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Zack Ross - Rent That Book-Zack Ross ©2010
Zack Ross - Rent That Book-Zack Ross ©2010
Zack Ross - Rent That Book-Zack Ross ©2010
Zack Ross - Rent That Book-Zack Ross ©2010
Zack Ross - Rent That Book-Zack Ross ©2010
Zack Ross - Rent That Book-Zack Ross ©2010
Zack Ross - Rent That Book-Zack Ross ©2010
Zack Ross - Rent That Book-Zack Ross ©2010
Zack Ross - Rent That Book-Zack Ross ©2010
Zack Ross - Rent That Book-Zack Ross ©2010
Zack Ross - Rent That Book-Zack Ross ©2010
Zack Ross - Rent That Book-Zack Ross ©2010
Zack Ross - Rent That Book-Zack Ross ©2010
Zack Ross - Rent That Book-Zack Ross ©2010
Zack Ross - Rent That Book-Zack Ross ©2010
Zack Ross - Rent That Book-Zack Ross ©2010
Zack Ross - Rent That Book-Zack Ross ©2010
Zack Ross - Rent That Book-Zack Ross ©2010
Zack Ross - Rent That Book-Zack Ross ©2010
Zack Ross - Rent That Book-Zack Ross ©2010
Zack Ross - Rent That Book-Zack Ross ©2010
Zack Ross - Rent That Book-Zack Ross ©2010
Zack Ross - Rent That Book-Zack Ross ©2010
Zack Ross - Rent That Book-Zack Ross ©2010
Zack Ross - Rent That Book-Zack Ross ©2010
Zack Ross - Rent That Book-Zack Ross ©2010
Zack Ross - Rent That Book-Zack Ross ©2010
Zack Ross - Rent That Book-Zack Ross ©2010
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Zack Ross - Rent That Book-Zack Ross ©2010

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Transcript

  • 1. Zachary Ross Marvin Perez Cyrus Chamanara Bimal Singh
  • 2. Business Plan Outline
    • 1.0 Executive Summary
      • 1.1 Objectives
      • 1.2 Mission
      • 1.3 Keys to Success
    • 2.0 Company Summary
    • 2.1 Company Ownership
    • 2.2 Start-up Summary
    • 3.0 Environmental Analysis
    • 4.0 Implementation Plan
    • 5.0 Team Members
    • 6.0 Funding Request
    • 7.0 Financial Plan
  • 3. 1.0 Executive Summary
    • Rentthatbook.com is a concept derived from personal experiences throughout college-life. Students have long faced an economical and academic dilemma when it comes to purchasing books for courses due to constraints on their ( and their parent’s) wallets. Most bookstores in the retail industry are located within the vicinity of the university, and they tend to overcharge students due to the nature of convenience and supply of much need books.
  • 4. Conti…
    • Through research and surveys, the partners of this concept have found that there is a market for the implementation of a rental book store for students in the university/college setting, who are looking to purchase a book, but only for their semester term. Since most book stores within the university offer their books at full retail price, and may sometimes gouge the price because they are aware that the students are in dire need of the book, we feel that we can offer the book that they need at a price of a small percentage of the retail price, and they can return the book after the semester.
  • 5. Conti…
    • Giving students this option will invariably change their purchasing behavior, and allow us to contain a stronghold on the market of university bookstores, and will relay great profits to the establishment, while building a buzz throughout the national university community. We also offer a web-based retail establishment for those who chose that channel of purchase. This site will offer customers information on price comparisons, shipping fees, database of order information, etc.
  • 6. 1.1 Objectives
    • Focus on customer satisfaction by stocking our store with books students need for their courses, by working in concert with the university/college.
    • Tracking competitor prices along with our supplier's prices will allow us to keep our prices slightly lower than the competitors on most of our supplies and draw more customers to our store .
    • Keeping on top of the newest trends and techniques in the book retail world.
  • 7. 1.2 Mission
    • The mission of Rentthatbook.com is to create a venue where college students feel that they are not being abused when it comes to purchasing books for courses.
  • 8. 1.3 Keys to Success
    • Supply Availability: Offering to the customer those supplies of books which will always be in stock according to the number of students that are enrolled for each course.
    • Prices: Rentthatbook.com will have very low pricing as compared to the current brick and mortar bookstores on campuses due to our format of just renting the book for the semester, as well as having competitive prices with the current online suppliers of course books.
    • Location: Our store is located inside a university/college, which will provide convenience to students. The building is well located, spacious, easily accessible, and also serves beverages, snacks, and educational accessories such as: university apparel, paper, pens, and various school supplies.
  • 9. 2.0 Company Summary
    • Rentthatbook.com is a book rental supply store that will stock primarily books that college students will need throughout the semester term. The store will also carry various items for matter of convenience when it comes to schools.
  • 10. 2.1 Company Ownership
    • Rentthatbook.com is a partnership. The owners are putting a small portion of their money, and will require a good amount from the bank for the initial startup investment.
  • 11. 2.2 Start-up Summary
    • The primary start-up costs will be for inventory, shelving and Point-of-Sale equipment as well as initial advertising, and website.
    • Products
    • The following is a list of some of the supply categories that will be stocked:
    • Books for courses.
    • Paper.
    • Pens and pencils.
    • Markers and highlighters.
    • Billboards, art supplies, and presentation assortments
    • Tape and adhesives.
    • Assortment of snacks and beverages.
    • University/College apparel. Dye cuts of all shapes and colors (to match many themes).
    •  
    • Services:
    • Rentthatbook.com will offer these additional services to further complement our products:
    • Employees to help navigate students to selected books and merchandise.
    • Customized website for students looking to purchase online.
  • 12. 3.0 Environmental Analysis
    • Changing market trends
      • High costs are leading to new alternatives for purchasing books in traditional bookstores
        • Rent
        • Purchase online
      • Cost of Books
        • Textbook prices, rising at double the rate of inflation for the past two decades
        • The avg. students pays $900 for books and supplies per yr.
        • costs of books is almost 75% of tuition in community colleges
        • Avg. rental $50 vs. $110 purchase
        • In fall 2003, 59% of college students who searched for used textbooks were unable to to find one
        • Consumers are more willing to rent books because of the economic downturn
  • 13. E.A – Customers
    • College students
        • Census population reports
          • 15.9M college and university students, growth from previous years and
          • 2.9 million high school graduates
        • Soaring cost of education
          • Increase of $9,953 nationwide, up 87% from 1990 for the nations public colleges and universities.
          • Private universities avg. $29,119 per academic yr, up 93% from 1990
          • Capable of competing, rising tuition will increase the need for lower priced ways to obtain books.
          • New classes every semester, purchases every few months
          • Frequent new published editions; students unable to sell their books back
        • Lifetime earnings
          • $4.4M medical and veterinary medicine degrees,
          • $3.4M Ph.D
          • $2.5M Masters
          • $2.1M Bachelor’s
          • Vs. $1.2M for high school graduates and dropouts
  • 14. E.A - Competition
    • Relatively new concept
      • Low competition
      • Lack of advertising
        • Online searches reach bookstores first
      • No strong brand recognition
      • Whyrentbooks.com, bookrenter.com, and capusbookrental.com
        • These retailers are strictly online based, making easier for an entry to market
  • 15. Retail Concept-Target Markets
    • College students
      • 15.9M college and university students
    • Transitioning students
      • 2.9 high school graduates
      • The younger, new students are the book purchasers. They rush to bookstores on the first day of school. We want to make them aware of an easier, less costly way to obtain books. Transitioning students are primary targets because we want to change the mentality and process of obtaining college books. Once they become aware of the ease of renting books instead of purchasing them, we will have obtained loyal customers for the next 4-5 years.
    • Parents
      • Actual purchasers of first time college students
        • We need to explain the concept and show good customer service to impact revenue
  • 16. R.C-Retail Format
    • Multichannel retailer
      • We rent books to people who want to save money
      • Operate stores within stores and online based
        • Operate stores within school libraries to take advantage of walking traffic
        • Students can rent books online, but easily drop the book off at school without the need to wait in slow, and long post office lines
  • 17. R.C – Competitive Advantage
    • Multichannel operation
    • Fast shipping, without having to drive to the post office for returns
    • Easily drop books off at one of our many drop off bins at their respective schools
    • Per-day rentals
      • Students are given the opportunity to rent books on a daily basis for $2.99 if they do not want to buy a book or rent a book for a semester
      • This is very convenient for many students who do not have to purchase a book, but need it to do homework, make photocopies, or study for exams
  • 18. 4.0 Implementation Plan
    • Merchandise offered: College Textbooks, High school Textbooks, and school supplies offered at bargain prices. Twenty-Three subject areas Customer Services Offered: We offer both personalized and standardized approaches for customer convenience. We also emphasize responsiveness.
  • 19. Conti…
    • Facilities: We operate as a click-and-mortar store offering flexibility to all our customers. Location: Physical location in Chicago, IL. Also on the web at www.rentthatbook.com Located in the central business district (CBD) of Chicago, in between many universities. Pricing: The principle product we offer are markdowns. Each and every product contains special discounts for the purpose of affordability of all students.
  • 20. Conti…
    • Promotion: We offer special events to held during holidays aimed at raising awareness.
    • Employees: 10-12 seasonal employees at the beginning of each semester. Only 3 employees during off-peak hours. We also emphasize the a la carte plan. Offering rewards to employees for their achievements.
    •  
    • Controls: Monitoring of all employees, inventory, and visitors.
  • 21. 5.0 Team Members
    • The members of the partnership are:
    • Zachary Ross: Mr. Ross has over 10 years of experience in the retail industry, servicing at various department stores, as well as Beck’s Books.
    •  
    • Bimal Singh: Mr. Singh is a graduate in the computer science, and has held several positions for national firms in instituting website, web pages, and online programs.
    •  
    • Marvin Perez: Mr. Perez is the form Regional director for Barnes & Nobles, and has a great deal of knowledge concerning the book retail industry.
    • Cyrus Chamanara: Is a former computer programmer for Amazon.com.
  • 22. 6.0 Funding Request
    • Debt financing for a local rent that book dot com, for initial startup, store lease, book inventory, Business licensing and insurance. Enticing points for investors, first we need to have great team of qualified and experienced industry professional who know how to sustain and expand a startup business. We will have a book store with free Wi-Fi. To generate more business, we will have keep coffee, snacks, ready to go and eat sandwiches, and juice bar. The more time customers spend in the store will turn to more revenue generated from not only one source.
  • 23. Conti…
    • Other options for books will be to rent at $4.99 per day, 3.99 times 2 days, and 2.99 times for 3 days. For 17.99 + rental period extends to week, savings of $294. For $4 dollar add rental insurance, in case of loss, stolen, or damaged return. We will provide the preferred rental card for the regular customers and they will get 10 percent off on their weekly rental. Main focus on low book rental fees and profit margin on other products at 50% to 75% mark up. Additional revenue will be generated from the rental book insurance.
  • 24. Conti…
    • Our funding request is to local bank to secure a 2 year lease and inventory purchase. The estimate is if you have 25 customers and each of them buys something for $10, and you have 250 per day and if we multiply that by 30 days we have $7500 per month. For a year we come up to be $90,000 generated. Our goal is to sustain and expand locally by providing a safe, secure, and friendly Book Rental Place.
  • 25. 7.0 Financial Plan
    •  
    • Our Rental Bookstore will require estimated Start up expense of:
    • Rent Deposit: $5000
    • Business License and Incorporation: $1000
    • Starting Inventory: $60,000
    • Store redesigning: $20,000
    • Utilities Setup: $2000
    • Grand Opening Flyers, Brochures and other office supplies: $ 4500
    •  
    • Stores estimated Operating Cost per month:
    • Salaries (Myself and my 2 staff members): $15,000
    • Rent: $1200
    • Utilities: $1500
    • Promotion: $1000
    • Loan Payments: $1600
    • Office and misc Supplies: $1000
    •  
    • Estimated Operating Cost for first 6 months: $102,800
  • 26. Conti…
    • Total Estimated start up cost at $195,300.( Start up + Operating Cost)
    •  
    • Cash flow Statement:
    •  
    • Revenue, Expenses and Profit:
    •  
    • Revenue
    • Month1 = $67,477
    • Month2 = $89,970
    • Month3 = $112,462
    • Month4 = $134,955
    • Month5 = $157,447
    • Month6 = $179,790
    •  
    • Total Revenue/Sales: $742,101
  • 27. Conti..
    •  
    • Expenses (per month):
    •  
    • Salary (Owner): $5000
    • Wages: $10,000 (2 staff members)
    • Rent: $1200
    • Utilities: $ 1500
    • Promotion: $1000
    • Bank Loans: $1600
    • Supplies: $1000
    •  
    • Total Monthly Expenses: $21,300
    •  
    • Cash Flow Projection:
    •  
    • Estimated Sales from Books rental, Movie and music sales, Snacks Bar
    •  
    • Each Month = $89,977
    •  
    • Cash Disbursement: $21,300
    •  
    • Reconciliation of Monthly cash flow:
  • 28. Conclusion
    •    Opening Balance:        $50,978
    • + Total Cash sales:         $89,977
    • ---------------------------------------------------                                     $140,955
    • ---------------------------------------------------
    • - Total Cash disbursement: $21,300
    • ---------------------------------------------------
    •     Closing Cash Balance $119,655           
    • ---------------------------------------------------
    •  
    • In the end I would like to add that our financial Plan reflects the clarity and professionalism that will also be reflected in our business relationship with any lender or customer .

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