S 4 Critique a b Plan Crystal

7/30/2019 S 4 Critique a b Plan Crystal

1/20

BusinessPlanPrimer 1

OrientationWorkshop

2007

pathfinderwww.pathfinderonline.in

Business Plan Primer


2/20


Itinerary

Day1

Introductionto

Business

Plan

[1.5

hrs]

30th

July,

2007

ShowcasingofSampleBusinessPlansbyProf.RadhaIyer(FacultyforEntrepreneurship)

AtalkbytheinhouseteamofSIMSRbyPrabalAgarwal,AbhisheshSharmaandPragyaGaur

ConcludingRemarksDay2 BusinessPlanCaseDiscussion[2hrs] tobedecided

PresentationsbySelectTeamsonCrystalWaterBusinessPlanCase TipsonEffectiveBusinessPlanWriting DiscussiononimportantsectionsofaBusinessPlan

Day3SimulationofBusinessPlanCompetition tobedecided

SelectteamswillberunthroughaseriesofmockBusinessPlancompetitionstohelpthemfine

tunetheirBusinessPlansandalsotouchupontheirpresentation.


3/20


BusinessPlan

Task(AfterDay1):Eachteamconsistingofnotmorethan3membersareexpectedtoreviewthe

followingBusinessPlanandprepareapresentationofnotmorethan5slides,highlightingthestrengths

andweaknessesoftheBusinessPlanandhowitcanbefurtherimproved.


4/20


5/20


Member3:HasaroundsixyearsexperienceinITindustryworkingwithSatyamComputers.His

experiencevariesfrommanagingaccounts,handlingteamstocustomerrelationshipmanagement.He

alsohasexposuretoSalesinIT.

1.3TheBusinessContextPortablewatersupplyathomesincitieslikeChennaiisamajorconcernwithaveragespendingonwater

rangingbetweenRupees10002000amonth.InChennaithegroundwaterlevelhasdeteriorated

tremendouslyandinmanyplacesthewaterisextremelybrackishandnotfitfornormaluse.While

drinkingwaterismainlypurchasedonadailybasisin20litrecan,thereisasyetnomeansofnormal

portablewaterinplaceforusageinotherdomestichouseholdpurposes.

Thereisanurgentneedtofindimmediateandlongtermsolutionsfortheproblem.Whileimmediate

solutionsarebasedonthepurificationsystemsthatareavailableinthemarket,thelongtermsolution

tothewaterproblemcanonlybefoundatthecommunityandthecitylevelthroughtechniqueslike

WaterHarvesting

and

the

Total

Water

Management.

CWS

realized

the

latent

immediate

need

and

the

requirementforsomekindoflongtermsustainablesolutionslikeWasteWaterRecycling,Water

Harvesting,etc.

ThegrowingapartmentcultureincitieslikeChennaicoupledwithdeterioratingqualityofgroundwater

supplyopensupanimmenseopportunityinprovidinganintegratedcustomizedandcosteffectivewater

solutionsforbothdrinkingandbathroompurposes.Theideaistoconstructawaterpurificationsystem

attheapartmenttanklevelitselfandsupplyfullytreated(drinkingandbathroomsupplyseparately)

watertoalltheapartmentswhilebringingdownthecostsbymorethan50%.Theproductwillbesold

underourownbrandname.Thelongtermplanistocovertheentiregamutofwaterserviceslikewater

harvesting,waste

water

treatment,

etc.

and

increase

our

pie

in

aburgeoning

industry.

TheevolutionofthecompanyfromaproductcustomizertotheWaterConsultantisshowninthefigure

below

ImmediateSolution SustainableSolution

Apartmentunits,

Recycleofwastewater,

Restaurants,

WaterHarvesting

Expandtoother

geographicalareaslike

Hyderabad,Bangalore

Wastewater

Treatment,

CommunityTreatment,

etc.

TotalWaterConsulting

totheCorporateand

GovernmentAgencies

OneYear 12years 24years 5years

1.4TheOpportunity


6/20


Withthecompetitioninrealestateintensifyingdifferentiationcomesdowntothequalityofservices

provided.Builders/RealEstatedealerswillreapbenefitsifexcellentwaterpurifiersystemsareapartof

theirpackage.Hencethesituationcallsforacollaborationwiththeconstructionindustryandmakeita

winwinsituationforboth.Thiswillprovideustheinitialtrust.

Whatmakesthisindustrymoreinterestingisthattheneeditseekstocatertoisextremelycritical,but

thereisalargescalediscontentmentamongthemasseswiththecurrentsolutions.Thecriticality

discontentmentmatrixdiagramforpuredrinkingwatersolutionsisshowninFigure2.

1.5OurSolutionAnysolutionforwaterpurificationshouldbebasedonthequalityofwater.Inwatertherearemainly

threekindsofimpuritiesindifferentproportions.TheyareSuspendedParticles,DissolvedSolutesand

thePathologicalimpurities.ThisissummarizedinFigure3.

Criticality

Discontent

Figure2CriticalityDiscontentmentMatrix


7/20

Figure3Whatwe

Theadva

arefollo

1. C

2. Ch

3. Gb

C

4. Tq

a

1.6TThe

comp

Typesofimproposeisa

tageoursol

ing

CW

ustomizedo

ater

heap,andCo

ousehold

oodquality

athroomalso

hennaiwher

aterisnotfi

hissystemre

ualityofmun

ellwater

an

ndforother

heProduct

ainproduct

anies.Thisis

puritiescustomizeds

utionhasov

SSolution

thebasis

of

nvenient.Lo

ateravailab

(speciallyin

thewateri

forbathroo

ducesdepen

icipalwater

processbot

ouseholdpu

toprocureis

hightechnol

DissolvSolute

olutiondepe

rthevarious

thequality

o

costper

leforthe

laceslike

brackishth

usealso)

dencyonthe

ndthebore

hfor

drinkin

rposes

theROmem

ogyproduct

Im

SuP

d

ndingupont

otheronesi

f

1.

2.

3.

4.

branewhich

beingmanuf

urities

pendedrticles

hequalityof

zefitallsolu

Cu

Nocustomi

placesthee

all

Highcostp

Thevolume

lessandthe

stillthere

Stronglyde

municipalit

aproprietar

cturedbyfe

Microbialcontainmen

Bu

waterprese

tionsavailab

rentSolutio

ationand

th

quipmentar

runithouse

ofwatertha

bathroomw

endantont

waterorgr

technology

wcompanie

sinessPlanPrimer 7

tintheloca

leinthemar

ion.

ket

s

atis

why

ma

noteffectiv

old

tisavailable

aterscarcity

equalityof

undwaters

y

eat

is

is

the

pply

withcertain

.CWShas

select


8/20


consultedaleadingIndianmanufacturerofROmembranewhoisanindustrialsupplier.The

companyisveryenthusiasticaboutenteringtheconsumermarketandnecessarysynergiescanarise

withtheirtechnologyandoutknowledgeofthemarketandoperations.

Whileresidential

apartment

are

the

primary

targets

initially,

other

institutions

like

schools,

office,

hotelswillbetargetedinthelongrun.Theindividualcomponentswillbeprocuredfromsuppliers

andourtechnicalteamwillassembletheplant.Wewillalsohavenecessarymaintenancecontracts

toprovidepostimplementationwarrantyandservicessupport.Asimplecalculationofthecost

benefitisshownbelow

1.7CostEffectivenessofCWSSolutionTotalno.offlats 20

Averageno.ofoccupantsperflat 4

Averagedrinkingwaterconsumption/perperson/perday 10litres

Totaldrinking

water

consumption/day

500

Plantcapacity(litres/hr) 50

Costoftheplant(Rupees) 200,000

Onetimecostperflat(Rupees) 10,000

Annualmaintenancecostperflat(Rupees) 1,000

Averagemonthlydrinkingwaterbillforeachflatforthefirstyearincludingthe

fixedcosts(Rupees)850

Averagemonthlydrinkingwaterbillforeachflatfromthesecondyearonwards

(Rupees)


9/20


Numberof

apartments

Oursolutionis

effective

Current

solutionis

profitable

1.8ProfitabilityProjectionsYear1 Year2 Year3

NoofUnitssold 210 294 714

EstimatedSales

(Rupees)

3,50,00,000

11,55,00,000

23,25,00,000

NetProfit(Rupees) 42,98,000 1,84,24,7000 3,33,61,200

Theinitialinvestmentsarenotgreatconsideringthatwewillnotbemanufacturingtheunits.The

businessismoreofsalesandamarketingeffortandthereturnsifrealizedaregreatcomparedto

initialinvestments.Foramoredetailedfinancialanalysisrefertotheattachedfinancialprojection

report.

2.0 Market AnalysisCWShasafocusonmeetingthedemandofaregularlocalresidentcustomerbase,mainlythoseof

apartmentsandlargescalehousingcomplexes.CWSthenplanstoscaleupoperationstotarget

hotels,officecomplexes,schools,etc.Thecompanyestimatesthat100%ofitsrevenuewillcome

fromtheapartmentsandindependenthousesinitsfirstyearofoperation.

2.1MarketProspects:


10/20


Themarketprospectscanbeseparatedintothreedistinctcategories:

1. Theusersofmineralandbottledwaterwhichisregularlysuppliedtothehomesinthe20litre

jars.

It

costs

amiddle

class

family

between

Rupees

1000

2000

amonth

which

is

very

expensive.

2. Thosewhofilterthemunicipalwaterorgroundwaterforbasichumanconsumption.Thisisasourcewhichisofteninadequate,notreliableandsubstandard.Alargesectionofthe

populationarenotinapositiontogotforthecostlymineralwatersolutionshavetorelyon

itandtheyusesomehometreatmentsolutionslikeAquaguard.Howeverthissolutionis

beingrenderedineffectiveoflateinChennaibecauseofthedegradationofthesupply

water.

3. Oflatewaterinsomeareasisbeingrenderedunusableevenforbathroompurposesbecauseofthesaltytasteofthewaterandotherimpuritiesthatitcontainswhicharenot

goodfor

human

usage.

4. PlaceslikeChennaiarestrongmarketsforrecycledwaterforbasicdomesticpurposesduetothediminishingwatertableandacuteneedforwaterconservation.Hencerecycling

opportunitiesareimmenseincitieslikeChennai.

5. WiththegovernmentsmakingwaterharvestingcompulsoryinChennai,itgivesanopportunitytoexpandourscopeofwaterservices.

Hencewearelookingatgraftingacompletesetofwatersolutionsforapartmentsandhighend

housestostartwith.Therangeofservicestobeofferediscompletelyendtoendwithdrinking

water,bathroomwaterandwaterforotherdomesticpurposescomingtothehousesthrough

anintegrated

supply

mechanism

via

different

piping

systems.

3.0 MarketSizeEstimation3.1TargetsegmentsTheinitialtargetsegmentwillbetheapartmentsandindependenthouses;lateronwewill

reachouttoothersegmentslikeofficecomplexes,schools,hotels,restaurants.

3.2Market

Size

AbriefestimationoftheChennaimarketsizeislistedbelow.

3.3ChennaiMarket:Totalpopulation:59lakhs

Noofhouseholdsbasedongrowthratessince1991:12lakhs


11/20


PuccahouseholdsbasedonaverageurbanratesinIndia:12*0.80=9.6lakhs

Middleclassandupperclasshouseholds2.4lakhs(25%approx)

Assuming20flatsperapartment(avg)=4800apartments

Schools3000(approx)

Hotels

500

(approx)

Restaurants500(approx)

Officecomplexes2000(Noofficialdata)

TotalMarketSize2,50,800(approx)

Wehavetakentheapproximatenumbersofapartments,upperendhouseholds,schools,office

complexesandhotelsintheChennaicitybasedonsomeavailablerealestatefiguresfromthe

internet.Thecurrentnumbersinthedifferentsegmentsandthegrowthpatternoverthenext

fewyearsisshowninthetablebelow.

Potential

Customers Current

Number Percentage

Growth 2005

2006

2007

2008

Apartments 3500.00 20% 4200 5040 6048 7258

Upperend

Households

9600.00 5% 10080 10584 11113 11669

Schools 3000.00 0% 3000 3000 3000 3000

Office

complexes

2000.00 10.00% 2200 2420 2662 2928

Hotels 500.00 5% 525 551 579 608

Total 18600.00 20005 21595 23402 25462

Inthefirstyearofoperation,wewilltakeaconservativeapproachandtargetonlythe

apartments,individualhousesandtoalesserextenttheofficecomplexes.Thetargeted

percentageforeachcategoryisenlistedbelow.

Targetpercentageofdifferentsegments

PotentialCustomers 2005 2006 2007 2008

Apartments 5.00% 10% 20% 30%

UpperendHouseholds 1.00% 3% 3% 5%

Schools 0.00% 1% 3% 5%

Officecomplexes

1.00% 5% 10%

15%

Hotels 0.00% 1% 5% 7%

Basedonthefiguresabove,wecalculatethetotalnumberofcustomersthatcanbetargetedin

thedifferentsegmentsliketheapartments,theupperendhouseholds,schools,office

complexesandthehotels.Thenumbersareshowninthetablebelow.


12/20


Segmentwisemarketbasetargeted

PotentialCustomers 2005 2006 2007 2008

Apartments

210 294 714

959

Upperend

Households

101 217 101 165

Schools 0 30 60 60

Officecomplexes 22 99 143 175

Hotels 0 6 22 15

Total 333 645 1040 1,375

Hencethetotaltargetednumberinthefirstyearofoperationsis333,whichisaveryattractive

propositionbyanystandards.Wehavearrivedatthisnumberbasedonveryconservativehit

ratesof5%fortheapartmentsand1%forupperendindependenthouseswhichwethinkis

definitelyachievable.

3.4CompetitivePositioningCurrentlytheindustryiscompletelydominatedbyEurekaforbeswith75%ofthemarketshare.

OtherdominantplayersareIonExchange,SoftelMachinesandSintexIndustries.Otherslike

Usha,CromptonGreaveswiththeirproductsareverysmallplayers.Soweanalyzeourproducts

onlyincomparisontoAquaGuard.

AppendixIshowsthedetailsofvariousproductsavailableforthehouseholdunits.Thereare

reallynoestablishedplayerscateringtotheneedsoflargeapartments.Itseemsthisisapartof

thecompanysstrategynottotargettheapartmentsbecausethatwillcannibalizetheirexisting

productssales.

AquaGuard OurSolution

1. Toocostlyifthenumberofusersgrowlarge

2. Productsarenotcustomizableaccordingtothecustomerneeds

3. Productscannotbeadoptedtothevariation

in

the

water

quality

1. Itbecomescheaperandcheaperasthenumberofusersgrowlarge

2. Itiscustomizableaccordingtotheneedsofthecustomers

3. Itcanadopttothevariationinthewater

quality

and

provide

better

solutiontotheproblem

3.5MarketEntryBarriers:


13/20


Theentrybarriersarelowinthisindustryasthetechnologyisnotpatentedandthetechnology

iseasilyavailable.ItishighthoughforaplayerlikeAquaguardsinceitwillendupcannibalizing

itsexistingmarket.

Entrybarriers

we

can

establish

Brandname:ThereisalessontobelearntfromAquaGuardinthisrespect.Aquaguardhas

moreorlessmonopolizedthewaterfiltermarketpurelybywayofanaggressivemarketingand

salesstrategy.Sincethisisnotapatentedtechnologycreatingastrongsenseofbrandinthe

shortesttimepossiblebecomesabsolutelynecessary.HenceCWSmarketingwillbevery

aggressiveinthefirstyearofoperations.

Servicereliability:ThisshouldbethefirmsUSPinthelongrunasitispredominantlyaservice

orientedindustry.Regularcashflowscanbeensuredifservicequalitylevelsofthehighest

standardsaremaintainedandthiswillbecomeastrongentrybarrierforothercompaniesto

followsuit.

Immediatepriceadvantage:Pricingshouldbecarefullydoneandsincethesolutionweare

offeringisprettyuniqueinitself,wecancashinontheproductininitialstages,butthepricing

hastobedoneratherconservativelytoensurecustomerretentionandloyaltyinthelongrunas

mostourpotentialcustomerswillbebuilderswhocangiveusrepeatbusiness.

CostAdvantage:SincewearesourcingthehightechnologyproductfromanIndiancompany,

wecanhavecompetitiveadvantagewhencomparedtootherfirmswhoaremostlyimporting

productsfromothercountries.WeareworkingonacontractwithPermionicstosupplythe

requisite

technology

and

initial

training

in

service

and

maintenance.

The

response

has

been

very

positiveandthedealwillputusinatremendouscostadvantagepositionasthereverseosmosis

technologyismostlyimportedcurrently.

Customizedwaterservicesolutions:Providingcustomizedwatersolutionsforlargescale

customerslikeapartmentsisveryimportantasthequalityofinputwaterindifferentareas

differssubstantially.Thisisthefirststeptowardsbuildingcompetencyintheconsultingarm

whichisoneofthelongtermobjectivesofCWS.

4.0 StrategyandImplementation4.1AlliancesandpartnershipsInitiallythecompleteproductwillbesourcedfromaqualityIndianmanufacturer,Permionics.

Wewillbrandtheproductandsellit.ThevaluepropositionforPermionicsiseconomiesofscale,

widerrangeofsolutionsandentryintodifferentpurposeswithlittleornofocusinthedomestic


14/20

s

d

u

4

C

s

h

4

T

b

c

T

d

t

P

A

U

S

O

gment.The

omesticpurp

nderstandin

.2CompetitiWScompetit

gmentsiden

avethefirst

.3SalesStrahesegment

eprimarytar

mplexes.

heproducts

ifferentsegm

blebelow.

riceofintegr

Potential

partments

pperendHo

hools

fficecomple

50,100,150,

200,250,300,350,400,

Price

inRup

ees

havethete

osesandthi

oftheunde

veedge

iveedgedefi

tified.Evide

overadvan

egy

isemarkets

getthrough

avebeenpri

ents.Thepri

atedsystem

customers

useholds

es

0000000

0000000000

Segem

hnologyinp

canbelever

lyingmarket

nitelyliesin

tlythiskind

tagewhichc

alestargetb

uttheproje

cedbasedo

cingofthein

:

Price

20

2

1

2

3

ntwise

lacetodeliv

ageduponq

conditions.

rovidingac

ofwatersolu

nbelevera

reakupisde

ctedperiodf

differentca

dividualpro

ofintegrate

5

00,000

00,000

00,000

00,000

arketba

rhighqualit

uiteeasilyby

stomizeden

tioniscurre

eupon.

ictedinthe

ollowedbyh

pacitylevels

uctsfordiff

systems

2006

220,000

110,000

220,000

330,000

etarget

Bu

reverseos

usbecause

dtoendsolu

tnotseenin

graphbelow.

ighendhous

asperthere

rentsegmen

2007

242,0

121,0

242,0

363,0

2005

2006

200

2008

sinessPlanPrimer 14

osissolution

fourgood

sfor

tionsfordiff

Indiaandw

erent

can

Apartments

eholdsando

will

ffice

quirementso

tsislistedin

fthe

the

200

0 26

0 13

0 26

0 39

6,200

3,100

6,200

9,300


15/20

H

B

s

T

P

A

U

S

O

H

T

T

2

5

t

otels

asedonthe

gmentsare

otalprojecte

otentialCust

partments

pperendHo

hools

fficecomple

otels

otal

heprojected

008growing

.0 Roll

.1Technoloeproposet

chnology,U

50,0

100,0

150,0

200,0

250,0

300,0

350,0

400,0

Rupees

bovepricing

listedbelow.

dsales

omers

useholds

xes

salesforthe

atmorethan

outPlan

y

euseofaco

andothers

0

0,000

0,000

0,000

0,000

0,000

0,000

0,000

0,000

20

3

methodolog

200

42,0

10,0

6,6

58,6

year2005is

100%ineve

mbinationo

implefiltrati

05 2006

Total

00,000

ies,thetarge

5

0,000 6

0,000 2

0

0,000 3

0

0,000 12

aroundRs5

ryyearfrom

thevarious

nmechanis

2007

Year

Sales

330,000

tedsales(in

2006

4,680,000

3,839,200

6,600,000

2,670,000

1,819,125

9,608,325

roresandto

2005to200

technologies

sdependin

2008

Bu

363,0

rupees)fort

2007

172,788,00

12,196,80

14,520,00

51,909,00

8,004,15

259,417,95

uchesRs37

.

liketheadva

onthequal

Tota

sinessPlanPrimer 15

0 399,300

edifferent

200

0 255,36

0 21,97

0 15,97

0 69,96

0 5,98

0 369,26

0,336

7,871

2,000

9,339

1,601

1,148

l

roresbytheyear

ncedRO

ityofthesupply


16/20


water.Allthiswillbeunderasingleinstallationroof,inordertoprovidecustomizedwater

suppliesforvariousdomesticpurposesathome.

5.2PeopleInstallationpersonnel/TechnicalStaff:Currentlyweplanforatwopersonstaffinthis

departmentfortheinitialrollout.Thestaffwouldalsoberesponsibleforattendingtocustomer

complaintsandservicerequests.

AdministrativeStaff:Weforeseetheneedforanaccountant,areceptionistandastewardin

theinitialrollout.

SalesStaff:Initiallyweplanforfivesalespersonnel.Weexpectabusinessturnoutratioof1:10.

Thenumberofstaffwouldberevisedifweenvisageaneedforit.Futuregrowthandexpansion

planswouldalsonecessitateanincreaseofstaffineachdepartment.

5.3ProductionWehavenoproductionplansasofnow.Weplantooutsourcetheplumbingdutiestoa

contractor.Infuturetocutcostswemayplantointegratetheplumbingstaffintoourcompany.

5.4DistributionNoexternaldistributionchannelisneededcurrently.

5.5CommunicationThestrategyinvolves:

PersonalSales:Itinvolvespromotionbysalespersonnelanddistributionofproductbrochures.

Media:NewspaperadsandFlyerstobedistributedinapartments.

Packaging:Costsforlabelingandtrademark.

5.6MilestonesTocreateandsustaincompetitiveadvantageinthismarketwehavetoexpandfastand

simultaneouslybroaden

our

offerings

range.

SecondHalfoffirstyear:

Weplantotapintoothersegmentslikeschoolsandrestaurants.Thiswouldenableusto

increaseourmarketsizeandreduceourdependencyonasinglecustomersegment.

SecondYear:

WeplantoexpandtoanothercityHyderabadinIndiaandoffercustomizedsolutionsbasedon


17/20


thewaterqualityandneedsofcustomersinHyderabad.Establishmentcostswouldbelesser

thaninitialrolloutcostsofChennaibecauseofexperienceeffects.

Leveragingontheacquiredexpertiseofofferingservicesfortwodifferentwatertypeswefirst

planto

expand

into

cities

of

similar

water

quality.

Based

on

the

success

of

our

expansion

strategyweplantoreplicateoutmodel,expandintoothercitiesanddiversifyourofferings.

6.0RiskEvaluation

6.1ReverseOsmosiscanbeslowandcostlyprocess

TheROpurificationprocess(ifused)resultsineliminationofaround2025%ofinputwaterasa

waste.Thiswastewatercannotbeusedfortoilerpurposeseither.Hence2025%morequantity

ofwaterhastobepumpedthantheactualrequirement.Tomitigatethis,wastewaterhastobe

divertedtoasoakingsumpwhichhelpsinconservingwater.Thisconservationprocesshelpsin

reducingthewaterwasteto1015%.

6.2Marketflooding:Sincethereisadesperateneedforhighendwatersolutions,thereisa

threatofthemarketgettingfloodedwithalotoflocalplayers,mainlydistributorsofimported

products.Theymaynotunderstandtheunderlyingtechnologyingreatdetailthoughandhence

thisriskcanbemitigatedbyorganizingtheindustryandputtingacostefficientprocessinplace

withhighservicestandards.

6.3Politicalinterference:Sincewaterisanessentialcommodity,theincreasingscarcityof

waterresourcesanddecreasingqualityofavailablewaterisbecomingapoliticalissuetothe

extentof

even

election

debates.

Hence

political

interference

may

be

apotential

threat

to

the

industryasawhole.Howeveramiablerelationshipswithpeopleinpowerwillgivethenecessary

politicalclouttosailsmoothly.

7.0ProjectedFinancials

Theprojectedfinancialsforthecompanyareprovidedinthenextsheets

(AllfiguresinRupeesexcepttheunitssold)

1styear 2

ndyear 3

rdyear 4

thyear

Noofunitssold 210 294 714 959

TotalRevenue

SaleofUnits 58,680,000 129,608,325 259,417,950 369,261,148

2,100,000 2,940,000 7,140,000

SubTotal 58,680,000 131,708,325 262,357,950 376,401,148

Costofgoodssold 26,250,000 36,750,000 89,250,000 119,910,000

Costofinstallation 2,100,000 2,940,000 7,140,000 9,592,800

GrossMargin 30,330,000 92,018,325 165,967,950 246,898,348


18/20


SG&A

Salaries

SalesForce 800,000 2,640,000 3,760,000 5,360,000

Officestaff

100,000 180,000 250,000

100,000

Subtotal 900,000 2,820,000 4,010,000 5,460,000

Officeoverheads

Rent 120,000 132,000 132,000 120,000

Vehicle 120,000 132,000 132,000 120,000

Furniture 150,000 15,000 20,000 68,333

Stationeryand

Promotional

Literature

100,000 110,000 120,000 130,000

Subtotal 490,000 389,0000 404,000 301,667

InventoryCost

Warehouse

120,000 120,000 120,000

120,000Unitholdingcost 350,000 350,000 350,000 350,000

Subtotal 470,000 470,000 470,000 470,000

OperatingMargin 28,470,000 88,339,325 161,083,950 240,666,681

Tax@30% 8,541,000 26,501,798 48,325,185 72,200,004

IncomeafterTax 19,929,000 61,837,528 112,758,765 168,466,677

(AllfiguresinRupeesexcepttheno.ofunitssold)

SalesForceManagement

Year1 Year2 Year3

Numberof

sales

force

5 15

20

Numberofdaysinayear 220 220 220

Numberofvisitsmadeperday 3 3 3

Totalnumberofvisitsmade 3,300 9,900 13,200

Conversionrateassumption 1in15 1in15 1in15

NumberofsaleinYear 200 660 880

Conservativetargetof 200 625 850

Salaryofthesalespersons 600,000 1,980,000 2,880,000

Commissiontothesalesperson 200,000 660,000 880,000

Totalexpensesonsales 800,000 2,640,000 3,760,000


19/20


SuggestedReading

Thesebooks

are

available

in

the

SIMSR

Library.

Title Author Classification

No.

30Minutes...ToWriteABusinessPlan FinchBrian 658.4

BusinessPlan WestAlan 658.4012

BusinessPlanSoftware OnCd

BusinessPlanning ForsythPatrick 658.4012

HowToWriteABusinessPlan CregoEdwinT.,

SchiffrinPeter

BusinessPlanningAPracticalGuideToManagement HalfordD.R.C. 658

BusinessPlanning

Pocketbook

Russel

Jones

658.4012

MasteringBusinessPlanningAndStrategyAPower

OfStrategicThinking

ElkinPaul 658.4012

AdditionalreadingliteraturewhichwillbemadetostudentswhoattendedDay1oftheOrientationin

softcopyare:

1. [HBR]HowtowriteagreatBusinessPlanSahlman,WilliamA.2. [HBR]HowtowriteawinningBusinessPlanRich,StanleyR.,andGumpert,DavidE.3. WritinganEffectiveBusinessPlanbyDeloitte&Touche4. [HBR]HowtopitchaBrilliantIdeaElsbach,KimberlyD.5. [HBR]The5StagesofSmallBusinessGrowthChurchill,NeilC.,andLewis,VirginiaL.6. SomesampleBusinessPlanTemplatesHelpandSupport

Forfurtherassistancepleasefeelfreetocontactusthroughecell@pathfinderonline.inor

alternativelycontactinganyoftheStudentCoordinators:

PGDBABatchof2009

RanjithaSridharan: [email protected] NavinMotwani: [email protected] AashutoshNSane: [email protected]

PGDBABatchof2008

AgnesKulathenal: [email protected] VirendraKaramsot:[email protected]
mailto:[email protected]://[email protected]/http://[email protected]/http://[email protected]/http://[email protected]/http://[email protected]/http://[email protected]/mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]://[email protected]/http://[email protected]/http://[email protected]/mailto:[email protected]


20/20


Documents

S 4 Critique a b Plan Crystal