entrepreneurship & small business management business plan presentation
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Entrepreneurship & Small Business ManagementBusiness Plan PresentationTRANSCRIPT
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5/26/2018 Entrepreneurship & Small Business Management Business Plan Presentation
1/17
Pulkit Bhatnagar [email protected] Entrepreneurship & Small Business Mgmt
Entrepreneurship Small Business ManagementBusiness Plan Presentation
Tiffins R UsPulkit Bhatnagar
404.403.2980
This presentation is prepared towards partial fulfilment of the course: GM560 Entrepreneurship & Small Business Management being instructed by Dr. Aaron Brody
for the July 2009 session at the Gwinnett campus of Keller Graduate School, DeVry University. The logo for Keller is reproduced here as a student and not anendorsement by the School. The views expressed in this report are solely of the author and without any intention of infringement or harm. Images have beensourced through Google and sources can be included if pointed out. Copyright 2009 Pulkit Bhatnagar as author for this report.
Dr. Aaron BrodyGM 560
August 17, 2009
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5/26/2018 Entrepreneurship & Small Business Management Business Plan Presentation
2/17
Pulkit Bhatnagar [email protected] Entrepreneurship & Small Business Mgmt
An Indian Business in an American Setting.
The Tiffin Concept
Snapshot of the Business Idea
Significance of the Website
Tiffins R Us Business Plan Identification of Gap
Vision, Business Model, Long Term Direction
Target Market
Marketing Mix
SWOT
Financials
Agenda
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5/26/2018 Entrepreneurship & Small Business Management Business Plan Presentation
3/17Pulkit Bhatnagar [email protected] Entrepreneurship & Small Business Mgmt
n Indian Business inan merican Setting
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5/26/2018 Entrepreneurship & Small Business Management Business Plan Presentation
4/17Pulkit Bhatnagar [email protected] Entrepreneurship & Small Business Mgmt
In India, tiffin refers to a packed meal
prepared for working Indian men by theirwives to be eaten at work, or for school
children by their mothers.
Professional Tiffin systems are quite popular
in India. In fact, one of the worldsexperts
in Supply Chain and Logistics is the Mumbai
dabbawala system).
5000 employees deliver over 200,000 tiffins
every day using green/local transportation.
Error rate: 1 in 16 mil. (6 Sigma certified)
Service at < $ 10 per month.
Featured by CNN, BBC, Forbes, Economist,
NY Times, and many business schools.
Mumbai Dabbawala video
In India, tiffin refers to a packed meal
prepared for working Indian men by theirwives to be eaten at work, or for school
children by their mothers.
Professional Tiffin systems are quite popular
in India. In fact, one of the worldsexperts
in Supply Chain and Logistics is the Mumbai
dabbawala system.
5000 employees deliver over 200,000 tiffins
every day using green/local transportation.
Error rate: 1 in a mil. (6 Sigma certified)
Service at < $ 10 per month.
Featured by CNN, BBC, Forbes, Economist,
NY Times, and many business schools.
Mumbai Dabbawala video
The Tiffin Concept
http://www.youtube.com/watch?v=Lf15PDkcOlkhttp://www.youtube.com/watch?v=Lf15PDkcOlkhttp://www.youtube.com/watch?v=Lf15PDkcOlkhttp://www.youtube.com/watch?v=Lf15PDkcOlkhttp://www.youtube.com/watch?v=Lf15PDkcOlkhttp://www.youtube.com/watch?v=Lf15PDkcOlkhttp://www.youtube.com/watch?v=Lf15PDkcOlkhttp://www.youtube.com/watch?v=Lf15PDkcOlkhttp://www.youtube.com/watch?v=Lf15PDkcOlkhttp://www.youtube.com/watch?v=Lf15PDkcOlkhttp://www.youtube.com/watch?v=Lf15PDkcOlkhttp://www.youtube.com/watch?v=Lf15PDkcOlk -
5/26/2018 Entrepreneurship & Small Business Management Business Plan Presentation
5/17Pulkit Bhatnagar [email protected] Entrepreneurship & Small Business Mgmt
A Simplified Snapshot
Business Idea
UserBrowsesWebsite& Places
Order
SelectedVendor
PreparesOrder
HandsOver toDelivery
HomeDelivery
User hasMeal and
Ratesthe
Vendor
Input Mechanism:Website
Orders; Payments; Feedback
Delivery Mechanism:Vans / Cars
Food; Promotional Material
Food Delivery to pay for ALL Expenses.
Additional Revenue Streams add tobottomline directly.
(Alternative Advertising/PromotionMedia with direct access to consumer)
http://images.google.co.in/imgres?imgurl=http://www.colostate.edu/Depts/NatSci/Images/man.gif&imgrefurl=http://www.colostate.edu/Depts/NatSci/html/Major8.html&h=252&w=182&sz=7&tbnid=5W157KW1Vg0J:&tbnh=106&tbnw=76&hl=en&start=8&prev=/images%3Fq%3DStick%2Bman%26svnum%3D10%26hl%3Den%26lr%3D -
5/26/2018 Entrepreneurship & Small Business Management Business Plan Presentation
6/17Pulkit Bhatnagar [email protected] Entrepreneurship & Small Business Mgmt
Selected Restaurant
Pricing
Details
Checkout/Payment
Options
Other things of Interest
Rate theSupplier
Advertising
Significance of the Website
What shouldI order?
Let me log-on to Tiffins R Us
where I can order accordingto my preference.
Tiffins R Us Returning / New Customers
Food / Ongoing Schemes
Featured/Sponsored
RestaurantsRestnt 1Restnt 2Restnt 3Vendor 4
Vendor 5 ProvideFeedback /Rate a
Supplier
Advertising
Advertising
Tiffins R Us Returning / New Customers
Food / Ongoing Schemes
Featured/Sponsored
RestaurantsRestnt 1Restnt 2Restnt 3Vendor 4
Vendor 5 ProvideFeedback /Rate a
Supplier
Advertising
Advertising
Customer-end
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7/17Pulkit Bhatnagar [email protected] Entrepreneurship & Small Business Mgmt
Tiffins R Us The ctual Business Plan
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5/26/2018 Entrepreneurship & Small Business Management Business Plan Presentation
8/17Pulkit Bhatnagar [email protected] Entrepreneurship & Small Business Mgmt
Identification of Gap
South Asians:
Around 200,000 Indians, Pakistanis, Bangladeshis,
Nepalese, and Sri Lankans in Atlanta.
Students and Working professionals on 1 3 projects.
Hotspots: Alpharetta, Decatur and Lilburn / Gwinnett, Dekalb, Fulton
Food / Meals:
Spend $ 7 - $ 15 per meal; eat-outs 8-10 times a week.
Remaining meals are cooked at home or skipped.
Dontmind paying a small premium (~ $ 9-10 overall) if food is delivered.
Restaurants:
Family-owned units; Generally operate with decent profits.
Not interested in starting own deliveries but interested in partnering.
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5/26/2018 Entrepreneurship & Small Business Management Business Plan Presentation
9/17Pulkit Bhatnagar [email protected] Entrepreneurship & Small Business Mgmt
Vision, Business Model
Vision:
To allow access to food according to your taste buds.
Business Model:
Select a target region with high density of South Asians; partner with local Indian
restaurants/chefs & offer home delivery services; allow users to create theirprofiles on a Web 2.0 interface and place their orders (longer duration get better
discounts); have 3-4 vans for delivery per region.
Long Term Direction:
To establish a chain of delivery mechanisms in countries other than South Asia(like USA, UK, Canada, Australia), which have a large population of South Asian
students and professionals. To be the next localized Amazon.com specifically
for food delivery services.
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10/17Pulkit Bhatnagar [email protected] Entrepreneurship & Small Business Mgmt
Target Market
Details:
~ 1500 South Asians.
20 sq. miles Area.
Four Indian restaurants.
Zero with Home Delivery.
Nearest to Emory: 3 mi
Nearest to GT: 3.5 mi
Strong Local Competition
Good MARTA connectivity
Parking issue in Mid-town
18 Indian restaurants in50 sq. miles coverage.
http://www.spannj.org/START/img12.jpg -
5/26/2018 Entrepreneurship & Small Business Management Business Plan Presentation
11/17Pulkit Bhatnagar [email protected] Entrepreneurship & Small Business Mgmt
Marketing Mix
Place / Distribution:
20 sq. miles between GT, Midtown, Emory, North Druid
Expansion in year 2 to Alpharetta.
Distribution: Customer to order, pre-pay via Website.
Distribution: Supplier free to source own RM.
Distribution: Day-routes to be decided each morning.
Delivery of order by venture. Driver will be venture
employee and vehicle will be venture asset.
Prepaid transactions hence no money transfer issues
Promotion:
No expensive campaigns.
Flyers distribution; College Bulletin Boards placement.
Marketing Collateral like T-Shirts and Bumper stickers.
M-1 soft launch with 8-10 known contacts: Free Meals in
return for Buzz Marketing.
M0 launch scheme: Long Term Committers discount.
Referrals scheme discounts for people introducing
their friends.
Product:
Delivery Mechanism from Kitchen of Supplier to
Doorstep of Customer.
Interactive Web 2.0 website.
Advertising opportunities on the Website and through
in-tiffin promotional catalogs.
Price:
Cost + Flat Margin component model; Pre-paid system
Amount billed per order + 40% of billed amount
40% based on estimates to cover delivery costs and
required margins
Discounts to be offered for Higher-priced orders or
longer-duration orders
Avg Est: Cost: $ 7 per meal. Price: $ 9 per meal.
Advertising Pricing still to be worked out but expected to
grow from $400 in Month 1 to $ 1500 by Month 6.
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5/26/2018 Entrepreneurship & Small Business Management Business Plan Presentation
12/17Pulkit Bhatnagar [email protected] Entrepreneurship & Small Business Mgmt
Threats:
Low entry barriers.
Restaurants can begin own delivery service.
People can start to cook for themselves.
Pre-packaged and Existing Options Available
Unforeseen legal & regulatory issues.
Unforeseen financial expenses; since external funding
not sought.
Atlanta may not remain a preferred study/work location.
Weaknesses:
Lack of experience (regulatory, marketing, logistics,
design).
Assumption that social relationships will translate into
business relationships.
SWOT
Opportunities:
Un-served South Asian population (incl. cooking-averse
target segment).
Inexpensive media (similar target mkt).
Opportunity to start small, make mistakes, learn and
correct to have a better business model while scaling
up.
Additional revenue generating opportunities (like the
website, mobile delivery vans, in-tiffin promotional
catalogs).
Bootstrap financing and viral marketing opportunities.
Strengths:
Low start-up costs; financial independence.
Strong relationships with incumbent restaurant owners.
Easy access to student population of G. Tech & Emory
(Essential to establish a regular following/customer
base).
Openness to learn from others advice and experiences.
Passion to have own venture and succeed in it.
Ability to be practical to limit losses.
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5/26/2018 Entrepreneurship & Small Business Management Business Plan Presentation
13/17Pulkit Bhatnagar [email protected] Entrepreneurship & Small Business Mgmt
Pre-Launch Financialsall figures in USD, unless indicated
Avbl Price Maximum Expected Optimistic Remarks
Delivery Mechanism
* Car 14,695 16,000 12,000 9,000 Ford Focus 2008* Scooter 2,000 2,500 1,800 1,200 JCL-MP250A
Financed through Bank of America SBA Financing Options at 10% (http://www.bankofamerica.com/small_business/business_financing/index.cfm?template=sba_financing)
Website
Domain Name Registration 1,000 1,000 400 100 Free Resources available
Website Construction 6,000 6,000 4,500 1,000 For Security, partner with Paypal & Google Finance
Done through friends in India; local Student friends; Software experts
Necessary Expenses
Legal Fees 5,000 5,000 5,000 3,000 Terms of Use for website, other legalities
* Insurance (GEICO) 500 500 400 300 Vehicles, Website, Life, Business, Liability
Marketing Expenses
Colla te ra l Deve lopment 1,000 1,000 700 400 Flyers/Explanatory Docs for Vendors, Investors
Travel and Meeting 1,000 1,500 1,200 700 Gas, MARTA ($50 p.m. card), Meals
Laptop / Mobile 900 1,000 850 650 Laptop: 550; Mobile: 100
Financed through Bank of America SBA Financing Options at 10% (http://www.bankofamerica.com/small_business/business_financing/index.cfm?template=sba_financing)
TOTAL 32,095 34,500 26,850 16,350
Initial Investment Required $ 16,000 - $ 35,000
Depending on Finance Availability, initial investment can be channeled as per priority/requirement
To recover $ 35,000 at $ 2 per meal margin and 350 days per work year, indicates 50 deliveries per day.
That is not viable for one person to handle; hence at least one more employee is required.
Therefore * - additional Car w ill be purchased on achieving required volumes.
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5/26/2018 Entrepreneurship & Small Business Management Business Plan Presentation
14/17Pulkit Bhatnagar [email protected] Entrepreneurship & Small Business Mgmt
Year 1: Month-wise P&L
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5/26/2018 Entrepreneurship & Small Business Management Business Plan Presentation
15/17Pulkit Bhatnagar [email protected] Entrepreneurship & Small Business Mgmt
Projected Income Statement
2010:Atlanta, 1 region
2011:Atlanta, 2 regions
2012:Atlanta, 2 regions
Seattle, 1 regionORSan Fran, 1 regionOR
Houston, 1 region
all financials in USD
2009 2010 2011 2012
Revenues
Operations - 413,145 826,290 1,239,435
Advertising - 15,800 23,700 31,600
Revenue generated - 428,945 849,990 1,271,035
Expenses
Operations - 321,335 610,537 899,738
Expenses incurred - 321,335 610,537 899,738
Gross Profit - 107,610 239,454 371,297
Insurance Premiums 400 8,800 18,480 30,800
Marketing Expenses 2,000 5,050 9,595 17,675
Salaries & Wages 2,480 46,720 116,800 163,520
Communication Expenses 200 2,400 4,800 8,400
Maintenance Expenses - 1,200 1,800 4,200
Unaccounted / Misc. Exps. 5,000 6,200 9,300 18,600
Depreciation Expenses 400 8,400 16,800 25,200
Total of 'Other Expenses' 10,480 78,770 177,575 268,395
Operating Profit 10,480- 28,840 61,879 102,902
Interest Expenses 250 3,000 6,000 12,000
Profit Before Tax 10,730- 25,840 55,879 90,902
Tax Expenses - 9,280 16,764 27,271
Profit After Tax 10,730- 16,560 39,115 63,631
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5/26/2018 Entrepreneurship & Small Business Management Business Plan Presentation
16/17Pulkit Bhatnagar [email protected] Entrepreneurship & Small Business Mgmt
Projected Balance Sheetall financials in USD
2009 2010 2011 2012
Current Assets
Cash 4,920 26,197 80,379 168,333Accounts Receivable - 4,289 8,500 12,710
Prepaid Expenses - 2,145 4,250 6,355
Total Current Assets 4,920 32,631 93,129 187,399
Fixed Assets
Cars and Scooters 14,000 27,700 48,200 59,400
less Accumulated Depreciation 300 7,500 16,800 25,200
Laptop / Mobile 1,000 900 - -
less Accumulated Depreciation 100 900 - -
Total Fixed Assets 14,600 20,200 31,400 34,200
Total Assets 19,520 52,831 124,529 221,599
Current Liabilities
Accounts Payable - - 4,250 6,355
Accrued Wages / Salaries Payable - - - -
Current Portion of Long Term Loan - 5,000 7,000 11,000
Accrued Interest Payable 250 3,000 6,000 12,000
Total Current Liabilities 250 8,000 17,250 29,355
Long Term Liabilities
Bank loan from BofA / SBA - Cars/Scooter 14,000 25,667 51,667 75,667
Bank loan from BofA / SBA - Other Exps 16,000 13,333 10,667 8,000
Total Long Term Liabilities 30,000 39,000 62,333 83,667
Total Liabilities 30,250 47,000 79,583 113,022
Owner's Equity - 10,730- 5,830 44,945
Add: Retained Earnings 10,730- 16,560 39,115 63,631
Total Owner's Equity 10,730- 5,830 44,945 108,577
Total Liabilities and Owner's Equity 19,520 52,830 124,529 221,599
LOAN REPAYMENT SCHEDULE
Loan Take Amount 2010 2011 2012 2013
2009 14 ,000 2,333 2,333 2,333 2,333
2010 14 ,000 2,000 2,000 2,000
2011 28 ,000 4,000 4,000
2012 28 ,000 4,000
2009 16 ,000 2,667 2,667 2,667 2,667
2014 2015 2016 2017 2018 20192,333 2,333
2,000 2,000 2,000 2,000
4,000 4,000 4,000 4,000 4,000
4,000 4,000 4,000 4,000 4,000 4,000
2,667 2,667
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5/26/2018 Entrepreneurship & Small Business Management Business Plan Presentation
17/17Pulkit Bhatnagar b pulkit@gmail com Entrepreneurship & Small Business Mgmt
Sources:
Indian Trade/Business Associations in Atlanta
Restaurant OwnersGoogleAmazonWikipediaYoutubewww.Mydabbawala.org
Thank You