL PROJECT MANAGEMENT T IPS ........................................................................................17

11.5.

USEFUL LINKS.............................................................................................................................18

12.

KEY ASSUMPTION ....................................................................................................................... 19

Pre-Feasibility Study
Boutique Women Designer Wear

1.0 Purpose of the Repor

The objective of the pre-feasibility study is primarily to facilitate potential
entrepreneurs in project identification for investment. The project pre-feasibility
may form the basis of an important investment decision and in order to serve this
objective, the document/study covers various aspects of project concept
development, start-up, and production, marketing, finance and business
management.
The purpose of this document is to
facilitate potential investors in
Boutique Women Designer Wear
business by providing them with a
general understanding of the
business with the intention of
supporting potential investors in
crucial investment decisions.
Apart from carefully studying the
whole document one must consider
critical aspects provided later on,
which form basis of any Investment
Decision.

2. INTRODUCTION TO SMEDA
The Small and Medium Enterprises Development Authority (SMEDA) was
established in October 1998 with an objective to provide fresh impetus to the
economy through development of Small and Medium Enterprises (SMEs).
With a mission "to assist in employment generation and value addition to the
national income, through development of the SME sector, by helping increase
the number, scale and competitiveness of SMEs" , SMEDA has carried out
sectoral research to identify policy, access to finance, business development
services, strategic initiatives and institutional collaboration and networking
initiatives.
Preparation and dissemination of prefeasibility studies in key areas of investment
has been a successful hallmark of SME facilitation by SMEDA.
5

Pre-Feasibility Study
Boutique Women Designer Wear

Concurrent to the prefeasibility studies, a broad spectrum of business

development services is also offered to the SMEs by SMEDA. These services
include identification of experts and consultants and delivery of need based
capacity building programs of different types in addition to business guidance
through help desk services.

Pre-Feasibility Study
Boutique Women Designer Wear

3. INTRODUCTION TO SCHEME
Prime Ministers Small Business Loans Scheme, for young entrepreneurs, with
an allocated budget of Rs. 5.0 Billion for the year 2013-14, is designed to provide
subsidised financing at 8% mark-up per annum for one hundred thousand
(100,000) beneficiaries, through designated financial institutions, initially through
National Bank of Pakistan (NBP) and First Women Bank Ltd. (FWBL).
Small business loans with tenure upto 7 years, and a debt : equity of 90 : 10 will
be disbursed to SME beneficiaries across Pakistan, covering; Punjab, Sindh,
Khyber Pakhtunkhwah, Balochistan, Gilgit Baltistan, Azad Jammu & Kashmir and
Federally Administered Tribal Areas (FATA).

4. EXECUTIVE SUMMARY
Growing numbers of boutiques have become an emblem of successful haute
couture clothes business in Pakistan. Most people especially women prefer them
on ordinary garment brands. There has been a mushroom growth in women
designer wear boutiques since the last decade since they offer versatility and
sophistication, thats why we can see couple of new and fast growing boutiques in
the country and places around us. This trend is not only confined to metropolis
alone but has also spread to small cities and towns. The rise is attributed to
growing middle class, exposure to media, entertainment, movies, internet and
also to a fleet of qualified fashion designers graduating from fashion schools
every year. Aspiring fashion graduates or potential entrepreneurs may find this
7

Pre-Feasibility Study
Boutique Women Designer Wear

growing sector a good prospect to capitalize on their potential, talent and

market opportunity. This pre-feasibility study provides information on key facets
of starting a Boutique business for Women Designer Wear.
The boutique business venture entails a total a total investment of about Rs. 2.20
million. This includes a capital investment of Rs.1.37 million and a sum of
Rs.0.837 million as working capital. The project is financed through 90% debt
and 10% equity. The Net Present Value (NPV) of the project is around Rs. 4.54
million with an Internal Rate of Return (IRR) of 55% and a payback period of 2.20
years. The project will generate direct employment opportunity for 20 persons.
Higher return on investment and a steady growth of business is expected with
the entrepreneur having some prior experience in the related field of business
and the hard work need to show the commitment of pursuing the wanted. This pre
feasibility encompasses essential information regarding various aspects of
starting a Boutique Women Designer Wear business in Pakistan.

Pre-Feasibility Study
Boutique Women Designer Wear

5. BRIEF DESCRIPTION OF PROJECT & PRODUCT

Boutique sector (women design wear) has been flourished over the last few
years, mostly in posh areas of big cities of Pakistan i.e. Lahore, Islamabad,
Karachi, Peshawar, Quetta, Faisalabad, Sialkot and Multan. This pre-feasibility
study focuses on establishing a women designer wear boutique in Lahore. The
boutique business venture entails a total investment of about Rs. 2.20 million.
This includes a capital investment of Rs.1.37 million and a sum of Rs.0.837
million as working capital.
The boutique will offer a wide choice
of clothes to its clientele ranging
from traditional dresses, prt a
porter casual, semi casual to
formal/bridal wear. Both traditional
and western dresses tailored to local
needs will be offered to the
customers. And once the business
get going smoothly and the
customers are satisfied with the
offering then the branches can we
opened in all bnig cities of the
county. There is a good potential for
exports of Pakistani dresses abroad
also as there is a large population of
Pakistani expatriates in UAE, USA
and UK.

6. CRITICAL FACTORS
Following are the factor critical for the success of this business venture;

Selection of a good location for the outlet

Ability to produce/acquire unique designs and pattern making/cutting and

safe guarding such design from piracy

Selection of affordable and quality raw materials i.e. fabric, accessories

Emphasis on quality i.e. stitching and finishing, appropriate labelling,

display and packaging

Marketing
and
promotion
through
various
channels
i.e.
catalogues/pamphlets, outdoor advertisement, hoardings/flex signs, TV &

Pre-Feasibility Study
Boutique Women Designer Wear

cable ads, fashion shows, participation in exhibitions, promotion through

social media (facebook etc)

10

Right product mix, proper inventory management, emphasis on customer

services

Employing and retaining skilled, hardworking and loyal labor

Pre-Feasibility Study
Boutique Women Designer Wear

Higher return on investment and a steady growth of business is expected

with the entrepreneur having some prior experience in the related field of business
and his/ her determination of pursing the business.

7.
INSTALLATION
CAPACITIES

&

OPERATIONAL

The boutique business installed

capacity will largely depend on the
market size it will operate and the
number of potential clientele it
wishes to cater to. The said women
designer
wear
boutique
will
have 1 in-house designer/owner,
1 production manager and 1
design
assistant
/
purchaser
(detailed
human
resource
requirement i.e. master tailors,
embroidery workers, sales persons
etc. is provided in the human
resource section of the document).
The project will require installing 4
machines (single needle), one overlock machine, one embroidery
machine and 2 generators (1 for the outlet and 1 for the workshop). The unit will
be able to produce 2,240 to 2300 dresses. On average, a designer can
draw/design 3,000 designs per annum from which around 100 designs are
selected on average.
Breakup of the total number of dresses will be as follows:
Table 1: Installed Capacity of the Boutique

Total designs selected by designer

Number of dresses in each design
Number of dresses in each size

10
0
4
4

Total Number of Ready Made Dresses

1,600

Made to Order as percentage of Ready Made Dresses @ 40%.

64
0
2,240

Total No. of Dresses

8. GEOGRAPHICAL
11

POTENTIAL

FOR

INVESTMENT

AND

Pre-Feasibility Study
Boutique Women Designer Wear

POTENTIAL TARGET MARKETS

The recommended location for setting up a boutique business will be a posh or
semi-posh area of Lahore city that can offer easy access of customers to the
outlet. It is further recommended that the proposed location should be taken on
rent. The size of the shop should be at least 350 Sq.ft with a monthly
approximate rent of 38,500. A small building will be required to establish the
stitching unit in a 5 Marla double story premises with an estimated rent of 13,500.

12

Pre-Feasibility Study
Boutique Women Designer Wear

The boutique will offer a wide choice of clothes to its clientele ranging from
traditional dresses, prt a porter casual, semi casual to formal/bridal wear. Both
traditional and western dresses tailored to local needs will be offered to the
customers. The ideal target market will be both upper middle level and high class
and later own also focusing on the export of the products.

9.

PRODUCTION PROCESS FLOW

The process for converting fabric in designer wear garments follows the below
mentioned sequence:
Purchasing of

Designing

Pattern Making

Raw Material

Stitching

Finishing

13

Cutting

Presentation

Embroidery

Market/Clientele

10.

PROJECT COST SUMMARY

A detailed financial model has been developed to analyze the viability of

Boutique (Women Designer Wear) under the Prime Ministers Small Business
Loan Scheme. Various cost and revenue related assumptions along with
results of the analysis are outlined in this section.
The projected Income Statement, Cash Flow Statement and Balance Sheet are
attached as appendix.
10.1.

Project Economics

All the assumptions in this financial model are based upon maximum production
of 2,240 dresses. Whereas the production target at 75% capacity utilization is

1,680 dresses.
The following table shows internal rates of return and payback period.
Table 2: Project Economics

Description
Internal Rate of Return (IRR)
Payback Period (yrs)
Net Present Value (NPV)

Detail
s

55%
2.20

Rs.
Returns on the project and its profitability are highly dependent 4,544,117
on the unique
design, quality of purchased raw material and the hardworking labour.
10.2.

Project Financing

Following table provides details of the equity required and variables related to
bank loan;
Table 3: Project Financing

Description
Total Equity (10%)
Bank Loan (90%)
Markup to the Borrower (%age/annum)
Tenure of the Loan (Years)

Details
Rs.
220,367
Rs.1,983,30
0
8%
7

10.3.

Project Cost
Table 4: Capital Investment

Capital Investment

Amount (Rs.)

Machinery & Equipment

300,50
0
437,62
0
232,00
0
396,16
4
1,366,28
4
837,38
3
2,203,66
7

Furniture & fixtures

Office equipment
Pre-operating Cost
Total Capital Costs
Initial Working Capital
Total Project Cost

Following requirements have been

identified for operations of the
proposed business.
10.4.

Space Requirement

The area has been calculated on the

basis of space requirement for
workshop and outlet which has to be
taken on rent. Following table shows
calculations for project space
requirement.

Table 5: Space Requirement

Space Requirement

Sq. ft

Workshop Area

2,250

Outlet

35
0
2,600

Total Area

Rent /
Sq.
ft

110

Rent per
month
(Rs.)
13,50
0
38,50
0
52,00
0

Workshop will be rented .

10.5.
Machinery, Equipment and Furniture for Workshop
Following table provides list of machinery, equipment and furniture required for
an average stitching workshop for Boutique.
Table 6: List of Machinery, Equipment and Furniture

Description

Quantity

Cos
t

Tota
l

Rs/uni

Rs

Single Needle Lock Stitching

Machine with Servomotor

26,00
0

104,00
0

Over lock Machine with

Servomotor

33,50
0

33,50
0

Embroidery Machine (50 Pattern)

with Servomotor

53,00
0

53,00
0

Generator for Workshop (6 KW)

70,00
0

70,00
0

Furniture (Iron & Cutting

Tables, Chairs, Cabinet, etc)

103,20
0

Workshop Accessories
(Embroidery Frame sets,
Scissors, Cutting &
Measuring Scale, etc)
Air Conditioner

26,30
0
1

50,00
0

Lightening and Iron

50,00
0
25,74
0
465,74

Total

10.6.
Office Furniture and
Equipment
Following table provides details of
office furniture and equipment
required for this project.
Table 7: List of Office
Furniture and
Equipment

Quantity
Laptop (Used/New)

Printers

Cost

Amount
40,00
0
15,00
0

200,00
0
30,00
0

Telephone Sets

1,00
0

2,00
0

Furniture
Interior Designing for Shop
Air conditioners

50,00
0

Energy savers, fans, etc

Generator (2.5 KVA)
Total
10.7.

Raw Material Requirements

23,60
0
150,00
0
50,00
0
8,78
0
40,00
0
504,38
0

Normally raw material cost of the

dress varies between 15% to 30%
of its sales price,
10.8.
Human Resource
Requirement
Following table provides details of
human resource required for the
project along with monthly salaries;

Table 8: Human Resource Requirement

Description

No. of Employees

Owner Manager

Production Manager

Design Assistant and Purchaser

Master Tailor

Tailor / Stitching Master

Embroidery Worker

Press / Iron Man

Salary per
month
(R
38,00
0
35,00
0
25,00
0
13,00
0
11,00
0
10,00
0
10,00
0

Dyer

Cashier / Head Sales Girl

Sales Girls

Accountant

Office Boy

10,00
0
15,50
0
12,50
0
17,00
0
10,00
0

Guard

11,00
0
Total
2
298,50
0
0
The table above provides details of human resource required to run such a
project. It is assumed that the owner should have some experience or knowledge
about Boutique business. Design Manager will design all the dresses with his
team and seek approval from owner prior the stitching process. Other staff stated
above will perform as per their assigned job description. Salaries of all
employees are estimated to increase at 10% annually.
10.9.

Revenue Generation
Table 9:
Revenue in
First Year

Product

Casual

Dresse
s
1,344

Semi Formal

672

Formal

224

Total Sales
Finished Goods
Inventory Minus

2,240

Sales
Price
(Rs./Unit
)
3,00
0
6,60
0
15,00
0

First Year
Productio
n at 75%
capacity

First Year
Sales
Revenue
(Rs)
3,024,00
0
3,326,40
0
2,520,00
0
8,870,40
0
(369,600
)

1,008
50
4
16
8
1,680
7
0

Total Sales
Revenue

8,500,80
0

Following tables provide assumption for revenues and costs;

Table 10: Product Mix

Category
Casual Wear
Semi Formal Wear
Formal Wear

% Of Total Outfits
60
%
30
%
10
%

Table 11: Average Sales

Category
Casual Wear

Avg. Price per

outfit

Semi Formal Wear

Formal Wear
Category

Table 12: Precentage of Costs

3,00
0
6,60
0
15,00
0

Cost (percentage of sales)

Casual Wear

24
%
24
%
24
%

Semi Formal Wear

Formal Wear
10.10.

Other Costs

An essential cost to be borne by the

Boutique is rent of the outlet and
workshop. A promotional expense in
this pre-feasibility study is taken
@10% of sales which is essential for
this business as marketing plays an
important role in the growth of this
business

Pre-Feasibility Study
Boutique Women Designer Wear

12.

ANNEXURE

12.1.

Income Statement

Income Statement
Year 1
8,500,800

Year 2
10,380,832

Year 3
11,448,730

Year 4
12,593,603

Year 5
13,852,963

Year 6
15,238,259

Year 7
16,762,085

Year 8
18,438,294

Year 9
20,282,123

Year 10
22,310,335

2,040,192
1,966,500
32,200
139,801
4,178,693
4,322,107

2,491,400
2,245,922
39,321
170,720
4,947,362
5,433,470

2,747,695
2,471,023
43,366
188,282
5,450,366
5,998,363

3,022,465
2,711,605
47,703
207,110
5,988,883
6,604,720

3,324,711
2,975,611
52,473
227,821
6,580,616
7,272,346

3,657,182
3,265,320
57,721
250,603
7,230,827
8,007,433

4,022,900
3,583,236
63,493
275,664
7,945,293
8,816,792

4,425,190
3,932,105
69,842
303,230
8,730,368
9,707,925

4,867,709
4,314,941
76,826
333,553
9,593,030
10,689,093

5,354,480
4,735,049
84,509
366,909
10,540,947
11,769,388

1,530,000
45,900
624,000
171,496
212,520
22,950
15,300
850,080
120,212
39,616
3,632,074
690,033

1,678,963
50,369
686,400
188,645
259,521
25,184
16,790
1,038,083
120,212
39,616
4,103,784
1,329,686

1,842,429
55,273
755,040
207,510
286,218
27,636
18,424
1,144,873
120,212
39,616
4,497,232
1,501,131

2,021,811
60,654
830,544
228,261
314,840
30,327
20,218
1,259,360
120,212
39,616
4,925,844
1,678,876

2,218,657
66,560
913,598
251,087
346,324
33,280
22,187
1,385,296
120,212
39,616
5,396,817
1,875,529

2,434,669
73,040
1,004,958
276,195
380,956
36,520
24,347
1,523,826
133,031
39,616
5,927,159
2,080,273

2,671,711
80,151
1,105,454
303,815
419,052
40,076
26,717
1,676,209
133,031
39,616
6,495,833
2,320,958

2,931,833
87,955
1,215,999
334,197
460,957
43,977
29,318
1,843,829
133,031
39,616
7,120,714
2,587,211

3,217,280
96,518
1,337,599
367,616
507,053
48,259
32,173
2,028,212
133,031
39,616
7,807,360
2,881,734

3,530,519
105,916
1,471,359
404,378
557,758
52,958
35,305
2,231,034
133,031
39,616
8,561,875
3,207,513

Gain / (loss) on sale of office equipment

Earnings Before Interest & Taxes

690,033

1,329,686

1,501,131

1,678,876

92,800
1,968,329

2,080,273

2,320,958

2,587,211

2,881,734

3,207,513

Interest expense on long term debt (Project Loan)

Subtotal
Earnings Before Tax

150,705
150,705
539,328

132,425
132,425
1,197,261

112,628
112,628
1,388,503

91,187
91,187
1,587,688

67,968
67,968
1,900,362

42,821
42,821
2,037,452

15,586
15,586
2,305,372

2,587,211

2,881,734

3,207,513

Tax
NET PROFIT/(LOSS) AFTER TAX

13,933
525,395

102,089
1,095,172

130,775
1,257,728

165,037
1,422,651

227,572
1,672,789

254,990
1,782,462

308,574
1,996,798

369,303
2,217,909

442,933
2,438,800

524,378
2,683,135

Revenue
Cost of sales
Cost of goods sold 1
Operation costs 1 (direct labor)
Operating costs 2 (machinery maintenance)
Operating costs 3 (direct electricity)
Total cost of sales
Gross Profit
General administration & selling expenses
Administration expense
Administration benefits expense
Building rental expense
Electricity expense
Travelling expense
Communications expense (phone, fax, mail, internet, etc.)
Office expenses (stationary, entertainment, janitorial services, etc.)
Promotional expense
Depreciation expense
Amortization of pre-operating costs
Subtotal
Operating Income

24

Pre-Feasibility Study
Boutique Women Designer Wear

12.2.

Cash Flow Statement

Cash Flow Statement

Year 0
Operating activities
Net profit
Add: depreciation expense
amortization of pre-operating costs
Deferred income tax
Accounts receivable
Finished goods inventory
Equipment inventory
Raw material inventory
Pre-paid building rent
Accounts payable
Cash provided by operations
Financing activities
Project Loan - principal repayment
Working Capital Loan - principal repayment
Issuance of shares
Purchase of (treasury) shares
Cash provided by / (used for) financing activities
Investing activities
Capital expenditure
Acquisitions
Cash (used for) / provided by investing activities
NET CASH

25

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

(487,383)

525,395
120,212
39,616
13,933
(163,029)
(181,682)
(1,515)
(58,362)
(31,200)
94,835
358,203

1,095,172
120,212
39,616
102,089
(18,028)
(24,996)
(1,087)
(48,681)
(34,320)
20,881
1,250,858

1,257,728
120,212
39,616
130,775
(28,268)
(20,420)
(1,235)
(58,182)
(37,752)
13,141
1,415,615

1,422,651
120,212
39,616
165,037
(21,218)
(22,438)
(1,427)
(70,401)
(41,527)
14,422
1,604,928

1,672,789
120,212
39,616
227,572
(23,054)
(24,656)
(1,648)
(85,185)
(45,680)
16,186
1,896,153

1,782,462
133,031
39,616
254,990
(25,360)
(27,092)
(1,903)
(103,074)
(50,248)
18,193
2,020,617

1,996,798
133,031
39,616
308,574
(27,896)
(29,769)
(2,198)
(124,719)
(55,273)
20,483
2,258,647

2,217,909
133,031
39,616
369,303
(30,685)
(32,711)
(2,539)
(150,910)
(60,800)
23,100
2,505,313

2,438,800
133,031
39,616
442,933
(33,754)
(35,944)
(2,932)
(182,601)
(66,880)
26,097
2,758,367

2,683,135
133,031
39,616
524,378
(37,129)
(39,497)
21,850
1,052,132
735,680
(23,816)
5,089,381

220,367

(220,241
) -

(238,521
) -

(258,318
) -

(279,758
) -

(302,978
) 296,097

(328,125)
-

(355,359)
-

(220,241
)

(238,521
)

(258,318
)

(279,758
)

(6,881
)

(328,125)

(355,359)

1,692,492

(5,367)
(170,016)
(312,000)

2,203,667

(1,366,284)

(296,097)

(1,366,284)

(296,097)

350,000

137,962

1,012,337

1,157,297

1,325,170

1,593,175

1,903,288

2,505,313

2,758,367

5,089,381

11.3.

Balance Sheet

Balance Sheet
Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

350,000

5,367
170,016
312,000
837,383

487,962
163,029
181,682
6,881
228,378
343,200
1,411,133

1,500,299
181,057
206,678
7,969
277,059
377,520
2,550,582

2,657,596
209,325
227,099
9,204
335,242
415,272
3,853,737

3,982,766
230,543
249,537
10,630
405,642
456,799
5,335,918

5,575,941
253,597
274,192
12,278
490,827
502,479
7,109,315

7,268,433
278,957
301,284
14,181
593,901
552,727
9,009,483

9,171,721
306,853
331,054
16,379
718,620
608,000
11,152,627

11,677,034
337,538
363,765
18,918
869,531
668,800
13,935,585

14,435,401
371,292
399,710
21,850
1,052,132
735,680
17,016,064

300,500
437,620
232,000
970,120

270,450
393,858
185,600
849,908

240,400
350,096
139,200
729,696

210,350
306,334
92,800
609,484

180,300
262,572
46,400
489,272

150,250
218,810
296,097
665,157

120,200
175,048
236,878
532,126

90,150
131,286
177,658
399,094

60,100
87,524
118,439
266,063

30,050
43,762
59,219
133,031

Year 10

Assets
Current assets
Cash & Bank
Accounts receivable
Finished goods inventory
Equipment spare part inventory
Raw material inventory
Pre-paid building rent
Total Current Assets
Fixed assets
Machinery & equipment
Furniture & fixtures
Office equipment
Total Fixed Assets
Intangible assets
Pre-operation costs
Total Intangible Assets
TOTAL ASSETS
Liabilities & Shareholders' Equity
Current liabilities
Accounts payable
Total Current Liabilities
Other liabilities
Deferred tax
Long term debt (Project Loan)
term debt (Working Capital Loan)
Total Long Term Liabilities
Shareholders' equity
Paid-up capital
Retained earnings
Total Equity
TOTAL CAPITAL AND LIABILITIES

396,164
396,164
2,203,66
7

356,54
8
356,54
8
2,617,58
9

316,93
1316,93
1
3,597,21
0

277,31
5277,31
5
4,740,53
6

237,69
9237,69
9
6,062,88
8

198,08
2198,08
2
7,972,55
5

158,46
6158,46
6
9,700,07
5

118,84
9118,84
9
11,670,57
0

79,23
379,23
3
14,280,88
1

39,61
639,61
6
17,188,71
2

94,835
94,835

115,716
115,716

128,856
128,856

143,278
143,278

159,464
159,464

177,657
177,657

198,139
198,139

221,239
221,239

247,336
247,336

1,983,300
1,983,300

13,933
1,763,059
1,776,992

116,022
1,524,538
1,640,560

246,797
1,266,220
1,513,018

411,835
986,462
1,398,297

639,407
683,484
1,322,891

894,397
355,359
1,249,756

1,202,971
1,202,971

1,572,274
1,572,274

2,015,207
2,015,207

220,36
7
220,36
7
2,203,66
7

220,36
7
525,39
5
745,76
2
2,617,58
9

220,36
7
1,620,56
7
1,840,93
4
3,597,21
0

220,36
7
2,878,29
5
3,098,66
2
4,740,53
6

220,36
7
4,300,94
6
4,521,31
3
6,062,88
8

516,46
4
5,973,73
6
6,490,20
0
7,972,55
5

516,46
4
7,756,19
8
8,272,66
2
9,700,07
5

516,46
4
9,752,99
6
10,269,46
0
11,670,57
0

516,46
4
11,970,90
4
12,487,36
8
14,280,88
1

516,46
4
14,409,70
4
14,926,16
8
17,188,71
2

19,524,781
408,421
439,206
20,372,408
-

20,372,
408

223,
520
223,
520
2,539,585
- Long
2,539,585

516,
464
17,092,
839
17,609,
303
20,372,
408

Pre-Feasibility Study
Boutique Women Designer Wear

11.4.

Useful Project Management Tips

Technology

Required spare parts & consumables:

Suppliers credit agreements and availability as per schedule of
maintenance be ensured before start of operations.

Machinery Suppliers: Should be asked for training and after sales services under the contract with the
machinery suppliers.

Quality Assurance Equipment & Standards: Products quality standards need to be defined on the
packaging.

Marketing

Product Development & Packaging: Expert help may be engaged for product/service and packaging
design & development. A proper marketing company can be used in order to run the campaign smoothly. It
involves both inbound and outbound techniques and also numerous PR campaigns if required.

Ads & Point of Sale Promotion: Business promotion and dissemination through banners and launch
events is highly recommended coupled with utilizing marketing through social media.

27

Pre-Feasibility Study
Boutique Women Designer Wear

11.5.

Useful Links

Prime Ministers Office, www.pmo.gov.pk

Small and Medium Enterprises Development Authority, www.smeda.org.pk
National Bank of Pakistan (NBP), www.nbp.com.pk First Women Bank Limited (FWBL),
www.fwbl.com.pk Government of Pakistan, www.pakistan.gov.pk Ministry of Industries
& Production, www.moip.gov.pk
Ministry of Education, Training & Standards in Higher
Education, http://moptt.gov.pk
Government of Punjab, www.punjab.gov.pk
Government of Sindh, www.sindh.gov.pk
Government of Khyber Pakhtunkhwa, www.khyberpakhtunkhwa.gov.pk
Government of Balochistan,
www.balochistan.gov.pk Government of Gilgit
Baltistan, www.gilgitbaltistan.gov.pk
Government of Azad Jamu Kashmir,
www.ajk.gov.pk
Trade Development Authority of Pakistan (TDAP), www.tdap.gov.pk
Security Commission of Pakistan (SECP), www.secp.gov.pk
Federation of Pakistan Chambers of Commerce
www.fpcci.com.pk
28

and Industry (FPCCI)

Pre-Feasibility Study
Boutique Women Designer Wear

State Bank of Pakistan (SBP), www.sbp.org.pk

Pakistan Institute of Fashion Design (PIFD), www.pifd.edu.pk
Pakistan Fashion Design Council (PFDC), www.pfdc.org

29

Pre-Feasibility Study
Boutique Women Designer Wear

12.

KEY ASSUMPTION

Table 13: Operating Assumptions

Days operational per month (Workshop)

2
5
3
0

Days operational per month (Outlet)

Accounts Payable (Days)

Table 14: Cash Flow Assumptions

1
5
7

Accounts Receivable (Days)

Raw Material Inventory (Days)

3
0
1
5

Finished Goods Inventory (Days)

Table 15: Expense Assumptions

Promotional and Marketing Expense

Administration benefit expenses
Travelling Expense

30

10% of sales
3% on administration expense
2.5% of sales