A Project Report on

A Freelancer for
Micro Level Business
Enterprise
By Group I
Tej Naik
R.Sivadas
Kirti Tyagi
Carol Tauro
Kavish Jain
Ankita Yadav
Bheenduja Arsekar
Work Profile
Micro Level Business

Mr. Sharma a successful computer hardware and software freelancer

with more than 7 years of experience started as a salesman for a
computer dealer named “Microchip Computers” in Vasco. He was a
drop out from college by choice and started as a salesman then went
about doing Diploma in Software and Hardware in Computers and
various other courses which enhanced his knowledge and gave him an
edge over the other salesman at “Microchip Computers”.
After 2 years of lot of hard work and commitment Mr. Sharma was
not only the made the head of Sales Department but also was the main
person in charge for Repairs and Maintenance of the components sold
at “Microchip Computers.”
After 5 years Mr. Sharma developed an excellent contact base from
all the main suppliers all over Goa and learnt that it’s better for him to
be on himself and be more competitive in the market by being a
freelancer.

Reasons for his success

• Excellent Contact Base

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Micro Level Business

After working for 5 years Mr. Sharma developed an excellent data

base which included not only the main dealers but also the main
customers like the Cyber Cafés, Local Shopkeepers and many others.
In fact during the time he worked all the customers preferred to
contact him directly.
• Excellent Pricing
The cost of operations is very low for him as he doesn’t have any kind
of place of work like an office or a shop. He doesn’t have any one
employed too. Thirdly he knows all the main distributors personally
and thus carries out “Ground Level Purchasing”. These reasons make
him much better priced as compared to the others. Thus attracts a lot
more customers.
• Excellent Service
Mr. Sharma strongly believes in giving the best service to his
customers as he says that IT products have a very short Product Life
Cycle thus if I give good Service I can sell much more. Today’s
customers want quick and good service. Also if anyone wants to
upgrade his/her PC or the other parts he gives a very good exchange
price to them as compared to others.

Project Cost/ Initial Investment

Item Amt (In Rs.)
i) Motor Bike 65,000
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Micro Level Business

ii) Computer & Accessories 50,000

iii) Advertising 5,000
iv) Printing & Stationery 3,500

Total Cost 1,23,500

Sources of Funds
1. Loan from Father 1, 00,000
2. Personal Savings (Promoter’s Capital) 20,000
3. Gift from Friend 3,500
Total 1, 23,500

Notes:
1. Loan given from his father is been fully repaid by him in these 2
years, he used to pay Rs. 6,000 per month towards it.
2. Gift from friend was a new Mobile phone given to him.

Estimated Monthly Income & Expenditure A/C

A Income Amt (In Rs.)

1 Income from Software Installations 1,400
2 Income from Repairs and Service 2,800
3 Income from Sale of PC's, Laptops 7,000
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Micro Level Business

4 Income from Sale of Hardware Parts 18,000

Total 29,200

B Fixed Cost
1 Insurance 500
2 Books & Periodicals 500
3 Advertising & Marketing 1,200
2,200

C Variable
1 Printing & Stationery 400
2 Travelling 2,800
3 Communication Charges 2,100
4 Welfare 2,700
7,800

D Total Cost ( A+B+C) 10,000

E Net Profit 19,200

Notes
• The Monthly income from software installations is Rs. 1,400 on
the basis that he goes in for at least for 5 installations in the entire

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Micro Level Business

month, Rs. 280 per installation which includes Operating System

installation and many other types of software but only pirated ones.

• The monthly income from Repairs & Maintenance is Rs. 2, 800 as

he charges Rs. 280 per hour as on site work charges. In a month he
gets on average 10-15 customers easily.

• The monthly income from Hardware parts include the parts

replaced during repairs and also parts on new orders. The most
frequent monthly sale include 20 pen drives, 5 Hard Drives, 10
RAM chips , 15 Mother Boards, 5 Processors all of different
capacity and quality, brand etc. The income is based on an average
sale of 1.5 years and the items vary and change as per the trend. He
doesn’t invest in any inventory, but keeps an inventory of the
current trend items per month from the distributors on the
condition that he doesn’t pay any advance and settles the bill per
month; the items not sold are taken back by the respective
distributors.

• The monthly income from sale of Pc’s and Laptops is Rs. 7,000 on
the basis that he keeps a 5% margin as his profit as compared to
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Micro Level Business

the local dealers of 8-10% and he sells at least 2 PCs and 2 laptops
a month. Also by calculating his 1.5 year average the amount is
Rs.7, 000.

• The insurance includes the bike insurance amount which is paid

monthly.

• Books & Periodicals include the computer magazines purchased by

him every month; the magazines are CHIP and others which are
highly technological advanced and enhance his knowledge.

• He advertises on Vasco watch and also through flyers kept in local

newspapers all over in Panjim, Margao & Vasco which forms the
Advertising & Marketing Cost.

• Printing & Stationery includes the Invoice Books, Blank Cds

purchased, the other requirements of Stationery like pens etc.

• Travelling includes the fuel expenses incurred by him to travel all

over; his main area of operation is in Margao, Panjim & Vasco.

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Micro Level Business

• Communication Charges include the telephonic charges as his

business is based on the contacts and his 24 x 7 office is his Mobile
Phone. Charges also include the Internet charges incurred by him
to download softwares and read periodicals and learn more
techniques.

• Welfare includes refreshments and mostly due to his highly busy

schedule his meals are in restaurants across his areas of operation.

• Most of the cost incurred his highly variable in nature and thus a
major positive as it is always better to have more variable costs
than the Fixed Cost because the variable cost depends directly on
your sales thus if the pricing is good risk involved reduces.

• Most of the sales are taken on the basis of an average sale of 1.5
years.

• There have been some initial days without much work but today he
has lots of work and from the last 5 months he has not been free on
a single working day and had net profit of Rs. 28,000 on an
average of the last 5 months of operation.

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Micro Level Business

Recommendations
1. He should go in for AMC (Annual Maintenance Contract)
contracts with companies and thus expand his market in the
Industrial Estate and also in the Corporate Sector. His hard
work, Commitment and excellent pricing can help him prove
himself.

2. He should go in for Contracts in schools and colleges for their

regular repairs and maintenance and also sell his low priced
products like Pen drives Hard disks etc to college students.

3. He can for better marketing can go in for contracts with

Housing Societies for Regular Repairs & Maintenance of
Computers and accessories of Panjim for which he can make
good profit and further develop his data base.

4. He should advertise more during the Monsoon Season as it’s the

peak time for repairs and maintenance and regularly upgrade
himself with new components and more knowledge.
We as a group learnt a lot about How Micro level Business Enterprise
functions, the distinctive features of small business, and the stages of

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Micro Level Business

business development in small business, characteristics and needs of

small business.

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