Entrepreneurship project for 6th semester...

2. 1. Executive Summary
The Business:
 Business name: RAFF Engineering limited.
 Business structure: Partnership
 Business location:
Model Town Bank square market ,Lahore Pakistan
 Business owner(s):
Muhammad RizwanAtif
Muhammad Ali
Fazeel Farooqui
Muhammad Farooq
 Relevant owner experience:
We don’t have any kind of professional experience but have
leadership qualities and management skills.

3.  Products/services:
House, Office Security Systems
1-fully automated main gate
2-windows &internal doors security
3-Automated thermal (heating,& cooling)control
4-Automated water sanitary systems
(automatic valves etc.)
We are also providing with services, i.e. repairing, controlling, and
guidance about our products.
The Market:
Target market: Building contractors and direct customers
 Marketing strategy:
a) Our marketing managers will introduce our products and
complete packages to civil engineers and contractors(i.e. B2B).
b) We will introduce our products and packages by using print and
electronic media(B2B, B2C)

4. • The Future
First we will be focusing on providing services to our valuable
customers. when our business is settled ,in the future assembling.
• The Finances
Initially we need Rs:95,000 to setup our business. We will all be
contributing towards this business.
 CASH FLOW
o August, 2013
Rent : Rs.25000
Furniture, office arrangements, multimedia , systems: Rs.70000
Bills: Rs.5000
Revenue: Rs.60000
Loss: Rs.40000

5. o September, 2013
Rent : Rs.25000
Bills: Rs.5000
Revenue: Rs.70000
Cost=loss(previous month) + additional investment=
Rs.60000
Loss: Rs.20000
o October, 2013
Rent : Rs.25000
Bills: Rs.5000
Revenue : Rs.70000
Cost=loss(previous month) + additional investment=
Rs:40000
Breakeven =No profit ,no loss

6. 2. The Business
o Organogram:

7. ◦ Business Details
 We provide the Home Automation Services to the end consumers.
Automated doors, gate locks, windows, and even lights can be the sure
shot examples. One may regulate fans or switch lights with a remote
controller.
 Basic idea is to make the lifestyle of the users more easier, comfortable
and effective.
 Now what we actually do is, right now as a start up plan, we get the
equipments (IC chips, controllers, switches, etc.) from our suppliers and
fix/install these to the user’s place according to their demand and then
finally generate our revenue from the service done.
 As far as the demand of our service is concerned, its huge through out
the country we are targetting. The services we provide have such
economical rates that the consumers of lower middle class would also
get some favor out of it. We have an approximation of about 20 to 30
million people living in our country who would love to have such facilities
in their homes.
 Registration Details
The Business is yet to register by the end of this year 2013 under the
terms and conditions of SECP. RAFF ENGINEERING Ltd. is a
Partnership Organisation where four managers are owning it and
getting packages according to the terms and conditions decided.

8.  Management Role
 A General Manager has broad, overall responsibility for a business or
organization. Our General Manager will manage through subordinate
manager.A General Manager will have the power to hire, fire, or promote
employees. Our General Manager will be often responsible for the overall
strategic planning and direction of the company or organization and leaves
the day-to-day management of the various functions to the other 3
managers.
 Our H.R. Manager has ultimate responsibility for all people based activity
within RAFF Engineering Ltd. from both an operational and strategic
perspective. He is involved in many areas, such as: resource planning and
recruitment; training; managing a variety of issues at any one time and being
the first point of contact for all employee related issues. The Head of HR
may also oversee the company's salary review process, payroll.
 Manager Operations will serve the following purposes :
1) Developing an operations strategy
2) Designing the operation's products, services and processes
3) Improving the performance of operation

9.  Manager Marketing
performs the following operations :
Conducting Market Research, Developing the Marketing
Strategy, Customer Relationship Management , Employee
Management and Identifying New Business Opportunities
 Recruitment Options
Firstly we will follow recruitment on daily news papers through our
advertisements. Then later on we will establish our website and
online recruitment options will be available afterwards.
 TRAINING PROGRAMS
When we will establish our business then we will have to hire
individuals and train them initially in order to get our desired skills
from them. The Operations Manager will have the task to train the
individuals towards the technical side. We will arrange in-house
training programs !
 Skill Retention Strategies
A monthly performance chart will be designed for the company staff
and their positives and negatives will be marked on that.
Each staff member's activities and performance will be evaluated
out of 10. It will be the responsibility of the HR manager to analyse the
monthly performance chart and fire those employees whose rating is
getting lesser than 5/10. This will ensure the staff skills to be
maintained. Operations Manager will talk to the workers and tell them
how they can improve their skills.

10. 3. To sell what; Product or Services
PRODUCT/SERVICES:
In RAFF engineering we offer services with our multiple ranges of the
products. Since we are an organization which deals with home
automation and security systems, we will be installing the products
which customer desires at their places. Whether it would be
home, offices or any other place. It will be our guarantee that people
will feel better after giving us the chance of service.
INNOVATION
There is a lot of room for innovation in this particular area. Technology
is evolving after every three to four years. Our business needs
innovation in order to get some competitive advantage over our rivals.
Since, this will be our start of the business; we will just be focusing on
inducing innovations to the products but that fact will be given
considerable importance in the nearby future as our business gradually
settles.

11.  MARKET POSITION:
We will offer our services at the lowest possible price with minimum
profit at the start of our business. If any loss occurs, we have to bear it
at any cost.
We know that in the market there are many well established firms
working since late 80s. Some names of the reputed companies are:
 Digital Security Services (DSC), Defense K-Block.
 Authentic Logic Integration (ALI) , at near MCB tower Gulberg –III
 Waqar Brothers (Green Town)
 Surveillance technologies (MM ALAM Road)
• RISK MANAGEMENT
The only major risk we consider to this business is the shortage of the
equipments like transistors, ICs and other related components. We
have the alternative solution to cope with this induced risk i.e. rather
than buying the components not from the Hall road we will move
towards the markets in Karachi.

12.  OPERATIONS
At the start of our business we just will be getting our sensors
and security alarms assembled from Hall road and then
installing them, but when we have passed sometime in the
market, we will be using our engineering skills in sensor
manufacturing. In the near future we will be making our sensors
ourselves.
 PLANT AND EQUIPMENTS
 Communication Channel
 Trading Hours
 Credit policy
 Payments Type Accepted
 WARRANTIES AND CLAIMS
We will be giving a warranty of one year with our product and if
anything goes wrong between that time frame, we will
compensate the customer according to the policies which will be
mentioned at the back of the payment receipt.
 Unique Selling Position
“Automate your life.”

13. 4. The Market
 Type of customers
 B2B, B2C
 Our marketing managers will introduce our products and
complete packages to civil engineers, contractors and
relevant govt. officers who give contracts (i.e. B2B).
 We will introduce our products and packages by using print
and electronic media i.e. for general house keepers, offices,
factories etc.(i.e. B2C)
 Market Research
o Automation is a huge market, which can give automatic
solutions to the local problems according to demand.
o But its beyond reach of general customers
o We are creating market for our products, by coordinating with
civil engineers and contractors, to give new contract for
electrical works of buildings, roads, parks, etc.

14.  Your customers
o civil engineers and building construction contractors(B2B)
o General house keeper(B2C)
o Commercial places holders (markets, plazas etc.)
o factory, offices holders
o Govt. who give electrical contracts for park, road lightning and
street lightning etc.
 Customer demographics
o Almost all kind of people need these facilities with different
levels on different economic levels
o (educated) people, who know need of these things
o People related to offices, markets, plazas and their own
buildings.
 Key customers
o Civil engineers, new building contractors
o Direct new customers(inspired by technology)

15.  Customer management
o With a marketing customer database, the system we recommend is
FISH, which stands for First In, Still Here!. The goal is to keep
customers actively participating in our products and services for a
lifetime. That is the goal of effective customer management.
 S.W.O.T. analysis
 Strengths
o Selling directly to the consumers.
o Keeping costs below competitors’ costs.
 Weaknesses
o No strong vendor and customer relationship.
 Opportunities
o Consumer desires for one-stop shopping
o Consumers know that what they want to buy
o Internet could be a powerful marketing tool
 Threats
o Competitors have stronger brand names(e.g. Siemens etc.)
o Competitors have strong relationships with customers
o Five forces model of environmental threats

16. 5. Future
◦ Vision Statement
 "To Automate each and every corner of Pakistan."
◦ Mission Statement
 "To become the most successful and respected
Automation company, to generate revenues by
building customer relations"
◦ Goals and Objectives
 To generate maximum revenue from minimum
initial cost.
 To build good customer and vendor relationships.
 To achieve maximum efficiency.
 To sell and install high quality products.

17. ◦ Action Plans
 Office setup
 Launching of Website and for marketing by use of
social media
 Penetration in market with the help of contractors

19. Thanks very much for
listening us with patience!