2. Work Out Criteria
• Cost.
• Expenditure.
• Stakes.
• Returns on Investment.
• Profitability.
• Loans and liabilities.
• Time of repay.
3. The Major Expenses
-An yearly analysis
• Human workers (SALES TEAM) –INR 1,50,000.
• The hardware and the material Cost- INR
7,00,000 (Based on current estimated customer
size) + Tolerance.
• Tolerance :: INR 50,000 per customer.
• Service and other customer oriented Expenses-
INR 1,00,000
• Misc expenses- INR 1,00,000.
• Total estimated expenses –INR 10,50,000
4. Expenses at a glance
Expenses
Human
Material
Services
Misc
5. Revenue Charged Per Customer
• There are two schemes in which the product
can be marketed for the customer ::
– THE PURCHASE SCHEME
In this the customer buys the who product and the start-up
only provided the services for a period valid for only one year
from the date of sale
– THE MEMBERSHIP SCHEME
The product is installed at the customers place all the
hardware software cost are bear 30% by the customer and
70% by the firm. There is an annual charges charged to the
customer. However this scheme is costly for the customer.
6. The Purchase scheme revenue
generation
• FULL PAYMENT BY CUSTOMER BY PURCHASE
OF PRODUCT- INR 1,50,000 per (5+1+1+1)
material setup.
• MONTHLY SERVICES CHARGES :: INR
3,000*12= INR 60,000.
7. THE REVENUE UNDER FIRST SCHEME
0
1
2
3
4
5
6
MAETIAL
CHARGES
SERVICES GAURANTEE
ON
HARDWARE
PROFITABLITY
FOR
COMPANY
Scheme 1
FULL PAYMENT
QUATERLY PAYMENT
HALF YEARLY
8. MEMBERSHIP SCHEME
• FIRST DOWNPAYMENT- 30% of the product
• SUBSEQUENT PAYMENTS – INR 19,300 PER
MONTH.
• SERVICE charge – INR 5,000 per month
• Total revenue- ~INR 3,00,000 (Approx.)
9. Revenue under scheme 2
0
1
2
3
4
5
6
7
Downpayment Service charge MISC-
Gaurentee+
labour
Net Profitability
1 yearly
2 yearly
3yearly
10. UNIT COST Vs REVENUES
0
1
2
3
4
5
INRin*1,00,000
Axis Title
COST(INVESTMENT)
Scheme 1
Scheme 2
11. Profit
• ANNUAL PROFIT PER PRODUCT-
• SCHEME 1 : INR 1,23,000
• SCHEME 2 : INR 1,98,000
• Start-up is in profit.,….!!!!!
12. Business Model Viable?
• Yep, Certainly…!
• ROI (Return on investment)::
INR 1,52,000 Per year …
13. Thank you
• Yes please team welcomes queries and
businesses….
