online business

When we say someone to start your own business he or she reluctant to accept this.  Many people prefer job because they think  for starting a business they require Building, funds, skills, experience e.t.c. But in the present world for doing your own business there is not required such things as people think. Online business is one of the great opportunity to start your own business it require little fund, No building, No risk,. In pakistan there are number of examples of online business.

Here is a short list of some online businesses in Pakistan. This is just a small sample of online business to give you an idea of what is possible and how people are doing it.

1.  Books, gifts, mobiles, cards: http://www.emarkaz.com/
2. Women undergarments: http://nighty.pk/
3. Used and new books: http://www.kitabain.com/
4. Homeopathy medicines: http://www.masood.com.pk/demo/the-founder-db.php?id=3
5. Fabrics, garments, bridal dresses: http://www.lavishfabrix.com/
6. Dresses, Khosa, Shoes, Handicrafts: http://www.786shop.com/
7. Mobile phones: http://symbios.pk
8. Computers, mobiles, accessories: http://www.beliscity.com/

You can see the people who start that type of business they have no any outlet they have no outlet rent charges. They establish their outlet on the internet and start their business with little funds.

For starting your online business you only require the initial investment of Rs 7000 that include web designing and domain charges

By starting your online business you can access to the large audience. You can find your customer worldwide.

Canada Directory

Starting online business increase your sale 30 time more then the business which is in the form of outlet

Bull a market term

Bull a market term

Bull is a  market term. It is commonly use in the stock market and commodity market. A bull is a speculator who buys the goods or securities at a low price with the intention of making higher  profit by selling his purchased goods or securities at high price. He expect that the prices will rise in future. The difference of new and old price is his profit. American market term named the bull as “Long”

Bull is often perform some activities to influence the price of goods or securities. The effort of bull to influence the price is called the “Bull compaign “ or “bulling the market”. Bull buys forward with the hope that the prices will rise in future but the future is always uncertain, some time his hope fall flat and prices start decreasing in this situation the bull perform some activities to push the prices, he comes out with rumors and false news to push the price.

One of the term “bullish” is often use in the market, it means that there is expectation of rise in prices in future. It represent the upward trend of the market.

Bull often face one of the big problem, sometime he make heavy purchases with the intension of making heavy profit my selling it high price. When the other speculator come to know his position they join their hands and stay out of their hand and refuse to purchase from him, so the bull will have to sell them any price they offer. This situation of the bull is called” bull trap”

Shawarma Business analysis

Shawarma Business in pakistan

What is Shawarma?

A Shawarma is a Middle Eastern sandwich-like wrap filled with shaved meat – chicken, lamb, beef or a combination of any. Other things in the sandwich include pickles, vegetables like lettuce and tomatoes and sometimes French fries (!) and garlic sauce. Most Shawarma are made outside restaurants and these Shawarma shops can be spotted easily by their towering logs of revolving meat and vertical red cookers. It’s a pleasure to see these Shawarma shops along with the small cafeteria at night. The meat in these meat towers are usually shaved using a long wield knife by a Shawarma cutter, dressed in white like that of a French chef.  Interestingly, not all Shawarma you see in Pakistan are not created equal. The shawarmas in the streets is a country to country experience, changing by taste even in the same neighborhood.

Every Business start with planning. Without a planning you can not get the success in the business. For planning a new business firstly analyze the current situation of that business and  that will help you to make strategy how you can perform excellent in that type of business.

Current analysis

1.      There is a huge competition in Shawarma business. This business is present in various parts of the country especially in Lahore, Karachi, Faisalabad, Islamabad, Rawalpindi, and Gujranwala which have a great share in reduction of unemployment.

2.      The entry barrier is very Low due to high competition every one can enter to this type of business.

3.      One of the reason of Low entry barrier is its startup cost is very low. The following budget is require to start that type of business

Budget Allocation

Total Budget of ten thousand rupees for its promotional activities.

Inclusions:-

§  Cart (4ft x 2.5ft x 6ft) 3000

§  Shawarma Machine (Stainless) 35,000

§  Cooking Utensils 3000

§  2 set of Uniform 1400

§  2 set of furniture 6000

§  Interior decoration/renovation 20000

§  Advertisements 4000

§  Electricity + Gas

Total 72,400

     4    In Pakistan due to high unemployment the Labor is easily and cheaply available to that                type of business, In the form of waiters, shef

     5    Fresh chicken has the great taste. So the Fresh chicken is easily available in pakistan .

     6    The gas is required for cook food. So there is the threat of Load shading of Gas. The                   choice of alternative gas lead to increase the cost of the shawarma.

    7     Lahore is attractive market for that type of business, Because the people of Lahore                      mostly eat the fast food, So in Lahore there is the great demand of fast food. Shawarma             is the very popular fast food in Lahore

What the strategy should be for flourishing the shawarma business

1.      Develop a good repute in the cultural city of Lahore

2.      Make finest quality Shawarma to get fast spreading good word of mouth by the citizens. That will help to get the competitive edge. The people of Lahore are most conscious on taste of food

3.      Use of marketing strategies to quickly achieve the financial and other important goals.

4.      Give value and taste with quality ingredients to the Lahori’s mark

5.      Make a Brand, and promote the branding. That will help to make franchises and expanding your business in future. Your customer should know you will your brand name. just like coke and bull this is one of the brand name which is familiar due to Shawarma in lahore

6.      Use the social media like facebook,twiter,e.t.c to promote your shawarma business

7.      Add different type of chiken in shawarma. That will increase the variety of shawarmas you will offer. And that would be attractive  the people

Private and public limited company

Difference between private and public limited company

A company is an artificial person created by law with a perpetual succession and a common seal. It has legal entity separate from the persons composing it . it can sue and be sued in its own name.

The following are the Difference in the public and private limited company

Public limited company

a)      In public  limited company the minimum number of members may be seven but there is no restriction for maximum number of members.

b)      The word limited used with the name of the company. Example. FFC Ltd.

c)       The minimum number of members is seven

d)      The liability of shareholder is limited to the value of the share purchased

e)      In public limited company It is essential for the company to issue prospectus

Private limited company

The Private limited company is divided into tow parts

a)      Single member company

b)      Multi member company

a)      Single member company(S.M.C)

The following are the characteristics  of single member company

1)      In this type of private limited company.There is only one member or shareholder in the company

2)      The company uses the word (S.M.C private limited)

3)      The share of the company are not transferable

4)      The liability of the owner of the company is limited

5)      The SMC can not be listed at the stock exchange

6)      The issuance of prospectus is not necessary

b)      Multi member company

The following are the characteristics of the Multi member company

1)      In this company the minimum number of members is tow and maximum is fifty

2)      The company use the word “Private limited” with its name

3)      There is no restriction for the company to call the statutory meeting

4)      There is no requirement of statutory audit

5)      It is no essential for the company to issue prospectus

6)       In this type of private limited company Minimum number of director is two

7)       In this type of private limited company,The share of the company are not transferable 

What is the Monopoly

Monopoly is defined as the market situation where there is a single firm selling a product for which there is no close substitute available in the market. The firm represent the entire industry

In monopoly there is only a single seller of a particular product.

The following are the key conditions of monopoly

a)       Single firm or producer

b)       No close substitute of the product

c)       Barriers for the entry of the new product. It means there is difficult for other people to start that type of business

d)       Firm represents the whole industry. It mean all market share has the only a single firm

There are many causes of the monopoly. Some are the important causes

1)       The firm has the control over the essential raw material which is required for the production of goods, Due to this control the other people  not have access to the raw material and this will lead to the monopoly  

2)       Business combination is the one of the reason. Due to business combination the single firm take over the business of its competitor and get all the market share.

3)       Research and modern methods of production is one of the cause of monopoly. If a business has the modern technology and advanced research and development, then it will make a product which would be unique and that will lead to monopoly .

Monopoly has the many disadvantages

It lead to high price. If a single firm dominate the market, it will charge the price which it want. The monopolist is powerful to charge higher price. Some time they charge low price due to restriction of government and to create the new entry barrier for other business mans.

monopoly lead to the exploitation of consumer if the form of charging higher price, not providing quality of services , because the customers has no other option.

Break even point

Break even point

Break even point. This term is often used in the Business. it means the point where no profit and no loss.
if some one start a business he has to incur some expenses to getting revenue. The point where revenue is equal to expenses is called the break even point.

The point where the line of revenue meet with the line of cost is the break even point. after crossing  this point the income is greater then cost and the company would be in profit.

you can see from the above example below this point the cost was greater then revenue and the company was in loss. after this point the income is greater then cost and the company is in Profit.