One Stop Solution Business Plan

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Business Plan

OwnersOne Stop Solution 241, Rajnish Building, Colaba Market, Near Kailash Parbat Hotel, Mumbai– 400 005.Telephone: 022-23165491Fax: 022-23165492E-Mail: [email protected]

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I. Table of Contents

1. Table of Contents………………………………………………………………….2

2. Executive Summary………………………………………………………………3

3. General Company Description……………………………………………….4

4. Products & Services………………………………………………………………6

5. Marketing Plan………………………………………………………………………8

6. Operational Plan……………………………………………………………………17

7. Management & Organization………………………………………………....23

8. Start-up Expenses & Capitalization………………………………....……..24

9. Financial Plan………………………………………………………………............25

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II. Executive Summary

One Stop Solution is a professional cleaning and maintenance service for leather and suede products and carpets started in the area of Colaba, South Mumbai. The venture is started by six partners- Shweta, Disha, Mohid, Shashwat, Panav, Istakhar. The partners have share immense amount of trust and understanding.

One Stop Solution is aiming to take opportunity of the lack of a professional high quality cleaning service in the city and provide the customers with excellent facilities.

Leather is known to be a tough material but it is the one that requires most maintenance, we are aiming to take advantage of this fact and provide regular maintenance services to our customers using extremely professional techniques undertaken by highly trained individuals who will use quality solutions and tools for various processes.

We will be providing a variety of services like- cleaning, maintenance, re-colouring, conditioning and repairing and since this concept is relatively new in India we are aiming to tap this market and make more consumers go for this service rather than small time local cleaners having unskilled labour and using local products.

The market we are catering to is a niche market mainly dominated by upper middle- upper class and to tap this kind of market we are undertaking aggressive marketing strategies to increase the scope and size of the market. With no direct competition in the market, we can be the market leaders in this segment and generate customer loyalty even when new entrants enter the market.

Based on our study of the market we have estimated a growth in the industry over few years with increase in standard of living and increase exposure to professional cleaning services.

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III. General Company Description

One Stop Solution will be providing the services of dry cleaning and maintenance of mainly leather and Suede products and also carpets.The leather and suede products include- handbags, travel bags, belts, shoes, wallets, carpets and rugs etc.

Mission Statement: Our mission is to be recognized as a leader in the commercial cleaning industry that provides quality service with superior outcomes at the same time creates a steady, reliable and growing employment source for the community.

Company’s goals and objectives:

Our goal is to provide world class and eco-friendly technology for dry cleaning and leather/suede maintenance to our customers.

We aim to tap this market as there are very few companies that work on leather but not on specific leather products and so have a temporarily monopoly to capture our customers.

We are looking to establish and maintain a strong relationship with our stakeholders and provide consistency in quality.

Expansion Strategy:The different avenues that we are planning to expansion into are:

Location Expansion: In the near future we expect One Stop Solution to have captured a sizeable market share in South Mumbai and hence would expand into other profitable areas in the suburbs like- Juhu and Bandra, subject to a feasibility study of those areas.

Future prospects also include diversifying into different product lines like - Curtains, leather furniture and designer wear, we will be conducting a survey to judge the demand for maintenance of these products and decide if it’s feasible and we can plan to venture into them by the end of second year

Business Philosophy:Our business philosophy is to provide high quality service along with consistency is what a company needs to acquire maximum market share.We believe that a strategy of aggressive marketing & promotion is the best way for a firm to penetrate into a market like this, which is currently dominated by local dry cleaners and small time local cleaners. The business we are looking at is mainly aiming a niche market and planning to The legal form of ownership will be: Partnership Firm. We have chosen this form of business as all the six partners will have equal stake in the business and equal decision making right.

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One Stop Solution is registered under the Partnership act as it is mandatory in the state of Maharashtra.Industry OverviewThe industry that we are operating in is the Professional Dry cleaning Industry. According to our estimations, in the short run we do not see a growth in the industry but eventually as the standard of living increases and a demand for such services increases with the increase in purchasing power of the Indian consumers there is a high scope for growth in professional cleaning industry. Once the industry grows, there will be more players in the market and we will plan promotional and competitive strategies for the same.

Core Strengths : High quality service with a variety of techniques used Different prices for different types of fabrics Specialized service offering in leather and suede maintenance Highly trained staff using professional techniques in processes

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IV. Product & Services

Services Offered :The following are the services provided by One Stop Solution:

MAINTENANCE/ PROTECTION LEATHER AND SUEDE RECOLOURING INK AND STAIN REMOVAL LEATHER AND SUEDE CLEANING CONDITIONING LEATHER AND SUEDE REPAIRING

Competition in our industry comes from the different types of services provided by the different service providers and the quality of the service thus provided

Competitive Advantage:

One Stop Solution is the first entrant in the market for providing specialized professional cleaning and complete repair and maintenance for all your leather and suede products. We have no close competitors in the market who provide professional specialized services for only leather and suede, except Pressto, which is actually a laundry service unit for garments and accessories cleaning.

One Stop Solution provides not just cleaning and stain removing service, unlike Pressto, but also all sorts of leather and suede care treatments like repairing, recolouring, protection and conditioning.

At One Stop Solution, we have trained professionals and executives who can analyze individual problems efficiently and work on each item according to the quality of the leather and the nature of treatment required for fixing each item. Thus, each item that comes to the store is thoroughly scrutinized and taken care of.

The prices are differentiated based on the services availed by the customers and depending on the size of the product or damage. Thus, we give customized pricing also depending on the type of services required.

The quality of the Solution and machine used by us for the different services is excellent. Our suppliers “Leather Magic” and “Rug Doctor” are both well established in their respective markets since 30 and 12 years respectively and have credibility globally.

Transparency of all the processes that take place in the store. Guaranteed delivery of items within 2-24 hours. Delivery of the products to the

customers’ house is done by us as a value added service.

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The marketing and advertising strategies undertaken by us are very well formulated and strategically planned to create positive word of mouth publicity for our firm and to build a brand name in the market.

We will be collaborating with a few luxury brands which have their stores in the city, so all the customer complains they receive regarding leather and suede products can be passed on to us.

Competitive Disadvantages:

Pressto, which is a near competitor is an established brand in India since 2008 and has a good reputation in the market.

Pressto has many stores distributed in different parts of the city, while we just have one store in the city, as of now.

Premium pricing as compared to the local dry cleaners in the city, as we believe in providing only quality service. Thus, due to premium pricing, our target market is very niche.

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V. Marketing Plan

Market Research:A market research was carried out by us to judge if a demand is there for the services provided by us. We found that there is a great demand for our services. The detail of our research is attached in the appendices. A primary research was undertaken by us with a sample size of 50 respondents.An Online Questionnaire was filled by these respondents which gave us insightful information about the requirements needed in our business model.The researched helped us understand that we are catering to a niche market.

Economics:Facts about our industry:When we enter the market and establish our business, we would be the first movers and hence be a monopoly in the market. Although, we do expect Pressto to move in as our competitor soon, but since we would be acquiring the market and technology first, we expect to capture the market and remain as market leaders.Our services do not currently exist as we are creating a new market for ourselves. We did a level of market research to find out whether people actually demand for our services, we learned that we could tap only a niche market. With further market research we learned that in the niche market that we are looking to target customer who use good quality leather & suede products, there is a very high demand for the services we are hoping to provide.With the growing potential of purchasing power and rising standards of living, the consumers are becoming more aware about the brands and luxury products available in the market.Furthermore, the growth potential of One Stop Solution is large. We are looking at opening more stores in Mumbai itself targeting areas like Juhu, Bandra and Powai for a similar customer base. Later, we will also look into targeting cities like Delhi and Bangalore after doing a detailed feasibility study.Barriers to entryPricing strategy:Since One Stop solution would be the first to enter the market, the major barrier we would face would be our costly pricing. Consumer acceptance and brand recognitionAs first movers in the market, we will have to work towards building consumer acceptance and creating a strong brand image and identity in the minds of our customers. We will have to ingrain the regular maintenance of leather and suede as an important aspect of the customer’s lives.· To overcome the costly pricing barrier, we intend to only target those customers that who are willing and able to afford such skim pricing strategies. We would also be providing membership and privileges to our customers to encourage repurchase of the services we provide.

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· To increase acceptance, we are stressing on innovative marketing and promotion strategies to encourage our customer buying behaviour. We are also tying up with well-known brands so that the customers that approach those brands would have further faith in our services.

SERVICES:

The following are the features and the benefits that the customers can derive out of our services:

PEAU: Complete Leather CareAny item that is made from leather or suede demands specialist knowledge and expertise. Any kind of stains, discoloration, repairing and protection required to make your leather and suede products look fresh and vibrant is provided by One Stop Solution. These mainly include leather and suede bags, belts and coats/ jackets.

CHAUSSURE: Complete Shoe CareAt One Stop Solution, we clean, repair and restore your most precious designer shoes and other small accessories with international standard and care. Our services would include recoloring, specialist stain removal, damage repair and overall a complete makeover of your most loved collection.

TAPIS: Carpet and Rug Care We cater to cleaning and the best maintenance solution for your precious carpets and rugs of any kind. We remove stains and dirt that accumulates over a period of time, in no time!

Customer Analysis:

Our targeted customers are going to be consumers who use leather and suede products. They will be people that have a relatively high purchasing power as we are looking to provide niche services that would appeal such customers. Our service is a luxury and not a necessity, and hence it wouldn’t be demanded by the masses.

The consumers would have a large disposable income to avail our services. The consumers can avail our services at our store, and they would not have to go through any middle men.

The age group for our target market would be mainly men and women from the age of 18 till the age of 60.

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Although it may seem like we cater mainly to women, we also provide certain services that could be relevant to men too (eg. Shoes, Belts, etc.) and as our market research shows, there is an almost equal demand from men as well.

The best way to segment the customers for this enterprise is on the following basis: Corporate Customers: High End Branded Stores - We have approached a few elite brands like Louis Vuitton, Hermes, Gucci, Bottega Veneta etc. and are also in conversation with few more brands like Salvatore Ferragamo, Jimmy Choo and Versace.

Individual Customer : These are the retail customers that would approach our store directly.

Frequency of Usage :1) Contract Customers : These are customers who are have a contract with us to

provide monthly services for a agreed fixed price. These are mainly our corporate customers. These are our platinum class customers.

2) Loyal Customers: These are the customers who render our services more than once and help us get more customers with a positive word of mouth.They are our Gold class customers.

3) One-time Customers: These are customers who are serviced just once. These are any kinds of customers who have availed our services only once. They are our lead class customers.

Advertising and Promotion Strategy:We plan to have an aggressive marketing strategy since we are targeting a niche market and we are aiming to create a high level of awareness so that the customers approach us with a positive mindset.We are planning to create a positive brand image in the minds of our customers which would lead to a long lasting relationship between our customers and us.

Mediums of Advertising used:Print: We are planning to have print ads in high end magazines like Vogue, Femina, GQ etc since the readers of these magazines would be our main customers and would be a perfect way to advertise our store.

Internet: We will use social networking websites like Facebook and Twitter. www.facebook.com/oneStopSolutionmumbaiWe are also planning on sending an email to the people who have filled our questionnaire and we will be offering a 15-20% discount on the first product cleaning which will help us acquire them which in turn help us with a positive word of mouth for our services.

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Effective Strategies that will be adopted: We are having a tie-up with high end brands where if a customer returns their leather/suede product for repairing they would forward it to us and for which they will be giving us a fixed amount every month.

Competition:

We are the first movers in the market and we provide a relatively unique service. Our closest competitors are “Pressto” cleaners who have only one of their units directed towards such operations. Pressto offers the same service for all kinds of products; however they have certain drawbacks-

Unlike One Stop Solution, “Pressto” uses the same techniques for the kind of fabrics. Customers are not very aware of “Pressto” providing such services as it is majorly

restricted to garments only. Due to the techniques used by “Pressto” they are not recommended by the stores of

the brands we cater to. Also, they have a wide market and are not targeting the designer bag segment

effectively, while it is this segment that is looking out for such efficient services.

Factor One Stop Solution Strength Weakness Press To Importance

to Customer

Products/Service

caters majorly to the market of leather and suede products

Caters to all the products

with the same technique for the offered services.

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Price

Different prices for the services according to the

fabric

Same price for all the services irrespective of the

fabric

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Quality

perfect quality is achieved due to different

techniques being used

same technique for all services, does not provide

perfect solution

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Reliability

As the working is manual and solution changes with a change in fabric so it is guaranteed to achieve

results for the customer

As the same solution is used for all the fabrics, results

cannot be guaranteed to the customers.

2

Expertise We have knowledge only Large and established 4

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Factor One Stop Solution Strength Weakness Press To Importance

to Customer

with respect to leather and suede products

organization.

Company Reputation

We are a new company and have to build a

reputation.

Is reputed and has picked up. 3

Location

We are offering services in Mumbai

only through only one unit.

they offer services only at one location but their

channel is spread across the city through their

other stores

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Appearance

It wont be like a normal dry cleaning store, but will be a

different experience for the customer to

see the process done in front of them.

like a normal store where the customer drops and collects after the service

is done.

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Sales Method

Direct sales can take place at the designer

stores too.

designer stores do not recommend them

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Advertising

strong advertising through various

vehicles like magazines, fashion

shows, one to one etc.

main source is through the other stores they

have in the city.

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Image

more of a designer laundry with

sophisticated services

like a general laundry service where you drop

and pick up your valuable good.

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Niche:

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We are the first movers in the segment of providing solutions for the cleaning and maintenance of leather and suede products. Our customer base consists of people using designer products of different fabrics like leather and suede.

There are many dry cleaning companies in the industry who provide services only for garments but we are the first ones in the city to provide services for cleaning and maintenance of leather and suede products only. Thus, our market is very well focused on dry cleaning of leather and suede products.

Strategy:-

Promotion

One of the most difficult segments would be promotion in this segment as we are the first movers in the market. To educate our customers about our service we will have to undertake various vehicles of promotion. Initially, we will use our network of friends and relatives to get the wheels rolling and start generating a buzz about our services.

A. Advertising- We plan to put up our advertisements in the selected newspapers and magazines with respect to fashion and accessories. These mediums are most apt for our target market, which majorly includes the upper middle class and upper class.

B. Sponsorship- We also intend to sponsor a fashion week as an accessory maintenance partner which will help us to talk more about our services and brand recognition.

C. Direct marketing- When we open up our store we will certainly be distributing our brochures in and around the area so that the residents are aware about the services available to them in their vicinity.

D. Branding- As we intend to tie up with the high end brands as a part of their after sales service our standees will be put up in close proximity to their store which will help in customer generation.

E. Exhibitions- In order to acquire customers we will take part in various exhibitions to let the customers know about our distinguished services.

We will have a strong online presence too on social media platforms as it connects to every target market through various social media vehicles.

As a part of customer generation we will also be educating the employees at the luxury stores about our distinguished services and how it can help their brand with respect to after sales services. This will be a very important catalyst as every customer of the high end brands gets acquainted with the services provided by us. Other than that the partners will undertake personalized marketing where our customer base will include personalities from the society, film fraternity, corporate etc.

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Promotional budget-

1. Advertising- We will put up advertisements in monthly supplements, 3 months before opening the store. The cost incurred will be Rs 23,000.

2. Sponsorship- As we will be sponsoring a particular event with respect to fashion and accessories we will aim to spend Rs 1,00,000 on such sponsorship. This will be the sponsoring an event like “LAKME FASHION WEEK”, “ACCESSORIES INDIA” etc.

3. Direct marketing- Pamphlet printing – 20,000 pamphlets @ 90.p each = Rs. 18,000

Brochure distribution man power @ Rs. 500 per person per day = Rs. 5,000

4. Exhibitions- We will be a part of exhibitions every 2 months so that we can stable our reach and we aim to spend Rs 40000/- dual monthly.

Pricing :-

Our pricing method is quality based pricing. Our main aim is to make the customer feel the difference in the service being provided as compared to the other usual services they avail. Our pricing strategy is in relation to the market analysis done. We will start increasing the prices after a certain level of customer base is achieved. The prices compared to other dry cleaners charge for cleaning of such products is higher due to the better techniques and service we provide. The major factor for our service offering is solely the quality of service. Our customers make their purchase decisions mainly on the base of the result of the service and not on the price they are paying for it. We intend to revise our price structure annually. We will not be having any credit policies.

Product Price

Leather/Suede Protection

Recolouring Leather and Suede

Cleaning Leather and Suede

Ink & Stain Removing

Leather Repair

Rug & Carpet Service

Leather Conditioning

Small 3000 5800 2500 3700 4600150/sq

feet 3100

medium 3700 9250 3300 4000 4700 4000

Large 4300 14000 4500 4500 5100 6000

suitcase 10500 custom 7800 4500 6000 11000

Shoes 3000 N.A. 2500 3700 4600 3100

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Belts 3000 5800 2500 3700 4600 3100

Proposed location

Such a store would have maximum feasibility if it is located in proximity to stores selling designer products. In Mumbai, such stores are not many, but a majority of such stores are located in South Mumbai. So the most apt place with respect to our investment and location of the designer stores we plan to rent a 750 sq. ft store in the area of Colaba. The selected location is favourable to us as we are very close to the designer stores and according to a research our major customer base is in these areas.

Address:-241, Rajnish Building, Near Kailash Parbat Hotel,Colaba Market Mumbai - 400005.

Distribution Channels:

We are looking at direct sales to our customers where the customers will be approaching our stores directly and availing our services based on customised pricing.

We are also having a tie-up with various brands wherein they will pass on any damaged products to us for repair.

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Business Analysis

PORTER’S 5 FORCES

1. Threat of New Entrants: Since this is relatively a new market we do not see new entrants in the market in the near future but yes, eventually we are expecting more players entering the market but by then we would be an established brand and customer loyalty will be present but we can plan promotional activities for the same. Since when we are entering the market it is a niche one but we are gradually planning to build up a presence in the industry.

2. Threat of Substitute Service: Our main threat would be our customers switching to local dry cleaners or going for a do it yourself method whereby they will undertake the cleaning and maintenance process at home.

3. Bargaining power of Suppliers: Since our suppliers are in America, we have spoken to them and we are the only firm that has access to their products in India which would act as an entry barrier for the new firms.

4. Bargaining power of Buyers: The bargaining power is low of the customers as it is relatively a monopoly but once new firms enter the market, the buyers can exert influence with various factors like price reduction, high value, etc

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VI. Operational Plan

ProductionAll kinds of services that are offered by us take place at our store itself by our trained professionals.We have ensured that the solutions and machine used by us are of the best quality. To ensure that the quality of our service is maintained, all the products that come to us go through a 6 stage process regardless of its category. The 6 steps involved are as follows:

INSPECTION:Each item is carefully inspected for stains and irregularities.

STAIN/ DIRT REMOVAL:Each stain in individually treated with special stain/ dirt removing products.

CLEANING:Customized and tailor made cleaning for each item depending on the level of treatment required.

HAND FINISHING:Any loose end with regards to the thread work is looked into by our specialists.

QUALITY CHECK:Every item then goes through a final quality check to make sure the item is perfectly finished and returned to the customers.

PACKAGING:Each item is then carefully and individually packed and kept as per the preference of the customers.

PROCESSES:The cleaning processes involved for the Peau and Chaussure category are the same, but differ for the Tapis category. They are as follows:

PEAU AND CHAUSSURE CATEGORY SERVICES AND PROCESSES: The solutions used for each service category may or may not be the same for Leather and Suede, depending on the type of the problem. All the product care solutions used by us will be imported by us from a supplier in the USA who manufactures such Leather and Suede care products under the name of “LEATHER MAGIC.”

Maintenance/ Protection: For Leather Items:

PRODUCT NAME: Leather Protection Cream.

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DESCRIPTION: Leather Protection Cream Protects Leather from staining, soiling, cracking and premature aging. It provides a protective shield to the surface of the leather to make it water repellent and Stop absorption of liquids and unwanted oils into the leather. A simple “Wipe-On, Wipe-Off” application that forms a barrier between the leather and foreign material such as oils, liquids, alcohol, normal dirt and soiling and much more. This barrier makes regular cleaning and maintenance much easier while keeping the leather looking immaculate. Leather Protection Cream will also prevent build up of Body Oils that cause darkening of the leather and ultimate breakdown of the fibers. Contains no Silicones,Heavy Oils or Animal Fats which can damage leather. Leaves no oily residue. Will not stain leather when properly applied. A regular maintenance routine that includes cleaning, conditioning and Leather Protection Cream should be performed every three months to keep leather looking and performing its' best.DIRECTIONS: Make certain that the leather is clean before applying. Apply Leather Protection Cream to a slightly dampened cloth and wipe the product over the surface of the leather. Allow the product to remain on the surface approximately 5 minutes, then buff dry with a dry, soft cloth. Keep the unit out of service for 30 minutes. Always test Leather Protection Cream on a hidden area before general application.

For Suede Items:

PRODUCT NAME: Fabric GuardDESCRIPTION: The Fabric Guard has been especially designed for protection of NuBuck leather, which is popularly called as Suede. The Guard Makes the Suede highly water repellent as Suede can easily get spoilt by water. It is preferred to get this treatment done as soon as a new Suede item is purchased to take precautions for future damage. The Fabric Guard will not stain or cause any change in the feel on the fabric.DIRECTIONS: Same process to be followed as for Leather.

Repairing:

- PRODUCT NAME: LM- 2002 Mini Pro Leather Repair KitDESCRIPTION: The repair of leather has traditionally, been a highly controversial and misunderstood subject. Most people do not even realize that leather can be repaired. But leather has been successfully repaired and refinished by a select few professionals for many years. Leather, by its very nature, is a natural product and therefore must be treated much differently than other forms of upholstery material such as vinyl. Leather cannot be repaired or treated in the same manner or with the same materials as vinyl.DIRECTIONS: Training

PRODUCT NAME: LM- 3001 Deluxe Leather Restoration KitDESCRIPTION: strongest repairs possible by permanently bonding to the edges and surface of the leather. This repair compound is water based, requiring no heat, and has been formulated to remain extremely soft and flexible to recreate the natural look and feel of even the finest leathers. Repair cuts up to 4” long, and holes up to 2” diameter. After you have completed the repair, you will then be able to completely cover over the damaged area with a new color coating. This color coating will blend the new finish into the

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surrounding leather, and create a completely invisible repair that replicates the original leather finish. This combination will produce Professional quality resultsDIRECTIONS: Training

Cleaning:

For leather items :

PRODUCT: Leather CleanerDESCRIPTION: Leather is just like skin and must be carefully cleansed in order to retain its' beauty. Through normal everyday use, dirt, grime and body oils accumulate on the surface of leather. If these are not regularly removed by thorough cleaning, the leather finish will begin to turn stiff and brittle which leads to cracking of the finish. Regular household cleaners must not be used as they are not "leather specific" and may actually cause severe damage to the leather. To keep leather looking and feeling its' best, you must first clean it and then replenish the lost oils and moisturizersDIRECTIONS: Use a soft cloth or sponge and soak well with Leather Cleaner. Wipe a small area gently. Do not scrub the area as this may cause surface damage. Allow the cleaner to dissolve the dirt and grime from the surface with light strokes. Immediately rinse the area with clean water and allow to dry. It is highly recommended that an application of Leather Conditioner be applied immediately after cleaning to replenish any natural oils that may have been dissolved during the cleaning process.

For Suede items:

PRODUCT: Suede Leather CleanerDESCRIPTION: Removes heavy soiling, oils and light stains that occur in NuBuck type leather (Suede). NuBuck Leather Cleaner is balanced to the pH range of leather itself, and rinses away easily.DIRECTIONS: Use a soft bristle brush to brush over the surface of the leather. Spray a light mist of NuBuck Leather Cleaner over a small area. Continue to brush the leather gently until dry. Do not scrub the area as this may cause surface damage. Allow the cleaner to dissolve the dirt and grime from the surface with light strokes. Heavily soiled areas may be blotted with a clean dry cloth to absorb any excess soiling or stains. Allow to dry.

Recolouring:

- PRODUCT: Leather Dye & Re-colouring KitDESCRIPTION: All Leather will eventually wear and fade. Light surface cracks will appear which causes the leather to look old and deteriorated, but the leather itself is still in good condition. All that is needed to restore the finish is a new colour coat. This Leather Re-colouring and Painting kit allows you to recolor worn and faded leather easily. The paint for leather provided is a water based material that is designed to be highly compatible with leather. The finish provided will be a permanent, long lasting finish that will give you many years of service.DIRECTIONS: Training

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Ink and Stain Removal:

- PRODUCT: Ink and Stain Remover- DESCRIPTION: Stubborn stains, Ball Point Pen Ink, Permanent Marker, lipstick, crayons and other unsightly marks are one of the most difficult things to deal with when it comes to caring for your leather. Leather Magic Ink and Stain remover is designed to enable you to remove these types of stains with little difficulty. Ink and Stain Remover will not damage your leather. When used properly most stains will be removed successfully without any noticeable effects to your leather. Works on all types of leather and Suede.- DIRECTIONS: Apply a small amount of Ink and Stain Remover to a clean, dry cloth. Gently wipe over the affected area. DO NOT SCRUB HARD! This may cause discolouring of the area. Allow the chemical to dissolve the stain while continuing gentle wiping. Several applications may be necessary on very stubborn stains. After stain is removed, clean the area with Leather Magic Leather Cleaner. The use of Leather Conditioner is highly recommended to help prevent future stains.

Conditioning:- PRODUCT: Leather Conditioner- DESCRIPTION: Conditioner regularly to keep your leather looking and performing its' best. Leather Conditioner will restore the soft, supple feel and functionality of leather that has become dry and stiff from exposure to direct sunlight, dry climate, harsh cleaning agents and other factors. Leather Conditioner protects leather from cracking and premature aging, by providing the essential oils and lubrication that it needs to remain soft and supple. It is made from "Fat-Liquors", glycerines and the finest oils to penetrate easily into the fibers of leather providing natural lubrication to keep the fibers from breaking and tearing under friction.- DIRECTIONS: Shake well. Make certain that the leather is clean before applying conditioner. Apply the conditioner with a damp cloth, towel or sponge covering the entire area well. Allow to stand for several minutes, then wipe off any excess and buff with a clean, dry cloth. Always test Leather Conditioner on a hidden area before general application.

TAPIS CATEGORY SERVICES AND PROCESSES: The Carpet and Rug Cleaning machine has been imported by us from a supplier in USA called “RUG DOCTOR” - PRODUCT: Rug Doctor Mighty PRO X3 Deluxe Package -DESCRIPTION: The Mighty Pro X3® gives true professional carpet cleaning results. With the one pass cleaning system, no repetitive back and forth motion is required. The secret is the X3's Injection, Agitation and Extraction process.- DIRECTIONS:InjectionFirst, the X3 uses jets to powerfully inject hot cleansing solution into the carpet pile. It penetrates deep down where dirt, grime, grease, germs and dust mites reside.

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AgitationNext, the triple-row vibrating brush technology deeply scrubs and scours all sides of the fiber allowing the cleaning solution to release the stains in just one pass for quick, effective cleaning.ExtractionFinally, the commercial-grade vacuum motor sucks up and extracts the filth into the X3’s large-capacity reservoir allowing you to dump it down the drain.

2. Location-

We would be operating out of a 750 sq ft office located in the Colaba, South Mumbai. This place could be beneficial as all the major brand outlets are located around the store and our market analysis suggests higher usage of designer bags around this area of the city. This store would not only assist the customers for their services but also take care of the organizations administration chores.

Another advantage of having our shop at this location is the continuous flow of people living in Colaba visiting the area.

3. Legal Environment-

Our store will be registered with the municipal corporation of the city and thus the necessary permits will be acquired for the same.

We will be procuring a driving license for the driver of our delivery van. Permission from Colaba Causeway Welfare Association to establish our store in

the region. Permission from Brihan Mumbai Municipal Corporation to dispose of wasteful

liquids with their authorities.

4. Personnel

Apart from the 5 promoters we would also be recruiting skilled and unskilled labour for carrying out the business activities. Our pay structure is designed keeping in mind the currently prevailing rates of daily wages in the city.

Inventory control-

We plan to hold three month worth of inventory as stock at any point of time. As our solutions and tools required for servicing will be coming from the United

States the lead time for ordering will be 15 days.

Suppliers-

As we require high-end solutions for the services we are providing, these solutions will be shipped from the United States for final consumption at our store. Our supplier is Leather

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Magic and Rug Doctor from Monroe. As for backup we intend to keep a months back up at our store.

Credit policy-

We won’t be having any credit policies. Customer will pay after the service is rendered.

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VII. Management & Organization

At One Stop Solution, the partners constitute of Shweta, Disha, Mohid, Shashwat, Panav and Istakhar.

1. Shweta and Mohid will be heading the Finances and Accounting.2. Disha brings to our enterprise a strong and unique approach to run our marketing

department. 3. Istakhar will be assisting in marketing functions of the organizations. 4. Panav will be leading the promotions and public relations activities of the fir

The functions taken up by the partners might be overlapping in nature , which is adjusted amongst. All the business partners have been classmates during their graduation in business studies and share an understanding rapport amongst them.

We have hired D. Kothari and associates as our accountants. Their firm has been in the industry since the past 20 years and we believe they will provide us with the right solution to our financial problems.

.

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VIII. Start-up Expenses & Capitalization

The financial plan outlines the start-up and growth of One Stop Solution. Initial investment of Rs. 30,00,00,000 will be provided by the 6 partners, contributions of whom will be in equal proportion. Given how stable and healthy the projected financial appears to be, ambitious plans of expansion have been outlined in the expansion strategy.

Capitalization

Partners bring equal capital of Rs. 5,00,00,000 each adding up to a total of Rs.30,00,00,000. Since we do not require any more capital, we are not taking any loan.

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IX. Financial Plan

We have included the following:-

Pricing

YEAR 1

Product Price


Recolouring Leather and

Suede

Cleaning Leather

and Suede

Ink & Stain

RemovingLeather Repair



Small 3000 5800 2500 3700 4600 150 3100Medium 3700 9250 3300 4000 4700 4000

Large 4300 14000 4500 4500 5100 6000Suitcase 10500 custom 7800 4500 6000 11000

Shoes 3000 N.A. 2500 3700 4600 3100

Belts 3000 5800 2500 3700 4600 3100

YEAR 2

Product Price



Suede

Cleaning Leather

and Suede

Ink & Stain




Small 3200 6000 2900 4100 5000 150 3500Medium 4200 10500 3900 4500 5200 4500


Shoes 3200 N.A. 3000 4200 5100 3700

Belts 3200 6300 3000 4200 5100 3700

YEAR 3

Product Price



Suede

Cleaning Leather

and Suede

Ink & Stain




Small 3500 6500 3300 4750 5500 150 4000Medium 4500 11200 4200 4900 5800 4900


Shoes 3900 N.A. 3500 5000 5800 150 4300

Belts 3900 6800 3500 5000 5800 150 4300

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Projected Profit & LossYear 1 Year 2 Year 3

IncomeSales 274,65,500 406,41,500 483,73,000

Additional SalesFixed Income 17,40,000 26,40,000 36,00,000

Total Income 292,05,500 432,81,500 519,73,000

ExpenditureRaw Materials 10,18,875 14,56,125 18,05,595

Telephone connection 25,000 30,000 45,000Rent 15,00,000 15,00,000 15,00,000

Salary 12,36,000 13,20,000 14,40,000Miscellaneous 2,40,000 2,40,000 2,40,000

Electricity 2,40,000 2,40,000 2,40,000Insurance 44,000 48,000 48,000Marketing 5,04,000 6,20,000 7,20,000

Depreciation 52,615 47,534 42,618Training Expenses 1,00,000 0 0

Prelimnary Expenses 1,91,000 1,91,000 1,91,000

Interest on Partner's Capital 4,50,000 4,50,000 4,50,000Legal & Accounting fees 0 1,00,000 1,00,000

Total Expenses 56,01,490 62,42,659 68,22,213

Profit Before Tax 236,04,010 370,38,841 451,50,787Tax 111,11,652 135,45,236

Profit After Tax 259,27,189 316,05,551

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Balance sheet as on 1st April, 2014Assets Rs.

Fixed AssetsComputer 15,00,000Delivery Van 100,00,000Air Conditioner 75,00,000Plant and Machinery 100,00,000Furniture and Fixtures 100,00,000Total Fixed Assets 390,00,000

Rent Deposit 99,00,000Preliminary Expenses 80,00,000

Current AssetsCash 1500,00,000Raw Materials Inventory 931,00,000Total Current Assets

TOTAL ASSETS 3000,00,000

LIABILITIESPartner's CapitalMohid Cutterwala 500,00,000Shashwat Chouhan 500,00,000Disha Thakkar 500,00,000Shweta Narkhede 500,00,000Istakhar Alam 500,00,000Panav Bachwani 500,00,000

TOTAL LIABITIES 3000,00,000

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Depreciation on Fixed Assets

Fixed Assets

Purchase (Rs.)

Depreciation

(Year 1)

Book Value

Depreciation

(Year 2)

Book Value

Depreciation (Year

3)

Book Value

Computers &

Printers1500000 150000 1350000 135000 1215000 121500 1093500

Delivery Van 100000000 10000000 90000000 9000000 81000000 810000

07290000

0Carpet

Machine 5000000 500000 4500000 450000 4050000 405000 3645000

Washing Machine 2500000 250000 2250000 225000 2025000 202500 1822500

Furniture &

Fixture's300000 30000 270000 27000 243000 24300 218700

Air Condition

ers7500000 750000 6750000 675000 6075000 607500 5467500

Credit Card

Machine2500000 250000 2250000 225000 2025000 202500 1822500

119300000 11930000 107370000 10737000 96633000 966330

08696970

0

Start up Cost

Expenses Amount(Rs.)

Legal & Accounting 1,50,000Registration 2,00,000

Training 2,50,000Basic Marketing 1,50,000

Interiors 20,00,000Insurance 4,00,000

Employee Uniform 3,50,000

Miscellaneous expenses 3,00,000start up rent 4,50,000

Total Expenses 42,50,000

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AssetsComputers & Printer 15,00,000Credit card Machine 7,500

Delivery Van 1000,00,000Furniture's & Fixtures 1000,00,000

Deposit 99,00,000Air conditioners 75,00,000Raw materials 931,00,000

Carpet Machine 50,00,000Washing Machine 25,00,000

Cash required 1500,00,000

STAFF COSTING

Nos

Salary per

person Monthly Yearly

20Professionals Skilled Labour 20 15,000 3,00,000 12 36,00,00020 Sales Executives 20 20,000 4,00,000 12 48,00,000

5 Drivers 5 10,000 50,000 12 6,00,00020 Security Guard 20 8,000 1,60,000 12 19,20,000

TOTAL 53,000 9,10,000 109,20,000

31

Business Ca

Documents

One Stop Solution Business Plan