EXECUTIVE SUMMARY

A wedding, the birth of a child, a new home, an important birthday All of these are events that
mark our lives forever and should be celebrated with a gift you can cherish for a lifetime. Every
person is in search of attractive and innovative products for purpose of exchanging gifts. There
are numerous businesses offering a variety of products for customers to fulfill their needs. But
demand for handmade gift items is substantial. People like to purchase handmade items as gift
because when an item is handmade, a little part of the creator of that piece goes into it. Artists
put their ideas, personality, style, and often blood, sweat, and tears into their work which makes
that work unique.
The fashion for handmade items as a gift is Evergreen. People prefer to purchase handmade stuff
as it provides them with a level of individuality which is not available from mass market
retailers. They prefer personalized gifts on lavish items.

Thus idea of Creative is to establish an outlet that makes available a variety of handmade items
under one roof and to provide a platform that will facilitate both i-e talented house girls and
customers. By offering a variety of handmade products to customers having demand for them we
will enable these homemade girls to earn being at home.

In order to check the demand and potential for our idea we conducted a survey in our target
market. We came to know that it is a good time to launch such a project as people showed a high
interest for it.

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 BUSINESS DESCRIPTION
Idea of Creative is to provide a large variety of innovative and creative handmade items under
one roof. The name of our organization is Creative which is actually an effort to provide
exceptional items for special celebrations and occasions. It is basically a manufacturing as well
as merchandising business in which we are going to present a wide assortment of handmade
items.

We have started our business as partnership business. We are five partners who share equally in
startup capital and hence are entitled to share equally in profits. Any other need for capital will
be entertained by respective bank.

Point Of Uniqueness:

All the things and the services we are providing may not be unique according to the range of
things now days. Present businesses may be providing a large variety of gift items But the
difference is there that the things provided by us are purely handmade. Creative ideas are used to
turn a rubbish and useless stuff into innovative design. There is no such business prevailing in
our target market. This is the point of uniqueness in the particular geographical area in which our
business lies.

Products:

A variety of hands made items are provided under one roof which include:

Handmade Gift boxes

Handmade Wedding boxes
Handmade Cards
Handmade Baskets
Handmade Candles
Handmade Jewelry
Handmade decoration pieces

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 VISION OF CREATIVE
To become the creative house of first choice in our chosen areas

by building beneficial and lasting relationship with customer

through a process of continuous improvement.

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 MISSION STATEMENT

To convert the creativity into reality in hand!

OVERALL OBJECTIVES
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Main Objectives:

Main objective of Creative is to glorify the different occasions of our customers by providing
exclusive and quality products. Our modish style reflects a sense of taste that urges the customer
to express his or her feelings by selecting a gift from a variety of innovative product for their
dear ones.
Commitment To Well-Being

We believe well-being is the cornerstone of personal and professional growth. Without

personal and professional well-being our mission cannot be achieved.

Commitment To The Team Objective

We believe in total commitment to the team. The team objective is a guide for us to
follow in our service to our clients, support of each other, and team growth.

Commitment To Goal Attainment

We believe every individual should have personal and economic goals. A joint effort will
be put forward to identify and achieve our long-term objectives.

Commitment To Our Time Management System

We believe our time management system should be utilized in all business activities to
provide maximum efficiency and effectiveness for our customers. We will move towards
managing our time and setting specific goals within that time.

Commitment To Excellence In All We Do

Our philosophy is to achieve excellence in all that we do. All efforts of our team are
directed towards achievement of maximum quality.

Commitment To Incredible, Outstanding, Unbelievable customer Service

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 We believe in extending such incredible service to all customers that they feel real sense
of creativity in our establishment. We constantly anticipate, meet, and exceed our
customers' expectations.

Commitment To Value-Added Service

Value-added means doing and giving more than what is expected. We believe each of us
needs to go above and beyond the call of duty. By developing creative ideas value
addition will be ensured in our products.

Commitment To Innovation

We believe our strength lies in our passion to implement new ideas and embrace change.
We realize that innovation involves risk of failure, but we choose to face risk of failure in
our pursuit of success rather than fail passively

Specific Objectives:

Short Term Objectives:

To make successful entry in Lucknow market
To provide a wide range of Innovative and creative products
To Act as a team

Long Term Objectives:

To satisfy customers who use our products and services every time
To provide a Commercial plate form to young Home-Artisans
To be socially responsible by utilizing the waste materials for making new and
innovative products

STRATEGIC GOALS
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Through strong commitment and efficient strategic goals, Creative will be first choice of
customers and be recognized as a business leader. We feel very confident that the goals can be
reached. These Strategic goals include following:

Customer satisfaction
Building strong customer relationships
Making contracts with different stakeholders (Suppliers)
Maximize the switch over Cost
Capturing Maximum Market Share

Plans To Achieve Those Goals

The very first result that a customer wants is that, satisfaction and contentment from the product.
Customer will only visit for second time, if he was satisfied fully the first time. By providing
innovative and quality products Creative can build strong relationships with customers.

Keeping our suppliers with us for a long period of time is a challenging task. Contracts will be
made to home-artisans to provide their products only to Creative.

After building relationship with customers and suppliers, our main focus is to maximize the
switch over cost of the customer. By issuing annual, semiannual and quarterly discount offers we
will bind the customer to carry with us. When we are successful to retain the old customer for the
maximum period of time it will be easy for Creative to focus and spend more in attracting the
new customers and to capture the maximum share of the market.

SEGMENTATION

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Creatives target segment are all the people of Lucknow, who love creativity, which includes
upper, middle and lower middle class. Along with this Creative has segmented its target segment
into the following category:

Geographical Segmentation

Creative is a start up business; therefore it has geographically segmented its target market. This
geographical region is Lucknow.

Psychological Segmentation

Psychologically targeting, Creative is concentrating its focus on Elite class, Middle Class and
Lower Middle class.

INDUSTRY ANALYSIS
Economic Analysis:

The economic position of the country as well as the people allows this industry to flourish and
grow. A quick view on main glimpse on economic position is as follow:

Real GDP grew by 6.0 percent in 2014-15

Consumer Price Index (CPI) inflation is estimated to have declined by 5.0 in last five
years.
The industry of handmade items is mostly operated in local environment. And in this perspective
the rate of advancement is slow. However, there is possibility of high advancement in the market
because a big segment of market has psyche of been attracted by creative handmade talent much
quickly. Due to that, industry contains more potential and depth to invest in that business.

Overall Market Analysis

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Market for different handmade items is widespread in Lucknow. Despite of presence of different
manufacturers that provide a large variety of readymade item, demand for handmade items is
substantial. People prefer handmade items for exchange of gifts or fashion wears because they
provide a sense of individuality and uniqueness. This tendency of people indicates towards
potential and depth to invest in this business. Although the handmade items industry is spread in
all over the country, it is mostly operated in local environment.

There are no big players in market of this industry .Most of operator in markets are having their
businesses as sole proprietorship or partnership. About 70% of players in Market are sole
proprietors. This trend in industry caused Creative to be a partnership business.

Due to advancement in technology and rapid adoptability of internet, this industry is being
promoted online. Major players in Market use the internet based promotional tools. They have
published their products online to attract the potential customers.

Specific Market Analysis

As mentioned earlier, handmade items industry is mostly operated in local environment so

Creative has also targeted a small local segment of Market.

Competitive position is also in favor of our business in market. Although there are many players
in the market offering same products but no one is offering the same things in terms of handmade
creative ideas. As there is no such business already existing in market so there is no direct
competitor.

Competitive Analysis:

Competitive analysis involves a look on competitors of Creative and competitive position of

creative. While discussing the competitive position of Creative following factors can have
greatly influence:

Threat of new entrants

Bargaining power of buyer
Bargaining power of supplier
Rivalry among competitors
Substitutability
Threat Of New Entrant (HIGH)

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Threat of new entrants for Creative is high. This is because trend for use of handmade items is
evergreen. Start up cost is also low which shows that there are low entry barriers. This attracts
the new entrants to get enter into this business.

This threat can be lowered by maintaining a sustainable competitive advantage of providing

quality products and innovative designs.

Rivalry Among Competitors (LOW)

Rivalry among competitors is low for Creative as there are a few competitors in whole industry.
In target market no direct competitor exists so Creative has a golden opportunity to capture
maximum market share.

Substitutability (HIGH)

Threat of substitute for Creative is very high. There are a lot of substitutes available in market for
products of Creative. High prices of Creative than prices of readymade items in market have
lowered switching cost for Creatives products.

Bargaining power of Buyer (HIGH)

Bargaining power of the buyer with Creative is high because of the availability of so many
substitutes in the market.

Bargaining Power Of The Supplier (LOW)

Bargaining power of the supplier is low. Because of availability of large number of suppliers in
the market, Creative is in better position to defend its interest. There is significant number of
home artisans who are willing to supply their products to Creative for sale. Creatives power to
negotiate with them in its own favor is high.

COMPETITIVE GRID

COMPETITIVE FORCES THREAT TO INDUSTRY PROFITABILITY

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 LOW MEDIUM HIGH
THREATS OF NEW
ENTRANTS
BARGAINING POWER OF
BUYER
BARGAINIG POWER OF
SUPPLIER
RIVILARY AMONG
COMPETITORS
THREATS OF SUBSTITUES

MACRO ENVIRONMENT

Macro environment of Creative includes the following factors:

Technological Forces

Technological factor is involved in this project in a way that customers can order products online
for ceremonies. No rocket science will be adopted by Creative for production process. Basically,
idea is providing handmade items, so creative ways of utilizing waste material will be explored.

Social Forces

Social forces of any country show how the values, needs and culture of that countrys people can
affect the organization. In case of Creative this factor is highly in favor of organization because
people have great tendency to like hand work for gifts and fashion wears.

Economic Forces

Economic forces of any country can affect the availability, production and distribution of
resources among competing users. Now, inflation is prevailing and it can affect Creative to a
great extent. Cost of doing business can be increased. However this threat is minimized by
adopting boot strapping strategy.

ORGANIZATIONAL PLAN
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Form of Business:

Creative is a partnership business in which 2 partners are contributing towards capital and
sharing the proceeds of business.

PARTNERSHIP DEED:

The partnership deed includes the basic agreement between the partner explaining their duties
and liabilities. It also explain the which function will be performed by whom.

Members

We are two main members of the partnership firm who shares equally in the capital and profit.
These members include:

Names Capital Invested

Mr. A 2.5 Lacs
Mr. B 2.5 Lacs

Duties and Responsibilities

Duties and responsibilities of each member are assigned according to the interest and
qualification of each of the member. Other criterion is that, if someone has specialized in some
field then he will be proffered. Additional benefits and remuneration will be paid on giving extra
services and performing additional work not included in the basic job specification.

Liability

Liability of all the members is unlimited. Personal property will also be held liable to pay the
debts. This clause is included to maximize the interest of all members in the venture. The more
the interest is the more the effort will be added by the members. All the members have the basic
right to point out the steps taken by other members in the meeting. And the others have to answer
in a reasonable manner.

Decision criteria

There is a decentralized approach in decision making. Every member is free to take decision in
his relevant department without the consent of others. But decision about the whole firm cant be

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taken without the consent of every member. Special meeting will be arranged and the majority
decision will be approved. The decision about working of the firm required the acceptance of
three out of five while the major decision about the firm like big investment, changing the form
of business required four out of five members acceptance.

Termination of partnership

If any partner wants to leave the firm she will also be held liable in the case of insolvency of the
firm for the year, if any. This clause is added to make strong the firm and to avoid any kind of
fraud.

Allocation of assets/ repayment

The payment of all invested capital will be paid in installments to leaving partner. The maximum
time for repaying all amounts will be six months. The will be no claims on the revenues and
profits from the date he left the firm. There will be revised partnership deed after one year.

ORGANIZATIONAL HIERARCHY

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 BOD

Finance Marketing Supply -chain Production Operational

Manager Manager Manager Manager Manager

Sweeper

Wacthman

Office Boy

PRODUCTION PLAN
Manufacturing
Our products will be manufactured in our production outlet. There will be a separate portion
behind outlet that will serve as production area. We will produce the products our self. A joint
contribution will be made by all members for production process. A Production process of
Creative involves following steps:

Purchase of material and accessories

For making cards and shopping bag, chart paper is essential thing. Satin ribbons, shimmering
bows, Laces, glue and other material will also be needed to make glorious products. Including all
these, other necessary accessories will be purchased from our regular suppliers in bulk so that
cost minimization can be made. Necessary raw material required for making different types of
Dough will also be purchased. To produce unique styles of candles, wax gel will be purchased
in bulk along moulds of different designs.

Other than above material, waste jewelry accessories will be acquired to be used as base for
handwork.

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 Production Process

Cards of inspiring designs, gift boxed of various sizes and unique wedding boxes will be made
through handwork and using appropriate stuff.

Dough will be kneaded in quantity enough for use in whole months. Once the dough is prepared,
it will be kept in special greased containers. Different jewelry items will be made using moulds
of various sizes. Artistic designing will be made on these items using dough flowers.

Using handwork and special techniques wax gel will be converted into candles of different
designs and will be embellished using different accessories.

Packing:

Different gift and jewelry items will be made available in striking packing. Creatives monogram
will be printed on each items packing going to be sold at outlet.

Merchandizing:
Creative has also planned to acquire finished products from house hold artisans and to sell them
on reasonable prices for earning profit for both parties. Thus Creative is not only earning for
itself but also serving as a platform for those innovators who want to commercialize their
handmade products. Supply Chain Manager is responsible to seek and develop good relations
with these suppliers.

Strategic Production Resources

Designs and artistic techniques of production are the basic and primary assets of creative. With
these two resources we will be able to develop the most unique and genuine variety of products
in the marketplace.

Firms creative management is also a strategic resource for Creative. Management team is
required to be innovative and has a passion to pursue opportunities related to hand-made items.
As the business grows we will carry on developing new designs and will strive to hire people
who also possess the drive to continue the Creatives goal to develop the new designs and bring
innovation.

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 MARKETING PLAN
The most important plan for a new starting venture is a marketing plan because without the
marketing plan, a business can never exist. The marketing is a main portion, and the success of
any venture heavily relies on its market strategies.

Creative is going to make its customers aware through efficient marketing plan that we value our
customer at each and every point. Through effective marketing strategies it will be realized to
customers that if they want to add seven colors of rainbow in the precious moments of their life
then they must have the spell bound charm of Creative. "Creatives marketing efforts focus on
making its customers realize that:

We are offering variety of imaginative hand-made articles that can embellish their special
movements
Our ideas are creative and innovative that is what others are lacking.
We are going to establish a new trend in that society by giving variety of handmade
ingenious items under one roof.

PRODUCT
A list of magnificent products of creative involves following product lines:
Handmade Cards
Handmade Gift boxes
Handmade Wedding boxes
Handmade Shopping Bags
Handmade Candles
Handmade Jewelry
Handmade decoration pieces

Handmade Cards

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Handmade greeting cards in a variety of styles and sizes are offered for special occasions.
Unique ideas are used to embellish the cards for making
special movements more special. Birthday cards, wedding
cards, anniversaries card, friendship cards and beautiful
cards for many other special events are offered.

Wedding Boxes

Gorgeous Boxes of different sizes to

carry different things that are usually used in wedding ceremonies as gifts are offered by
creative. Wedding gifts are always very appealing when they come in adorable packaging. Our
unique wedding gift boxes will surely do the job of impressing customers while reflecting their
unique style.

Handmade Shopping Bags

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Our talented and creative team members have poured their heart out to create the exotic
collection of handmade shopping bags. These handmade paper shopping bags are made with
durable and strong card papers that combine both utility and aesthetics. All these handmade
paper bags are flawlessly designed with beautiful papers and meet the demands of diverse
clients.

Handmade Candles

Decorative candles are uniquely versatile decor items that add a new look and spark to our home
and our special events as well. Buying the Decorative candles for your home or for gifting to
someone special, is the best thing you can do to please yourself. Beautiful candles with
innovative designs are splendid offer by Creative.

Handmade Decoration Pieces

Different decoration pieces ornamented with beautiful work

of handmade dough flowers to decorate the houses and even
for offices, are also included in creatives offerings

Handmade Jewelry

Flashy & filled with stylish & elegance designs, different items of jewelry are offered. Rings, ear
rings, bangles and necklaces are included in offered jewelry item. All these items are
manufactured using different moulds and dough flowers.

PRICE
Customers decision to purchase a product is greatly influenced by
Price tag placed on it. Creative has assigned reasonable and

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justified prices of its products which may realize the customers that they have made their
moments cherished in a unique way in very cheap prices.

Pricing Objectives
Creative is a new business in market with unique and innovative ideas. It wants to have high
growth rate hence it has to set that price for its product which gives maximum possible profits in
the initial couple of years.

Creatives handmade products are more expensive than those from a factory assembly line, but,
for very good reasons. The extra time, effort, passion and expertise that goes into its handmade
products are what make them worth the extra price to buyers.

PRICING STRATEGIES
In pricing, Creative is focusing in the following strategies:

Market Skimming Strategy

Creative is using market skimming strategy in which it is offering high quality and creative
products on slightly increased prices than prices factory assembly line products. Creative want to
have maximum possible profit through introduction of its creative and unique ideas.

Product Bundle Pricing

In order to move stock that is kept as unsold inventory, Creative will use Product bundle pricing
strategy. It will combine several products that have left behind in stock in the one package and
will offer them on reduced rates so that potential loss of unsold inventory can be avoided.

Value Based Strategy

For the pricing of products, Creative is following the value based strategy. In order to cover up
the cost and to gain maximum possible profit, Creative has decided to take 40% markup on cost
price of each product. Such high rate of mark up is set on base of effective value of the customer
for handmade items.

Name of items Price(INR) Mark Up

Greeting cards 100-150 35%
Wedding Boxes 200-250 35%
Gift Boxes 150-200 35%
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Candles 350-400 35%
Decoration pieces 500-2000 35%
Jewelry 500-1000 35%
Shopping bags 100-150 35%
 PRICING STRUCTURE

DISTRIBUTION CHANNELS

Initially Creative is operating only from one outlet, so it doesnt have any complicated
distribution channel right now. Creative is mainly using the following approaches for
distribution:

Direct Selling

Creative will directly sell its products to target consumers. First it takes the raw material from the
suppliers. Using that raw material a variety of innovative and appealing products will be
produced on the outlet of it by its skilled staff. These products are sold to customer when he/she
visits the outlet. In direct selling following model is used by Creative:

End
Suppliers Creative consumers

Courier Service:

Creative will also conduct business online. Due to advancement in technology and rapid
adaptability of internet it has been crucial for it to expand its business activities over internet.

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Online orders in response of effective electronic advertisement will be received and shipment of
these orders will be made through Courier Company.
Creative has following model for online trading:

Online End Online

Shipment consumer
Orders Receipt
s

PROMOTION
Creative will use Marketing communication strategy for promotion of its products. This Strategy
involves promoting heavily to potential customers which will create a demand that will pull the
products through the distribution channels. A handsome amount is set aside from financial
resources for heavy promotion of business in starting years. For promotional activities unique
logo and corporate colors will be used in all means communications.
Following promotional tools will be used to build Brand image of creative in mind of customers:

ADVERTISING

Brochure
Brochures describing product specifications of Creative will be designed. Creatives offering
along with its unique logo will be printed on it. These brochures will be distributed door to door
with help of local news papers.

Press Advertisement:

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Press advertisements will be released in newspapers to which potential customers in target
market have easy access. Newspapers in which ads will be given are mentioned below along
their estimated cost:

Newspaper No. Cost/Ad(INR)

TIMES OF 1 35000
INDIA
HINDUSTAN 1 30000
TIMES
DAINIK 1 10000

JAGRAN
HINDUSTAN 1 8000
Total 4 83,000

Internet marketing

Today most effective way of advertisement is through internet. Creative has developed its own
Website at which products are published and online orders are taken. Other than developing its
own website, Creative has planned to promote its business through social networking sites.
Recently there is a great trend of public to move towards these sites to establish social networks.
Following are some a web point at which creative has decided to promote business by giving
business ads.

Web Point No Cost/Ad(INR)

Face Book 1 9000
Linked In 1 5000
Tagged 1 6000
Total 3 20,000

Give Aways:

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Other than giving ads, Creative has planned to manage different online contest so that maximum
people may be attracted to web page. Exclusive surprise gifts will be given to winners of these
contests.

Transport advertising:

Creative logo along its message will be promoted through transport advertising. Such medium
for promotion is selected for conveying message to far areas of target market.

Broadcast Advertisement:
These days use of radio has been increased in young generation. In order to convey business
message to them, Creative has decided to give an ad on FM Channels. Other than radio
advertisement ads will also be given on local cable channels.

Exhibition:
For bringing our offerings into knowledge of potential customers, Creative has decided to
participate in Exhibitions which are managed by chamber of Commerce for support of SMEs.

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 FINANCIAL PLAN
Creative being a new business needs a high capital investment to recover its expenses like
advertisements, salaries along with the cost of production. Thus, Creative is investing 5 Lacs
INR as its initial capital investment.

Sources of funds:

Creative has two active partners, who are fulfilling the whole capital requirements to meet its
startup cost. Capital Structure of Creative includes only Equity. No debt is included to raise
funds because it has an extra burden of expenses as interest, which results in lower profits.

Equity Structure

Names Capital Invested

Mr. A 2.5 Lacs
Mr. B 2.5 Lacs

Budget for production of units:

JA FE MA AP MAY JU JU AU SE OCT NO DE Total

N B R R N L G P V C
Sales 100 130 140 145 145 155 160 165 175 185 190 200 1890
(Estimated)
+Ending 10 20 25 20 15 25 25 30 35 40 40 45 -
Inventory
Units 110 150 165 165 160 180 185 195 210 225 230 245 -
Available
For Sale
-Opening 0 10 20 25 20 15 25 25 30 35 40 40 -

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Inventory
Units To Be 110 140 145 140 140 165 160 170 180 190 190 205 1935
Produced

Estimated Production Cost

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Total
Material 2310 2940 3045 2940 2940 3465 3360 3570 3780 3990 3990 4305 40635
Laces 2640 3360 3480 3360 3360 3960 3840 4080 4320 4560 4560 4920 46440
FOH 5000 6000 6500 6000 6000 7000 6500 7000 7000 7500 7500 8000 80000
Total 9950 1230 1302 1230 1230 1442 1370 1465 1510 1605 1605 1722 167075

0 5 0 0 5 0 0 0 0 0 5

Per Unit Cost

= Cost of units produced

Number of units produced
= 167075
1935

= 86.34 INR

Estimated Operating Cost of Creative

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Total
Rent 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 240000
Salaries 11500 11500 11500 11500 11500 11500 11500 11500 11500 11500 11500 11500 138000
Dep 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 60000
Advert 3000 5000 6000 4500 4500 5500 5000 5500 5500 6000 5000 4500 60000
Courier 500 1500 2000 1000 1000 1000 1500 2000 1500 2000 2000 2000 18000
Total 40000 43000 44500 42000 42000 43000 43000 44000 43500 44500 43500 43000 516000

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 SWOT ANALYSIS
STRENGTHS

Innovative and Passionate partner

Huge Profit Margin
Strong market research before entry in the market.
First mover advantage to provide handmade unique item in targeted market
Operators have completed degree in Business Administration
Not necessary to rely on banks for startup finance
Provides discount for the regular customer.
Customer oriented.
Waste recourses are utilized in the best way.
Availability of significant sponsors.
On line handmade item purchasing facilities.

WEAKNESSES
Lack of practical experience in mass production of stock
Low profits in the early stages of the business.
Lack of awareness among public regarding the business.
Uncertainty about the business success.

OPPORTUNITIES

Level of the demand of cultural items is increasing day by day.

Drive away of Consumers from lavish items toward more personalized gifts.
No Direct Competitor in Lucknow market
Easy availability suppliers providing innovative products
People are fed up with consistency so handmade products can give them uniqueness.
Serving the under-served markets

THREATS

Decreasing purchasing power of people due to political instability in country.

Possibility of new entrants in the market due to low entry barriers.
Rapid use of readymade gift items in the society.

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 If any other outlet of handmade products is going to open then our market share will
reduce

CRITICAL RISK FACTORS

Risk Management:

The objective of risk management is to reduce different risks related to business. It may refer to
numerous types of threats caused by environment, technology, humans, organizations and
politics.

Critical Risks Analysis

For startup business there are many risks involved that are caused by different factors. The risks
which are analyzed by Creative are as follow:

Management Risks
Marketing Risks
Operational Risks
Financial Risks
Management Risk:
In this risk we realize that there may be any dispute in the management team due to any
unforeseen reasons which may result to terminate any of the members.

Remedy:

In this case when any of the management team members leaves the firm she is not entitled to use
the name of the firm. She cannot start the same business with any other name. Such risk is
attempted to be controlled by including exclusive clauses in partnership deed.

Marketing Risk:

In case of marketing we realize that there may be any fault in our marketing plan due to which
business can suffer.

Remedy:

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For the backup of this risk we have different marketing plans with flexibility, as if in any case
plan A does not work the plan B will be executed.

Operational Risk:

There may be a risk which can disturb the operations of the business such as production. There
may be load shedding problem etc

Remedy:

For minimizing this risk we have adopted proactive measures by having firms own own
generator.

Financial Risk:

We realize that in case of termination of any member there is a risk of finance that she may take
her equity away which causes the business to suffer. Moreover startup capital may be proved
insufficient to cope with un expectancies.

Remedy:

To avoid this risk we have made certain clauses in our agreements that if any member decides to
leave the firm she will not take her equity out of the business immediately. The time period to
pay back the equity will be minimum 6 months. To meet unexpected financial needs, Creative
has asked for various sponsors.

EXIT STRATEGIES

Creative, after analyzing every risk and exit ways of the business, has devised an exit strategy in
case our idea of introducing handmade items does not work. The exit strategies of Creative are as
follow:

Legal documents of partnership will be signed by the partners that partnership will not be
resolved until 3 years.
After five years if any partner wants to exit then he has to inform to the organization at
least 6 months before.

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 If any partner exits from the business, she will get her share after 6 months
In case of losses every partner will be just liable for her share in organization.
In case of winding up the business amount received from sale of asset will be divided
among partners equally.

References:

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 Robert D. Hisrich, Michael P. Peters, Dean A. Shepherd, Entrepreneurship, 7th edition,
page 209-219, 233-255, 289-305
http://www.indexmundi.com/pakistan/gdp_real_growth_rate.html
http://www.ranchodelarte.com/articles/why-handmade-gifts-rock
www.Eventive.com

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