#144 RideaFinals BPlan

1 AmravatiTrade.
com
AmravatiTrade.Com
: Submitted by:
1) Sachin Farfad 2) Pawan Walecha 3) Priyanka Singhavi
MBA 1st year 2010-2012

Department of Business Administration & Management
S.G.B. Amravati University, Amravati.

Submitted To:
By: Sachin Farfad 31st Jan 2011

2 AmravatiTrade.com
Table Contents: Page No.
I. Executive Summary
1. Business idea or concept…………………… 4
2. Social mission……………………………… 4
3. The target market and size………………… 5
4. The target customer………………………... 5
5. Competitive advantages…………………… 5
6. Barriers to entry……………………………. 5
7. Estimated year of breakeven profitability…. 6
8. Estimated quantitative social impact………. 7
9. Three year estimated revenues and income… 7
10. Funding requirements……………………… 8
II. Business overview
1. Company description and business model 10
2. Value proposition- financial 10
3. Value proposition- social or environmental 10
4. Vision 11
5. Current status 11
6. Current or committed funding and all are funding sources.

III. The Market opportunity: 12

3 AmravatiTrade.com
IV. Market solution:

1. Product or services 13
2. Description of working model or prototype 14
3. How remove the pain, solve the problem 14
4. ability to create barriers to entry 15
V. The Market
1. Identification of customers 15
2. Market size, analysis and forecast 16
3. Industry analysis and forecast 17
4. Marketing Strategy 18
5. Sales forecasting 19
VI. Management Team
1. Founders and key management 20
VII. Financial Analysis
1. Projected Profit and Loss 21
2. Break-even Analysis 21
3. Pro Forma Cash Flow Budget analysis 22
4. Pro forma for simple budget 23
5. Contribution of funds by each partner 24
6. Assumptions and Capital Reuirements 24
7. Key assumption throughout the analysis 25
8. For what our business is beneficial: 25
VIII. Funding Request 25

4 AmravatiTrade.com
VIII. Executive Summary:

1. Business idea or concept:
A very useful search engine for the city, which find
everything about a city like History, Maps, Contact & address
of business firms, collages information, Market, Government
offices etc.
Website works like an e-commerce portal of city. Business
man put their business on our website and sale their product and
services through using it.
For general public it works like encyclopedia. And for
government like broadcasting media for everything like social
awareness campaigning, schemes announcement etc.
2. Social mission:
 Increase computer literacy.
 Made people technology friendly.
 Making awareness of technology.
 To provide businessman automatic & systematic portal
for the business.
 To gives unique broadcasting media of city.
 To create employability and increase income source of
peoples.
 To give open market for the all business mans. Even for
the small business man, professionals, hawker, drivers,
electrician, services persons etc.

5 AmravatiTrade.com
3. The target market and size:

Market size for starting a business is all Amravati peoples,
business man, government, politician, professionals, collages,
institutions comes under our market area.
4. The target customer:
For starting level all big businesses, colleges, high income
population, professionals, politicians, government etc are the
targeted customers.
5. Competitive advantages:
A main competitor for a business is traditional ways of
business and that is the biggest advantages for us. Because
problems of the traditional ways of business is cover in this
portal. It made very easy. So we get biggest advantages.
For example, payment of electricity bills peoples wait couple
of hours. But if they use our online portal they paid it within
only couple of minute.
6. Barriers to entry:
Major barriers to enter in business are people are habitual to
use traditional ways. Some businessman doesn’t know to do
their business by using of technology. If we launch ourselves
successfully they might be converting in the wealth of our
business.

6 AmravatiTrade.com
7. Estimated year of breakeven profitability:

All income source of the business for 1 year is:
Membership fees 12, 00,000
Advertisement 5, 00,000
Transaction fees 72,000
Total revenue 17, 72,000
Expenses for the starting up business for 1st year are:
Cost of web portal 2, 00,000
Deposit for the office 1, 00,000
Office rent (5000*12) 60,000
Office furniture 50,000
Computer machines 1, 00,000
Staff 5, 00,000
Launching of business 1, 00,000
Miscellaneous expenses 50,000
Total expenses 11, 60,000

7 AmravatiTrade.com
Total revenue of 1st year 17, 72,000

Total expenses of 1st year 11, 60,000
Net income 6, 12,000
It means that breakeven profitability year is 1st year.
8. Estimated quantitative social impact:

 Most of literate population of city tries to use computers
technology for doing of their work & requirement.
 Businessmen put their advertisement on website and reduce
their advertisement cost.
 Increase computer literacy level.
 Gives online portal for doing their business.
 Unique information source of city.
 Unique broadcasting channel.
9. Three year estimated revenues and income:

1st year revenue 17, 72,000
2nd year revenue 20, 00,000
3rd revenue 25, 00,000
Total revenue for 3 year: 62, 72,000

8 AmravatiTrade.com
Expenses of 3 year
Expenses of 1st year 11, 60,000
2nd year 8, 30,000
3rd year 8, 50,000
Total expenses for 3 year 28, 40,000
Total revenue for 3 year 62, 72,000

Total Net income for 3 year 34, 32,000
10. Funding requirements:

Startup Business;

9 AmravatiTrade.com
Phase 1: Based on our projections, we feel an investment in our

company is a sound investment. In order to proceed, we are
requesting an investment of Rs 5, 10,000 by April, 2011. The
funds will be used to purchase equipment and to cover initial
operating expenses. The Rs 5, 10,000 will be used to implement
Phase 1 of our operations. Once the company is in full
operation, we will require an additional capital investment to
fund Phase 2 of our operations.
Phase 2: Once company is full in operation then we need to

invest Rs 6, 50, 00. We will be in discussion with Experts on the
best direction to take and what cost savings we can achieve. The
specific details for Phase 2 are still to be determined, but three
major areas (sales & distribution, Staff salary, launching, other
expenses, and business development funds) will require
approximately Rs 6, 50,000 by June, 2011.
Exit/Payback Strategy:
we can provide an exit for this investment within three years by
a dividend of excess profits. The increase in profits generated by
sales revenue will provide funds to repay the investment.
Conclusion:
Based on our projections, we feel an investment to Web
Applications is a sound business investment. In order to
proceed, we are requesting an investment of Rs 11, 60,000 as
soon as possible.

10 AmravatiTrade.com
II. Business overview:

1. Company description and business model:
AmravatiTrade.Com Pvt. Ltd will establish in the year
2011. For provide online services to Amravati civilian and
businessman. Like e-commerce portal, e-mails to businessman,
city search engine etc.
Company will formed by Mr. Sachin Farfad, founder &
CEO
2. Value proposition- financial:
Accountant will be appointed. He will maintain daily financial
transactions in statutory required manner. Final approval will be
given by reputed CA’s.
3. Value proposition- social or environmental:
PEST factors will revel many of the external environmental
influences on the business performance.
Online city management portal will not use any machinery
which produces pollution or waste. We only use computer and
internet for running up our business that is not that harmful for
the environment.
This online city management website is useful for the
running social and environment campaigning and make people
aware. And we also arrange discussion of the people on various
social & environmental issues.
Most of the class of users of the online portal is educated &
professional. They have a lot of influence on society.

Making availability of online portal all small, medium &

big business houses can do their business online so they got
better opportunity of business. Drivers, electricians also use this
for finding their business. So it will definitely help increase their
income.
4. Vision:
We start city management web portal for making all market
& services online and easy. Business man & costumers use it to
making transaction between them. Peoples also access
information, news & discussion over internet.
When people of Amravati city discussed social &
environmental issues over portal and stay connected with others.
If any point of time they require driver, electrician they use
this online portal to find them and hire their services. Our goal is
to make available complete city on a single website. Civilian
make their life easier by using all online services.
5. Current status:
As such we are pioneer of such kind of services at grass
root level. There are many of the websites which provide e-
commerce services to you. But at the city level no completely
encyclopedia e-commerce portal is available. So we will
definitely have scope for it and all other co-related business.

6. Current or committed funding and all funding

sources:
Current or committed sources:
 Partner’s investment.
All sources:
 Bank loan.
 Deposits.
 Investment business.
 Advances.
III. The Market opportunity:

When am looking towards small cities. From two decades
peoples are doing their business traditionally. There is no any
up gradation in their business.
If any new comers come in the city he didn’t know about
city anything. If he want to buy something then he used ask
anyone else and he gives information based on his experience.
He doesn’t give you correct information.
Civilians also stand in long queue for paying their u for
paying their utility services bills. In market is also a rush over
there. Peoples spent their long time in the market. By using
this portal they got relief from those problems.

There is many of website on the internet. Which provide

such kind of services, But know provide that services city
level. They are not such a trust worthy because of their
existence. Here we are in same city to gives services to them
and can interact with them for any query.
VI. Market solution:

1. Product or services:
Online shops: Availability of goods, online payment
getaways of shops.
Email: Users will be able to send and receive emails and
faxes in a personal mailbox. Within the email tool, users
can create and use different folders to hold their private
email. They will also have quick access to folders in an
organization, and the ability to create and maintain an
address book.
Messaging: Users will be able to send text messages to
others online. This feature will receive and log messages
giving a "while you were out" type application.
Online bill payments: This service will be name branded
from services like Check free. It will allow users to
electronically pay bills all in one location.
Conduct surveys: Users can create a survey and distribute it
on the system. Responses can be given and returned to the
system where they will be tabulated and maintained.

Credit checks services: This will allow users to check

credit ratings of potential business partners or vendors.
Online purchasing system: For order entry, inventory
tracking, and office supplies and equipment.
Knowledge-based application: Provides a discussion
database for sharing knowledge and information that is
valuable within the company.
2. Description of working model or prototype:

Simple Working Model:
Collect Information Formulation of Information
Publish Information Design Information
Business Working Model:

Design Promote Sale Customize Design
Redesign Feedback Publish
3. How remove the pain, solve the problem:

As we already discuss the pain of the customers in the market
opportunity section. Which services are given is so much helpful
for customer to overcome their pain. Peoples make their life
easy and automatic by use of technology.

4. Ability to create barriers to entry:

Web Portal will benefit from several significant barriers to
entry which includes:
 Development Team: We have a development team that is
up to date with the latest industry applications. With this
team, we feel confident that we will be a dominant player
in the industry and continue to produce and enhance our
product with time.
 Diversification: Anyone coming into the market will find it
difficult to duplicate what we have because of our
diversification. We offer a product with multi-dimensional
applications.
 Market penetration: Once we are in the market and
established, it will be difficult for someone to break into a
market where someone is already operating successfully.
V. The Market:
1. Identification of customers:
A Brief Look at the Internet:
In just five years, the Internet has undergone a major
metamorphosis. From an obscure network used by a limited
number of academics and researchers, the Internet has been
transformed into a global Web of more than 100 million
interconnected computers encompassing users from all walks of
life. Described below are the various segments of the Internet.

Customer Buying Criteria:

Customers are expected to use our services based on
traditional factors:
 Price. Pricing is one of our competitive advantage.es. We
offer prices that are lower than those of any of our
competitors.
 Service. Customers not only expect the best service but
value for money, which is what we give them in our
product.
So as it is expected to use this portal by the computer literate
population of city.
2. Market size, analysis and forecast: (studied worldwide)
We expect to compete as a thriving company in the computer
web based software industry. web based software are computer
programs designed to accomplish user tasks, such as word
processing, graphic design, desktop publishing, inventory
control, and more. The software industry consists of three
general market segments: application solutions, application
tools, and systems software. The software market has long been
one of the computer industry's fastest growing segments.
Revenues for the worldwide software market reached $122
billion in 1997, up about 15% from 1996 according to estimates
by IDC. Revenues continued to show robust growth in 1998.
IDC projects that revenues will grow at a compound annual rate
of approximately 12% for the next several years, surpassing
$220 billion by 2002.
 Web based software includes programs that perform specific
industry or business functions. The worldwide market for

applications software increased to $56 billion in 1997, a 17% rise

over 1996, and is expected to grow 15% annually through 2001, to
approximately $98 billion.
 Application tools include data access and retrieval, data
management, data manipulation, and program design and
development software. The worldwide application tool software
market grew 13% in 1997, to $31 billion. It should continue to
increase 12% to 13% annually, approaching $50 billion by 2002.
 System-level software comprises operating systems, operating
systems enhancements, and data center management. The
worldwide market for system-level software increased 13% in
1997, to $35.1 billion. This figure should exceed $53 billion by
2001, based on an 11% compound annual growth rate (CAGR).
Web based software can be either developed by outside

vendors and sold in packaged form, or custom-made by users
themselves. Many computer users don't have the time or desire
to write their own computer programs or to hire a software
developer; they can choose from thousands of quality packaged
programs ready for use with little or no modification. The
proliferation of computers has increased the number of people
who use computers relative to those who can program them,
increasing the packaged software's importance. Custom software
is tailored to the needs of a specific individual or organization.
3. Industry analysis and forecast: (worldwide)

Brief Look at the Computer Industry:
In the first six months of 1997, a total of 37 million personal
computers (PC) were shipped worldwide. That figure rose to 40
million during the same time period in 1998 and, according to

IDC, this figure is expected to rise by 16% in 1999. PC growth

in 1997 and 1998 was boosted by the introduction of the sub-
$1,000 PC. This price point is due in large part to the sharp drop
in prices of the major components that go into the PC. Another
way PC makers have addressed lower price points is through
cost-reduction efforts made possible by new manufacturing and
distribution strategies. Two important initiatives are underway:
 Build to order (BTO). Under BTO, PC's are assembled by
the manufacturer.
 Channel assembly. Under channel assembly, distributors or
resellers build and configure the machines.
In both cases, the building or configuring occurs when an order
is received. By using these methods, indirect PC vendors hope to
keep inventories lower and, through the cost savings achieved,
offer more competitive prices to customers. Compaq, Dell, IBM,
and Hewlett Packard dominate the computer industry.
4. Marketing Strategy:
The message associated with our product is value-added

applications. We have identified a brief promotional plan that is
diverse and will include a range of marketing communications
including the few listed below.
 Internet.
 Public relations.
 Trade shows.
 Industry conferences and seminars.

 Print advertising. We will follow a print advertising

program in publications such as Creative Loafing,
Belleview Business Chronicle, and the Buckhead Local
Paper.
5. Sales forecasting:
We are confident that our Online Office Manager will be eagerly
embraced by mobile computer using businesses and e-commerce
businesses. We are forecasting a 10-fold revenue increase over
the years covered in this plan, as shown in the table and charts
below.
Sales forecasting for three years
3000000
Membership
2000000
Advertisement
Transaction fess
1000000
Total
0
1st year 2nd year 3rd year
Membership 1200000 1000000 1200000
Advertisement 500000 800000 950000
Transaction fess 72000 200000 350000
Total 1772000 2000000 2500000
VI. Management Team:

Our management philosophy is based on responsibility and
mutual respect. At Web Applications, we have an environment
that encourages creativity and achievement. Web Applications
management is highly experienced and qualified. Its key

management team includes Mr. Sachin Farfad and Mr. Pawan

walecha.
1. Founders and key management:
Mr. Sachin Farfad, founder & CEO
Mr. Sachin has completed his graduation in computer discipline
from the Nagpur University; he has also founder & CEO of
Value Box Advertisement. Has worked as a corporate sales
executive for Siddhesh computers Nagpur.
Mr. Pawan walecha, Director
Mr. Pawan has graduate from the Amravati University. Now
doing a MBA in same University department.
Miss. Priyanka Singhavi, Director

Has computer graduate from the Nagpur University. Now doing
a MBA in Dept. of business Admin. & Mngt. SGBAU,
Amravati University.
Mr. Yasir Khan, Director

Mr. Yasir has graduate from the Amravati University. Now
doing a MBA in same University department.

VII. FINANCIAL ANALYSIS:
Projected Profit and Loss:
The projected income statement for Web Portal is shown

below. The company is basing its revenue projections on
anticipated sales of products.
Break-even Analysis:
With average first year fixed monthly costs and an average
margin as shown below, Web Applications calculates it will
break even at the sales volume presented in the table and chart.
The company management plans to reach such level by the end
of 2013.

Income & Expenses of 3 year:

Total revenue for 3 year 62, 72,000
-----------------------------
Total Net income for 3 year 34, 32,000
Pro Forma Cash Flow Budget analysis:

Pro forma for cash flow
Particulars Amount Particulars Amount
(Sources) (Uses)
Membership fees XXX Assets XXX
Advertisements XXX Salaries XXX
Transactions fees XXX Rent & Statutory duties XXX
Deficits(Losses) XXX Sales & Prom expenses XXX

Misc. Expenses XXX
Surplus(Profits) XXX
XXX XXX
Pro forma for simple budget
Particulars Amount
Membership fees XXX

Advertisements XXX
Transactions fees XXX
Total Receipts (A) XXX
Salaries XXX
Rent & Statutory duties XXX
Sales & Promotional expenses XXX
Misc. Expenses XXX
Total Payments (B) XXX
Profits (A-B) XXX

Contribution of funds by each partner.
Assumptions and Capital Reuirements:

As such wew are alredy disscussed about capital
requiremets for the company is 1160000 rs. We are estimated
the revenue of 1772000 rs in the frist year of the business. We
are assume that our first year net income is 612000 rs.
For the more information about assumption and
requirements that we are alredy dicussed in financial
requirements section.
Key assumption throughout the analysis:

As per the observation more than 5000 Houses (shops, colleges,
business, political leaders, government offices etc) in the
Amravati city. If we got only 1200 business houses membership
in first year then we can definitely achieve our estimated profit
goal.

For what our business is beneficial:

 Technological: usage of web portal made people techno
friendly.
 Environmental: Environment awareness campaigns are
helpful for protecting environment. Our business process is
also environment friendly because if peoples use this portal
it prevents environment. Usages of online portal conserve
fuel, pollution, paper etc.
 Social: online discussion on the various social issues gives
voice to social awareness among society.
 Political: profiles of political leaders increase political
awareness in city.
VIII. Funding Request:

We request to all investors as such we discuss and analysis you
see a lot of scope in this business. If you like to invest in this
business then we like to implement this plan for you.
Contact: Sachin Farfad

f_sachin@yahoo.co.in
9975633461

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1 AmravatiTrade.

MBA 1st year 2010-2012

S.G.B. Amravati University, Amravati.

By: Sachin Farfad 31st Jan 2011

Table Contents: Page No.

1. Business idea or concept…………………… 4

3. The target market and size………………… 5

4. The target customer………………………... 5

7. Estimated year of breakeven profitability…. 6

8. Estimated quantitative social impact………. 7

9. Three year estimated revenues and income… 7

10. Funding requirements……………………… 8

II. Business overview

1. Company description and business model 10

2. Value proposition- financial 10

3. Value proposition- social or environmental 10

6. Current or committed funding and all are funding sources.

By: Sachin Farfad 31st Jan 2011

IV. Market solution:

By: Sachin Farfad 31st Jan 2011

VIII. Executive Summary:

By: Sachin Farfad 31st Jan 2011

3. The target market and size:

By: Sachin Farfad 31st Jan 2011

7. Estimated year of breakeven profitability:

By: Sachin Farfad 31st Jan 2011

Total revenue of 1st year 17, 72,000

8. Estimated quantitative social impact:

9. Three year estimated revenues and income:

By: Sachin Farfad 31st Jan 2011

Total revenue for 3 year 62, 72,000

10. Funding requirements:

By: Sachin Farfad 31st Jan 2011

Phase 1: Based on our projections, we feel an investment in our

Phase 2: Once company is full in operation then we need to

By: Sachin Farfad 31st Jan 2011

II. Business overview:

By: Sachin Farfad 31st Jan 2011

Making availability of online portal all small, medium &

By: Sachin Farfad 31st Jan 2011

6. Current or committed funding and all funding

III. The Market opportunity:

By: Sachin Farfad 31st Jan 2011

There is many of website on the internet. Which provide

VI. Market solution:

By: Sachin Farfad 31st Jan 2011

Credit checks services: This will allow users to check

2. Description of working model or prototype:

Business Working Model:

3. How remove the pain, solve the problem:

By: Sachin Farfad 31st Jan 2011

4. Ability to create barriers to entry:

By: Sachin Farfad 31st Jan 2011

Customer Buying Criteria:

By: Sachin Farfad 31st Jan 2011

applications software increased to $56 billion in 1997, a 17% rise

Web based software can be either developed by outside

3. Industry analysis and forecast: (worldwide)

By: Sachin Farfad 31st Jan 2011

IDC, this figure is expected to rise by 16% in 1999. PC growth

The message associated with our product is value-added

By: Sachin Farfad 31st Jan 2011