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Business Plan

Submitted To: SIR HARIS RAZA

Submitted By: Reema Mazhar

Shagufta Shaheen

Rabiah Basri
We wish to acknowledge our regards and indebtedness to our guide and benevolent Sir Haris
Raza teaching Entrepreneurship in Federal Urdu University of Arts, Science & Technology, and
Islamabad. Whose kind and precious suggestions enriched our thoughts and helped us to
accomplish this Business plan. We also want to thank our families who supported us. Thanks to
Almighty ALLAH for giving us such will and power to complete this business plan on time.

We have chosen this Boutique to make our project on it. We also used the source of internet for
gathering information. We think that we have done our job in making the business plan we hope
that we have given all the complete information required by our teacher, and hope that our hard
work pays off.

We want to start our boutique business in medium scale in Pakistan. We all group partners are
well qualified in fashion designing and have an specialized degree in fashion designing, so we
want to utilize our skills in this relevant field to provide people more ease to select their fashion
wears in their weeding ceremonies’, birthday parties, party dresses, casual dresses, and official



We have a partnership business. Our business consist of 4 members. We all partners will share
all profits or losses of our business according to our agreement. Our company follows all rules of
partnership act 1932 by the Provincial Governments in exercise of powers conferred by section
71 of the Partnership Act, 1932 rules which framed are Punjab Partnership (Registration of
Firms) Rules, 1932, North-West Frontier Province Partnership Rules, 1932 and Sindh
Partnership Rules, 1932.All partners are personally liable for their business debts. All partners
are legally bound to by business transactions made by him and can be held personally liable for
their transactions.


Welcome to our company of fashion designing. We design and offer casual, formal, semi formal,
and party dresses. Through consistent, professionalism, our company will ensure a
uncomfortable free dresses at a reasonable price.

Clothing is a beautiful visual demonstration of the social and emotional needs of people wearing
it. It also portrays in a clearly understood visual manner, what people of different cultures and
styles want socially. Fashion, through times, has gone through so many rapid changes and
bizarre extremes that it has examples of nearly every kind of clothing function. However, in a
boutique business, the specifications and descriptions of the designs and clothes are so general
that they can fit more than one costume, which actually are quite different in nature from each
other and this is solely dependent on the taste of the people. The range of Pakistani dresses is
remarkably wide, according to the vast cultures, geographical differences, purchasing capacities,
influence of the western culture, and bewildering diversities of the ethnic groups. One has,
therefore, to sift and isolate, and then relate and bring together, the ideas for creating various
designs, which can fit in the context of the fashion in vogue and the culture in practice. In
reference to Pakistan, the Boutique business is quite in vogue but has yet to be formalized. The
market of this enterprise is quite scattered and unorganized. There are a few major players in
Boutique business and these entrepreneurs have also taken an initiative based on their caprice
and experience in the field of fashion design. However, there is a massive potential in this field,
if one has the ability to design and market his/her products through introducing innovative
designs both in stitching as well as the fabric sector.

c) Nature of Product/Service Nature

We are offering casual, formal, semi formal and party dresses (embroidery, embroidered dress).
We design dresses on keeping in view customers requirements as well as on orders. We have
designed a booklet of different fashion wearing and which customer can select desirable designs.
We use different seasonal fabrics like chiffon, Arabian lawn, cotton, linen for summers and
wool, leather bosky linen marina etc for winters.

We have a outlet of our business in the main bazaar kahuta. It’s in an area that provides enough
traffic to bring sufficient customers to our outlet.

a) Nature of Target Customer/ Customer profile

Demographic Analysis:

Demographically customers which we targeted have an age of 18 to 40 years, our customers are
females. Most of the families are educated, their literacy level are good. Our targeted customers

are mediocre and KAHUTA is basically an urban area, but it’s nearly located to rural area.
Nowadays, rural people also follow fashion so we are somehow also targeting to those people
whose are belonging to rural area.


Location of customers is KAHUTA, why we are choosing KAHUTA? Because there are no
boutiques which provide latest dresses in reasonable prices, this opportunity for our company to
build our business outlet in that city. KAHUTA which is nearly located to hilly or rural area. The
questions which arise to most of the peoples are why we are selecting?

The main reason is that KAHUTA city is now well established city but there are even no
boutiques which offer latest trendy dresses, so most of the citizen of KAHUTA is move to
Islamabad or Rawalpindi for purchasing well dresses. There are just small sizes shops are here
for stitched dresses.


According to age group of our customers they have a good maturity level because we are not
targeted to children. Their most of the citizen are house hold. In KAHUTA most of the females
are price conscious so we are providing superior dresses in most reasonable prices.


We are providing eastern dresses which are socially and religion acceptable. Language is
potohari which is the mother tongue of that particular area that’s why we are focuses on just
eastern dresses.

b) Customer Personality, Variables:

There are mostly joint family systems in KAHUTA city, but to some extent there are
individualistic family systems. Mostly females get excited to know that we are offering trendy
fashionable dresses, their enthusiastic level at the top when they get something they didn’t
expect. The people living in KAHUTA are price conscious that is why we want to meet their
needs in terms of fashion within their budget. There is an exact match between customer needs
and our business plan as offering and positioning.

c) Need Analysis:

In our Pehnawa Boutique we are basically focused on

 Formal dresses
 Casual dresses

 Party dresses.

The fabric which we are selected here are superior quality as it’s mentioned in our name. when
we survey the KAHUTA and we verbally asked from their citizen and the answer which we get
are the KAHUTA females are really need some new fashion design boutique in their location,
where they easily buy and get those clothes which they want. These female citizens also
recognized there need and they have an expressive need. Females face lot of problems for
traveling some distances area for buying some latest fashionable dresses. No one take that
initiative step to open their boutique in this area so we are those who take that initiative to
resolve the problem of these females. We are meeting their existing need with latent style.

Proposed Capacity:
The Boutique business capacity is greatly dependent on the market size and the number of
potential clientele one can attract. Furthermore, the women fashion wear garments will be
designed through a contracted designer and then stitched through in-house stitching unit. On
average, a designer can supply forty designs per month from which nearly thirty designs are
selected on average. Approximately, total capacity of the defined unit with 5 stitching machines
(basis on 8-10 hours shift) will be about 750 dresses. The breakup of the total number of dresses
will be as follows:

Total designs selected by designer 20

Number of dresses in each design 50
Number of dresses in each size 50
Total Number of dresses 1000

This production and sales capacity is estimated to be economically viable and justifies the capital
as well as operational costs of the project.

Completion is arising when someone your alternative is already present in the market, but our
major strength is that there is no such boutique in the KAHUTA market. We Pehnawa boutique
are single one who provide superior quality dresses in reasonable prices.

a) Alternative and Substitute Product identification

In KAHUTA there is no boutique but that doesn’t mean we don’t have any competitor. Yes we
have competitor. Those people who have old businesses of sell their clothes and here most of the
females are house hold and they are well mastered in stitching, karahi, motifs work, aplic art,
dress painting and etc so they are providing substitute of boutique so they all are our good
competitors. Because they already have their own good will and also belong to KAHUTA area,
we are new arrival member of that area.

b) Point of Parity and Expected Differences

We are offering wears for all occasions, as many other boutiques are offering but our point of
difference is that we are launching our business in Kahuta region where there are fewer
boutiques which are working with stereotyped functions , they are not providing a high
quality and designs, they charge high prices against Rawalpindi and Islamabad. People of
Kahuta usually shop dresses from Rawalpindi and Islamabad for their events and occasions.
When our boutique will run business in that particular area, it will provide ease of availability
of all kind of dresses with in Kahuta city. We design dresses in accordance with customer’s
culture and traditions.

 The raw material which we are using is high quality.

 We supply our products on home delivery which our competitors not provided.
 We also get on order booking, others are not doing this.
 We are focuses on formal, casual, and party dresses so we provide best output on these
products, whether our competitors provide all types of dresses and also provide child
clothes so they are not put their best effort on all types of dresses.
 We also provide good environmental condition to our customers, and also hire well
trained employees who have an ethical and convincible language for dealing our

c) Promotional Mix

Our modes of advertisement are:

 Firstly word of mouth marketing,

 We have our own outlet in the main bazaar KAHUTA where everyone pass out from the
 We have our Facebook page and get likes from the people of KAHUTA, through which
we update our designs an also take online orders and meet orders.
 We also organized different exhibitions in the girl’s college of KAHUTA to attract girls
towards our outlet.
 Business cards identify your business. Hand one out every time you meet somebody new
or speaking with somebody who has a similar business. It is a simple marketing strategy.

Product Mix

Category % of Total Outfits

Casual Wear 31%
Formal Wear 34%
Party Wear 35%

d) Distribution and Delivery

Our modes of distribution are

 On the spot buying

 We also provide home delivery system.

We architect our outlet like there is a big hall in which different types of decorative clothing
racks, rolling racks hanger stands are putted over there, at entrance right side on corner there is a
counter where we do cash dealings. Behind the hall there is another hall smaller than the main
hall in which. There is one entrance and exit gate, where one security guard is hired. There is
also a try room and an attached bath with it.

Production Process Flow

The process for converting fabric in designer wear garments follows the below mentioned

 Design:

The initial process starts from the designing phase. Various patterns of clothing and the
fashions in vogue, which also relate to the tastes of the concerned clientele, are designed. This is
done by the contracted designer as he/she will provide the basic designs of which the fabric will
be converted into the designer wear garment. On average, a designer is supposed to provide 40

designs per month or 100-120 designs per season i.e. three months. From these designs,
approximately 50% of the designs are selected for further development of clothes.

 Pattern Making/Cutting:

Based on the designs selected, patterns for cutting are developed and based on these patterns,
fabric is cut, embroided and processed accordingly.

 Stitching:

The cutting is then followed by stitching, which can either be done by the outsourcing (in-house
stitching unit). Labels are also attached to the apparels in this process.

 Finishing:

The final phase is that of finishing, in which the garment will be checked for quality control and
will cleaned (if required) for final presentation at the outlet. The garments will also be tagged for
identification of sizes, prices, addresses, handling instructions, etc.

 Presentation/Market:

Once the designer wear garment is ready after going through the above-mentioned process, it is
presented at the outlet/shop for sale to the clientele.


In case of over-lock stitching, it will be done in-house. The stitching of buttonholes as well as
elastic embedding will be outsourced. This will cost approximately @Rs.5 per dress.

Suppliers of the products

S.no Cities Suppliers Name Categories’
1 Rawalpindi Pervaiz cloth house Cotton , velvet
2 Rawalpindi Mudasar cloth Linen , chiffons, lawn
3 Lahore Resham Ghar Embroidery dresses

Raw Material
The raw-material required for such sort of projects, would be as follows:

 Fabric:

The fabric, which is the basic raw material requirement for a boutique and a major
component of the cost, can be obtained from wholesale markets or from markets
specializing in designer cloth at Rawalpindi and Lahore
 Accessories:

Accessories such as buttons, laces, zippers, elastics, threads, needles, embroidery threads,
glasses, etc. will be procured from the local market at competitive rates.

Cost of raw material purchase

S.no Description Per unit cost (Rs) 12 units

Amount (Rs.)
1 Cotton 680 8,160
2 Linen 700 8,400
3 Chiffon 900 10,800
4 Lawn 750 9,000
5 Velvet 1,200 14,400
6 Embroidery dresses 3,000 36,000
Total 7,230 86,760


The project of Boutique requires the following Human Resources/Staff:

Staff Salaries

Position Required Salary per Month Salary per Annum

Production staff
Designer 1 15,000 180,000
Tailor 3 7,000 252,000
Press/iron 1 4,000 48,000
Total 480,000
Administrative Salary
Guard 1 5,000 60,000
Peon/sweeper 2 2,500 60,000
Total 120,000

Average Sale Price
Category Ave. price per outfit
Casual Wear 1,500
Formal Wear 2,000
Party Wear 5,000

Costs of Goods Sold and other Expenses

Cost of goods sold has been taken as a percentage of the sale price. The percentage of cost for
each product category is as below:

Percentage of Cost
Category Cost (percentage of Sales)

Casual Wear 35%

Semi Formal Wear 32%

Formal Wear 30%

The boutique will require a small in-house stitching unit. The cost of the stitching machinery
will be as follows:

Machinery Detail

Stitching Machinery No. Rs/Unit Rs.

Single needle lock stitching machine 5 19,900 99,500
Over lock Machine 1 56,800 56,800
Embroidery 1 29,900 29,900
Total 186,200


Prices have been quoted by SINGER sewing company, Pakistan. Though the prices here are
given of the new machines but second hand machines are also widely available which can
function properly and can reduce the project cost too.

Furthermore, the following will also be required to setup a Boutique:

Office Equipment:

Other Equipment No. Rs/Unit Rs

Computer 1 20,000 20,000
Computer Printer 1 5,000 5,000
Telephone 1 1,500 1,500
Total 30,000


Recommended Mode for Renting a Shop

It is recommended that the proposed location for the said enterprise is “Main Bazaar
KAHUTA”, where people have the buying capacity for women fashion wear. The size of the
shop should be at least 800 Sq.ft i.e. 20 feet front and 40 feet depth. Furthermore, a small
building will be required to establishing the stitching unit. One viable option is to rent a small
house for this purpose. The shop will be obtained on rental basis, and the rent estimation for such
a shop is Rs 25,000/month. According to the prevailing practice, 6 months’ rent as advance and
three months’ rent as security would be required for renting the shop. It is assumed that security
is a one-time expenditure, whereas pre-paid rent will only be given at the beginning, while
establishing the boutique. After first six months, rent will be paid on monthly basis. The cost
estimates for setting up the Boutique are as follows:

Rent Cost Detail

Security for renting shop/outlet (Rent @ Rs.25,000per month. 3 Rs.75,000
months rent as security)
Interior decoration (installing lighting, mannequins, hanging racks, 100,000
mirrors, glass panes, cash counter, and other décor, etc)

Infrastructure requirements

Description Sq. ft
Main Shop 620
Try Room 80
Store Room 100
Total 800

Project Economics

Description Cost (Rs)

Machinery & Equipment 186,200
Furniture & Fixture (interior Decoration) 100,000
Office Equipment 30,000
Security Deposits for Premises 75,000
Pre-operating expenses
Salaries 26,000
Administrative Salaries 7,000
Promotional Expenses 30,000
Total Capital Cost 454,200
Working Capital
Raw Material (Fabric & Accessories) 86,760 (12 units cost)
Prepaid Rent (Boutique Outlet) 75,000
Total Working Capital 83,760
Project Cost 537,960

Project Returns

Pay Back Period (Years) 1.50

Financing Plan

Financing Rs.
Equity 80% 430,368
Debts 20% 107,592

Our Total Working Capital is Rs.537,960. Our Equity Ratio is 80% and we are financing loan
from financial institution is 20% of the total project cost. Our estimation is that we can meet the
break even point in 1.5years.


Strength of our services is that we provide ease to our customers, rather they go out of station to
buy trendy dresses, they can now come to within the city and enjoy the same product as other are
providing. In this way people of Kahuta region can save their time and money as well.

Our point of difference is strong to the extent that we are providing dresses in reasonable price
against our competitors. And our competitors are from out of the city. There is no such boutique
which offer new styles dresses according to the latest trend. Our strength is that we are providing
casual, formal, semi formal and party dresses nearest to the customer’s location.

Name of the business

We open ladies boutique in KHAUTA and we are dealing ladies casual wear, formal wear and
party wear.

Boutique Name

Pehnawa Boutique

Our Slogan

See the culture, feel the fashion




“We will connect business and community, affordability and great design.”



“Satisfying our customers by providing them best qualitative stuff and unique designs keeping in
view their comforts and reasonable price”


Provide professional services to implement successful project with minimum costs and
completion to satisfy customer needs.

for you and your trust. We honor you, ourselves and our world.

At Pehnawa Boutique we believe in the grace of simplicity. We want to share with you what we
value, personally and professionally. These are our core values and you can expect to see them in
all of our interactions with you:

 We believe in Whole Happiness.

 We believe in Living a beautiful Life.

 Honesty – We believe honesty is a key. We will always be honest with you and we
encourage you to seek honesty in yourself.
 Permission – We understand that each person has their own rules, boundaries, and
abilities to be open and to connect with others and with the world around them, and we
respect that. We will always ask for permission from you, and ensure that you have
granted us this grace when we work with you. We will always allow you to lead us to
what works for you and will never be pushy. We respect that it is your journey and
appreciate that you are allowing us to become a part of it.
 Giving – We know that giving to others and ourselves is a big deal. As a business we
give in many ways, as people we give of ourselves to you and to our communities small
and large. Visit
 Intuition - Trust yours...you'll know what is right for you. We trust your intuition too and
will listen to it when you share it with us. We also trust our intuition and actively listen to
that voice when it rises in us.
 Comfort – You are welcome here; we extend an open invitation to you. We strive to
create a sanctuary style environment that will make you feel safe, supported, and
nurtured. We believe that such an environment is necessary for trust, and that trust is
necessary for true healing.
 Love –We have love for nature, our world, ourselves and others. Love is at the center of
our work. Expect us to use it as a guiding principal in our care for you.
 Gratitude - We are thankful .


Our business lies in the domain of ‘Partnership’. There are four partners in this business and all
the partners agreed to share the profit & loss according to their investment in terms of their
capita sharing ratio. Our business followed the rules of Partnership Act 1932. The partners will
act according to their responsibilities which are defined in the partnership deed. Partnership deed
is a document which contain all the legalities about the business i.e. rights, duties, powers,
responsibilities, nature, capital ratio, P&L sharing ratio and other legal requirements which is
necessary to run the partnership business.

The registration of partnerships is not compulsory by law. It is optional and there is no penalty
for non-registration. However there are disadvantages for not registering. If any dispute arises
among the partners or ex-partners they may not resolve the issue through the civil courts. An
unregistered firm cannot institute a suit to settle these disagreements. Neither can an unregistered
firm sue a third party for the enforcement of any rights arising from a contract, e.g. the recovery
of the price of goods supplied. It must be noted however, that a third party may file suit against
the partnership. Even in this case, the partnership cannot mention any monies that may be
outstanding to them in court. There is no protection to the partners’ liability either. As there is no
formal documentation stated that they are in partnership, if one decides to deny the existence of
the partnership, there is not much that can be done about it legally. Registering during any suit
cannot subsequently cure this effect. Prior registration is necessary. The mutual rights and
obligations of all partners must be documented in the shape of a “partnership deed”. This needs
to be signed by all the partners and subsequent copies held by each partner. At the time of
registration, a copy of the deed has to be submitted with an application to the Registrar of Firms
in the concerned area. This document may also be referred to as an “Article of partnership”. A
partnership deed usually contains the following format:

a) The name of the firm

b) The nature of business that is to be carried out by the firm

c) The address at which the firm intends to conduct its business

d) The amount of capital that each partner contributes. The form of capital whether that be cash
or property needs to be documented. If the capital is property, a full description of the property
and the valued amount should be given also.

e) The names and addresses of each partner should be given

f) The duration of the partnership if any

g) The ratio of sharing profits and losses

h) The amount or percentage of interest, if any, which is to be allowed on capital

i) The amount of salary each partner is to receive

j) The manner in which a partnership is to be dissolved, and the subsequent distribution of

property among the partners.

k) In the case of insolvency the valuation and treatment of goodwill

l) Provisions regarding the accounting system and the fiscal year to be used

m) Rules to be followed in the case of retirement, death and admission of a partner

n) The method of settling disputes if any among partners. I.e. whether or not an arbitrator is to be

o) Method of calculating amount issued to a deceased partner, and whether this is to be paid in
full or in installments to his legal representative.

p) In the case of breach of duty by one partner, powers of other partners to expel him from the

q) The keeping of proper books of accounts and periodical preparation of accounts.

r) Any provisions to prevent any future misunderstanding and ill will.

Notes: A Partnership deed can be obtained in the form of judicial papers that cover all the points
mentioned above. This in turn can be signed and submitted to the registrar as mentioned.

 The law relating to a partnership firm is contained in the Indian Partnership Act, 1932.

 Under Section 58 of the Act, a firm may be registered at any time ( not merely at the time
of its formation but subsequently also ) by filing an application with the Registrar of
Firms of the area in which any place of business of the firm is situated or proposed to be

o Application shall contain:-

 Name of the firm
 Place or principal place of business
 Names of any other places where the firm carries on business.
 Date on which each partner joined the firm
 Name in full and permanent address of partners.
 Duration of the firm

o Application shall be signed and verified by all the partners or their duly
authorized agents.

o Application shall be accompanied by prescribed fee as well as the following

 Prescribed Registration Form for Incorporation of a Company. (Form No.
1 and Specimen of Affidavit)
 Certified true copy of the Partnership deed entered into.
 ownership proof of the principal place of business

o Name of the firm should not contain any words which may express or imply the
approval or patronage of the government except where the government has given
its written consent for the use of such words as part of the firm’s name.

 Under Section 59 of the Act, when the Registrar of Firms is satisfied that the provisions
of section 58 have been duly complied with, he shall record an entry of the statement in
the Register of Firms and issue a Certificate of Registration.

Type of Partnership:

Basically there are four types of partnership

1) Ordinary Partnerships
2) Limited Partnership
3) Partnership at-will
4) Particular partnership

we are dealing in the “Partnership at-will” The essence of a “partnership at-will” is that the
partners do not limit the duration of their partnership, and are free to break their relationship at
any time they see fit. It is a partnership for indefinite period. The partnership may be dissolved at
any point as long as the partner gives notice to all the other partners. An ordinary partnership
becomes a partnership at-will under the following circumstances:

a) If the partnership is of an indefinite period

b) If a partnership is formed for a limited period of time and the firm continues to function after
the expiry of this period.

c) If a partnership is formed to conduct a particular venture, and then continues to function after
the venture is complete.