Business Plan Submitted to: Mr. Bhaskar Banerjee Sub By:Shrunga Mehta Batch – 2 FD – 7 Contents                Business Plan-Prologue………………………………………………………..3 Background of the entrepreneur……………………………………………...4 Business idea…………………………………………………………………….5 Vision Statement………………………………………………………………...5 Mission Statement……………………………………………………………….5 Business Goals…………………………………………………………..………5 SWOT Analysis…………………………………………………………………..6 Environmental Analysis………………………………………………………..7 Market Research………………………………………………………………...8 Sources of Finance……………………………………………………………...8 Business Strategies……………………………………………………………..9 Service portfolio………………………………………………………………….9 Operation plan…………………………………………………………………….9 Company Hierarchy………………………………………………………………9 Financial Forecasts……………………………………………………………..10 Name of the business: Krishna VM Services Official address: Krishna VM Services, D-204Indraprasth -5,B/H HDFC Bank Pradhladnagar Abad 380051 Gujarat Ownership pattern of the business: Single Owner Names and addresses of the owners: Shrunga Mehta, D-204 Indraprasth -5,B/H HDFC Bank Prahladnagar Abad 380051 Gujarat Nature of the business: Services Provider. Background of the entrepreneur: I being a student of NIFT, I have knowledge in almost all the related field to fashion. Fashion not only means creating fashionable cloths but also displaying them in such a manner that consumer have to buy them. I personally have interest in knowing the retail industry and also have an want to do my career as Visual Merchandiser. Business associate: KinjalDesai: Had worked as manger Lifestyle London, Had worked as Visual Merchandiser, shopper Stop Hyderabad& Right now working at Head – Marketing & Business Development, Knish Technologies Business idea:A freelancer outsourcing store which does visual merchandiser (VM) from a local store to a brand. The Basic Concept here is that when the visual merchandising is very important part to attract consumers. With the help of VM by just adding little money the store owner mangers getting more profit than the money used. Vision Statement: To provide Holistic VM Solutions to the retail industry by creating ideas turn into magic. Mission Statement: To attain the Numero Uno position among the VM Outsourcing Service providers. Business Goals:    To become a preferred VM solutions partner for large and small retail businesses. To be profitable from the first year of operations. To build an effective client base across the country by delivering high quality VM solutions leading to growth in their business. SWOT Analysis Strengths:     Have in-depth design knowledge. Have a team of experienced designers & on-site executioners. Will provide end-to-end solutions related to VM including printing & props. Have a team of trainers to provide on-site training for retail VM standards and merchandise presentation. Opportunities:    There has been an exponential growth in the no. of retailers in India. Smaller retailers can’t afford to hire individual VM resources. Very less no. of VM services providers in India currently. Weaknesses:  Don’t have industry contacts to get work from the word go. Threats:   Bigger retailers have moved away from VM outsourcing and have their own VM team. Difficult to get an entry in the competitive organized retail market as the bigger players already have long term contracts with exiting VM outsource companies. Environmental Analysis:  Competitive Factors: There are only 5 recognized VM services providers across India leaving a huge opportunity for a new player in this segment. Due to the level of expertise needed to provide such services, the competition in this segment will remain low.  Political Factors: Going forward, if there are more relaxations with respect to the FDI (Foreign Direct investment) policy, there will be further growth in the number of retailers leading to bigger opportunities in this segment.  Economic Factors:With a general slowdown in the economy due to weak rupee and high inflation, larger organizations may move towards hiring their own VM resources in order to control their cost.  EnvironmentalFactors: NO direct impact on environmental.  SocioculturalFactors:With the increasing awareness and expectation of the modern costumers, it has become imperative for the retailers to maintain a high standard of displays, look and feel of their stores .Hence, there is a huge potential for VM services providers.  TechnologicalFactors:With the continuous improvement in technology , the standard of VM Concept implementation will improve.  Legal Factors: No major issues with the current laws. All relevant licensing & statutory will be complied. Market Research:      Indian retail is expected to grow to $ 900 billion by 2014. Currently the share of organized retail is only about 5% to the total retail market. This share will grow to 10-12% by 2020. With liberalization in the FDI norms, there will be an increase in the no. of international brands entering the Indian retail market. Currently, companies spend only about 0.5% of their total cost on VM. With the increasing importance being given to the VM parameters in modern retail, companies will increase this spends to about 0.8-1%. As on date there are only 5 major VM service providers who provide only VM concept implementation services. There is a void to be filled by a holistic service provider in this segment. Sources of Finance:    Personal saving Friends and relatives Business loan Business Strategies:       Create a portfolio of mock VM ideations for different seasons, festivals, events and promotions. Advertise and promote these through our website & various social media. Outreach the potentials clients via various marketing techniques like direct marketing, internet marketing, social media and business networking. Create a base of all sub-vendors for the services provided by us namely props, printing & raw material sourcing. Create special all-inclusive packages for clients who hire us for a complete VM solution. Have specialist consultants who will be available for catering to client queries or customization of their requirements. Have a specialized team of on-site implementers to ensure on-time delivery of all site executions. Service portfolio:          Design creation for retail space. Window design creation and implementation. In-store VM concept design and execution. Merchandise presentation. Event concept design and execution. Sourcing of VM Martials and props. POS (point of sale) communication, design and execution. All types of collateral art work creation and execution. Training – Retail staff training for VM & Merchandise presentation. Operation plan:  Business requirements : o o o o o Office space incl. storage – 1000 sft Mannequins, bust forms, etc. – 20 Podiums – 6 Office Equipment & IT infrastructure Skilled Personnel  Marketing Plan : o Company Launch – Press/Digital Media coverage, Social Media coverage. o Ongoing Marketing – Direct Marketing, Internet Marketing, E-mail Marketing, Social Media Marketing. Company Hierarchy CEO Design Team Execution Team Consultants & Trainers Sales & Support Team Financial Forecasts: Business Forecast Parameter Average Revenue per Client / Location Average No. of locations / Client Total Revenue per Client Average No. of Clients / Year Total Revenue per Year Year 1 Year 2 Year 3 Year 4 Year 5 200,000 10 225,000 10 250,000 15 275,000 15 300,000 20 2,000,000 5 2,250,000 10 3,750,000 15 4,125,000 20 6,000,000 25 10,000,000 22,500,000 56,250,000 82,500,000 150,000,000 Gross Profit Margin @ 25% 2,500,000 5,625,000 14,062,500 20,625,000 37,500,000 Costs @ 15% 1,500,000 3,375,000 8,437,500 12,375,000 22,500,000 Net Profit Margin 1,000,000 2,250,000 5,625,000 15,000,000 8,250,000