Business Plan: Aditya Aggarwal - 4 Nakul Makharia - 30 Niharika Sharma - 35 Pankul Kohli - 38

APNAKAPDA.
com
Business Plan
Aditya Aggarwal – 4
Nakul Makharia – 30
Niharika Sharma – 35
Pankul Kohli - 38
Table of Contents
I. Executive Summary..........................................................................................................................3
Concept..................................................................................................................................................6
II. Survey................................................................................................................................................8
III. Analysis........................................................................................................................................12
a) SWOT ANALYSIS.......................................................................................................................12
b) 7 P’s of Marketing.......................................................................................................................13
c) 5 Forces.......................................................................................................................................17
IV. Competition Analysis..................................................................................................................20
V. Marketing Plan................................................................................................................................23
VI. Future plans.................................................................................................................................31
VII. Financials.....................................................................................................................................32
Profit and Loss A/c..............................................................................................................................33
Balance Sheet.....................................................................................................................................34
Ratios...................................................................................................................................................35
Break Even Analysis...........................................................................................................................35
Cash Flow Statement.........................................................................................................................36
Genext Pvt. Ltd. Page 2

I. Executive Summary
Company
Genext Pvt. Ltd.
We are a newly formed Mumbai based company with 4 promoters who hold equal stake in the
company. The 4 promoters namely, Aditya Aggarwal (20), Nakul Makharia (21), Niharika
Sharma (20) and Pankul Kohli (20) are graduates from NMIMS’ ASM SOC (BBA). We will be
contributing Rs. 1 Lac each towards the equity of the company and will be drawing salaries.
We are a youth oriented organization aiming at (what we call our main area of functionality) –
Crowdsourcing. We intend to make our audience/customers a part of the process of deciding
and forming the product that we will offer to them. It would be by our customers, for our
customers.
Crowdsourcing is a distributed problem solving model where problems or opportunities are
broadcasted to a group whom we call our customers or audience of the community in the form
of an open call. They then work on the problems or strategies to capitalize on the opportunities.
The customers are a part of a well knit community who also choose the best solution. The
solution is then owned by the entity that broadcasts the problem.
Hence our website is an innovative venture that fuses the merits of a social networking website
with a normal E-shop.
In the following pages we have worked out the practicability & viability of such a venture. We
have calculated the financial feasibility & marketability of our product through various means.

Keeping this concept in mind we intend to start with our first project of a website,
apnakapda.com.
More than 50% of India’s population is under the age of 25 years. And our target consumer’s
age ranges from 14 to 30 years. Individuals in this age range are by and large quite internet
savvy, as has already been proved by the success of websites like Facebook, Orkut, Twitter &
various blogs. And therefore we would be incorporating a wide range of marketing strategies to
propagate our product which would be primarily done online. However for the initial promotional
phase we would concentrate equally on online and physical promotion. In our marketing
strategy we have carefully considered the number of individuals owning a debit/credit card
through the survey that we conducted. And after careful consideration we have decided to
include school going students amongst our target market, since teenagers in this age range are
extremely internet savvy & have relatively more freedom in terms of purchasing accessories &
apparels. We would tap this segment through Direct Marketing; we plan to approach colleges
and business organizations as well as a part of our direct marketing strategy.
Our second strategy under Marketing is that of Viral Marketing. Viral marketing is a relatively
new and still evolving method of spreading ones message, which consists of unconventional
means. We have carefully studied the Viral marketing strategies of products such as Virgin
mobile (network provider), Facebook (social networking website), The Dark Knight (movie),
Iphone 4 (mobile phone), Blendtec’s “will it blend” video (grinder), Subservient Chicken ad
campaign by Burger King Etc.
We have also analyzed the past operations of our competitor & come up with various methods
to monitor & analyze their future hold over the market. We intend to use this knowledge to work
on our product differentiation & cost leadership. We only have one current competitor in India,

but we have strategized our business to be able to compete even with similar customization-
centric brands, if they ever plan to enter into the Indian market.
As far as our future plans are concerned we intend to take apnakapda.com beyond the online
world and set up our own retail chain. Our vision for apnakapda.com is to make it a
phenomenon like Facebook or Google or Wikipedia rather than restrict it to being just another
brand. We would do this by becoming need-intuitive i.e. becoming aware of our customers’
needs with respect to latest trends, designs, patterns, preferences in advance. We would do
that by maintaining and analyzing our online communities for latest/ top discussions & creations.
We plan to take a loan of Rs. 6 Lac from a venture capitalist in order to meet our preliminary
expenses and purchase of the required fixed assets. Our Debt equity ratio for the first 2 years
will be 1.5 and we intend to payback the Venture Capitalist by the end of the third year.
Our Net profits are Rs. 83534, Rs. 326538 and Rs. 1066623 in the first, second and the third
year respectively. We break even in 11 months and sales of Rs. 6278201.

Concept
What is Apnakapda.com?
Apnakapda.com is a website that offers a wide range of apparel and accessories that can be
customized and bought by the audience visiting the website. It is also a social networking
website where the audience can share their personal customized artwork with other customers
and interact with them.
How is Apnakapda different from any other apparel customization website?
Apnakapda offers a gateway for customization of apparel /accessories and a platform to
purchase their creation. It provides the customers an opportunity to showcase their talent at
designing and creativity. The designs and the products created by a particular individual are
open for others to view and buy, hence creating a community of people with varied interest on a
common networking platform.
What is the range of products that Apnakapda deals in?
Apparels Accessories
T-shirts Bags
Polo Shirts Ties
Athletic Wear Hats and Caps
Skirts
Boxers
Hoodies
Sweatshirts
What all can you do in apnakapda?
At apnakapda once you make a profile, you own a virtual store of your own. This store will
be a gallery of sorts, for all collections and designs that you have created and bought. This

collection will then be up for “likes” and “buy it” options. Hence others will be able to see
your creations, comment and buy it as well.
If you are a fan of the creation seen in a particular person’s store you can ‘follow’ him and
keep a track of his latest creations. You can add them to your friend’s list as well and
exchange virtually designed gifts as well.
As the apparels start garnering votes, the one with the maximum votes of “like” and “buy it”
will be put up on the main page of the website as well as the fan pages of the other sites.
Every week depending on the votes we will have the apparel of the week/month etc.
Apnakapda with its easy to operate system gives you the opportunity to create your own
personalized apparel for personal use as well as gifting purposes at an affordable price. It
can be used to design team jerseys, sweatshirts etc and order in bulk for college purpose.
And at the same time you get a chance to compete with other fellow designers cum
customers and also get an opportunity to win exciting prizes and discounts.
Besides the small periodical competitions based on different themes held by Apnakapda, it
will be holding a mega competition twice a year called the Mega creations season 1 & 2.
Our customers will have the opportunity to showcase their talent, and sell their creations to
the entire web world and the winners would be given a significant amount of the revenue
earned from his creation. Hence the creators get an opportunity to earn from their talent.
II. Survey

Questionnaire Analysis
1. Gender : Males - 32 Females – 18
2. Age:
The survey was focused on our target market.
3. Do you own a credit/debit card?

Approx 70% (26 of 37) of our target market (20 to 25 years) said that they owned a debit
or a credit card which is the primary requirement for online transaction. This factor
shows that there is a spending possibility on the part of the customers targeted.
4. Rate the factors in terms of importance
 Brand
 Style
 Cost
 Material
 Fitting
 Convenience (of shopping)
Brand Style Cost Material Fitting Convenience
1st 9 6 11 2 10 12
preference
2nd 8 12 14 3 6 7
3rd 5 18 6 6 12 3
4th 14 3 11 8 6 8
5th 7 9 6 21 3 4
6th 7 2 2 10 13 16

Our venture works upon CONVENIENCE and COST. From the above grid it can be seen that
the target audience rates them as the most preferred attributes for shopping. 24% people
selected convenience as their first preference and 22% selected Cost.
Customization through the website provides the Shopping experience to the customers at their
desired location and also gives them the option to restrict the cost as they can easily reduce the
cost by selecting the size of the symbol, logo, picture, message, etc and also the number of
symbols.
5. Rate your comfort with online shopping of apparels -
1 - not at all comfortable with online shopping
2 - Would prefer actual shopping
3 - Do not mind either, whichever is convenient
4 – Online shopping is preferable!

34% of the surveyed audience stated that online shopping and traditional shopping, both are
acceptable to them but there is an advantage that APNAKAPDA holds over normal shopping,
i.e., CONVENIENCE. 20% of the surveyed audience stated that they prefer online shopping
over traditional shopping. This is a very promising figure.
Out of the 37 surveyed people who lie in our targeted market (20-25 years), 17 selected the 3 rd
option which is approximately 70%. This shows that the customers are ready for something like
Apnakapda.
6. If given the opportunity and convenience would you like to design your own
apparel/ personalize it online for purchase?
a) Yes – 34 b) No – 16
70% of the age group of 20 to 25 years stated their interest in customizing their own apparel
online. This shows that there is latent need in the market which needs to be catered to in the
right manner.

III. Analysis
a) SWOT ANALYSIS
Strengths Weakness
Web 2.0 Short term attractiveness / change of taste
Greater reach via internet Delivery of goods (short term weakness)
Combination of virtual world plus real world Dependence on suppliers
Platform for popularity for designers Transparency

Opportunities Threats
Ever evolving platform on the internet Legal environment hassles
Extending to customization of other products Potential competitors – stores
Handling miscreants
Easy to imitate

b) 7 P’s of Marketing
Product
1. What products will be offered?
Apnakapda provides a Web 2.0 platform for the users to customize and design apparels
& accessories &, sharing, editing & working on designs with like-minded people.
2. Who will be the target customers?
Our target consumer’s age would range from 14 to 30 yrs of age.
3. At what price should the products be offered?
Our goal is to provide our consumers with the widest range in apparels & accessories at
the most affordable prices, therefore our motto is to provide with products under 499/.
PROCESS
1. Sign up on the website by creating an alphanumeric user ID and a password of minimum
8 digits.
2. Each member will have his/her own profile opening up as soon as they log in.
3. Profile will have details pertaining to Professional, Interests & Personal.
4. Picture can also be uploaded. Can send and receive friend requests.
5. There will be a section on the profile which will be titled DESIGN.
6. There will be two options under this section –
 Apparels
 Accessories

7. Click on the desired on and there will be a new window opening up which will have a
host of options to choose from in each of the above mentioned options.
8. For the purpose of explaining the procedure let’s take an example that we want to
design a T-shirt, so we choose Apparels under the Design section. A look up option on
the side opens where various apparels will be listed to choose from. After that a new
window opens with all the features that will be needed to design a T-shirt.
9. There will be various colour schemes to choose from, many default designs already
posted.
10. Besides choosing a default design and merging it with various colour schemes, one can
also upload a picture or a design and also create a design through the software on the
site.
11. Once we are done with designing, there will be an option to create. On clicking that there
will be option to make a single order or a bulk one. Bulk order is an order of 50 or above
units.
12. On choosing the required option there will be a payment gateway with facility to pay by
debit as well as credit card.
13. The courier will reach on the stated address in T+5 days in major metros and T-6 days
anywhere else.

PEOPLE
Division Work Salary/person No. of No. of No. of

Workers - year Workers - year Workers - year
1 2 3
Website Maintaining the 15,000 1 2 3
Website and
answering queries
Warehouse Co-ordinating 20,000 1 1 1
Manager with the website
people for orders
and taking care of
on time arrival
and delivery of
goods
Warehouse Maintaining stock 10,000 0 1 2
Workers reports
Total/Year 420,000 720,000 1,020,000
Apart from the above mentioned employees, the owners of the company will also be working in
areas of Finance, Marketing, Technical and Customer Service. The Owners will be drawing
salaries and there is going to be no profit distribution.
For Calculation purposes the salaries of the employees have been taken constant but there will
be bonus and other incentives provided in case of overachieving of set targets.

PRICE
Product Selling Price - Single Selling Price - Bulk
T-shirts 211 168

Hoodies 273 218
Athletic Wear 191 144
Polo Shirts 257 206
Ties 494 449
Skirts 200 150
Bags 200 150
Caps and Hats 146 106
Boxers 197 168
The Pricing Strategy is simple and easy to understand.
 When a customer starts to customize let’s say a t-shirt, he clicks on the type or the
colour of the t-shirt.
 He then gets an option to chose the symbols, after selecting the symbol of his choice he
can choose the size (big or small), for each small symbol the customer is charged Rs.20
and for every big symbol the customer is charged Rs.50. The above mentioned table is
for each unit with a single small symbol. Customer can’t purchase without choosing a
symbol.
 In case the customer wants to customize the apparel with text then he will be charged
Rs.2 for every small alphabet and Rs.4 for every big alphabet.
 If the customer wants to upload a picture which he wants on the apparel then he is
charged Rs.50 for a small size of the picture and Rs.100 for a big size.
 As and when the customer selects the options or symbols the price automatically
increases at the bottom of his screen.

Place & Physical Evidence
The website will be the shopping place as well as a social networking platform for our
customers. The designing software, the option of “likes” for the creations, personal space in
terms of profiles, commenting on other designs and creations, etc. will act as the physical
evidence. There will be a virtual payment gateway for payment through credit/debit card.
Various Competitions from time to time will add to the already existing widely ranging
servicescapes.
We intend to set up an office in Andheri (Mumbai) and also a warehouse in Shirpur where our
Raw Material supplier is located – Priyadarshini Group. Both the facilities will be taken on rental
basis.
c) 5 Forces
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Me-driven
 People often use social networks to display and extend their interests, or to assume
alternate personas. Users decide with whom they interact, what conversations they want
to join and what information they want displayed.
 Combining the Social Networking aspect with the customization may create a new
interest for users and will help initiate the popularity of the website thereby increasing its
worth.
 These communities are about the people and relationships they foster, not about
advertisers. Pull, not push, is the name of the game.
Peer-driven
 Peers drive users to stay connected within their social networks. It’s also those peer-
driven interactions that increasingly drive decisions.
 Word Of Mouth plays a very important role in attracting new users towards the website.
Once users of similar interest start using the website, it won’t take time for them to
attract their peers.
Trust-driven
 Our website blurs the line between what’s public and what’s private. The notion of trust
in social networks operates on two levels: trust in the platform itself to protect the
community and trust in its members that comprise the platform.
 Having a Secured Sockets Layer Certificate works in our advantage.

Time-driven
 The time trade-offs that people make between different social networks are a function of
the interactions they wish to have, their needs at specific times and their interests.
 Our sales will highly depend on the time factor as apparels such as hoodies will be more
in demand during a breezy season.
 Secondly Seasonal sales during College festivals, Education Functions etc will also
affect the demand of our product line.
Cause-driven
 Social networks have become platforms for advancing social change, and have changed
the paradigm from charity-to-person to person-to-charity.
 Our effort towards bringing customization being just a click away will attract many users
and the feature of display n feedback of other customized designs just adds on to the
cause.

IV. Competition Analysis
1. Direct Competition
Apnakapda is looking to penetrate the Indian market but the concept of Crowdsourcing exists all
over the world including India. Hence, we will first look at the websites already exist with similar
functions.
www.boohoo. www.threadless www.customink

com .com .com
www.emptees. www.shirtwoot www.myntra.

com .com com
These links mentioned are some of the many websites that deal in customization. Most of these
deal only in t-shirts. Amongst the above mentioned myntra is the only website existing and
delivering in India.
Myntra.com (Bombay, India)
Our soul competitor in terms of direct competition is myntra which has its base in Bombay and
deals in customization of apparel, like jerseys for teams etc. Its products range from clothing to
footwear to accessories. This is similar to our range of product except that these products are
branded products. They have an option of customizing the apparel as well. It enjoys free
shipping and the product prices are 599 +.

The software used by myntra is not user friendly and not properly functional and tends to show
errors which are then not fixed immediately.
How are we different?
Myntra has an option to create your own apparel/designs but does not have the platform to
share it with other customers. When on the other hand give them an opportunity to show their
creations to other who may like it/ order to buy.
We have an “interaction factor” on our website that lets the customers interact with each other
and this is lacking in Myntra and many other websites.
We hold competitions periodically where the most liked creations based on different themes, win
prizes and discounts and various other offers.
Threadless.com (Chicago, USA)
This is one of the most famous t shirts customizing websites in the USA, delivering across the
world, but India is still not a part of it. It has 3 aspects to the website which is similar to ours.
“Shop.Participate.Community”
How we are different?
Our product range from apparels to accessories and does not restrict to only t-shirts.

Customization shops
We face competition from various small time customization shops. However these shops are
unorganized and would not have the brand value that we intend to build through our business.
2. Tracking our competition
It is of utmost importance for us to have an edge over our competition at any given point to
maintain and attract a larger customer base. And since our platform for interaction is online, we
intend to keep a track on our competitor’s presence on various sites such as Facebook, Twitter,
Orkut etc.

V. Marketing Plan
Segmentation & Target Market
For our initial target market, we are looking at 2 characteristics in our prospective customers.
Those that are more open towards change and are tech-savvy as well. This means we are
looking from an age of 15 to 30. This age group can be divided into 2 segments.
1) Students – from age 15-23, studying in schools colleges, always wearing the latest in
fashion, dependent on parent’s earning and aware about latest developments online.
2) Young professionals - 24 -30, fresh minds, ambitious, may or may not be spendthrift,
independent and technology aware.
There is a growing need amongst these segments to customize their own apparels n
accessories. We intend to fuse this concept with that of a social networking site. Mainly our
target market consists of people who wish to show their creative side to their friends and
colleagues as well as buy their own and others creations. They want to wear what is IN
FASHION, which is easy on their pockets, which is not the case of big fashion brands.
Place
Apnakapda is a Pan India project, but initially we plan to target the 1 st tier/metropolitan cities i.e.
Mumbai, Delhi, Kolkatta, Chennai, for the first 2 years.

Positioning
Imagine it! Wear it!
“Why wear someone else’s imagination?” The vision behind Apnakapda is to create designers
within our customers itself. You imagine. We create. Youth would no longer be depended on big
brands and designers. It’s about wearing what you want, and not what someone else wants you
to.
As for the young professionals, besides being a place for creating apparel to wear, we want to
position ourselves as a brand for gifting purposes. Design for your family, friends, colleagues,
employees and order it to be made.
i. Promotional Strategies for Year 1
Our promotional strategies will begin 3 months in advance of the operations. Hence the
following promotions begin from January 2012.
Our strategy consists of:-
a) Online Promotion
Social media marketing
 Fan page on Facebook – will help in spreading the word about Apnakapda
 Make a page on twitter – this is where we will spread the word about our
campaigns.
 Making video advertisement & uploading it on Youtube for free sharing
 Promoting it through free sharing sites such as stumbleupon.com, reddit.com,
myspace.com, delicious.com, orkut.com etc.

 Providing various search engines with essential keywords to allow more visibility
to prospective customers.
 Adopting the Secret Squirrel Marketing Strategy where you spread the word
about your website in other blogs pretending to be a user of the same.
b) Physical promotion
1. Pamphlets
 Newspapers- we are catering to an educated target market and newspaper is a
necessity of each household, hence the medium.
2. Post it Day
 Every college that we go to we will celebrate a post it day, where we give out
post its to the students with different tag lines that they can put behind any
person’s back. Below the tag line we will mention our website’s name as a part of
the marketing strategy!
3. Setting up Stalls in College festivals
 Giving out tee shirt/Hoodies to the committee members/volunteers.
 Setting up stalls and selling tee shirts and accessories for the computers and
laptops. 3 laptops will be set up where the visitors get a chance to create their a/c
and customize their apparels n book it on the spot. On the unavailability of a
credit card they can pay an advance of 50% of the price.
 We can give out prizes in the art competitions from are our line of products.
4. Bands (tentatively)
 We plan to have tie-ups with rock bands & customize t-shirts for free, for the
members, and sell t-shirts for fans. These t-shirts will b available on our website.
*These activities will go on for a minimum of 6 months depending on the response.

ii. Marketing strategy for Year 1, 2 and 3
We have 2 essential strategies to promote our product:-
A. Direct Marketing
B. Viral Marketing
A. Direct Marketing
Our target consumers can be broadly categorized into 3 ways
a. Schools – students of the age 14 – 15
b. Universities – students from the age of 16 – 23
c. Companies – consisting of young professionals having an open work culture
a. Schools
We will provide students in their final year of school with a memento (t-shirt) bearing the
logo/emblem of their school & their house on their farewell E.g. Campion, Cathedral, St.
Mary’s, Green Lawns etc.
b. Universities
To serve our convenience we will be targeting universities geographically.
Mumbai – NIFT, Jai Hind, HR, Xaviers, IIT(B), NMIMS
Delhi – NIFT, SRCC, IIT (D), AIIMS, IIFT
Kolkatta – NLS, NUJS, St. Xaviers
Pune – Symbiosis

We plan to approach the Student Councils of the respective colleges in order to provide
them with customized t shirts/Hoodies representing their colleges.
Our goal is to crack a deal with atleast 2 new universities each year (for the first 3 years)
As mentioned in our promotional strategy of the first year we will set up promotional
stalls in the university festivals and in the 2 nd and 3rd year sell apparels to these festivals.
The festival we are looking at in the first 2 years are, Mood Indigo, Umang, Malhar
(Bombay), Rendezvous and Crossroads (Delhi).
We also aim to provide athletic wear to them for all their sports events.
c. Companies
We also plan to target companies which have a Google-like work culture like Direct-I,
where the employees are given t-shirts bearing the company’s logo. We will be
contacting them directly to crack deals.
B. Viral Marketing
It is a Marketing phenomenon that facilitates and encourages people to pass along a
marketing message. This message is a self-replicating & self-propagating chain which
grows in geometric progression.
We intend to carry out our viral marketing campaign through the following
unconventional mediums-
1. We plan to upload numerous videos on YouTube which would convey a quirky
message, which would help us generate curiosity amongst our target audience. This
relatively unrelated message would indirectly lead our customers to our website.

2. We plan to launch ringtones to promote our brand, which would be catchy in nature
and help in making more people aware about our presence.
3. We plan to start viral message chain in the form of jokes to tap into our gadget savvy
target market.
4. We plan to upload pictures on our Facebook & Flickr pages in order to give
ourselves more visibility & greater access & approachability in terms of customer
interaction.
Significance of a Facebook Page
 Facebook will be the direct driver of traffic to our website.
 Having an active Facebook page will help us cater to customer queries and concerns
that may not pop up on our website.
 Prospective customers/designers can upload their apparel designs on the apnakapda,
the best of which would be directly linked to facebook page which will give them an
opportunity to showcase their talent to a much larger crowd and can be voted for (likes).
 The Latest of designs would be put up on the page from the website.
 Besides the “apparel talks”, e tee would be a community on its own on the website. They
can share wacko videos and chain messages too.
 Being the direct driver of traffic, creating an active and attractive facebook page could
contribute to the extent of 20% of the revenue of our website.
Competitions
Another major USP of our website will be the competitions held by apnakapda. To start off we
will open these competitions especially for Fashion colleges of India, like NIFT (delhi), NID etc.
and then will gradually open it up for all and sundry.

For the first 2 years Apnakapda is looking at 1 major competition during the year, Mega
Creations. This will be held for a span of 2 months, November and December. There will be a
competition amongst the apparels created by the users. The ones with the maximum likes will
be competing against each other in the main round. During this time there will be promotional
ads on Youtube as well as ads on other sites and the designs would be advertised all over the
web world. The ultimate winner of the competition gets discounts on further purchase of
products and in the future we intend to give the winner a part of the revenue earned from their
designs.
There will be other small competitions based on different themes like patriotism, causes,
festivals etc. throughout the year as well.
There will be apparel of the week/month based on the “likes” on the designs.
Advertising
We plan to focus on getting the maximum number of people to visit our website. For this we will
focus on the promotional and other marketing activities mentioned in the plan. Primary focus will
be on Viral Marketing and various other sources of online publicity. Based on these strategies
we plan attract a lot of hits on our website. This will help us sell space on the website to
complementary products. The popularity of our website will determine our bargaining power.
Our target sector for such space selling would be Grade 2 brands such as New Balance, Sparx,
Wranglers, Lotto, Umbro, etc who are on the lookout for expanding their customer base by
increasing their online visibility.

Email Marketing
We intend to promote our website through bulk emailing. This is a very simple process where
we purchase a database of the email addresses of the internet users in India and thread a mail
promoting our website through bulk emails. Such emails will be circulated once in a month to
continue the chain. The emails will have a link of the website as well clicking on which a pop up
window will take the user directly to the website. There are two advantages of this method of
marketing:
1. The website is promoted in the easiest and the fastest manner.
2. It increases the number of hits on the website and thus generating more revenue via
web space advertizing.
Email Marketing has been a traditional method of promoting a website and has been fruitful for
most of the cases and hence we look at it as an advantage to us as well.

VI. Future plans
1) We intend expand on our product range, the following being a few of them :-
 Maternity Wear
 Kid’s wear
 Laptop and cell phone covers
 Wigs (IPL)
 Shorts (girls and boys)
2) Create an APP (games and themes) for Apnakapda for Iphones and Blackberries that
would help market our website more as well as be a source of revenue.
3) Sponsor events and tie-ups with Ngo’s and awareness campaigns and provide then with
t shirts sweatshirts etc. required. This will serve as a promotion for our website.
4) Create a Reinventing Movement that would serve as Corporate Social Responsibility of
sorts where customers have to make something new with their already existing old
apparels and accessories, using our logos and operating system and putting it up for
auction, the revenue of which would be given out in charity/ or reinventing your old
clothes and donating it to us and we give it out on charity.
5) Besides women & kids we intend to expand our customer base to men & women above
50 yrs of age too. We will have a separate section of designs solely dedicated to them.
6) And most importantly we plan get into forward integration i.e. setting up a retail store in
one or two of the major cities of the country, selling a collection of the apparel and
accessories that have been the most sold on the website. Hence it would be an
advantage to the people of that city to directly visit the store and pick up their favourite
apparel.

VII. Financials
We are a Private Limited Company with the 4 owners investing equal equity towards the
company. The 4 owners will be working and will be drawing salaries. We plan to take Rs. 6 Lac
from a Venture Capitalist and provide him with 20% share on each year’s Operating Profit.
We plan to pay back the venture capitalist by the end of third year.
Since we are venturing into a website Business we will incur preliminary costs constituting the
following essentials –
Particulars Description Cost

To operate in the world wide web, each domain needs to
be registered with a registry operator also called a Network
Domain Registration Information Centre (NIC). A Domain Name System (DNS) 1,686
keeps the database of domain names & generates the zone
files which convert domain name to IP addresses.
It is a type of internet hosting service that allows
Web Hosting individuals and org. to make their own website accessible 6,599
via the world wide web
Our organisation will need emails for their employees –
Emails This service offers 25 emails. 13,677
The Secure Sockets Layer is a protocol for managing the
SSL security of a message transmission on the internet. It helps 127,032
in increasing the trust driven factor and adds on to the
value of the website.
It comes with a Control Panel which helps to manage tasks
Virtual Private Server such as starting and stopping services, add users, domains, 94,034
request new IP addresses, and perform back up
Cost of designing the website and the software which will
Website and Software Designing be used for the customisation of apparels. 175,000
We intend to purchase a server for bulk emailing to the
Bulk Email Marketing prospective clients. 35,000
Company Formation (Pvt. Ltd.) Costs incurred to register the Private Limited Company. 25,000
Marketing Costs Cost incurred for post-its & pamphlet distribution 60,000
Total 538,028

For the purpose of couriering the final customized product to the consumer we intend to have a
tie up with Track on Courier Services who will provide us the following costs based on the
cities where the courier will be delivered.
Tier 1 Cities Rs.

8/500gm
Tier 2 Cities Rs.
11/500gm
The Marketing Costs of our Venture are as follows for the various Marketing plans-
Year 1 Year 2 Year 3

Pamphlets 90,000 120,000
Post its 30,000 30,000 30,000
Free T-shirts 27,000 54,000 81,000
Travelling 20,000 30,000 40,000
expenses
Total 77,000 204,000 271,000
Profit and Loss A/c
Particulars Year 1 Year 2 Year 3

Sales 68,59,123 1,05,67,203 1,61,71,455
Opening Stock - 40,000 30,000
(less) Purchases 43,24,600 66,63,250 1,02,36,450
(less) Direct Wages 2,40,000 3,60,000 4,80,000
(less) Rent of Godown 2,40,000 2,40,000 2,40,000
(less) Electricity 60,000 80,000 1,00,000
(less) Closing Stock 40,000 30,000 20,000
GROSS PROFIT 19,54,523 32,33,953 51,25,005
INDIRECT EXPENSES
Rent of Office 2,40,000
Stationery and Printing 10,000 10,000 10,000
Freight Outwards 2,16,230 3,33,163 5,11,823
Salary Office Staff 1,80,000 3,60,000 5,40,000
Salary Owners 9,60,000 14,40,000 14,40,000
Depriciation on Computers 60,000 24,000 45,600

Depriciation on Furniture 8,500 7,650 6,885
Preliminary Exp. Written Off 1,07,606 1,07,606 1,07,606
Total Indirect Expenses 15,42,336 22,82,418 29,01,913
Marketing Costs 77,000 2,04,000 2,71,000
Income - Advertising 80,000 2,50,000 6,00,000
Vat @ 4% 2,64,076 4,06,837 6,22,601
Operating Profit 1,51,111 5,90,698 19,29,491
Venture Capitalists share 30,222 1,18,140 3,85,898

Profit Before Tax 1,20,889 4,72,558 15,43,593
Corporate Tax 37,355 1,46,021 4,76,970
Net Profit 83,534 3,26,538 10,66,623
Balance Sheet
LIABILITIES ASSETS
PARTICULARS YEAR 1 YEAR 2 YEAR 3 PARTICULARS YEAR 1 YEAR 2 YEAR 3
CAPITAL Computers 40,000 16,000 30,400
Aditya Aggarwal 1,00,000 1,00,000 1,00,000 Furniture 76,500 68,850 61,965
Nakul Makharia 1,00,000 1,00,000 1,00,000
Niharika Sharma 1,00,000 1,00,000 1,00,000 Rent Security 1,00,000 1,00,000 2,00,000
Pankul Kohli 1,00,000 1,00,000 1,00,000
Closing Stock 40,000 30,000 20,000
Venture Capitalist 6,00,000 6,00,000
Cash 3,96,612 8,72,405 13,49,119
Net Profit 83,534 4,10,072 14,76,695
Preliminary Expenses 4,30,422 3,22,817 215211
Total 10,83,534 14,10,072 18,76,695 Total 10,83,534 14,10,072 18,76,695
Ratios

Ratio Year Year Year
1 2 3
Debt Equity Ratio 1.5 1.5
Return on Equity 21% 103 369

% %
Return on Capital Employed 8% 41% 369

%
Return to Venture Capitalist 5% 20% 64%
Break Even Analysis
Particulars
Total Fixed Cost 16,33,106
Total Variable Cost 50,74,906
Total Sales 68,59,123
Break Even Sales = (Fixed Cost * 62,78,201

Sales)/(Sales -
Variable Cost)
Break Even Time = 0.92 years
10.98 months
Cash Flow Statement
Particulars Year 1 Year 2 Year 3

Operating Activities
Net Profit 83,534 3,26,538 10,66,623
Add: Depreciation on Furniture 8,500 7,650 6,885
Add: Depreciation on Computers 60,000 24,000 45,600
Add: Preliminary Expenses Written Off 1,07,606 1,07,606 1,07,606
Add: Interest to Venture Capitalist 30,222 1,18,140 3,85,898
2,89,862 5,83,933 16,12,611
Adjustments in Current Assets and Current Liabilities

Closing Stock -40,000 10,000 10,000
A. Cash Inflow From Operating Activities 2,49,862 5,93,933 16,22,611
Investing Activities
Furniture -85,000
Computers - -60,000
1,00,000
Deposit Warehouse -
1,00,000
Deposit Office -1,00,000
B. Cash Outflow from Investing Activities - - -1,60,000

2,85,000
Financing Activities
Equity Capital 4,00,000
Venture Capital 6,00,000
(less)Interest to Venture Capitalist -30,222 - -3,85,898
1,18,140
(less) Venture Capitalist Paid Back -6,00,000
C. Cash Outflow from Financing Activities 9,69,778 - -9,85,898

1,18,140
Net Cash Flow (A+B+C) 9,34,640 4,75,793 4,76,713

Add: Opening Cash Balance - 3,96,612 8,72,405
5,38,028
Closing Cash Balance 3,96,612 8,72,405 13,49,119
The financial position is strong showing incremental profits over the first 3 projected years. The
Cash in Hand position is strong throughout to support any unforeseen circumstances.

For the purpose of Raw Material costing the costs taken are LDP (Landed Duty Paid) which
includes the freight and the excise paid by the manufacturer. The VAT paid is 4% after adding
the profit margin which varies from each product as mentioned in the Pricing factor of 7Ps.
The payment to the manufacturer will be on delivery hence no credit required and as the
payment received by us from the customer will be directly through card leaves us with no
debtors. The stocks kept through the 3 year predictions are low as the raw material order will be
ordered in bulk and then sold out as per our sales predictions. The amount mentioned is thus a
contingency to provide for movements in demand and supply.

Business Plan: Aditya Aggarwal - 4 Nakul Makharia - 30 Niharika Sharma - 35 Pankul Kohli - 38

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APNAKAPDA.

Genext Pvt. Ltd. Page 2

Genext Pvt. Ltd.

Crowdsourcing. We intend to make our audience/customers a part of the process of deciding

Crowdsourcing is a distributed problem solving model where problems or opportunities are

solution is then owned by the entity that broadcasts the problem.

with a normal E-shop.

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and business organizations as well as a part of our direct marketing strategy.

campaign by Burger King Etc.

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year respectively. We break even in 11 months and sales of Rs. 6278201.

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and interact with them.

How is Apnakapda different from any other apparel customization website?

Apnakapda offers a gateway for customization of apparel /accessories and a platform to

common networking platform.

What is the range of products that Apnakapda deals in?

What all can you do in apnakapda?

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your creations, comment and buy it as well.

exchange virtually designed gifts as well.

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1. Gender : Males - 32 Females – 18

The survey was focused on our target market.

3. Do you own a credit/debit card?

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4. Rate the factors in terms of importance

 Convenience (of shopping)

Brand Style Cost Material Fitting Convenience

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selected convenience as their first preference and 22% selected Cost.

5. Rate your comfort with online shopping of apparels -

1 - not at all comfortable with online shopping

2 - Would prefer actual shopping

3 - Do not mind either, whichever is convenient

4 – Online shopping is preferable!

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over traditional shopping. This is a very promising figure.

apparel/ personalize it online for purchase?

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Web 2.0 Short term attractiveness / change of taste

Greater reach via internet Delivery of goods (short term weakness)

Combination of virtual world plus real world Dependence on suppliers

Platform for popularity for designers Transparency

Ever evolving platform on the internet Legal environment hassles

Extending to customization of other products Potential competitors – stores

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1. What products will be offered?

2. Who will be the target customers?

Our target consumer’s age would range from 14 to 30 yrs of age.

3. At what price should the products be offered?

1. Sign up on the website by creating an alphanumeric user ID and a password of minimum

3. Profile will have details pertaining to Professional, Interests & Personal.

5. There will be a section on the profile which will be titled DESIGN.

6. There will be two options under this section –

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host of options to choose from in each of the above mentioned options.

debit as well as credit card.

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Division Work Salary/person No. of No. of No. of

Total/Year 420,000 720,000 1,020,000