BUSINESS PLAN

ON

“ONLINE SPORTS APP SPORTS CENTER”

Submitted Towards the Partial Fulfillment of the Requirement for the

Award of the Degree of
Master of Business Administration (Finance & Control)

SUBMTTED TO: SUBMITTED BY:

DR. MOHD ARIF ANIMESH SRIVASTAVA

(ASSISTANT PROFESSOR) MBA (F & C) 4TH SEM

INSTITUTE OF MANAGEMENT SCIENCES ROLL NO. 180013160018

UNIVERSITY OF LUCKNOW BATCH 2017-19

INSTITUTE OF MANAGEMENT SCIENCES

UNIVERSITY OF LUCKNOW, LUCKNOW

1
2
Certificate from institute

3
 STUDENT DECLARATION

I, Animesh Srivastava, student of MBA (F & C) 4th Semester, hereby declare that
the Venture plan to run “ Website Application” is my original work, done by me
except the material and information gathered from the various sources about the set
up and operations of online Sports Center. This has not been previously submitted
for any other degree or diploma.

Animesh Srivastava

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 ACKNOWLEDGEMENT

The successful completion of any work would be incomplete unless we mention

the name of the person, who made it possible, whose constant guidance and
encouragement served as a beckon of light and crowned our efforts with success.

I wish to express my sincere gratitude to my guide,, Dr. MohdArif, (Assistant

Professor,IMS)and Dr. Nimisha Kapoor(Faculty of IMS), and prof. Vinod
Singh (OSD) Institute of Management Sciences, University of Lucknow. I thank
him for his constructive help and encouragement throughout the project. Without
his support and guidance this would not have been possible.

Last but not the least, I also wish to acknowledge enthusiastic encouragement and
support extended to me by my family members. I am also thankful to my friends
who provided me their constant support and assistance.

ANIMESH SRIVASTAVA

MBA (F&C) 4thSem

Roll no. 180013160018

Batch: 2017-19

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 EXECUTIVE SUMMARY

The most important part of Venture plan is the executive summary. It includes the
main Venture idea, market potentials, unique selling points, the service we are
trying to sell, the profit making process, the Venture vision and finally the financial
forecast. The objective of this is to discuss e-business and to make a marketing-
based business plan of a business, which sells ice hockey equipment online. It
provides an insight on e-business and different aspects of marketing related to the
concept of an online store. It also discusses the theory of marketing and e-business
combined with the practice of a business plan. This is for the people who are
interested in e-business especially from a marketing point of view and who are
searching for information on how to start an online store.

It begins with the presentation of the business idea followed by the mission
and the vision of the business. The following part provides background
information on e-business and ecommerce and some information on the online
shopping behavior of the people in India. This section also covers the advantages
and challenges of e-business. The next section is the largest for it is the marketing
section. This section provides theoretical information on marketing and marketing
strategies, which are then adapted to the case of Hockeystore.fi. It will go through
such things as market segmentation and definition, followed by the marketing
strategy containing PEST analysis, SWOT analysis, competitor analysis, a
marketing mix and the generic strategies of Michael E. Porter. The last section of
the thesis is very practical as it is constructed of information on logistics and
finally a rough budget in the end.

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 TABLE OF CONTENT

Chapters No. Chapter Name Page

No.
Certificate from Institute I
Declaration II
Acknowledgement III
Executive Summary IV
Chapter 1 Introduction 8-10
Chapter 2 Description of Venture 11-14
Chapter 3 Environmental and Industry Analysis 15-20
Chapter 4 Organizational and Management Plan 21-23
Chapter 5 Product/Service 24-25
Chapter 6 Strategic Plan 26-30
Chapter 7 Production and Operational Plan 31-33
Chapter 8 Marketing Plan 34-41
Chapter 9 Human Resource Plan 42-44
Chapter 10 Financial Plan 45-48
Chapter 11 Exit Plan 49-50
Appendix 51

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 CHAPTER 1

INTRODUCTION

8
 INTRODUCTION

E-business is one of the fastest growing fields of business in the world.

Alone the usage of Internet around the world has grown over 400% from year 2000
to the year 2010. In India, in spring 2010, 86% of the people aged between 16 and
24 were Internet users. These numbers encourage companies to build websites and
to come up with new ways of serving their customers online. In many cases in B2C
businesses this means creating an online store or a”web store”. In addition the
number of companies that operate almost fully through the Internet is growing all
the time.

The great impact that the Internet has had on the global marketplace is well
said by Peter F. Drucker: “The explosive emerge of the internet as a major, perhaps
eventually major, worldwide distribution channel for goods, for services, and,
surprisingly, for managerial and professional jobs is profoundly changing
economies, markets, and industry structures; products and services and their flow;
consumer segmentation, consumer values, and consumer behavior; jobs and labor
markets.”

One of the most popular sports in India is Cricket. It is also a sport, which
brings up a lot of feelings and good memories. Although the sport is so popular,
the amount of web stores selling Sports products is minimal. I have been looking
up these stores and I have found that these stores are almost unknown and the
execution of these online stores is quite poor.

I have always admired entrepreneurship and hoped that someday I will have
what it takes to be one. For the love of the sport and for my personal and
professional interests, I have decided to make a business plan for and online sports
store called sportsstore.in.

There are many problems and business related issues when making a
business plan for a new business. This will provide an outlook on what type of
issues should be taken in to consideration before starting an online store. This
concentrates mainly on the marketing point of view of the e-business, which means

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that there will be PESTEL analysis, SWOT analysis, a marketing strategy and
other marketing related issues in the middle section.

VISION

 During the first year of operation we want to gain a good reputation, through
affordable prices, fast delivery and great customer service.
 Accomplish a steady cash flow and long term business partners.

MISSION

 To be a trusted and reliable sports equipment supplier, known throughout

India.

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 Chapter 2

DESCRIPTION OF
VENTURE

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 DESCRIPTION OF VENTURE

In a nutshell, the idea is to put up an online store, which sells sports gear
with affordable prices, straight to the consumers. The products will be ordered
straight from the importers in India. The headquarters will be located in Lucknow,
Uttar Pradesh, for the best delivery and distribution possibilities. The product range
will be wide including everything you need for Sports. There will also be special
offers of the whole package, which contains everything you need when you start
playing any sports.

Key elements of the business will be great customer service, fast delivery
time and a good price – quality ratio. The online store will also be made so that the
consumer will find it simple and easy to navigate. There is also a possibility that
we might sell used, second hand equipment and that way having a much larger
consumer base. The business will be called “Sports-lover”.

Business Name Sports-lover

Business Type Sole Proprietorship
Business Location Lucknow, UP
Address Patrakarpuram Gomti nagar, Lucknow
Contact 8887760544
Key Personnel Animesh Srivastava

The 4 Stages of Developing E-Commerce service

Jennifer Rowley presents four different stages of the developing of e-

commerce. For a business that is starting to practice e-commerce, these are the
different steps it needs to take in order to be a properly functional business in the
field of e-commerce. For an online store these are the steps that need to be
mastered in order that the online store is fully functional and capable of doing

12
business online. In other words, Sportsstore.in must be able to handle all of these
four stages in order to succeed in the competitive field of online shopping.

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 The first stage is a very basic level and it is basically only about making a
business appear also on the Internet in addition to its physical location. It offers the
customer some information on the business and gives the business a chance to
promote itself online. Contact information and for example opening hours can be
displayed on a stage one website.

The second stage is a bit more developed stage. It provides the customer a
chance to interact with the business through the website. Target marketing and for
example a business news section can be added to this type of a website. It also
requires updates and more maintenance from the business’s behalf compared to
stage one.

The third stage differs a lot from the first two stages, because this is the
stage where the money starts to move. It provides the customer a possibility to
order products or a catalogue. The transactional possibilities make this stage only
one step away from the final stage.

The fourth stage provides a full integration of Internet capability in to the

business. It offers the two-way relationship between the customer and the business,
both parties providing each other with some information. This can be on the
businesses behalf for example product details, price details, business process
details and brand values and messages. On the customers behalf this could mean
order details, customer details, billing and shipping addresses and order placement
confirmation. This is the stage where Sportscenter.in needs to be in order break
through in India.

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 CHAPTER 3

ENVIRONMENT AND
INDUSTRY ANALYSIS

15
 ENVIRONMENT AND INDUSTRY ANALYSIS

The research states that 38% of the people, who answered, said that they had
spent more money in online shopping than before. In addition 54% said that the
amount is about the same, while only 8% said that they have spent less money on
online shopping. This might be, because in many cases online prices are lower than
the ones at the local stores and also because online shopping is considered to be
more common and secure than before. An interesting fact, which concerns this
business plan, is that the amount of people buying equipment for their hobbies,
online, continues to grow.

The research also shows that 71% shop usually in domestic web stores.
Only 7% shop in mostly foreign online stores and the remaining 22% shop equally
in both foreign and domestic online shops. The most valued things in online
shopping are the freedom to shop whenever you like, the easiness of the shopping
and the great functionality of the shopping. Also other valued things are prices,
ability to return products, information accuracy and selection. This research
provides a good ground to develop a well-designed web store, which provides a
great shopping experience for the consumer.

Advantages and Challenges of E-Business

E-Business has a various number of advantages compared to traditional

business, but with advantages also come the challenges. Often when thinking of e-
business people come up with thoughts of security, convenience and low costs. For
an online store it is essential to go over these issues to minimize the risk and
maximize the benefits of online shopping.

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Advantages of E-Business

Global promotion: E-commerce offers you a chance to promote your products

globally through the Internet. E-business has made it possible for companies to
globalize their business much faster than before. The Internet provides a chance for
users around the world to access your web site, even if your business operations
are only local. The web page is visible online to anyone, anywhere, which provides
your business the reach that wasn’t possible before.

Low costs: The costs of running an e-business are relatively smaller than in
running a regular business. First of all, the operating costs of an e-business are low.
An online business does not need large offices and warehouses and it is not tied to
a certain location, thus reducing infrastructural costs. Also the inventory costs and
labor costs are minimal, because there is no need for a large staff.

Convenience: Convenience is a great advantage that comes with online shopping.

For example, an online store is open 24/7 and is accessible from any location with
and Internet connection. In other words, e-business removes the restrictions of
availability and location. It also allows the customer to shop without leaving home
which saves him the effort of dressing up and physically moving from a place to
another just for the possibility to go shopping.

Customer service: Customer service is one of the key elements and one of the
best advantages that an e-business can offer. The customer service is better and
more personal when the customer can be in touch with the business through the
Internet, without having to leave home. Also updating the web site with new
information on products, prices and availability is easy and fast.

Challenges

Security: One of the biggest problems in e-business and online shopping is the
security issues. To be more specific, the problems are in ensuring the security of
data transaction. Jennifer Rowley writes that the basic security requirements are
identification, access, protection and validity.

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The reason why security is challenge is in e-business, because the transactions
happen through the Internet and because of the TCP/IP (Transmission Control
Protocol / Internet Protocol) protocol that governs the communication. These
protocols are open protocols, which means that when the data is transmitted from a
computer to another, a third party can intercept it. This brings us to the reason why
we have encryption.

Trust:

 Tell people how you are using their information.

 Allow people to view the information that you are keeping on them.
 Allow people to change this information.
 Tell people how you will use the information and with whom you will share
it.
 Embed all of the above points in a privacy policy, which is available on the
website.
 Use “branded trust” by registering with a trust agency, and display its trust
mark on the website.
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 Competition: Competition is a difficult one, because it is both an advantage
and a threat. This is why I put it last in the list of challenges. For a small start-
up business the Internet provides competitive advantage, because on the
Internet, the store is almost on an equal level with the online stores of big
corporate chains. It is also a challenge, because the costs of putting up an online
store are very low, which means that the entry barrier is extremely low for new
companies. Shortly, everyone are almost in the same position, but the
competition is tough.

SWOT Analysis

SWOT is a common method of analyzing market environment. It helps in

measuring the business’s resources to the environment in which the business is
operating. SWOT stands for+ strengths, weaknesses, opportunities and threats.
Strengths and weaknesses measure the internal environmental factors as the
opportunities and threats are external factors.

 Strengths-Sportsstore.in will be able to offer sports gear with a reasonable

price due to the fact that the equipment comes straight from the importer,
through us, to the consumer. Sportsstore.in may even import some products.
Cost efficiency and customer service play a key role in this organization.
Also there is the new concept of selling also used equipment online, which
no other online store has yet done.
 Weaknesses-It is not easy for a small start-up business to compete with
already existing larger stores. Being only an online store, we have to break
ourselves through in order to penetrate this market. Also we need to create a
tight bond between our suppliers, for a long-term relationship and good
deals.
 Opportunities-We have a good opportunity to grow as a business in this
fairly new market of online sports gear in India. As an online store the
possibilities to expand are endless. We also have chances to make big sales
and profits in this environment. In addition, the economic situation is getting
better all the time and it also shows on the consumer behavior. People have
more money to spend on leisure activities, which is good for sport stores.

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 Online shopping is also rising among consumer, which gives us a head start
to the trend in this business.
 Threats-The competition of other sports shops is always a threat.
Competitors already have a stable position in this market and that is why
breaking ourselves through, is not going to be that easy. Also there is always
the threat of new entering companies to the market.

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 Chapter 4

ORGANIZATIONAL AND
MANAGEMENT PLAN

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 ORGANIZATIONAL AND MANAGEMENT PLAN

We have categorized the organizational and management plan on two basis, first strategy will be
opted when venture will be in introductory stage and then for growth stage.

FOR INTRODUCTORY STAGE

(a) Organizational plan- Includes few personnel who would be looking after all the
activities of the venture.
Partners will look after all the administration, marketing and functional activities and also
the entire process of website building to every technical assistance needed in launching
the website to building a user friendly customer base.

The reason of not involving other personnel would reduce the cost; the cost can be used in
marketing campaigns, improving the website performance and it would be wise to have a closer
look at the market by your own.

(b) Management Plan- Website is all cloud service platform, the Venture will conduct all its
operations virtually and on cloud. All the data collection, marketing plans, transactions,
buying the virtual space and building an interactive gateway would all be needed in initial
stage.

FOR GROWTH STAGE

At the growth stage the venture will become limited business. When the venture will realize the
positive customers feedback on their website, and website have started gaining the popularity in
the market which means it is in the growth stage of Venture cycle. Venture can then invest more
of its capital in order to maintain the brand image and to retain its customers.

a) Organizational Plan- The venture will expand its operations and functions.
Partners will then become CEO/CTO. They will hire personnel’s for each
division- they includes, marketing manager which will look after the sales force,
UX/ UI designer, Developer and Hardware engineer for technical support, HR
inventory will be created- hiring Relationship Managers, beauty experts and
professionals, Finance manager- allocating the money to cater more wider
customers.

b) Management Plan- It is up to the venture heads to establish the Venture in the

form of physical office or they can still go on managing the operations in online
mode.

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Organization Structure (Growth Stage)

CEO

CTO

Marketing Financial Operation

officer officer officer

Marketing Marketing
Accountant
agents agents

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 ju

Chapter 5

PRODUCT/ SERVICES

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 PRODUCT/ SERVICES
Products include

Bags and Backpacks, Bottles & Food Storage, Camping Furniture, Clothing
Accessories, Electronics, Hydration & Nutrition, Sports Recovery, Sports
Sunglasses, Sports Watches.

(For Growth stage)-Other than above products accessories for Badminton, Baby
Gym, Baseball, Basketball, Body Toning, Body Building, Boxing, Football, Golf
etc.

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 Chapter 6

Strategic Planning

26
 Strategic Planning

1) Defining Venture and Vision

Defining vision is important. It becomes the driving force of your Venture. Here
are questions that will help clarify the vision:

 Who is the customer?

 What Venture are you in?
 What do you sell (product/service)?
 What is your plan for growth?
 What is your primary competitive advantage?
2) Write down Your Goals
Created a list of goals with a brief description of action items. If Venture is a
startup, we will want to put more effort into your short-term goals. Often a new
Venture concept must go through a period of research and development before the
outcome can be accurately predicted for longer time frames.
Create two sets of goals:

1. Short term: range from six to 12 months.

2. Long term: can be 2 to 5 years.
By explaining, as specifically as possible, what we want to achieve. Start with the
personal goals. Then list theVenture goals. Answer these questions:

 As the owner of this Venture, what do you want to achieve?

 How large or small do you want this Venture to be?
 Do you want to include family in your Venture?
 Staff: do you desire to provide employment, or perhaps, you have a strong
opinion on not wanting to manage people.
 Is there some cause that you want the Venture to address?

27
 Describe the quality, quantity and/or service and customer satisfaction levels.
 How would you describe your primary competitive advantage?
 How do you see the Venture making a difference in the lives of your
customers?

3) Understanding the Customer

It is not realistic to expect one can meet the needs of everyone, no Venture can.
Choose the target market carefully.

 Needs: What unmet needs do the prospective customers have? How does the
Venture meet those needs? It is usually something the customer does not have or a
need that is not currently being met. Identifying those unmet needs.
 Wants: Think of this as the customer’s desire or wish. It can also be a
deficiency.
 Problems: Remember people buy things to solve a specific problem. What
problems does the product or service solve?
 Perceptions: What are the negative and positive perceptions that customers
have about you, your profession and its products or services? Identify both the
negative and positive consequences. Use what you learn when you start marketing
and promoting your Venture.

4) Learn From Your Competition

One can learn a lot about your Venture and customers by looking at how the
competitors do Venture. Here are some questions to help learn from the
competition and focus on the customer:

 What do you know about your target market?

 What competitors do you have?
 How are competitors approaching the market?
 What are the competitor’s weaknesses and strengths?

28
 How can you improve upon the competition’s approach?
 What are the lifestyles, demographics and psychographics of your ideal
customer?

5) Financial Matters
How will you make money? What is your break-even point? How much profit
potential does your Venture have? Take the time to invest in preparing financial
projections.
These projections should take into account the collection period for your accounts
receivables (outstanding customer accounts) as well as the payment terms for the
suppliers. For example, one may pay your bills in 30 days, but have to wait 45-60
days to get paid the your customers.
A cash flow projection will show you how much working capital you will need
during those “gaps” in your cash position.
I recommend thinking about these six key areas:

1. Start-up Investment
2. Assumptions
3. Running Monthly Overhead
4. Streamlined Sales Forecast
5. Cumulative Cash
6. Break-even

6) Identify Your Marketing Strategy

There are four steps to creating a marketing strategy for your Venture:

1. Identify All Target Markets: Define whois your ideal customer or target
market. Most companies experience 80% of their Venture from 20% of their
customers. It makes sense then to direct your time and energy toward those
customers who are most important.

29
2. Qualify the Best Target Markets: The purpose of this step is to further qualify
and determine which customer profile meets the best odds of success. The strategy
is to position your Venture at the same level as the majority of the buyers you are
targeting. It is critical to figure out who the best customers are and how to best
position the Venture in the marketplace.
3. Identify Tools, Strategies and Methods: A market you cannot access is a
market you cannot serve. Marketing is the process of finding, communicating and
educating your primary market about your products and services. Choose a
combination of tools and strategies, that when combined, increase your odds of
success.
4. Test Marketing Strategy and Tools: The assumptions we do not verify are
typically the ones that have the potential to create Venture problems. Take the time
to test all Venture assumptions, especially when you are making major
expenditures.

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 Chapter 7
Production and Operational
Plan

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 Production and Operational Plan

1. Venture Goals

Short term goals

 Provide efficient product/service with good price
 Satisfy consumer need with variety of products.
 Make sure every transaction is fulfilled successfully from ordering to
delivering.

Long term goals

 Increase sales by 30% in 12 months.

 Improve profits by 15% within two years.
 Increase the variety and number of products with every passing year.
 Expand the Venture with each increasing year.

2. Resource Requirements
 Capital investments: Preliminary capital of around 54000 Rs. Shall be
needed. Which includes website building, uploading the
website to the server and marketing of the website itself.

3. External resource for Venture expansion

In case of Venture expansion we will have to collect resource form external
means.

4. Implementation
 Order: We plan to make contract with the salons with related products
and services for five years to supply which can be selected by the
customers. When customers will place the request through our website it
will be booked in our software. They can pay before or after the service
being provided. They can pay through credit/ debit card, paytm, e-wallet.
 Providing the service: After the request for the service which you
want is being made. Now a person will be at your location for the job
at your selected time slot.
 Billing: We will bill the service at their market price and will add
minor commissions for home-service.

32
 5. Risk Assessment
Areas of risk are
 Demand: whether the fluctuation of demand of customers be
satisfactory or not.
 Supply: whether the supply and delivery of products be in proper time
and please the customer or not.
 Technology: Get the help from the latest technology and using it in
minimum cost.
 Security: To address proper security system to protect the website
from unwanted hacking and cyber crime.
 Economical: whether the resources are providing good value or not.
 Implementation: whether the plan is implemented by right or wrong
people.

Ways for addressing risks are

 Reduce risk: we can get through the demand risk by ensuring quality
and reduced tariff for the advertisers.
 Spread the risks: Risks can be spread among related entrepreneurs.

33
 Chapter 8

Marketing plan

34
 Marketing plan
Market potential- Market potentiality means the estimated maximum total sales
revenue of our products in the market during a certain period. For determining the
market potential of our product we first need to identify who are over target
markets and then future prospect.

We will serve the male/female/kids. We do not have any geographical barrier as it

is a web based Venture. But we can state in a different way. Our geographical
expansion will be like that we will be covering areas beyond Lucknow i.e. other
divisions (other Uttar Pradesh Districts and northern States i.e. Delhi NCR, Bihar,
Punjab, Rajasthan, Haryana, Uttarakhand).

Segmentation- The segmentation will be based on following criteria:

 Gender
 Age
 Profession

Target Markets-We are targeting two distinct group of individuals and corporate
customers.

 Individuals- Individuals are male/female/kids who are basically sports

freak.
Individuals aging 10-35 are our main concern for beauty-salon solution on
online platform.

Positioning

 The website personnel will make their customers aware that they can now
avail products/services at home.
 Aggressive online advertisements & blog publications.
 Discount rates provided by Venture end to its initial users.

The website would not provide only the products but can also help sports services
to reach the customers.

35
 The marketing strategy will first seek to create customer awareness regarding the
services offered, grow the customer base, and work toward building loyalty and
referrals. The long-range goal is to not only dominate the online sports solutions,
but to create an icon brand. Initially we will:

 Engage in Web-based marketing for the next year to generate awareness of the
website and product information. Because internet-based advertising has declined
in recent quarters, the prices for advertising have consequently significantly
dropped marking the expenditure more cost effective.
 Utilize outdoor advertising, providing general awareness to the all customers at
large and direct individual to the Venture’s website.

36
Marketing mix

The marketing mix consists of the Four P’s, which are the product, price,
place and promotion. The four P’s are the factors that the business can be in charge
of. The idea is to make decisions concerning the four P’s so that they all will
provide value and positive response to the customer in the target market, in the
center of the matrix.

Product

 Functionality
 Brand name
 Styling
 Quality
 Safety
 Packaging
 Repairs and Support
 Warranty

37
Price

 Pricing strategy (skim, penetration, etc.)

 Volume discounts and wholesale pricing
 Cash and early payment discounts
 Seasonal pricing
 Bundling
 Price flexibility
 Price discrimination

Place

 Distribution channels
 Market coverage (inclusive, selective, or exclusive distribution)
 Specific channel members
 Inventory management
 Warehousing
 Distribution centers

Promotion

 Promotional strategy (push, pull, etc.)

 Advertising
 Personal selling & sales force
 Public relations & publicity
 Marketing communications budget

38
 How it works?

1. Download the website

2. Enter your location and pin code

3. List of all products will be on your screen

4. Select your suited product

5. Choose your size and quantity)

6. The product will reach you in particular days

7. Flexible payment both before delivery and after delivery

Marketing Budget:
2020 2021 2022
Particulars
12600 25200 50400
Advertising(Facebook)
5400 10800 21600
Sales Promotion (ad-
word)
36000 41000 46000
Direct Marketing
54000 77000 118000
Total

39
Analysis of competitiveness

We have analyzed the current market situation by the five factor model of Michael
Porter. In this model there are five forces. By those forces we have identified the
competitiveness of the target market. It is the renowned process all over the world
to evaluate the appropriateness to enter into a Venture.

 Threat of New Entrants: Threats of new entrants for a Venture are always
true. So we have always risk of those new entrants. For this Venture entry
barrier is not very high, as a result in that sense it is an unattractive segment. If
we can build ours as a brand name and gain the major portion of the market
share we will certainly be able to avoid the threat of the new entrants.

 Competitiveness Rivalry within an Industry:

Decathlon-Decathlon started with a store in Lille. France in 1976, founded by

Michel Leclercq. It started to expand abroad a decade later, to Germany in 1986.
The business employees more than 87000 staff from 80 different nationalities.
The retailer stocks a wide range of sporting goods, from tennis rackets to
advanced scuba diving equipment, usually in large superstores which are sized at
an average of 4000m2. Decathlon Group also owns over 20 brands with research
and development facilitates all over France to develop the latest innovative
designs, registering up to 40 patents/ year. Each brand represents a different sport
or group of sports with a dedicated product development and design team.

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41
 Chapter 9

Human Resource Plan

42
 Human Resource Planning

A small Venture you can run yourself may be the dream for some, but many
entrepreneurs see something bigger. They see a bustling Venture with happy
employees and happy customers exchanging plenty of money for plenty of
products. But it has to start somewhere.

Even though you’re a corporation of one right now, and your growth may not
necessarily include additional employees in the near future, here are the steps
you’ll want to start taking to plan your HR needs. These steps will also work for a
growing Venture that already has employees.

Step One: Prepare a forecast– This is where you anticipate how many employees
you’ll need in the future.

In case of start-up, like website-building for female beauty services all you need
handful number of employees. They include CEOs, CTOs and marketing agents.

Step Two: Develop an HR inventory– This is fairly easy for most small
Ventures: there’s just one of you! As you grow, this step becomes more important
as you factor employee turnover into the equation, too.

Step Three: Develop a job analysis– This could be the hardest part of the process.
For start-up, we will hire personnel who are technical knowledgeable of website
building to taking the marketing plans for both online and offline platforms.
Whereas creative sportsholic people would be great for boosting ideas about brand
positioning and taking the customer care support.

Step Four: Prepare a comprehensive plan – This is going to be the most time
consuming of the steps, but it is the most critical. This step will give you the path
you’ll take in order to successfully integrate new employees into your Venture. It
43
should include budgeting for future wages and it should include training techniques
to bring current employees up to the skill level you want them to be at. For
employees that you have yet to hire, prioritize to determine who you’ll hire first.
For every anticipated position, include goal dates in which you’d like to have
people hired by and work backwards by 3 to 6 months (or more, depending on the
employment situation in your area) to start advertising and interviewing. Write
down where you’ll advertise and the skill set you’re going to need.

These 4 steps will help you plan your way to HR success. Include this as part of
your Venture plan and review it on a regular basis to see if your needs have
changed.

44
 Chapter 10

Financial Plan

45
 Financial Plan
The following table presents the pro forma income statement for projected five
years.

( following data has been taken from expert opinion)

Table-1

Particular 2020 2021 20220 2023 2024

Sales 1006500 1176000 1347500 1222900 1260000
Less-COGS 603900 737100 838500 763740 736000
Gross Profit 402600 438900 509000 459160 524000
Operating
expense
Advertising 200000 200000 150000 150000 220000
Salary 51600 53400 55200 61200 64800
Website 5000 5250 5500 6000 6500
maintenance
Miscellaneous 3000 3500 4700 5300 4800
Expense
Interest (15%) 60000 60000 60000 60000 60000
Total 377800 381550 334300 342200 417000
operating
Expenses
Service tax 24800 57350 174700 116960 107000
Taxes (20%) 7400 17200 52410 35080 32100

Pro Forma Balance Sheet

Here presents pro forma balance sheet for projected 5 years.

Table-2

Particulars 2020 2021 2022 2023 2024

Assets

46
Total Fixed 182500 160500 162500 150300 164000
Assets
Total 450000 480000 515000 492500 505000
Current
Assets
Total other 22500 32000 30000 37500 43500
Assets
Total 655000 672500 707500 680300 712500
Assets
Liabilities and owners Equities

Liabilities
Total 85000 97500 110000 97500 102500
current
Liabilities
Total Long 400000 400000 400000 400000 400000
term
Liabilites
Total 485000 497500 510000 497500 502500
Liabilities
Owners’ 170000 175000 197500 182500 210000
Equities
Total 655000 672500 707500 680300 712500
Liabilities
and owners’
equities

Project analysis
This discount rate has been calculated using WACC. The cost of debt is 15% as it
is a low moderate.

Risk project and a speculative return on equity is 20% based on the expectations of
the entrepreneur. Therefore the WACC stands at [(15*0.40)+(20*0.60)]=18%

Parameters Value
NPV 1659821
IRR 57.32%
47
 Payback Period(in years) 5.88
Discounted Payback Period 6.47

Break Even Analysis

Accounting breakeven point is the sales level that results in a zero project net
income. In the initial stages of new venture it is helpful for us to know the point
where we can avoid loss. This will provide us the insight into the financial
potential for the start-up Venture. So that we will calculate break-even by this
formula.

Sales = (Fixed Cost+ Variable Cost- Depreciation)* (1-Tax Rate)

Table-3

Year 2020 2021 2022 2023 2024

Total Fixed 328360 377350 330600 337700 411300
Cost
Total 603900 737100 838500 763740 736000
variable cost
Depreciation 3000 4200 3700 4500 5700
Tax 20% 20% 20% 20% 20%
rate(20%)
Break even 557550 666150 699240 658160 684960
sales

Projected Revenue

Table-4

Particular 2020 2021 2022 2023 2024

Collaborating 30000 45000 55000 60000 65000
Partners

48
Paid promotions 10000 15000 20000 25000 30000

Per Click 4200 8400 11200 25000 35000

49
 Chapter 11

Exit plan

50
 Exit plan

1. Idea Pitch – At any point of time if we don’t want to continue with the plan, we
can sell the idea to any marketers; the copyright idea will remain with us, they will
use it under different name, the revenue generated will be in the form of royalty.

In metropolitan cities on every year various idea selling summits are held. Where
the best idea/ venture are acquired by different investors. The idea behind these
summits are to cater the best idea and put into market.

Though we don’t have any competitor yet in the market it would be wise to go for
idea pitching rather than other exit plans.

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 Appendix
https://www.academia.edu/23484308/Customer_Attitude_towards_Beau
ty_parlour_-A_study_on_Persona
https://www.moreVenture.com/ah_hrbusplan/
https://articles.bplans.com/types-of-exit-strategies/
http://www.ts.fi/teemat/kuluttaja/167223.html [Referenced 14.02.2011]
http://www.verkkomaksut.fi/[Referenced 10.03.2011]
http://www.verkkomaksut.fi/index.php?id=24 [Referenced 10.03.2011]
http://www.verkkomaksut.fi/index.php?id=1 [Referenced 10.04.2011

52