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Business plan presentation
Business plan presentation
Business plan presentation
Business plan presentation
Business plan presentation
Business plan presentation
Business plan presentation
Business plan presentation
Business plan presentation
Business plan presentation
Business plan presentation
Business plan presentation
Business plan presentation
Business plan presentation
Business plan presentation
Business plan presentation
Business plan presentation
Business plan presentation
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Business plan presentation

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  • 1. GENERAL INVESTMENT PVT.LTD. (Everyone has a right to be rich and we can make you rich) ASIA PACIFIC INSTITUTE OF MANAGEMENT Address: 3 & 4 Institutional Area, Jasola, Opp. Sarita Vihar, New Delhi -110025 1
  • 2. GROUP INFORMATION • GROUP NUMBER: 7 NAME ID NUMBER SLIDES GROUP LEADER VIKAS CHAUHAN 2K11A38 12-15 GROUP MEMBER MINAKSHI KUMARI 2K11A16 16-17 GROUP MEMBER HIMANGI BHATT 2K11A51 8-9 GROUP MEMBER RITIKA SINHA 2K11A43 6-7 GROUP MEMBER PEEYUSH PATTANAIK 2K11A17 10-11 GROUP MEMBER SUNIL SINGH 2K11A35 3-5 2
  • 3. Company Summary • Company Name- General Investment Pvt. Ltd. • Company Profile- Investment company (people invest their money into our company and we give them high returns annually on their investment) • Company VISION: ‘makes everyone financially strong’. • Company MISSION: ‘generate profit as much as possible for the client’s everyday’. • Company GOAL: First class image, first class relation, and first class service will be our goals while making a fair profit for partners and clients. • Company SLOGAN: ‘Everyone has a right to be rich and we can make you rich’. 3
  • 4. How General Investment actually works! • General Investment is an investment company, in which people invest their money and we invest their money in stock market on a daily basis, this strategy called day trading (intraday). • We give them good returns on their investment better than banks, mutual funds, FD’s etc. • Why general Investment has chosen day trading strategy. The most obvious benefit of day trading is that you can make money and have your profits by the end of the day. • For a day trader who opens and closes his position before the trading day ends, the risks of holding a stock overnight are erased. 4
  • 5. Cont. • A traditional trader's profits can disappear overnight with traditional, long-term trading, but with day trading your profits are secure as long as you close your positions before the end of the trading day. • At the end of the day, you know how much money you have and you are not uncertain. • you can gain more by investing less because of margin money. • You will get your money(with profit or loss) back after market closes every day. So you can start a fresh trading in next morning. 5
  • 6. Business Participant • We have a tie up with one of the leading brokerage firm in Delhi. Because our business would be done through brokerage firm. This brokerage firm will give us trading terminal (software) which will help us to trade in shares in an easy way. And it also gives us cheap brokerage plan which we have to pay on each transaction of the shares and high margin money. 6
  • 7. Market Segmentation • General Investment has segmented the target market into two distinct groups. The groups can be differentiated by their difference in earnings and savings. • Less than one lac Rupees: These customers or clients are middle class people who don’t have a strong financial position. Their annual saving around less than 1 lac Rupees. For example- working people , college students, small shopkeepers, housewife's etc. • More than one lac Rupees: These customers or clients are upper middle class people. They have amassed over one lac Rupees in annual savings and are fairly savvy investors. These clients are generally concerned about the rate of return of their investments. And they are ready to invest in that companies or funds, which can give them high returns on their investment. Small and medium business owners, retired government employees, big business owners etc. are fall under in this segment. Our mainly focus will be on second segment clients. 7
  • 8. Marketing strategy • Our target is an investment-savvy person. General Investment will use the following strategies in the promotion of the new business to the targeted investors: • Strategy 1 – making Business Relationships - We feel that making business relationship with the small and medium businesses will build our business. • Strategy 2 - Web-based Promotions - Using banner advertising on financial and social networking websites will increase brand awareness to a much wider audience. • Strategy 3 - Business Newspaper Advertising - Placing ads in noted financial newspapers directing investors and businessmen to the General Investment. • Strategy 4 – print media – we will use print media like pamphlets, yellow pages and hoardings etc. to promote the business. • The advertisements will be a steady way that people will become aware of the investment as well as some visibility for the company itself. 8
  • 9. Sales Strategy • Our target would be get at least 10 clients (total investment of 10 clients should be 5 lac Rupees) annually. We will try to get more clients every year with high investment. • Clients, who would invest less than 1 lac Rupees in the company, they will get at least 20 % returns on their investment. • Clients, who would invest more than 1 lac Rupees in the company, they will get at least 25 % returns on their investment. • Return on their investment would be given every year to our clients. • Our focus would be generating high profit, 40-60% annual, on the client’s investment. So that, we can give them high returns. • Client would pay 25% profit as a fee to the company on their profit. (negotiable) (Suppose if the client invests 1 lac rupees in the company and within a year, if we give them 100% (1 lac Rs.) returns (profit) on their investment. then the client has to pay 25 % (25 thousand) of his or her returns and rest of the profit (75 thousand ) would be totally go to the client) 9
  • 10. Financial Plan-Capital Structure • Equity-Rs. 3000000 • To be contributed by self, Rs. 500000 each • Borrowed-Rs.1000000 • Interest rate -14.50% • To be repaid within 5 years 3018400 1000000 4000000 1000000 0 1000000 2000000 3000000 4000000 5000000 Expeneses Asset Investment loan start up 10
  • 11. Finance Asset Office furniture 200000 Rs. Workstation computers (6) 360000 Rs. (60000 Rs. Per system) Laser printer, fax machine, copier, T.V etc. 70000 Rs. Others 20000 Rs. Cash in bank 350000 Rs. Total 1000000 Rs. Expenses Office rent 20000*12 240000 Rs. Telephone bill 5000*12 60000 Rs. Electricity bill 10000*12 120000 Rs. Internet bill 5000*12 60000 Rs. Salary(partners and peon) 158000*12 1896000 Rs. Website 3000*12 36000 Rs. Advertisement --------- 300000 Rs. Office maintenance 2000*12 24000 Rs. Loan payment 23533.33*12 282400 Rs. Total 3018400 Rs. Salary Partners (6) 150000*12 1800000 Rs. (25 thousand each per month) Peon (1) 8000*12 96000 Rs. Total 1896000 Rs. Investment Asset 1000000 Rs. Investment in stock market 3000000 Rs. (each partner invests 5 lac Rs.) Total 4000000 Rs. 11
  • 12. How company will generate the Profit ? • Initial investment in stock market – 3000000Rs. • Broker give us 15 times margin money on our investment • 30 lac rupees (actual investment) would be now 4.5 Cr. Rupees. (30 lac * 15 times = 4.5Cr.) • If we buy 1000 shares of any company at the cost of 1000 rupees per share, which means our total cost would be 10 lac rupees after buying 1000 shares of that company. (1000 shares * 1000 Rs. = 10 lac) • We have a 4.5 Cr. Rupees, which means we can buy 1000 shares of 1000 Rs (10 lac), 45 times.(4.5 Cr. / 10 lac = 45 times) Buy / Sell Volume price Price fluctuation Total cost Buy 1000 shares 1000 Rs. -------------------- 1000000 Rs. Sell 1000 shares 1002 Rs. Up by 0.20 % (2 Rs.) 1002000 Rs. Profit Rs. 2000 12
  • 13. Cont. • Share’s price can go up by 0.10% (1 Rs.), 0.30 % (3 Rs), 0.50% (5 Rs), and 1% (10 Rs) and so on, on that single day and the price can go down as well. But we have an instrument by which we can reduce our loss, that instrument is called stop loss order. • If we get average profit per transaction (buying and selling) is 1300 Rs. • 1300 Rs. * 45 times = 58500 Rs on that day. • But risks of losses are always in this market, so we are deducting 18500 Rs. as a loss. • Now we have 40000Rs. as a profit but without paying brokerage and government taxes. • In every transaction, we have to pay the brokerage to the broker and some government taxes like STT (Securities Transaction Tax), Service Tax, Education Cess, SEBI Charges etc. • brokerage and all government taxes is around 400Rs. on every transaction. • we have to pay 18000Rs. in a single day as a brokerage and taxes, if we trade 45 times. 13
  • 14. Cont. • We have a profit of 22000 Rs. (40000-18000 Rs = 22000 Rs.) • if we trade 18 days in the stock market, and our profit is 22000 Rs. in a single day, so by the end of the month, we will have the profit of 396000 Rs. (22000 Rs*18 days = 396000) • It means, we will have the estimated profit of 4752000 Rs. by the end of the year. • Short Term Capital Gains tax (STCG tax): We have to pay 15 % on our profit 4752000 Rs. • 712800 Rs. is the 15 % of the profit 4752000 Rs. • After deducting the STCG tax, we will have a profit of 4039200 Rs. (4752000Rs.-712800Rs.) • Profit after paying the expenses • We have a first year expenses of our company, which is 3018400 Rs. annual. • After deducting the expenses, company’s annual profit would be 1020800 Rs. (4039200-3018400 = 1020800 Rs) 14
  • 15. Cont. • Net profit of the company after paying the government tax • Company will have to pay corporate tax, which is around 32% of the profit. • 32 % of the profit 1020800 Rs. would be 326656 Rs. • 694144 Rs. is the net profit of the company. • If we use 20 times margin money, that will increase our trading transaction 45 times to 60 times, then our net profit would be 1193536 Rs. • company net profit is 694144 Rs. which means company got 23.14% return on its 30 lac investment (ROI). It’s a healthy return for the first year. • (If we take second estimation of net profit which was 1193536 Rs. it shows that company got 39.78% return on its 30 lac investment (ROI). It’s also a healthy return for the first year) 15
  • 16. Profit in the future • This profit has generated from only our investment because we are assuming that there is no client in first year of establishment. Because we are the new company. It will take time to get attention of the clients, if we get clients with huge investment, company’s profit would increase. • After getting adequate clients, there would not be needed to spend lots of money on advertisement. It will increase the profit of the company and after paying off the bank loan in 5 year. Our company would be debt free. And whatever amount we paid to the bank, from now on, that amount would be added in the company’s profit. 16
  • 17. Future plan • After getting investors and popularity, we will expand our business in other cities also. This will generate employment for others and they will get job. • We can go into real estate business, where we will invest money (for a long term) along with stock market, in the future. 17
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