Business Idea Feasibility Report

COMSATS INSTITUTE OF INFORMATION TECHNOLOGYLAHORE Department of Electrical Engineering

Business Idea Feasibility Report

ElectronicsAid(Pvt.), Ltd.

ALI WAQI FARHAN ALI FARHAN SAEED MUHAMMAD UMER NAEEM UMAIR SAJID MEER WAQAS KHALIL

SP10-BTE-005 SP10-BTE-014 SP10-BTE-015 SP10-BTE-030 SP10-BTE-048 SP10-BTE-052

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The golden rule for every business man is this: Put yourself in your customers place. Orison Swett Marden

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Table of Contents
Introduction .................................................................................................................................................. 5 Importance of electronics5-6 Business overview 6 Product Description...................................................................................................................................... 7 Services Description ..................................................................................................................................... 8 Industry and Market Feasibility Analysis ................................................................................................. 8-9 Financial Feasibility Analysis ........................................................................................................................ 9 Product and Service Feasibility .................................................................................................................... 9 Conclusion10

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EXECUTIVE SUMMARY

The purpose of this report is to show that the business we are going to start is feasible and it will help the customers in saving their time and cost of transportation as the electronic components will be provided to them at their door step. The overview about our business, the products we will deal with, the services we will provide and how our business is feasible from financial, market and product& services point of view is also explained.

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TRANSMITTAL LETTER

Mr. Sami Ullah, Lecturer, CIIT Lahore. April 17, 2013

All group members Dear Sir, With all due respect, we present you the feasibility report of our business idea. We are planning to establish a company by the name of Electronic Aid (Pvt.), Ltd. This report contains the business plan of the company as well as its goals and objectives. We have prepared this report in accordance with the standards and requirements. The report discusses every aspect of our business project in detail. We require a moderate amount of money to initialize our business, which can later be expanded. The industrial and market feasibility report is presented at the end. We hope that the presented data is as per the requirements of this assignment.

Yours sincerely,

All group members

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Introduction:
Electronicsis a very vast and rapid growing field of this century which deals with electrical circuits that involve active electrical components such as vacuum tubes, transistors, diodes and integrated circuits, and associated passive interconnection technologies. The nonlinear behavior of active components and their ability to control electron flows makes amplification of weak signals possible and electronics is widely used in information processing, telecommunications, and signal processing.Electronics is distinct from electrical and electro-mechanical science and technology, which deals with the generation, distribution, switching, storage, and conversion of electrical energy to and from other energy forms using wires, batteries, generators, switches,relays, transformers, resistors and other passive components. An electronic component is any physical entity in an electronic system used to affect the electrons or their associated fields in a manner consistent with the intended function of the electronic system. Components are generally intended to be connected together, usually by being soldered to a printed circuit board (PCB), to create an electronic circuit with a particular function (for example an amplifier, radio receiver, or oscillator). Components may be packaged singly, or in more complex groups as integrated circuits. Some common electronic components are capacitors, inductors, resistors, diodes, transistors, etc.

Importance of Electronics:
One cannot deny the importance of Electronics now a day, because this continuous emerging field of science found its application in almost every aspect of life i.e. Engineering, Medical, Agriculture, Communication systems, Automobile industry and much more. Almost everything that surrounds us has direct link to Electronics, from the very computers we use whether it be laptops, net-books or note-books which has millions of tiny electronic components on it like resistors, inductors, capacitors, logic gates and the likes to the calculators, appliances and measuring devices.Electronics truly molded our lives we have today, for without it, we might as well grimacing in the shackles of underdevelopment and stagnant society where progress is hardly felt as if we are in an isolated islands. Electronics is the barometer of how far humans have gone through if we use the advancement in technology as a yardstick of progress. The dawn of the new wave of the future is bound to fascinate the world once again, the microchips which houses thousands to several millions of semiconductor components that makes our computers do their functions and features is expected to undergo major transformation in the near future. The nano technology, will soon sweep the world and will soon break barriers
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between possible and impossible, the author of this hub will soon make a hub about this spectacular technology that deals with microscopic objects.

Business Overview:
With the increase demand and progress in the technology of Electronics, the Engineering students must requirea sound knowledge of its field. This sound knowledge is conceived with much practice of implementing different circuits and whenever the word circuit implementation is called Electronic components will be used frequently there because every field of emerging technologies require Electronic components directly or indirectly. The basic purpose and objective of this business is to provide facilityto the Engineering students by giving things at their door step.Firstly, Engineering students are very much busy in their studies so it is a quite difficult task for them to go to the market and purchase required Electronic components for different type of projects. Secondly, these components are very sensitive to use and often while doing projects components get fused causing frustration and inconvenience to the students. So, ELECTRONIC AID will be there for the students to help in every manner by providing them good quality products and services.This would save the time and cost of transportation of students and they would be able to concentrate on their work. One of the aspects of ELECTRONIC AID is that products and services are not only for the Engineering Students, many people other than engineering students can take benefit from it

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Products Description
ELECTRONIC AID will provide products which include: Resistors Capacitors Batteries/Power Supplies Microcontrollers ICs Vero-boards Bread-boards Multimeters Wires/Cables Sensors Crystal Oscillators LCDs LEDs Burners Diodes Transistors Inductors Small Transformers Fuses PCBs Motors Potentiometers Relays Speakers/Buzzers Switches Thermistors Voltage regulators Connectors Oscilloscope Modules

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Services Description:
Initially we will start our business at or near one of Lahores well known universities COMSATS and UET Lahore and further plans are to develop our well established outlets in the areas with demand of our products and services. Students can easily come to us for their respective requirements. They will be greeted with good manner and high quality products and services will be provided to them. Then, there will be no reasoning for students to go in a far away market for purchasing Electronic Components for their projects. In addition, online services will be provided through a website. Website will contain a complete description of each available component and their prices. The buyer can place order for products online and their products would be delivered to them. Lab equipment being used in the Universities is quite costlyand if this equipment gets out of order it is quite difficult task to buy these Lab Equipment so, ELECTRONIC AID will provide services of a repairing the Lab Equipment which will be quite handy for Universities.

Industry and Market Feasibility Analysis:

There is no threat in the market for new entries. There exists a perfect competitionin the market. Hall road(Market of electronic components) is the only market of electronic components in Lahore. There is a tough competition in the market of electronics components. There target market is not only the students but also the general industry of electronics. But, the business we are going to start is much different from that as we are going to open our shop at/near the universities where the electronic components are largely used by the students. Electronic equipments are frequently used by students, especially electrical engineering and diploma students for their project works and studies. As far as Lahore is concerned, here students have to go all the way to Hall Road to buy all sort of electronic components. Another difficulty they face is that the components they use are burnt during their work so they again have to go to market to buy components, which consumes a lot of time and money.
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There are a large number of suppliers of electronics components in Pakistan so we can easily purchase our products from any of these suppliers considering the quality, price and services of the product. There are many suppliers of electronic components in Pakistan that supplies components at small and large scale. Some of suppliers are listed below: Power Tech International Lahore. Digi-Key Cooperation Lahore. Khawaja Electronics (Pvt.), Ltd. Lahore. Pec Systems Sales and Solutions Pvt. Limited. Rawalpindi. I-tech, Lahore. Allied Electronics, Rawalpindi.

The power ofbuyers is relatively low because switching to another supplier is not easy for the buyer. As mentioned earlier the electronics component market is placed at distant place. Quality substitutes are not readily available near our targeting place.

Financial Feasibility Analysis:

On the basis of calculations the Initial capital required to start business is listed below:
Components Shop rent Security of shop Total Rs.1,20,000 Rs.18000 Rs.75000 Rs.2,13,000

Product /Services Feasibility:

We will take different percentage of profit at different products.Smaller percentage of profit will be taken on the products which are more frequent in sale like resistors,capacitors etc. and larger profit will be taken on the products having not that much sale like oscilloscope,microcontrollers etc. Approximately, we will get monthly revenue of Rs 30-40 thousand on our sales

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Conclusion
Keeping in view the above analysis for this respective business, we can conclude that this specific business idea of ELECTRONIC AID require a reasonable amount of capital which can be arranged without much problem and is feasible. The business has considerable margin of progress. Furthermore this business idea can be spread in the areas of its demand.

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