MOBILE STORE
AGARWAL CORPORATION
Saurabh Agarwal
May,2009
SECTION 1: THE BUSINESS PROFILE
Executive Summary
I want to open a store which will provide services to mobile, laptop , i-pod users. Store will give consumers different services from technical assistance in case of problems in their gadgets, lending them new appliances on rent as a replacement till their appliance gets repaired, free home delivery service and giving free downloads and services which they avail them by giving price in the market.
Business
Currently electronic gadgets such as Mobiles, Laptops, MP3 players, I pods are becoming life of every consumer but when they give problems than they have to go to the customer care centre to fix it and they have to work without their gadgets till it gets fixed up and even it is hard for the people to take out time out of their hectic schedules to go Customer Care Centre
So after seeing this I am having business idea which will definitely help customers and also me to establish my name in market. My idea is as follows:-
If a person is having problem with his gadget he can call us than within an two hours our technician will be at its place
If gadget is having small problem he will fix it at the same time if it is having big fault and needs to be taken at care centre than our technician can offer a service in which he will offer a similar range of gadget to the person at the same time on rent till his gadget gets repaired. And rent will be taken on this basis and other repairing charges will be taken according to the bills I have done lot of Market Research on this and I got that there is no service provider in the market.
Range Day
1 2 3 4 5 6 7 8 9 10 10+
Mobile
4000 40 36 32 28 24 20 16 12 8 4 Free
10000 70 63 56 49 42 35 28 21 14 7 Free
15000 100 90 80 70 60 50 40 30 20 10 Free
Laptop
20000 200 180 160 140 120 100 80 60 40 20 Free
25000 250 225 200 175 150 125 100 75 50 25 Free
Ipod
2500 25 20 15 10 5 Free
5000 50 40 30 20 10 Free
7500 70 60 50 40 30 20 10 Free
Targeted Market and Customers
Today everyone is using electronic gadgets so for our main consumers will be younsters who use to use lot of electronuc gadgets and they suffer most when they gives problems and also mainly businessmans because it baecome hard for them to llive without their electronuc gadgets mainly Mobile and Laptops which contains lot of importanat data.
Growth Trends in this Business
As given by different telecom companies that their consumers are increasing day by day similarly as when their consumers increase our retail store customer will also increase No one can document from trade sources the anticipated rate of growth of your industry? If electronic gadgets industry will fall in future, we will need to give a logical explanation as to the trend and potential of our intended market.
I don’t think so gadgets industry will fall in future it will rise in future as well as consumers will increase with great pace and it will definitely increase our share in market.
Pricing Power
I will initially enjoy pricing power in marketing .Discount chains and schemes will be next step in price. In order to achieve large share in market lower costs.
As my store is coming with something new in the market so definately I will get the benefit of intiator but it is also true that in starting it marketing will cost much because customers must know and get what service we are providing but to achieve something we have to give something extra.
My ultimate goal is to build a brand so unique and promote it so effectively that consumers will be willing to pay a premium. My long term objective is to build a market that is not entirely based on price.
SECTION 2: THE VISION AND THE PEOPLE
I have had a long-term plan to be in business for myself and to utilize the specialized business knowledge I have gained from my past experience . The business relationships I have developed include Vendors,manufacturers and service providers. They will help me in different ways
Mobile handsets customer care centre will suggest consumers for us as we will have joint venture with them.
Same with Laptop service centres and Ipods as they will get more customers through us.
Local Manufactures will give us gadgets at more low price.
The reasons that I feel my plans are realistic because today without mobile or laptops its becomes hard for aperson to live and when their gadgets get stuck than it hurts their work and our service will help them very much and will make their easy and quickly. I am the right person to pursue this opportunity because I am having experience in this field and good exposure of the market
There are special market conditions that are favorable to my getting started at this time.
is that no person wants to live without their gadgets and if they start giving problems have less time to go out and fix it and till their gadgets gets fixed live without their gadgets.
THE PEOPLE
Work Experience Related to my intended Business
My work experience has been as follows:
2003-2009 Worked as a Software developer in MNC and having good knowledge about new products and new technologies present in the market
I have included a list of work references and character references as Exhibit A
I have personal contacts in New York and London who are ready to assist in the technology and services. Two Tier 1 companies have encouraged me to make presentations to them.
Personal Background and Education Credentials
EDUCATION CREDENTIALS:
My education includes: First Grade school, graduation from Army School with high grades
My higher education includes a BE degree earned in Computer Science at CCS university in 2002.
In Army School I participated in the following activities (student council, student body officer, sorority/fraternity, clubs, etc.) I have also taken the following courses and seminars: My Own Business Internet Course, Young Entrepreneurs and emerging Business and innovative Business Ideas.
My hobbies are: using and developing new technologies and gadgets
My ongoing education includes subscriptions to the following professional journals: Wall Street Journal, WatBlog, etc.
I belong to the following professional and service organizations: Watblog, techblue Rotary Club, etc.
SECTION 3: COMMUNICATIONS
Computer and Communications Tools
I plan to take advantage of all the computer and communications tools presently available to establish myself in this field. Following are the tentative specifications and budget for this equipment.
Resource Requirements:
Communications
For Communication I will use different tools and techniques to bring awareness among consumers about the services will be provided by us and its budget will be
Communication Budget
Website Development 5000
Consumer to Consumer
Advertising Agency
15000*12=180000
Total 180000
Seminars 10000
Advertisement
Newspaper 15000
Pamphlets 5000
Total 20000
Total 210000
Telephones
In the starting we will take two telephone connections with internet connectivity and also mobile connections and its budget will be
Telephone Budget
LandLine Connection 12000*2
(with Internet Connectivity) 24000
Mobile Connection
2 Connection 500*2=1000
1000*12=12000
Total 12000
Total 36000
SECTION 4: ORGANIZATION AND INSURANCE
Business Organization
I plan to form a corporation for my business. It is my intention to grow my store into a large service provider with international relationships. The initial costs of operating as a corporation will be a necessary business expense. Also, since a properly to run corporation will afford me some limits of liability, I feel this is the right form of business for me and for my business idea. I intend to depend on my attorney to handle all aspects for setting up the corporation and maintaining proper corporate records.
Professional Consultants
I feel it is important that my team of professional advisors be in place before I start in business. Here is a list of those professionals that will be help me in setting up my business and to take it on top of the world :
Accountant: Mr. Nitesh Goel
Insurance Agent: Mr. Mohan Lal
Banker: Mr. Pradeep Garg
E-Commerce Consultant: Mrs.Akansha Agarwal
Director Mr. Shobhit Agarwal
General Manager Mr Sanjay Agarwal
Lawyer Ms. Ankita Agarwal
Licenses
My Mobile Store will require the following licenses. I will need to research the requirements for my own location and circumstances:
1. City Hall: This could include the business license department, Trade License, planning department, Sales Tax, building department, health department, Fire Department etc.
2. Mr. Nitesh Goel, my accountant will give me advice on Indian govt, state and local reporting and licensing requirements.
3. My lawyer, Ankita Agarwal, will provide me with a checklist.
Insurance
I plan to use the services of Mr..Mohan Lal, my insurance agent. My insurance policies and limits of coverage are as follows:
Mr. Mohan Lal will provide me with a tabulation of all insurance policies and limits of liability.
SECTION 5: PREMISES
Location Criteria
During my start-up phase I plan to operate my business from a rented shop which will be located at the centre of the city. Once my business is established, my initial office requirement will be approximately 1,000 square feet with two private offices and a secretarial area. My office criteria will include:
1. Convenience for my consumers.
2. A short-term lease of 1 - 2 years with two 1 year options.
3. Office layout including tenant improvements provided by the landlord.
4. Lawyer review of the lease.
The use of this location criteria will gain me experience in handling much larger leases for space in the relatively near future. Future growth plans include expansion of my business and joint ventures with new customer care centre of different companies.
SECTION 6: ACCOUNTING AND CASH FLOW
Accounting
My knowledge of accounting is at average at the initial stage and in future I will definitely work on it.
My accountant: I plan to work with Mr..Nitesh Goel.
Accounting and payroll software programs: I will be using Tally 9.2 and Accounting software for maintaining payroll and accounts .
Method of accounting: I will use the accrual method of accounting since this is generally required by the internal revenue service for business dealing with service providing.
Business records: I will keep Mobile store accounts and records separate from my personal records.
Tax issues: My accountant, Mr. Nitesh Goel, will help me set up records for payments of trading tax estimated income tax payments, payroll taxes and state withholding and sales taxes. My PAN number is: ______________. My License identification number is: ____________.
Internal controls: Mr. Nitesh Goel will also help me set appropriate controls for handling funds in my business including inventory policy and controls. Purchasing, capital acquisitions and accounting principles.
Quarterly returns: Taxes will be paid in the appropriate time frames. Mr. Nitesh Goel will help me set up resale permit records for reporting to my state franchise tax board.
Bank account reconciliation: Bank accounts and statements will be reconciled on a monthly basis.
Balance sheet:Included is a schedule of equipment and fixtures needed that will appear on my balance sheet.Itis present at the end of blog
Cash Flow Planning
Attached is an exhibit of my one-year cash flow analysis including estimated sales, all costs and capital requirements. I have included a checklist of all expense items for input into my cash flow projections.
Internal Controls
My accountant, Nitesh Goel, is experienced in my type of business which includes service providing and customer care. He will help me set up a system of internal controls to make sure that Mobile Store will receive all of its income without any of it being siphoned off by waste, fraud, dishonest employees or carelessness.
This will include an inventory policy including who can sign for services and who controls the release of services every door. Included in the internal control policy will be the requirement that the only person authorized to sign purchase orders, Debit vouchers, Cash vouchers, make capital acquisitions and sign checks will be myself personally.
SECTION 7: FINANCING
Financing Strategy
My requirements for start-up capital are as follows:
Attached is a list of expenses for which I will require either start-up capital or financing. These items include buying products, getting a computer, equipments and fixtures, tooling, travel expenses and start-up overhead expenses. These expenses are included in my monthly cash flow projection to indicate the ongoing requirements for cash.
My sources of cash for starting my business are as follows. I have provided a spreadsheet showing all of the sources of start-up equity capital.
My sources of financing for starting my business are indicated in the following spreadsheet. While I will be partially depending on banks for financing, mortgage financing, etc. My referrals include the following helpful contacts to lending institutions: my accountant, the Small Business Administration, friends, relatives, etc.
I am prepared to make presentations to potential lenders. My presentation kit includes this business plan, my personal financial statement, my business statement and personal tax returns. I will be prepared to be specific in my needs for financing, the payback program and my sources of repayment. I will furnish potential lenders a cash flow projection showing sources of repayments and I will be conservative in my forecasts.
SECTION 8: E-COMMERCE
E-Commerce Plans
A website focusing on consumer-to-consumer E-commerce will be an important tool in my overall marketing program. I plan to build and install the www.mobilestore.com website, which I have already registered. This will permit my service store customers to have access to my services and to order and registering query via this website. I plan to hire Akansha Agarwal of E-Commerce Consulting Company to design, install and maintain this site.
The features of the www.mobilestore.com site will include:
It will be easy to use with good navigational features and prompt loading.
The site will provide useful content including detailed information about all my services in my Mobile Store.
Requesting procedures on a C to C basis will be designed and implemented.
I intend to use the site to generate client feedback to help improve every aspect of my service, operation and business procedures.
E-Commerce Budgeting
The budget for design, implementation and start-up of the E-Commerce site will be 5000. This is based on a firm contract with Akansha Agarwal of Akansha Agarwal Consulting Company.
E-Commerce Competition
The use of consumer to consumer e-commerce has become standard in my sector and is an important marketing tool. It is my intention to maintain a website that will project the image of a fresh and dynamic resource to my customers. I plan to keep abreast of the website developments of my competitors and to constantly improve my site.
SECTION 9: ACQUISITIONS
Due Diligence Procedures for Acquisitions
I may have opportunities to acquire businesses in the future. In order to position myself to investigate acquisitions intelligently.
I will use a team of experts to give specific advice on the various components of the acquisition:
Attorney
Accountant
Banker
Technicians
Other business owners
The following information will be required:
1. Sellers records and verification of revenues
2. Current financial statements
3. Cash deposit records
4. Supplier bills
Valuation analysis will include:
Basis for valuation: appraisals, etc.
Method of purchase: stock, assets, etc.
Evaluation of predictable future earnings
Status of seller’s motivation to sell
Evaluation of leases and contracts
Quality of improvements.
Quality and size of inventory.
Condition of receivables
Status of payables
Status of verified order backlog
Evaluation of customer relationships and goodwill
Evaluate government approvals and licenses
SECTION 10: MARKETING
Marketing Plan
I plan to focus all initial marketing efforts on establishing a store. I will recruit advertisement agency who will be responsible for the marketing of the MOBILE STORE. My Mobile Store will be presented as a package including services in which we will tie up with different service providers of different companies. Initially my price structure will be based on a maximum markup of 80% in order to provide a strong price incentive. I will be depending on the combination of fresh styling, quality and price to break into this market.
Advertising and Promotion Plans
Short Range Plan (6 to 12 months): Initially my advertising and promotion will be done by advertising agency. My customer's requires understanding the services that will be provided by our store and the advertising agency will be doing it through customer to customer communication. It will be my plan to use advertising agency to promote us.
Mid Range Plan (12 – 36 months): To establish brand recognition at the retail level, I plan to budget 10% of my sales to do advertising and attracting customers. I will solicit presentations from local advertising agencies.
Long Range Plan: I plan to aggressively build brand recognition and loyalty by budgeting 5% of sales which will be allocated between space advertising in trade journals, appropriate consumer magazines and also through blogs.
Purchasing and Inventory Control
Purchasing and inventory Budget is presented through this table
An inventory control system will be maintained.
All merchandise received will be counted and inspected.
We will pay our contractors on time and be loyal to them.
We will ask for and take term discounts.
Purchase Orders will include:
Price and terms
Price protection
Always in writing
Complete specifications
Delivery deadlines
All promises will be verified in writing
Any changes or extras must have prior approval in writing
Internal controls will be in place for transportation
Training Policies
Initially I will give contract to an advertising agency to give minimum 2000 customers in a year. As my business expands, I will hire sales associates who can gain the confidence of customers who want to deal with technicians’ that are knowledgeable and helpful. To achieve these qualities I will look for the following characteristics in marketing employees. People who:
• Like what they do
• Are quick learners
• Project a pleasant and positive image
• Like people and relate well to them
• Are helpful to customers and follow associates
• Are ambitious and seek to grow in responsibilities
I will follow a checklist in hiring marketing associates:
• Have a hiring policy in place including written salary structure, commission
compensation and perks.
• Create job descriptions for everyone.
• Conduct ongoing marketing meetings.
• Have written policies and procedures on handling customer complaints.
• Maintain clear guidelines for pricing policies and handling customer’s inquiries.
How I Plan to Take Advantage of Market
As my business is new in the market so at the starting phase I will not be having competitors so to remain on top of the market and become emperor .I will give different schemes and recruit good knowledge persons who will help the customers as much as possible and also in the starting phase my business and I will concentrate more on customer creation rather than profit that my business can get in future very easily.
Also, my end-user profile is for families and corporate's who have more emphasize on using new gadgets and also love their gadgets very much and I believe I can gain a foothold in this market. I plan to capitalize on this new market.
SECTION 11: GROWTH PROGRAM
Expansion
Once my business has been established I plan to implement the following growth strategy. I anticipate it will take approximately 24 months to gain sufficient experience and level of profits before any expansion plans are implemented.
My growth strategy will be guided by the following:
I will not set an inflexible timetable for expansion but will wait until a sound basis of experience, earnings and cash flow is achieved.
Accounting and cash flow controls will be in place with profit and loss statements prepared for individual expansion units on monthly basis.
Internal controls for both accounting, money handling and inventory will be in place.
My attorney will review all documentation regarding expansion. This will include leases, employment and incentive agreements, licensing and franchise agreements, important commitments with service providers and customer care centers and customers, etc.
It is my intention that expansion plans will not change my policy of taking adequate time for my business
Hiring and training policies will be in place.
My intention is to delegate authority and responsibility to expansion management personnel with the following conditions in place:
Managers will be motivated by a customer relationship plan and profit incentive plan which will be tied to manager’s individual success. My plan will be in writing, simply stated and call for frequent periods of accountability.
I intend to maintain an ongoing study of new competitors . Their successes and failures will help me form guidelines on what to do and not to do.
Handling Major Problems
My policy in handling problems will be to identify and acknowledge problems promptly and honestly. I plan to put the following policies into effect promptly if and when the following adverse scenarios emerge during my growth program:
The risk of running out of cash: I plan to maintain very frequent monthly cash flow projections. Forecasts for income, expenses and unanticipated contingencies will be stated conservatively. Any periods of cash deficits will be remedied promptly by cutting costs to maintain a positive cash flow and profitability.
A drop in sales or insufficient sales:
1. I will be prepared to take prompt remedial steps by cutting costs.
2. I will improve every aspect of service value, performance and image
3. I will seek out new ways to expand sales by giving schemes at different festival occasions’.
4. I plan to stick with this specialized business
Business recessions: I am prepared to promptly cut costs to maintain liquidity. I will also be on the lookout for good business opportunities during periods of adversity.
Expenditure
INVENTORY
Mobile Phones
Mid Range Mobile Set 4000
4000*5=20000
Average Range Mobile Set 10000
1000*5=50000
High Range Mobile Set 15000
15000*2=30000
Total 100000
Laptops
Low Range 20000
20000*2=40000
Mid range 25000
25000*2=50000
Total 90000
Ipods & MP3 & O2
Low Range 2500
2500*4=10000
Mid range 5000
5000*3=15000
High Range 7500
7500*2=15000
Total 40000
Total 230000
Employees Salary
Mobile Technician 7000
7000*12=84000
Laptop Technician & Ipod Tec 7000
7000*12=84000
Total 168000
Travelling and Mobile Allowance 1500
1500*12*2=36000
Festival & Bonus allowance 3000
3000*2=6000
Total 210000
Start up Cost
Rent 7500
7500*12=90000
Insurance Premium 20000
Sales Tax 60000
Trade license 10000
Furniture 35000
Total 215000
Marketing 210000
Telephone Connection 36000
(Internet Connection)
Total 901000
PROFIT AND SALES FORECAST
Sales 2009 2010 2011
Customers 2000 3000 4000
Revenue 400000 600000 700000
Expenditure 901000 589000 635000
Net Profit -507000 11000 65000
Net Profit/Sales -127% 3.5% 16%
Monday, May 11, 2009
Friday, May 1, 2009
Reasons For Putting SME out of Business
Hi
At this time I am working with a startup company and I found these problems that my company is phasing .With this blog I want to communicate to all new entrepreneurs that they should avoid these circumstances in their new business.
Focus Entrepreneurs must have clean and clear focus i.e they should know what they want to achieve and where they want to see his/her organization after five years.
Information Entrepreneurs do not emphasize on market research and do not count who all are their competitors, what customers wanted facilities that are not given by the existing companies so they must do market research before entering into market
Joint Venture At the starting if organization signed a joint venture with the stabilized organization than at the starting they can create a name in the market and can grow with full of colors
Marketing and Advertisement At the starting entrepreneurs think advertisement and marketing will not benefit much but it is necessary tool to make impact in business so they should invest in marketing and advertisement to get good return
CRM If a customer comes in the new store and employees do not behave properly with them properly and do not give discounts or offers to them may be next time they will go to their old store so it should be avoided.
Training If the employees are not having full knowledge about what they are selling than it is hard to get to the customer as they will not be able to fulfill customer’s demands so they should be given proper training to them.
Finance Entrepreneurs do not have full details and maintain their Balance sheets, Sales tax records, License, Insurance than in the future they would face problem so they should maintain all ledgers and their Finance Reports.
Profit rather than Sustaining Entrepreneurs in the starting emphasize mainly on small profit rather than creating value for customer and retain the customer permanent member it should be avoided so create value for customers
So new entrepreneurs comes in business with broad mind rather than narrow mind
THINK BIG GET BIG
At this time I am working with a startup company and I found these problems that my company is phasing .With this blog I want to communicate to all new entrepreneurs that they should avoid these circumstances in their new business.
Focus Entrepreneurs must have clean and clear focus i.e they should know what they want to achieve and where they want to see his/her organization after five years.
Information Entrepreneurs do not emphasize on market research and do not count who all are their competitors, what customers wanted facilities that are not given by the existing companies so they must do market research before entering into market
Joint Venture At the starting if organization signed a joint venture with the stabilized organization than at the starting they can create a name in the market and can grow with full of colors
Marketing and Advertisement At the starting entrepreneurs think advertisement and marketing will not benefit much but it is necessary tool to make impact in business so they should invest in marketing and advertisement to get good return
CRM If a customer comes in the new store and employees do not behave properly with them properly and do not give discounts or offers to them may be next time they will go to their old store so it should be avoided.
Training If the employees are not having full knowledge about what they are selling than it is hard to get to the customer as they will not be able to fulfill customer’s demands so they should be given proper training to them.
Finance Entrepreneurs do not have full details and maintain their Balance sheets, Sales tax records, License, Insurance than in the future they would face problem so they should maintain all ledgers and their Finance Reports.
Profit rather than Sustaining Entrepreneurs in the starting emphasize mainly on small profit rather than creating value for customer and retain the customer permanent member it should be avoided so create value for customers
So new entrepreneurs comes in business with broad mind rather than narrow mind
THINK BIG GET BIG
Monday, April 27, 2009
Business Plan For Water Tank Store
Sanjay wants to open his(SAM) store where different types of equipments are available for converting tap water into good and healthy drinking water.
Executive Summary
Today in every family approximately 50% of the members are suffering from water borne diseases because of which most of the families started avoiding tap water and using different types of water filter equipments but existing stores are having very less choices in the water filter equipments
In city like ABC there are approx 20000 families which are using filtered water and approx 40000 families still in dilemma which water purifying equipments they should use or try .So our company will give them different choice in equipment and also good knowledge about the products which we will going to import from different cities, states which are good but due to distance they are not able to reach to ABC and we are opening our online portal by the help of which people can order online and free home delivery .The growth rate will be always in inclination and approx store will be able to make profit of $10000 within 6 months
Mission
The mission of SAM store is
->To give customers choices among the different water filters available in the market
->To give customers full technical support and also free home delivery
-> Focus on customers seasonal needs. (like in Summer)
->Online Portal is also available to order online and free assistance from experts.
Keys to Success
SAM store will get success in city ABC because of the following reasons -:
Location
First is the location SAM store is present in the centre of the city and accessible from all the places .The idea is quite new no other store is providing these types of facilities. Most important here the tap water is not good and water borne disease are increasing so people are inclining more towards filtered water
Seasonal Products
In this store we will give different products with some different schemes that will benefit store as well as customers and availabling these products at competitive prices
In Store Expertise
Store will hire experts from the companies who are having good technical knowledge as well as good behaviour that will definately help the store in taking over the market as much as possible
Company Overview
Sam store is offering different services to its customers and trying different approaches to cover market as much as possible .It provides different water filtering equipments, water tanks, RO water, water cans of different companies which are best in country and also good assistance to its customers i.e satisfying customers at every point and store expect that they will be able to make high profits within 6 months.
Company Ownership
Sam Sore is owned by Mr Sanjay Agarwal
Start Up Summary
The Start up cost of Sam Store will consist primarily of display and inventory.
Mr. Sanjay Agarwal wants to invest $ 80,000.
Start Up
Requirements 1000
Legal 0
Stationary 0
Brochures 0
Consultants 0
Hiring 20000
Insurance 0
Rent 3000
Advertising 0
Display Set up 5000
Start Up Inventory50000
Total Expenses 79000
Start Up Assets Needed
Cash Balance on Starting Date 121000
Other Short Term Assets 0
Total Short Term Assets 121000
Long Term Assets 30000
Total Assets 151000
Total Requirements 230000
FUNDING
Mr Sanjay Agarwal 80000
Silent Partner 0
Other 0
Total 80000
Long Term Liabilities 150000
Loss at start up 79000
Total Capital 1000
Total Capital and Liabilities 150000
PRODUCTS
Sam Store will offer some products in its store throughout the year and some are seasonal are as follows
RO WATER CANS PERMANENT
WATER FILTER(AV) PERMANENT
WATER FILTER(BV) PERMANENT
WATER FILTER(CV) PERMANENT
WATER FILTER(CV) PERMANENT
WATER TANK 200 Litre PERMANENT
WATER TANK 100 litre PERMANENT
WATER TANK 500 Litre PERMANENT
WATER TANK 1000 Litre PERMANENT
ICE CREAM CANS TEMPORARY
ICE CREAM BRICKS TEMPORARY
Market Analysis Summary
In city ABC there are very less number of these types of stores which are providing such facilities under a single shed and also the stores which are available here are not having so much of varities available in their stores and also they do not provide home delivery and different schemes during the different seasons.
Market Segmentation
SAM Store will focus mainly on these Customers
Private and Public Students Hostels
Societies
Areas prone to water borne diseasesSchools and Colleges
Hotels and Restaurants
Strategy and Implementation Summary
SAM Store will conduct presentations and dramas which will be played and displayed in different societies, schools, colleges and offices awaring the public about the water borne diseases and then promoting our brand which will be helpful in safe drinking water this will give our store free public relation or we can say publicity which will definitely help the store in getting success and it will also fulfill our social responsibility
Competition
Location
Seasonal Products
Lot of varities are available
Good reputation
Social Responsible
Free Home Delivery
Good Technical Staff
Sales Strategy
Sales strategy is first to create a customer full fill all his needs at as low cost as possible generate leads from him and create new customers by the help of this customers or people of city will have confidence in store and will take over large part of the market as soon as possible and also providing the product that are available with other stores at a very competitive prices
Sales Forecast
2009 approx sales will be of 12000
2010 approx sales will be of 17000
2011 approx sales will be of 25000
Management Summary
Mr. Sanjay Agarwal is an exellent supervisor and will be able to organize his team quite easily and finely
Personal Plan
Sam store will have these members in his store
Manager
Asst Manager
Checkers
Accountant
Supervisor
Technical Staff
Low Grade
FINANCIAL PLAN
This is the Financial Plan of Sam store
Human Capital (staffing): [All assume full-time employment unless noted]
· Management $25,000-$30,000 annual salary
· Part-Time Miscellaneous Staff (4): $10.00 hourly pay
· Fringe: 15% = Approx. additional $4500 annually
Supplies:
· Fresh Water Prep Equipment: $3,000
· Labels and Signage: $1,500
· Seasonal and Theme Schemes: $2,000
· Display Fixtures and Props: $6,500
· Foundations, Elevations, Tables: $7,500
Other:
· Store Rental: $2,000/month ($24,000/year)
· Storage and Transport: $2,500
· Packaging: $5,000
· Administrative & Operations Costs (including website set-up): $7,500
· Advertising: $3,000
· Publications (menus, flyers, business cards, etc): $2,500
Summary
SAM store will provide different varities of water purifying equipments and also better than competitors and having bright prospects in future as well as it will definitely will become No 1 store within short span of 3 to 4 year and also will make huge amount of profit
Executive Summary
Today in every family approximately 50% of the members are suffering from water borne diseases because of which most of the families started avoiding tap water and using different types of water filter equipments but existing stores are having very less choices in the water filter equipments
In city like ABC there are approx 20000 families which are using filtered water and approx 40000 families still in dilemma which water purifying equipments they should use or try .So our company will give them different choice in equipment and also good knowledge about the products which we will going to import from different cities, states which are good but due to distance they are not able to reach to ABC and we are opening our online portal by the help of which people can order online and free home delivery .The growth rate will be always in inclination and approx store will be able to make profit of $10000 within 6 months
Mission
The mission of SAM store is
->To give customers choices among the different water filters available in the market
->To give customers full technical support and also free home delivery
-> Focus on customers seasonal needs. (like in Summer)
->Online Portal is also available to order online and free assistance from experts.
Keys to Success
SAM store will get success in city ABC because of the following reasons -:
Location
First is the location SAM store is present in the centre of the city and accessible from all the places .The idea is quite new no other store is providing these types of facilities. Most important here the tap water is not good and water borne disease are increasing so people are inclining more towards filtered water
Seasonal Products
In this store we will give different products with some different schemes that will benefit store as well as customers and availabling these products at competitive prices
In Store Expertise
Store will hire experts from the companies who are having good technical knowledge as well as good behaviour that will definately help the store in taking over the market as much as possible
Company Overview
Sam store is offering different services to its customers and trying different approaches to cover market as much as possible .It provides different water filtering equipments, water tanks, RO water, water cans of different companies which are best in country and also good assistance to its customers i.e satisfying customers at every point and store expect that they will be able to make high profits within 6 months.
Company Ownership
Sam Sore is owned by Mr Sanjay Agarwal
Start Up Summary
The Start up cost of Sam Store will consist primarily of display and inventory.
Mr. Sanjay Agarwal wants to invest $ 80,000.
Start Up
Requirements 1000
Legal 0
Stationary 0
Brochures 0
Consultants 0
Hiring 20000
Insurance 0
Rent 3000
Advertising 0
Display Set up 5000
Start Up Inventory50000
Total Expenses 79000
Start Up Assets Needed
Cash Balance on Starting Date 121000
Other Short Term Assets 0
Total Short Term Assets 121000
Long Term Assets 30000
Total Assets 151000
Total Requirements 230000
FUNDING
Mr Sanjay Agarwal 80000
Silent Partner 0
Other 0
Total 80000
Long Term Liabilities 150000
Loss at start up 79000
Total Capital 1000
Total Capital and Liabilities 150000
PRODUCTS
Sam Store will offer some products in its store throughout the year and some are seasonal are as follows
RO WATER CANS PERMANENT
WATER FILTER(AV) PERMANENT
WATER FILTER(BV) PERMANENT
WATER FILTER(CV) PERMANENT
WATER FILTER(CV) PERMANENT
WATER TANK 200 Litre PERMANENT
WATER TANK 100 litre PERMANENT
WATER TANK 500 Litre PERMANENT
WATER TANK 1000 Litre PERMANENT
ICE CREAM CANS TEMPORARY
ICE CREAM BRICKS TEMPORARY
Market Analysis Summary
In city ABC there are very less number of these types of stores which are providing such facilities under a single shed and also the stores which are available here are not having so much of varities available in their stores and also they do not provide home delivery and different schemes during the different seasons.
Market Segmentation
SAM Store will focus mainly on these Customers
Private and Public Students Hostels
Societies
Areas prone to water borne diseasesSchools and Colleges
Hotels and Restaurants
Strategy and Implementation Summary
SAM Store will conduct presentations and dramas which will be played and displayed in different societies, schools, colleges and offices awaring the public about the water borne diseases and then promoting our brand which will be helpful in safe drinking water this will give our store free public relation or we can say publicity which will definitely help the store in getting success and it will also fulfill our social responsibility
Competition
Location
Seasonal Products
Lot of varities are available
Good reputation
Social Responsible
Free Home Delivery
Good Technical Staff
Sales Strategy
Sales strategy is first to create a customer full fill all his needs at as low cost as possible generate leads from him and create new customers by the help of this customers or people of city will have confidence in store and will take over large part of the market as soon as possible and also providing the product that are available with other stores at a very competitive prices
Sales Forecast
2009 approx sales will be of 12000
2010 approx sales will be of 17000
2011 approx sales will be of 25000
Management Summary
Mr. Sanjay Agarwal is an exellent supervisor and will be able to organize his team quite easily and finely
Personal Plan
Sam store will have these members in his store
Manager
Asst Manager
Checkers
Accountant
Supervisor
Technical Staff
Low Grade
FINANCIAL PLAN
This is the Financial Plan of Sam store
Human Capital (staffing): [All assume full-time employment unless noted]
· Management $25,000-$30,000 annual salary
· Part-Time Miscellaneous Staff (4): $10.00 hourly pay
· Fringe: 15% = Approx. additional $4500 annually
Supplies:
· Fresh Water Prep Equipment: $3,000
· Labels and Signage: $1,500
· Seasonal and Theme Schemes: $2,000
· Display Fixtures and Props: $6,500
· Foundations, Elevations, Tables: $7,500
Other:
· Store Rental: $2,000/month ($24,000/year)
· Storage and Transport: $2,500
· Packaging: $5,000
· Administrative & Operations Costs (including website set-up): $7,500
· Advertising: $3,000
· Publications (menus, flyers, business cards, etc): $2,500
Summary
SAM store will provide different varities of water purifying equipments and also better than competitors and having bright prospects in future as well as it will definitely will become No 1 store within short span of 3 to 4 year and also will make huge amount of profit
Tuesday, April 21, 2009
Successful Entrepreneurs must avoid this
As in my last post I told you about three important secrets of the successful entrepreneurs are SMART,GUTS and Luck if the person is having these qualities than he can become successful entrepreneur in his life
But if the person start feeling he is the emperor of the world and develops these characterstics in him such as PERSISTENCE and STUBBORNESS,CONTROLLING INTEREST and TEAM LOYALTY than definately it will hamper his life and hinder the success of his company.
PERSISTENCE and STUBBORNESS
It is right that person should be persistent towards his goal and success of his company but when persistence mixes with stubborness than the problem arises .Stubborness is heaven when it is right but hell when it is wrong .When this mixture comes out than possiblity of getting or taking right decision will be hard .
CONTROLLING INTEREST
During the early stages of company growth entreneurial vision is very important to keep eye on every task that is going on but as a company grows, entrepreneurs need to demonstrate not only that they can do the task but also that they can appropriately delegate. Fast growing businesses quickly move beyond the ability of one person to manage without proper delegation and should show his potential at every point inthe growing company.
TEAM LOYALTY
Loyalty should be there and is culturally important, but it should not be confused with the performance and future needs of the organization. As a start-up becomes a full-fledged business, an entrepreneurial leader has to be prepared to deal with difficult and personnel situations where business decisions need to be made for the interest of the company and not personal or historical reasons.
So Please all the entrepreneurs avoid this in you
But if the person start feeling he is the emperor of the world and develops these characterstics in him such as PERSISTENCE and STUBBORNESS,CONTROLLING INTEREST and TEAM LOYALTY than definately it will hamper his life and hinder the success of his company.
PERSISTENCE and STUBBORNESS
It is right that person should be persistent towards his goal and success of his company but when persistence mixes with stubborness than the problem arises .Stubborness is heaven when it is right but hell when it is wrong .When this mixture comes out than possiblity of getting or taking right decision will be hard .
CONTROLLING INTEREST
During the early stages of company growth entreneurial vision is very important to keep eye on every task that is going on but as a company grows, entrepreneurs need to demonstrate not only that they can do the task but also that they can appropriately delegate. Fast growing businesses quickly move beyond the ability of one person to manage without proper delegation and should show his potential at every point inthe growing company.
TEAM LOYALTY
Loyalty should be there and is culturally important, but it should not be confused with the performance and future needs of the organization. As a start-up becomes a full-fledged business, an entrepreneurial leader has to be prepared to deal with difficult and personnel situations where business decisions need to be made for the interest of the company and not personal or historical reasons.
So Please all the entrepreneurs avoid this in you
Monday, April 20, 2009
Successful Entrepreneurs Secret
Hi friends
Today everyone wants to start their own enterprise and wants to become successful entrepreneur but few reach to that peak and there are three reasons that a entrepreneur's have in their life which makes them happy and successful are Smarts , Guts and Luck .If a person is having all these things in his/her life than he/she can become good entrepreneur in this world.So lets have discussion on them.
SMARTS
Successful Entrepreneur's possesses good understanding, intuition ,emotional and conceptual intelligence thus they can find the solution of the problem quite easily without using much analysis and books and this is themain difference between a CEO and Founder as Founder knows how he can take his company on top and CEO uses or implements the strategies given in the books to get success.
GUTS
Successful entrepreneurs have so much guts that they always ready to take risks in their business and everyone knows that if their is risk their is success and also entrepreneurs never think of the resources that they not having they always think positive and remains happy with the resources that they are possess.Successful entrepreneurs always have passion to be on top of the world and this intiution makes them successful in their life .
LUCK
To be successful in this globe with hard work they also need luck in their life and if a person have ability to work,is smart,have guts and also have luck then he/she can become successful entrepreneur in their life.
So if a person is Smart , have Guts and also have luck with him then no one can stop him in becoming a successful entrepreneur in this world.
BEST OF LUCK
SAMPLE BUSINESS PLAN
This business plan outlines a new food service to the Twin Cities metro area, featuring Southern-Style BBQ and Soul Food dining and catering.
Executive Summary
The Company XYZ is a food service featuring South food and soul food offerings, with a variety of food and service options to meet customer demands. XYZ is based in Delhi, Noida and serves the NCR region metropolitan area, filling a dining niche in this market. XYZ is owned and operated by XYZ
Mr Budhiya, a chef with professional training and experience, including five years with the UDUPI.
Target Market
XYZ aims to serve a variety of Food stuffs. Former clients include corporations, such as ABC Group and the PQR; charitable organizations, such as The Sharper Kids
The personal events and gatherings, such as weddings and holidays. The Southern-style genre fills an untapped niche in the Twin Cities dining market.
Products and Services
XYZ maintains a goal to deliver excellent customer service along with great cuisine. The menu offers delicious, wholesome food as base products, with customizable options per customer demand. The food ranges from plentiful soul food side dishes, homemade desserts, to nutritious options for the healthconscious customer. Services range from food delivery to plating, serving, table or supply rental, as well as cookbooks and pre-packaged meals.
The Competition
No Twin Cities market leaders have emerged in this specific dining niche, offering the same combination of products and services that XYZ provides: Southern-style fool and soul food created by a true Southern raised and trained chef, combined with a thorough service ethic based on southern hospitality and values.
According to the most recent data, the Twin Cities dining market has over 360 uniquely-named and established restaurants, many of which offer catering or outreach services (according to registration with Delhi Authority over 200 grocery
stores or other retail outlets, some of which offer food services (in Delhi and Noida ); and 133
licensed caterers with the State (with hundreds of established but unlicensed catering-only businesses).
Marketing and Sales Strategy
Communicating a message that the company’s top priority is the customer, the sales strategy will be to convert first-time patrons into long-term, repeat customers. XYZ will implement a satisfaction guarantee as a way to reassure customers that their experience is given the highest priority. The company will employ proven marketing strategies, such as well-placed advertising, an informative and attractive web presence, and sales incentives such as punch cards or special bulk pricing. XYZ will ensure customer communication and planning by insisting on personal attention to orders and events.They can also hire any Advertising and Marketing to market their food Chain restaurant
Operations
While the company already has the advantage of owning reliable transportation and common food service supplies, such as tables and dining supplies, to ensure thorough service, a rental agreement with an industrial kitchen will ensure professional preparation and delivery. In addition, through this investment, a specially equipped catering vehicle will be leased if needed for special events.
Management
XYZ has spent the past ten years in the fine cuisine industry, including five years as a chef with
the UDUPI. XYZ has catered prevalent concerts and events, and served as personal chef for many prestigious clients in the Twin Cities metro area. In addition, XYZ has professional culinary education experience and training.
Development
In the future, the company may become a solo commercial dining establishment, in a restaurant-style setting, or expand its products to be sold in grocery or other retail outlets. In addition, the company seeks to support and partner with local charitable organizations through financing and educating of at-risk youth interested in learning the food service trade. This goal may also contribute to the establishment of a charitable arm of the company as well.
Financials
The financial strategy of XYZ's emphasizes reinvestment of income for growth during the first year of operation. It is anticipated that profitability will be reached early in the second year. Annual revenue projectionxfor the first year is approximately $150,000; with 100% increase in the second year. Strict financial control,combined with fiscal efficiencies and cost-saving measures, will be utilized to the fullest extent possible to ensure compliance with these financial strategies.
Funds Sought and Uses
The company is currently seeking $150,000 in investment financing, although with the appropriate collaborative venture, less funding may be needed. These funds will be used for start up and expansion costs, including marketing activities (advertising, website, publications), insurance, hiring new staff, and supplies. In addition to working toward a return on the investment, the company has the goal to support local charitable organizations through financing and educating of at-risk youth interested in learning the food service trade.
Plan Details
Company Description
Company Name and Location: XYZ based out Delhi.
Ownership and Legal Status:XYZ is the owner and operator. Either a corporation or partnership is being sought to create liability protection.
Services: Besides a diverse menu of delicious food, services range from food delivery to plating, serving, table or supply rental, as well as cookbooks and pre-packaged meats. Menu options are entirely flexible and committed to customer design and planning. Options include type of event or meal (breakfast, appetizer-only, sit-down formal, benefit or wedding, etc); health-conscious meals (low-fat, vegetarian, etc.); or type of service (delivery or set-up only; plating and serving included, etc).
Funding to Date and Funds Sought: All funding has been negotiated with the customer, based on food and supply costs. To cover the long-term goal of an established business, this plan seeks to gain one-time set-up costs such as licensure, purchase of kitchen supplies, purchase or lease of delivery vehicle, and advertising establishment. Recurring costs include kitchen rental or lease, on-going advertising, maintenance of delivery vehicle, replacement supplies, and on-going food costs.
Target Market Description
Target Market Location: XYZ’s aims to become an established presence in the greater Twin Cities metropolitan region, focusing special attention to the Delhi downtown area.
Market Size and Trends: A large portion of the market targeted by 'XYZs are minority-owned corporations in the Twin Cities area. In 2002, this market constituted approximately almost 5,000 businesses in Delhi.
XYZ’s aims to cater to a culturally-diverse customer base, while recognizing the appeal of soul food and Southern style to certain clientele, and targeting those customers first. Since this is currently an unfilled niche within the Twin Cities dining culture, it is difficult to estimate whether XYZ’s would fit the marketing trends affecting other catering or dining establishments at this time.
Competitive Analysis
Types of Competition and Edge:
XYZ’s faces competition from a variety of competitors:
· Fast food restaurants
· Catering companies related to established restaurants
· Independent catering companies
· Established dining establishments
· Sandwich shops, cafes, and corporate dining options
· Grocery markets: delis, bakeries, and catering options
As previously noted, the soul food and Southern style specialties of XYZ’s fill an untapped niche in this area. This quality, combined with the outstanding service ethic and quality assurance, represent the competitive edge of XYZ
Barriers to Entry and Future Competition: Foreseeable barriers are the high costs of starting a unique business of this type, while committing to keeping prices low for the customer to reach the most members of the community. Food costs, fuel prices, real estate and vehicle leases, and on-going advertising are all areas where barriers may remain after start up. It is anticipated that other soul food catering or restaurants may be started after XYZ’s starts to fill a niche for culturally dynamic dining. We aim to set the standard high for such establishments.
Marketing Message
To keep costs low, the initial marketing strategy will be to take advantage of free or low-cost advertising, utilizing free print or web placement and personal testimony. As sales increase, more complex and diverse marketing media will be explored. These media include:
· Placement of XYZ formation and menus in major publications,
· Development of television and web-based advertisements,
· Creation of a recognizable logo or brand,
· Entry of XYZ’s products or cooking demonstrations in professional trade shows and contests,
· Invitations to professional critics to review XYZ’s products,
· Interviews and profiles in local media,
· Cooking demonstrations and educational events in local schools or community organizations,
· Presentations to social networking groups,
· Placement of advertising in creative community places of high traffic (such as the airports, public transportation, in library kiosks, or at sporting events),
· Interactive web presence, featuring products, ordering, reservations, and social networking.
The message, however, will remain the same throughout: XYZ’s provides a unique dining experience, unforgettable and professional service, and remains committed to the community by focusing on passing on the knowledge of its experts to youth. Specific advertising costs are addressed below in “Financials.”
Operations Plan
Key Elements of Operations, Advantages and Challenges: To keep costs to a minimum while developing a client base, XYZ’s will operate out of rented restaurant kitchens, as well as personal Kitchens. As sales increase, lease of a professional kitchen will allow for greater ease and efficiency of food preparation. Similarly, in the development phase, personal vehicles and rented equipment will be used. As the business grows, delivery vehicles will be either purchased or leased and professional equipment will be purchased. Cost projections for independent implementation of this plan are addressed below in “Financials.”
Management and Staffing Team
Management Members: Management would be added at the discretion of XYZ, owner.
Future Management and Staffing Needs: In addition to owner and operator XYZ future staffing needs anticipated include: delivery driver, kitchen assistant, business consultant, or personal assistant. Costs of retaining this staffing model are addressed below in “Financials.”
Finance
The figures below represent an independent business venture. If an investment or operational partner is identified, these figures will need adjustment. All costs are based on current market pricing.
Income Statement: Because XYZ's is a true starter business, all current expenses have been personally invested by the owner, with any profits put back into the management of the business. As a result, all finances represented here are indicative of start-up and projected maintenance costs.
Income Statement—Three Year Projection: The first year revenue projection is approximately $150,000. This comes from a market that is ready to try a new product that XYZ’s will provide to the Twin Cities metro area, and specifically, the downtown Delhi locations.
The second year anticipates a 100% increase in revenue as added products and services are introduced. These products include bottled sauce, packaged meat, cakes and pies, as well as personal chef services.
The third year predicts a nationwide roll-out of products and services, concentrating on special events such as sporting events, expositions, concerts, and professional trade shows.
Use of Funds: The following is a list of anticipated costs to be addressed in this independent business plan, based on current market prices. It is not an exhaustive list since unexpected costs may arrive. All costs are estimates and approximate. The estimated costs of start-up for the first year, including full staffing and fringe, is approximately $150,000.
Human Capital (staffing): [All assume full-time employment unless noted]
· Management/Chef: $25,000-$30,000 annual salary
· Part-Time Miscellaneous Staff (4): $10.00 hourly pay
· Fringe: 15% = Approx. additional $4500 annually
Supplies:
· Uniforms and Clothing: $1,500
· Food Prep Equipment: $3,000
· Cookware and Bakeware: $6,000
· Tableware: $5,000
· Labels and Signage: $1,500
· Seasonal and Theme Décor: $2,000
· Display Fixtures and Props: $6,500
· Serving Equipment (Trays, Baskets, etc.): $800
· Foundations, Elevations, Tables: $7,500
Other:
· Kitchen Rental: $2,000/month ($24,000/year)
· Storage and Transport: $2,500
· Packaging: $5,000
· Administrative & Operations Costs (including website set-up): $7,500
· Advertising: $3,000
· Publications (menus, flyers, business cards, etc): $2,500
Summary
XYZ’s is primarily focused on customer satisfaction while supporting the community in a tangible way. XYZ’s fills a niche in the Twin Cities’ food and dining market, while infusing its customers with guaranteed and reliable service and delicious Southern-style food. The Owner and Principal Chef XYZ is confident that his product and services are “a new flavor, a new twist, and a new style,” making XYZ’s not just catering services with excellent food, but a new flavor that will increase demand
Executive Summary
The Company XYZ is a food service featuring South food and soul food offerings, with a variety of food and service options to meet customer demands. XYZ is based in Delhi, Noida and serves the NCR region metropolitan area, filling a dining niche in this market. XYZ is owned and operated by XYZ
Mr Budhiya, a chef with professional training and experience, including five years with the UDUPI.
Target Market
XYZ aims to serve a variety of Food stuffs. Former clients include corporations, such as ABC Group and the PQR; charitable organizations, such as The Sharper Kids
The personal events and gatherings, such as weddings and holidays. The Southern-style genre fills an untapped niche in the Twin Cities dining market.
Products and Services
XYZ maintains a goal to deliver excellent customer service along with great cuisine. The menu offers delicious, wholesome food as base products, with customizable options per customer demand. The food ranges from plentiful soul food side dishes, homemade desserts, to nutritious options for the healthconscious customer. Services range from food delivery to plating, serving, table or supply rental, as well as cookbooks and pre-packaged meals.
The Competition
No Twin Cities market leaders have emerged in this specific dining niche, offering the same combination of products and services that XYZ provides: Southern-style fool and soul food created by a true Southern raised and trained chef, combined with a thorough service ethic based on southern hospitality and values.
According to the most recent data, the Twin Cities dining market has over 360 uniquely-named and established restaurants, many of which offer catering or outreach services (according to registration with Delhi Authority over 200 grocery
stores or other retail outlets, some of which offer food services (in Delhi and Noida ); and 133
licensed caterers with the State (with hundreds of established but unlicensed catering-only businesses).
Marketing and Sales Strategy
Communicating a message that the company’s top priority is the customer, the sales strategy will be to convert first-time patrons into long-term, repeat customers. XYZ will implement a satisfaction guarantee as a way to reassure customers that their experience is given the highest priority. The company will employ proven marketing strategies, such as well-placed advertising, an informative and attractive web presence, and sales incentives such as punch cards or special bulk pricing. XYZ will ensure customer communication and planning by insisting on personal attention to orders and events.They can also hire any Advertising and Marketing to market their food Chain restaurant
Operations
While the company already has the advantage of owning reliable transportation and common food service supplies, such as tables and dining supplies, to ensure thorough service, a rental agreement with an industrial kitchen will ensure professional preparation and delivery. In addition, through this investment, a specially equipped catering vehicle will be leased if needed for special events.
Management
XYZ has spent the past ten years in the fine cuisine industry, including five years as a chef with
the UDUPI. XYZ has catered prevalent concerts and events, and served as personal chef for many prestigious clients in the Twin Cities metro area. In addition, XYZ has professional culinary education experience and training.
Development
In the future, the company may become a solo commercial dining establishment, in a restaurant-style setting, or expand its products to be sold in grocery or other retail outlets. In addition, the company seeks to support and partner with local charitable organizations through financing and educating of at-risk youth interested in learning the food service trade. This goal may also contribute to the establishment of a charitable arm of the company as well.
Financials
The financial strategy of XYZ's emphasizes reinvestment of income for growth during the first year of operation. It is anticipated that profitability will be reached early in the second year. Annual revenue projectionxfor the first year is approximately $150,000; with 100% increase in the second year. Strict financial control,combined with fiscal efficiencies and cost-saving measures, will be utilized to the fullest extent possible to ensure compliance with these financial strategies.
Funds Sought and Uses
The company is currently seeking $150,000 in investment financing, although with the appropriate collaborative venture, less funding may be needed. These funds will be used for start up and expansion costs, including marketing activities (advertising, website, publications), insurance, hiring new staff, and supplies. In addition to working toward a return on the investment, the company has the goal to support local charitable organizations through financing and educating of at-risk youth interested in learning the food service trade.
Plan Details
Company Description
Company Name and Location: XYZ based out Delhi.
Ownership and Legal Status:XYZ is the owner and operator. Either a corporation or partnership is being sought to create liability protection.
Services: Besides a diverse menu of delicious food, services range from food delivery to plating, serving, table or supply rental, as well as cookbooks and pre-packaged meats. Menu options are entirely flexible and committed to customer design and planning. Options include type of event or meal (breakfast, appetizer-only, sit-down formal, benefit or wedding, etc); health-conscious meals (low-fat, vegetarian, etc.); or type of service (delivery or set-up only; plating and serving included, etc).
Funding to Date and Funds Sought: All funding has been negotiated with the customer, based on food and supply costs. To cover the long-term goal of an established business, this plan seeks to gain one-time set-up costs such as licensure, purchase of kitchen supplies, purchase or lease of delivery vehicle, and advertising establishment. Recurring costs include kitchen rental or lease, on-going advertising, maintenance of delivery vehicle, replacement supplies, and on-going food costs.
Target Market Description
Target Market Location: XYZ’s aims to become an established presence in the greater Twin Cities metropolitan region, focusing special attention to the Delhi downtown area.
Market Size and Trends: A large portion of the market targeted by 'XYZs are minority-owned corporations in the Twin Cities area. In 2002, this market constituted approximately almost 5,000 businesses in Delhi.
XYZ’s aims to cater to a culturally-diverse customer base, while recognizing the appeal of soul food and Southern style to certain clientele, and targeting those customers first. Since this is currently an unfilled niche within the Twin Cities dining culture, it is difficult to estimate whether XYZ’s would fit the marketing trends affecting other catering or dining establishments at this time.
Competitive Analysis
Types of Competition and Edge:
XYZ’s faces competition from a variety of competitors:
· Fast food restaurants
· Catering companies related to established restaurants
· Independent catering companies
· Established dining establishments
· Sandwich shops, cafes, and corporate dining options
· Grocery markets: delis, bakeries, and catering options
As previously noted, the soul food and Southern style specialties of XYZ’s fill an untapped niche in this area. This quality, combined with the outstanding service ethic and quality assurance, represent the competitive edge of XYZ
Barriers to Entry and Future Competition: Foreseeable barriers are the high costs of starting a unique business of this type, while committing to keeping prices low for the customer to reach the most members of the community. Food costs, fuel prices, real estate and vehicle leases, and on-going advertising are all areas where barriers may remain after start up. It is anticipated that other soul food catering or restaurants may be started after XYZ’s starts to fill a niche for culturally dynamic dining. We aim to set the standard high for such establishments.
Marketing Message
To keep costs low, the initial marketing strategy will be to take advantage of free or low-cost advertising, utilizing free print or web placement and personal testimony. As sales increase, more complex and diverse marketing media will be explored. These media include:
· Placement of XYZ formation and menus in major publications,
· Development of television and web-based advertisements,
· Creation of a recognizable logo or brand,
· Entry of XYZ’s products or cooking demonstrations in professional trade shows and contests,
· Invitations to professional critics to review XYZ’s products,
· Interviews and profiles in local media,
· Cooking demonstrations and educational events in local schools or community organizations,
· Presentations to social networking groups,
· Placement of advertising in creative community places of high traffic (such as the airports, public transportation, in library kiosks, or at sporting events),
· Interactive web presence, featuring products, ordering, reservations, and social networking.
The message, however, will remain the same throughout: XYZ’s provides a unique dining experience, unforgettable and professional service, and remains committed to the community by focusing on passing on the knowledge of its experts to youth. Specific advertising costs are addressed below in “Financials.”
Operations Plan
Key Elements of Operations, Advantages and Challenges: To keep costs to a minimum while developing a client base, XYZ’s will operate out of rented restaurant kitchens, as well as personal Kitchens. As sales increase, lease of a professional kitchen will allow for greater ease and efficiency of food preparation. Similarly, in the development phase, personal vehicles and rented equipment will be used. As the business grows, delivery vehicles will be either purchased or leased and professional equipment will be purchased. Cost projections for independent implementation of this plan are addressed below in “Financials.”
Management and Staffing Team
Management Members: Management would be added at the discretion of XYZ, owner.
Future Management and Staffing Needs: In addition to owner and operator XYZ future staffing needs anticipated include: delivery driver, kitchen assistant, business consultant, or personal assistant. Costs of retaining this staffing model are addressed below in “Financials.”
Finance
The figures below represent an independent business venture. If an investment or operational partner is identified, these figures will need adjustment. All costs are based on current market pricing.
Income Statement: Because XYZ's is a true starter business, all current expenses have been personally invested by the owner, with any profits put back into the management of the business. As a result, all finances represented here are indicative of start-up and projected maintenance costs.
Income Statement—Three Year Projection: The first year revenue projection is approximately $150,000. This comes from a market that is ready to try a new product that XYZ’s will provide to the Twin Cities metro area, and specifically, the downtown Delhi locations.
The second year anticipates a 100% increase in revenue as added products and services are introduced. These products include bottled sauce, packaged meat, cakes and pies, as well as personal chef services.
The third year predicts a nationwide roll-out of products and services, concentrating on special events such as sporting events, expositions, concerts, and professional trade shows.
Use of Funds: The following is a list of anticipated costs to be addressed in this independent business plan, based on current market prices. It is not an exhaustive list since unexpected costs may arrive. All costs are estimates and approximate. The estimated costs of start-up for the first year, including full staffing and fringe, is approximately $150,000.
Human Capital (staffing): [All assume full-time employment unless noted]
· Management/Chef: $25,000-$30,000 annual salary
· Part-Time Miscellaneous Staff (4): $10.00 hourly pay
· Fringe: 15% = Approx. additional $4500 annually
Supplies:
· Uniforms and Clothing: $1,500
· Food Prep Equipment: $3,000
· Cookware and Bakeware: $6,000
· Tableware: $5,000
· Labels and Signage: $1,500
· Seasonal and Theme Décor: $2,000
· Display Fixtures and Props: $6,500
· Serving Equipment (Trays, Baskets, etc.): $800
· Foundations, Elevations, Tables: $7,500
Other:
· Kitchen Rental: $2,000/month ($24,000/year)
· Storage and Transport: $2,500
· Packaging: $5,000
· Administrative & Operations Costs (including website set-up): $7,500
· Advertising: $3,000
· Publications (menus, flyers, business cards, etc): $2,500
Summary
XYZ’s is primarily focused on customer satisfaction while supporting the community in a tangible way. XYZ’s fills a niche in the Twin Cities’ food and dining market, while infusing its customers with guaranteed and reliable service and delicious Southern-style food. The Owner and Principal Chef XYZ is confident that his product and services are “a new flavor, a new twist, and a new style,” making XYZ’s not just catering services with excellent food, but a new flavor that will increase demand
Need for Business Plan in Starting Business
You are taking awesome decision to start business at this time cashing all the benefits of this time .
But may be you are not having that much finance to start your own business and for finance now youwill be looking to get loan or investment from Venture Capitalist.
To get loan or investment from Venture capitalist they need BUSINESS PLAN of your business which shows that
What you want to do,how you are different from others,who are your target customers and it also helps you in future to focus on your goals that you haven drawn when you started your business.
These are points that a good BUSINESS PLAN must have
1 EXECUTIVE SUMMARY ->Objectives->Mission->Success Key
2 SME's SUMMARY ->Ownership->Services->Location and Facilities
3 SERVICES ->Competetion->Sales Forecast->Services->Future Services
4 MARKET ANALYSIS ->Market Segmentation->Target Market->Service Bus analysis
5 STRATEGY ->Pricing Strategy->Alliances Strategy
6 MANAGEMENT SUMMARY ->Organizational Structure->Mgmt Team->Personal Plan
7 FINANCIAL PLAN ->Break even analysis->Projected Profit And Loss,Cash Flow and Balance Sheet ->Business ratios
If you follow these steps to develop your BUSINESS PLAN it will definately help you in getting investors as well as in future for references of your goals.
Best of Luck
Sample Business Plan will be posted shortly
But may be you are not having that much finance to start your own business and for finance now youwill be looking to get loan or investment from Venture Capitalist.
To get loan or investment from Venture capitalist they need BUSINESS PLAN of your business which shows that
What you want to do,how you are different from others,who are your target customers and it also helps you in future to focus on your goals that you haven drawn when you started your business.
These are points that a good BUSINESS PLAN must have
1 EXECUTIVE SUMMARY ->Objectives->Mission->Success Key
2 SME's SUMMARY ->Ownership->Services->Location and Facilities
3 SERVICES ->Competetion->Sales Forecast->Services->Future Services
4 MARKET ANALYSIS ->Market Segmentation->Target Market->Service Bus analysis
5 STRATEGY ->Pricing Strategy->Alliances Strategy
6 MANAGEMENT SUMMARY ->Organizational Structure->Mgmt Team->Personal Plan
7 FINANCIAL PLAN ->Break even analysis->Projected Profit And Loss,Cash Flow and Balance Sheet ->Business ratios
If you follow these steps to develop your BUSINESS PLAN it will definately help you in getting investors as well as in future for references of your goals.
Best of Luck
Sample Business Plan will be posted shortly
New Business Ideas
In this Recession people who want to start their own business should invest their money in those sectors where recession hits very less and where there is any possibilty of making profit in future as well as at this time because in hitted areas there is less hope for sucess in near future.
Some sectors where you can invest your money but some innovation should be their which is different from others players of the sector
Education such as training institute
FMCG
Telecom such as franchisee of any telecom operator
Medicines
Power Corporation
Energy Resources
Renewable sources of energy
Food
Water Usage such as bottling plant
All these sectors are least hitted by recession so we can find some innovation in these sectors where improvement or new development is awaited and can make money and can also benefit society.
Some sectors where you can invest your money but some innovation should be their which is different from others players of the sector
Education such as training institute
FMCG
Telecom such as franchisee of any telecom operator
Medicines
Power Corporation
Energy Resources
Renewable sources of energy
Food
Water Usage such as bottling plant
All these sectors are least hitted by recession so we can find some innovation in these sectors where improvement or new development is awaited and can make money and can also benefit society.
Small Scale Industry
In this global turn moil when everywhere lot of chaos among people are their who are losing their Jobs , becoming bankkrupt ,no savings ,countries are losing their govt and becoming ban krupt ,big companies are becoming bankkrupt,everyone is losing their confidence and trust on each other at this time people are developing negative atitude towards everything and also degradation in their health.
At this time you can become captain and help the ship to come out of these high tides and help your followers to bring them out of their misery condition if you have some new and innovative business idea you must implement it at this time it will definately it will help you in making profits and also it will add in your account as social responsibilty.
As it will brings benefits to you and others as
-> Cheap Labour having good talent
-> Cheap Infrastructure
-> Funds from Govt and Venture Capitalist
-> Free Public relation
-> Provide work to people
-> Good and cheap transportation
-> Tax to govt and decrease the load of unemployement.
and many more
So Starting business at this time is most beneficial and helpful for the society and for u also
So best of Luck
At this time you can become captain and help the ship to come out of these high tides and help your followers to bring them out of their misery condition if you have some new and innovative business idea you must implement it at this time it will definately it will help you in making profits and also it will add in your account as social responsibilty.
As it will brings benefits to you and others as
-> Cheap Labour having good talent
-> Cheap Infrastructure
-> Funds from Govt and Venture Capitalist
-> Free Public relation
-> Provide work to people
-> Good and cheap transportation
-> Tax to govt and decrease the load of unemployement.
and many more
So Starting business at this time is most beneficial and helpful for the society and for u also
So best of Luck
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