FEASIBILITY

STUDY REPORT
FOR

ALEEN COMPUTERS
(ONE-STOP SHOP)
Rajanpur

Prepared and submitted by:

Ali Raza
0335 5152255
[Link]@[Link]
1
 CHAPTER 1

PROJECT SUMMARY

A. Name of the Enterprise

ALEEN COMPUTERS (one-stop shop) – I come up with the idea of establishing

a computer shop namely “ALEEN COMPUTERS”

B. Location

The ALEEN COMPUTERS will be established in a rent free building which is

owned by my father. he target markets include students, teachers, office workers,
children and adults alike.

The two hundred (200) meter radius requirements as provided in the existing
zoning. The shop will be established in near Mazari Market. The location map is
attached.

C. Project’s Long Term Objective

The objectives of ALEEN COMPUTERS are to generate profit, and to grow at a

challenging and manageable rate.

The mission of the enterprise will be to provide fast, reliable and affordable
computer related services and technical assistance to users while providing a safe and
comfortable environment.

Several sources note that a computer shop is quite easy to start. It requires
enough front capital, enough technical knowledge about computers, and has the
potential to be quite a lucrative business in today’s high-tech society.

The enterprise and the founders aim to be intellectual and social assets to the
community by providing quality service, and complying with company policies and
country’s rules and regulations.

The objective of the project is to project rapid growth and high net profits over the
next three years. By providing a comprehensive and detailed marketing plan, it will
ensure that ALEEN COMPUTERS rapidly becomes a profitable venture for the owners.

D. Highlights of the Study

The first computer shop featured modest features. One area contains the server
or main computer and the inner area contains the eight computers to be used by the

2
target market. Posters adorned one side of the walls which attracts daily visitors.
Initially, the owner will be functioning as the shop’s functional retail and service experts.
An employee will be recruited and oriented to do the job properly.

ALEEN COMPUTERS aims to expand, renovate and offer a variety of more

services over the next three years wherein a café, Wi-Fi, Research Room, and Private
Chat rooms will be included.

Project Time Table

The enterprise will operate immediately within 45 days of preparation. Facilities,

equipment and the services offered in the process of preparation and completion
requires ample amount of time to be ready and accounted for. Business permits are
also being completed. Manpower is being prepared and oriented to provide quality
service on the job.

Nature of the Industry

ALEEN COMPUTERS will offer a variety of services such as:
 Computer sell, purchase, repair and rentals for various purposes
 Software sell and services
 POS sell and services
 Security system sell and services
 Surfing the net
 Chatting online using Skype, Twitter, Facebook, Instant Messenger, or Yahoo
 Video conference with business associate, family
 LAN and Online Gaming
 Send and receive e-mail, or set up free e-mail accounts
 Create flyers, school reports or presentations
 Download software programs
 Scanning, Printing and Photocopy
 Listen to music and watch videos online
 Type resumes, letters, and term papers using Microsoft Word
 Music and Game Downloads
 Computer repair
 Multiplayer gaming
 Web Designing
 Social Media Advertisement Services
 Web maintenance
 PSP Download and repair
 Web Programming
 Web Developing

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 Mode of Financing

ALEEN COMPUTERS will be started with the owners’ pocket money. Also, since
the shared investment is not enough for providing facilities and equipment needed, the
owners decided to use the Bank Loan method through Prime Minister’s Kamyab Jawan
Youth Entrepreneurship Scheme (YES).

Mode of finance

Loan Type Working Capital

Projected Cost Rs. 845000/-
Required Amount Rs. 760500/-
Equity 10% Rs. 84500/-
Tenure 5 Years

Investment Cost

The capital necessary for establishing ALEEN COMPUTERS reached an

estimated total of PKR 845000/-. The amount is enough to provide quality services
and equipment for the business.

Description Cost (Rs.)

Capital Cost
Building and infrastructure 40,000
Machinery and Equipment 217,500
Furniture and Fixtures 177,000
Total Capital Cost 434,500
Working Capital
Cash (for sale/purchase and others) 290,500
Wages 120,000
Total Working Capital 410,500
Total Project Cost 845,000

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 Machinery and Equipment

Machine Brand Purpose QTY Price Total

Desktop Computer Dell Core i7 Main Server 1 26,500.00 26,500.00
Desktop Computer Dell Core i5 Graphics and Printing 1 20,500.00 20,500.00
LED Monitor Dell Main Server 1 18,500.00 18,500.00
LCD Monitor Dell 19’’ Graphics and Printing 1 3,500.00 3,500.00
Printer Laser Printing and Scanning 1 20,500.00 20,500.00
HP
B & W, All in one
Printer Laser HP Color LaserJet Printing and Scanning 1 65,000.00 65,000.00
RJ 45 Connector - Networking 1 1,140.00 1,140.00
UTP Cable Roll - Networking 1 5,000.00 5,000.00
Software Microsoft Main Server 3 5,620.00 16,860.00
Tools kit - Networking etc 1 15,000.00 15,000.00
Stationary Items - For office use - 25,000.00 25,000.00
Total Cost 217,500.00

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Furniture and Fixtures

Description Quantity Unit Price Total Amount

Computer tables 1 7,000.00 7,000.00
Bench for waiting 1 15000.00 15000.00
Air Conditioner 1.5 ton 1 7,5000.00 7,5000.00
Chairs 1 10,000.00 10,000.00
Office chair for counter 1 12500.00 12500.00
Wall Shelves 4 6000.00 24000.00
Server Desk and Counter 1 11500.00 11500.00
CCTV Surveillance 4 Cameras 1 22,000.00 22,000.00
Total Furniture and Fixture Cost 177,0000.00

Buildings and Facilities Cost

Description Amount
Shop rent per year 120,000
Renovation of shop 40,000
Total Building and Facility Cost 400,000

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`Labor Cost

Head
Description Total Annual Salary
Monthaly Count

Worker 17,500.00 1 17,500 210,000

Labor 10,000.00 4 40,000 120,000

5
57,500 330,000

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 CHAPTER 2

MARKET STUDY

Market Study
As the popularity of the internet continues to grow at an exponential rate, easy,
and affordable access is quickly becoming a necessity of life. “ALEEN COMPUTERS”
will provide communities with the ability to access internet in a comfortable environment.

Service Description
ALEEN COMPUTERS will provide its costumer with full and fast access to the
internet and common computer software and hardware. Some of the internet and
computing services available to ALEEN COMPUTERS are listed below:

 Graphics Designing
 Computer repairing
 Networking
 Security system installations
 Chat online using instant messenger
 Experience the hot internet games and LAN games
 Printing, scanning and Photocopying
 CD burning
 Typing job
 Also accepting a PSP upgrade, PSP repair, Downloading games and mp3.

Marketing Program
ALEEN COMPUTERS has three main strategies. The first strategies focuses sell
the computers and accessories on affordable price.
Second, and most important, strategy focuses on pulling in power Computer
users. This group of costumers serves an important function at ALEEN COMPUTERS.
And last, strategy focus on different benefits that will get the costumers by giving
them discounts.

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Price Study
It is one of the considerations of the costumer that enhance them to rent
computers.
The following more than 15 products and services will generate revenue for the
business. Almost profit margin will be from 15% to 20%.

P/Day Unit Per

No. Description Total Annually
QTY rate Month

1 · Computer Repair 3 500 1,500 45,000 540,000

2 · Graphic Designing 10 250 2,500 75,000 900,000

3 · Printing (colored) 10 80 800 24,000 288,000

4 · Printing (black & white/colored) 35 20 700 21,000 252,000

5 · Scanning 25 20 500 15,000 180,000

6 · Photocopy 3 250 750 22,500 270,000

7 · CD burning 5 50 250 7,500 90,000

8 · Typing Job 5 50 250 7,500 90,000

9 · Downloads 30 10 300 9,000 108,000

10 · Game downloads 20 10 200 6,000 72,000

11 · Music Downloads 25 10 250 7,500 90,000

12 · PSP games download and repair 5 250 1,250 37,500 450,000

13 · Networking Per Computer 5 500 2,500 75,000 900,000

14 · Security System 4 500 2,000 60,000 720,000

15 · Applications Installation 30 50 1,500 45,000 540,000

Total 15,250 457,500 5,490,000

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 CHAPTER 3
ECONOMIC ASPECTS

Utilities

Utilities Monthly Cost Total Amount per Year

Electricity 8000.00 96,000
Internet Provider(PLDT w/ landline) 5,000.00 60,000
Misc. 4,000.00 48,000
Total Utility Cost 17000.00 204,000.00

Legal Requirements

 Firm Registration
 Registration with SECP
Labor requirements on hiring an applicant

Applicant must be 20 years old

 Resume
 Two Valid I.D.
 Birth Certificate (NSO)
 POLICE Clearance
 SSS number
 Vocational Graduate (Computer Technician)
 Hardworking
 Pleasing Personality

Organizational Chart

OWNER


IT Professional


Worker

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 CHAPTER 4
TECHNICAL FEASIBILITY

A. Products
The Services and Revenue
ALEEN COMPUTERS will offer the services listed below:

No. Description P/Day QTY Unit rate Total Per Month Annually

1 Computer Repair 3 500 1,500 45,000 540,000

2 Graphic Designing 10 250 2,500 75,000 900,000

3 Printing (colored) 10 80 800 24,000 288,000

4 Printing (black & white/colored) 35 20 700 21,000 252,000

5 Scanning 25 20 500 15,000 180,000

6 Photocopy 3 250 750 22,500 270,000

7 CD burning 5 50 250 7,500 90,000

8 Typing Job 5 50 250 7,500 90,000

9 Downloads 30 10 300 9,000 108,000

10 Game downloads 20 10 200 6,000 72,000

11 Music Downloads 25 10 250 7,500 90,000

12 PSP games download and repair 5 250 1,250 37,500 450,000

13 Networking Per Computer 5 500 2,500 75,000 900,000

14 Security System 4 500 2,000 60,000 720,000

15 Applications Installation 30 50 1,500 45,000 540,000

Total 15,250 457,500 5,490,000

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B. Operation Process
This is the ALEEN COMPUTERS’s Operation Process:

PRODUCTS AND
ALEEN COMPUTERS
SERVICES

PROFIT OR

INCOME CUSTOMER

The ALEEN COMPUTERS will provide products and services to the costumer,
and the costumer provides profit or income in return. The income or profit will be used to
provide and improve products and services.

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C. Operation Schedule
The ALEEN COMPUTERS will operate seven days a week. ALEEN
COMPUTERS opens at 8:00am ahead to other competitors. Due to early operating
hours, it will become well-known. The goal is to provide the needs of the target
market in an early manner of time.

Daily Capacity of Operation

ALEEN COMPUTERS Time Schedule
Operating
Day Opening Closing Hours
Monday 8:00am 10:00pm 14
Tuesday 8:00am 10:00pm 14
Wednesday 8:00am 10:00pm 14
Thursday 8:00am 10:00pm 14
Friday 8:00am 10:00pm 14
Saturday 8:00am 10:00pm 14
Sunday 8:00am 10:00pm 14
Total Operating hours per Week 98

Days per Month the Project Operates

ALEEN COMPUTERS operates seven days a week. About 30-31 days per
month.

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 D. Machinery and Equipment

Machine Brand Purpose QTY Price Total

Desktop Computer Dell Core i7 Main Server 1 26,500.00 26,500.00
Desktop Computer Dell Core i5 Graphics and Printing 1 20,500.00 20,500.00
LED Monitor Dell Main Server 1 18,500.00 18,500.00
LCD Monitor Dell 19’’ Graphics and Printing 1 3,500.00 3,500.00
Printer Laser Printing and Scanning 1 20,500.00 20,500.00
HP
B & W, All in one
Printer Laser HP Color LaserJet Printing and Scanning 1 65,000.00 65,000.00
RJ 45 Connector - Networking 1 1,140.00 1,140.00
UTP Cable Roll - Networking 1 5,000.00 5,000.00
Software Microsoft Main Server 3 5,620.00 16,860.00
Tools kit - Networking etc 1 15,000.00 15,000.00
Stationary Items - For office use - 25,000.00 25,000.00
Total Cost 217,500.00

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Furniture and Fixtures

Description Quantity Unit Price Total Amount

Computer tables 1 7,000.00 7,000.00
Bench for waiting 1 15000.00 15000.00
Air Conditioner 1.5 ton 1 7,5000.00 7,5000.00
Chairs 1 10,000.00 10,000.00
Office chair for counter 1 12500.00 12500.00
Wall Shelves 4 6000.00 24000.00
Server Desk and Counter 1 11500.00 11500.00
CCTV Surveillance 4 Cameras 1 22,000.00 22,000.00
Total Furniture and Fixture Cost 177,0000.00

Buildings and Facilities Cost

Description Amount
Rent (10000*12) 120,000
Civil works for shop 40,000
Total Building and Facility Cost 160,000

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Floor Plan

Waiting Area C.R.

1 2 5 6
COUNTER

P S

3 4 7 8

Legen Air con S Server Cabinet

d: Counte Unit
r
Printer Chair

16
C

17
H

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 APTER 5
FINANCIAL FEASIBILITY

Income Statement (Amount in Rs.)

This figure is obtained by multiplying Year 1 Year 2 Year 3 Year 4 Year 5

A Sales number of units sold in a year with the net
sales price of the product / service. 32,175,000 35,392,500 38,931,750 42,824,925 47,107,418

Cost of Goods Sold: This includes cost of raw material, labour, and factory overheads incurred during the production for the units sold. (This figure can be obtained by multiplying
cost per unit with the total number of units sold during the year). In case of service based businesses, cost of delivering the services maybe included.

Year 1 Year 2 Year 3 Year 4 Year 5

The cost of raw material used in production

B Raw material 192,000 211,200 232,320 255,552 281,107
of goods sold.
The amount paid to direct labour employed
C Wages by the business, e.g. production workers in - - - - -
case of a manufacturing concern.
The production cost other than direct
D Overheads 43,250 47,575 52,333 57,566 63,322
material and direct labour.

E Cost of Goods Sold (B+C+D) 235,250 258,775 284,653 313,118 344,430

Profit earned from the difference

F Gross Profit between amount of sales and cost of 31,939,750 35,133,725 38,647,098 42,511,807 46,762,988
goods sold. (A-E)

Expenditures: Selling, Admin and General expenditure.

Paid to workers other than direct labour
G Salaries e.g. managers, accountant, salesman, -
peon.
Rent of the factory or office building (If
H Rent 120,000 132,000 145,200 159,720 175,692
Any).

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 Amount paid for indirect electricity,
I Utilities telephone, Gas, water bills other than used 102,000 112,200 123,420 135,762 149,338
for production and accounted for in "D".
Amount paid as insurance of
J Insurance plant/machinery, office vehicles or any - - - - -
other business assets.
Any expenditure incurred for advertising
K Advertising 160,875 176,963 194,659 214,125 235,537
and promotion of your business.
Amount of depreciation for the year,
L Depreciation charged against fixed assets of the 27,263 45,438 63,613 81,788 99,963
business.
Office stationery, entertainment, janitorial
M Other Office Expenditure 135,135 148,649 163,513 179,865 197,851
services.

Any other expenditures related to your

N Others - - - - -
business.
Interest paid on Short Term (working
O Interest on Loan 26,400 26,400 26,400 26,400 26,400
Capital) and Long Term Loan.

P Sub - Total (G+H+I+J+K+L+M+N+O) 571,673 641,649 716,805 797,659 884,781

Q Operating Income Gross profit minus Expenditure. (F-P) 31,368,077 34,492,076 37,930,292 41,714,148 45,878,207

Tax applicable according to the income of

R Tax 0 0 0 0 0
the business.

S Net Income Operating Income - Tax Amount. (Q-R) 31,368,077 34,492,076 37,930,292 41,714,148 45,878,207

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Balance Sheet (Amount in Rs.)

Assets

Assets of the business having a

Current Assets Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
life of less than a year.

Cash available with the business,

A Cash 290,500 319,550 351,505 386,656 425,321 467,853
at office or in the bank account.

Amount to be received on account

B Accounts Receivables - - - - - -
of credit sales.
Stock of raw material, work in
C Inventories process, finished goods, store and 180,000 198,000 217,800 239,580 263,538 289,892
spares.
Expenses paid in advance, e.g..
D Pre Paid Expenditures advance building rent, insurance - - - - - -
premium, lease payment etc.

E Total Current Assets (A+B+C+D) 470,500 517,550 569,305 626,236 688,859 757,745

Assets having a life of more than

Fixed Assets one year and acquired for Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
permanent use in the business.
Cost of the land used for office or
F Land - - - - - -
factory (no depreciation).
Cost of the building and
Building/ infrastructure used for office or
G 40,000 44,000 48,400 53,240 58,564 64,420
Infrastructure factory minus accumulated
depreciation.
Cost of machinery and equipment
H Machinery & Equipment 217,500 239,250 263,175 289,493 318,442 350,286
minus accumulated depreciation.
Cost of furniture and fixture
I Furniture & Fixtures (electricity fittings etc.) minus 177,000 194,700 214,170 235,587 259,146 285,060
accumulated depreciation.
Cost of office vehicles (if any)
J Office Vehicles - - - - - -
minus accumulated depreciation.

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 Cost of office equipment (printers,
K Office Equipment computers, fax, telephone etc.) - - - - - -
minus accumulated depreciation.

L Total Fixed Assets (F+G+H+I+J+K) 434,500 477,950 525,745 578,320 636,151 699,767

Total Assets (E+L) 905,000 995,500 1,095,050 1,204,555 1,325,011 1,457,512

Liabilities

Liabilities which are payable with

Current Liabilities Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
in a period of one year.
The amount payable to the
creditors of the business for
M Accounts Payable - - - - - -
example the suppliers of raw
material.
Outstanding amount of the
N Short Term Debt amount representing short term - - - - - -
debt acquired for working capital.

O Other Liabilities Other trade liabilities, if any. - - - - - -

P Total Current Liabilities (M+N+O) - - - - - -

Liabilities which are payable after

Long Term Liabilities Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
a period of one year or more.
Outstanding balance of the
amount acquired from the bank as
Q Long Term Loan - 159,028 163,865 168,849 173,985 179,239
a long term loan, lease facilities,
etc.

R Total Long Term Liabilities (Q) - 159,028 163,865 168,849 173,985 179,239

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 The investment of the owners /
Equity Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
partners / shareholders.
Contribution of owners towards
S Capital the business commonly referred - 25,350.0 25,350.0 25,350.0 25,350.0 25,350.0
as owners' equity.
Amount retained from the annual
T Retained earnings - - - - - -
revenue.

U Total Equity (S+T) - 25,350.0 25,350.0 25,350.0 25,350.0 25,350.0

Total Liabilities and Equity (P+R+U) - 184,378 189,215 194,199 199,335 204,589

Total of Assets and Liabilities should be equal. 905,000 811,122 905,835 1,010,356 1,125,676 1,252,923

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Cash Flow (Amount in Rs.)

Description Reference Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Net profit / loss for

A Net Profit Income Statement 'S' - 4,068,374 4,443,261 4,859,645 5,321,667 5,833,877
the year
Add depreciation
B Depreciation Income Statement 'L' 43,450 47,795 52,575 57,832 63,615 69,977
charged for the year
Add interest
C Interest Expense Income Statement 'O' - 23,176 18,339 13,355 8,218 2,927
charged for the year
Add change in
accounts receivable
D Accounts Receivable Balance Sheet 'B' - - - - - -
(current year minus
previous year)
Add change in
inventory
E Inventory Balance Sheet 'C' 180,000 198,000 217,800 239,580 263,538 289,892
(current year minus
previous year)
Add change in
prepaid
F Pre Paid Expenditures expenditures Balance Sheet 'D' - - - - - -
(current year minus
previous year)
Add change in
accounts payable
G Accounts Payable Balance Sheet 'M' - - - - - -
(current year minus
previous year)
Add change in other
liabilities
H Other Liabilities Balance Sheet 'O' - - - - - -
(current year minus
previous year)
Cash from Operations (A+B+C+D+E+F+G
I 223,450 4,337,345 4,731,975 5,170,412 5,657,038 6,196,672
Inflow / Outflow )

Subtract expense
for the year
J Mark-up Paid (Refer to loan 23,176 18,339 13,355 8,218 2,927 -
schedule provided
by the bank)

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 Net Cash from Operations
K (I - J) 200,274 4,319,006 4,718,620 5,162,194 5,654,111 6,196,672
Inflow / Outflow

Actual cash paid for

repayment of loan
or cash obtained
from acquisition of
L Short Term Debt - - - - - -
new loan
(Refer to loan
schedule provided
by your bank)
Actual cash paid for
repayment of loan
or cash obtained
from acquisition of
M Long Term Loan 159,028 163,865 168,849 173,985 179,239 -
new loan
(Refer to loan
schedule provided
by your bank)
Cash from Financing
N (L+M) 159,028 163,865 168,849 173,985 179,239 -
Inflow / Outflow
Add change in
owners' equity to
O Capital reflect additions Balance Sheet 'S' - 19,600 19,600 19,600 19,600 19,600
(current year minus
previous year)
Actual cash utilized
for acquisition of
fixed assets or cash
P Fixed Asset Investment 434,500 434,500 434,500 434,500 434,500 434,500
received from
disposal of fixed
assets
Cash from Investing
Q (O+P) 434500 454100 454100 454100 454100 454100
Inflow / Outflow

Net Cash
(K+N+Q) 793802 4936971 5341568.5 5790278.95 6287450.145 6650771.96
Inflow / Outflow

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