This document provides a business plan for 2nd Innings Pvt. Ltd., a social venture that aims to provide services and companionship to elderly couples in Lucknow, India. It analyzes the business opportunity through a PESTEL analysis, noting factors like population growth, education trends leading more children to settle abroad, and loneliness of elderly parents left behind. The plan proposes customized service packages for tasks like transportation, shopping assistance, and bill payments. It outlines the initial investment needs, target customer base, and management team led by Arjit Saran and Meenakshi Srivastava to establish this venture addressing the needs of Lucknow's aging population.
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We have an expert team with 7 years of experience. Customer satisfaction is our priority. Visit this website if you are looking for any service regarding MSME registration. For more details, visit the official website.
https://msmeregisteration.org/
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Understanding the retail banking building blocks and accomplishing excellence in hyper competitive marketplaces. Delivering best-in-class customer service and delightful client experiences have become the key and the only differentiator in today's world.
2. 2ND INNINGS PVT. LTD.
Table of Contents:
1. Executive Summary Page 3
2. The Business Opportunity Page 4
3. The Market Analysis Page 6
4. Competition Analysis Page 6
5. Marketing Strategy Page 7
6. Operating Plan Page 9
7. The Management Team Page 10
8. Financial Plan Page 11
9. Risk Analysis Page 14
10. Venture Feasibility Study Page 15
11. Future Growth Plan Page 16
Page 2 of 16
3. 2ND INNINGS PVT. LTD.
1. Executive Summary -
Drawing on the famous lines by Robert Browning “The best is yet to come”, I
present before yourself business plan for a venture very close to my heart. This is a Social
Venture by the name of 2nd
Innings Pvt. Ltd. and it seeks to provide a healthy and respectful life
to the elderly population of Lucknow within the comfort of their homes. 2nd
Innings is a multiple
service provider with the motive of providing the elderly couples a responsibility-free and
carefree lifestyle by taking care of their regular needs and accompanying them for their regular
daily chores outside of home, thus acting as a companion to them.
2nd
Innings is not an Old Age Retreat where the parents who have lost hope or are
medically challenged should find shelter. We believe that the parents can look after themselves
only if their regular needs are taken care of with the elimination of loneliness of couples being
our first motive. We would strive to make their lives easier by providing certain services for
which they would otherwise have to be dependent on others. Some of these services include
visits to the doctor/hospital, visits to the mall for shopping and groceries, bill payments, bank
visits, vehicle washing and maintenance service, and some get together and fun picnics. 2nd
Innings would provide customised packages of services to be rendered for which their children
can pay directly on our website. Building of trust and long term relationships with our
customers is the key to our business success. We would also need to establish close
relationships with various other service providers who would be our channel partners. Some of
such channel partners include the hospitals, carpenter services, electrician services and the
like.
2nd
Innings would be managed by myself (Arjit Saran) and my colleague from my
MBA School Meenakshi Srivastava. I would continue my present job as Capacity Specialist at
Maersk in Lucknow and would be mostly finding time from my present work schedule to
support the venture. Meenakshi has been in the Banking sector as a Senior Consultant with
HSBC with more than 15 years’ work experience thus bringing her accounting skills to the
table. She would be quitting her full time job to take care of her family needs and thus would be
able to devote more time to the venture. We would be employing one Service Associate initially
who would be rendering the service and then would later employ more Service Associates
based on our increasing customer base. Our primary concern while recruiting the Service
Associate would be that he should be able to render trustworthy and timely service to our
customers.
Our business model would require a miniscule initial investment in the form of a
used second hand car which we would be buying from a local authorized Maruti Dealership on
loan and the setting up of a website. We are expecting to get 5 customers within the next 3
months and 15 customers within one year. We would not be setting any permanent office as of
now and would establish an office once we have at least 30 full time customers, by which time
I would also be quitting my present job and joining the venture permanently. Being a
personalised service where emphasis is on trust and customised service we are targeting only
a small segment of the market initially where we can build our brand name.
Page 3 of 16
4. 2ND INNINGS PVT. LTD.
2. The Business Opportunity -
In the past decade, India has witnessed exponential growth in terms of economy
and GDP with the significant rise in its middle class. It has also witnessed a rising number of
young population going abroad for higher studies and for greener pastures of job opportunities
abroad. The ease of loan availability and a plethora of scholarships have exacerbated this
effect. Many of these students find jobs overseas and settle abroad leaving behind their
parents to look after themselves. The parents who sacrificed their entire lives looking after their
children and providing them with the best facilities are now left alone in their home town.
Lucknow being the capital city of the most populous state of India (Uttar Pradesh) has been a
standing example of such cases. 2nd Innings Pvt. Ltd. would thus cater to the needs of the
elderly population in the city of Lucknow. 2nd Innings believes that the parents truly deserve a
second innings of life wherein they can enjoy their lives in a healthy and safe way without their
children being worried about their safety or health. These parents have spent their first innings
of their lives in small sacrifices for their children and it is now the responsibility of the children
based abroad to take care of their aging parents.
In order to better understand the factors which led to the rise of this business
opportunity, we have conducted a PESTEL Analysis which throws a broader light on the
various factors.
Political Factors – Lucknow is the capital city of the most populous state of India Uttar
Pradesh with a population of 2.2 million people. Due to its humongous population most of
which is below the poverty line, the vote bank politics play a major role in the state elections.
The state has been governed by only two parties alternatively every 5 years for the last 2
decades both of whom have not been able to alleviate the poverty of the populace or provide
any significant industrialization. The political parties have not been able to attract any big
businesses due to the poor infrastructure and high crime rates in the state. There has not been
any addition of new universities and the educational standards of the present ones have
deteriorated drastically with no local employment opportunities. The present government still
has 3 more years at power and the future seems as bleak as now.
Economic Factors – With the advent of internet era and globalization, an increasing number
of students from this city are looking for higher studies and thus going abroad. Unlike their
home town, they not only find a much better education standards but also better job
opportunities along with the lure of earning in US Dollars. Hence most of these students settle
abroad. Being a city with most population working in the government sector, their parents retire
at the age of 60. Their children often send a monthly allowance to their parents to economically
support them and hence money is not a concern for them. With a decent disposable income of
30,000-50,000 INR, they are looking for opportunities to enjoy their lives peacefully. Also the
average remuneration received by them from abroad ranges from USD 500-1000 per month.
Page 4 of 16
5. 2ND INNINGS PVT. LTD.
Social Factors – Lucknow has mostly independent houses and very few people live in
apartments and hence the access to facilities like swimming pool, garden are limited. Also they
have to rely on their relatives to take them for doctor visits or to the hospital. In their old age,
they have to drive themselves to the nearest grocery store or even to the carpenter to fix their
furniture. The feeling of loneliness is rampant amongst them with not much socializing with
others in the society. They would prefer to stay in their homes instead of an old age home
which are generally in a very pathetic state and have a very depressing connotation to them.
With a little support by taking care of their regular needs, they can live a much more
meaningful and happy life than they presently do. Not being a metropolitan city has some
disadvantages to Lucknow as there are not many leisure opportunities in the form of malls or
shopping avenues. There are only three malls in the city which are the only sources of
entertainment and shopping for the local populace. The household services of electrician and
plumbers are not very reliable and there have been a significant rise in crimes against elderlies
staying alone.
Technological Factors – The advent of Internet and the popularity of social media platforms
like Facebook and Whats App has transformed the way people communicate now. Any service
is available at the click of a button and the recent popularity of smartphones has made services
even more accessible to people. At 2nd
Innings, we aim to utilize the social media platforms for
marketing of our business and popularizing it amongst the target population. Our website
would allow the children of our customers to pay for the services rendered to their parents with
a constant update on the details of the services provided to their parents. Thus their children
would be aware of the services being provided relieving them of any safety concerns for their
parents. Our customers would be typically in the age bracket of above 60 and hence we
believe that they would not be so conversant with the latest technologies and hence online
utility bill payments would not be possible for them. This presents a significant gap in the
present context which we would be able to utilize as we would be paying all the utility bills of
our customers every month on their behalf.
Environmental Factors – 2nd
Innings would be providing a customized service to its
customers thus reducing their dependence on others and helping them lead happier lives. The
business environment in Lucknow is very conducive as this concept has still not been
implemented and hence there is very little competition. The only competitors are Aastha
Geriatric Hospital which provide only medical services to the elderlies and the Samarpan Trust
which is an old age home in Lucknow. Most of the retired couples wish to stay in the comfort of
their homes and hence do not wish to shift to an old age home. This presents a lucrative
business opportunity for 2nd
Innings to expand its service.
Page 5 of 16
6. 2ND INNINGS PVT. LTD.
3. The Target Market Analysis -
The target market for 2nd
Innings is the urban elderly retired population
preferably in the middle and upper middle class with their children settled abroad. The size of
this target segment has been approximated to be around 800-1000 couples. (Srivastava, et
al., 2013). This segment has witnessed a rapid growth of more than 10% per annum in the last
5 years with the increasing number of students going abroad and the latest relaxation of H1B
visas by US has added phillip to this rising trend.
Being a customized service provider to a niche segment, 2nd
Innings aims to
reach out to 5 customers in the next 3 months from its launch and expand to 15 customers in
the first year. We intend to keep our customer base small initially so as to be able to provide
trustworthy services and expand slowly over the next few years reaching a customer base of
30 in two years.
As per a small survey conducted by our team amongst a sample of 50 elderly
couples by way of survey forms and Voice Of Customer, they have been very receptive
towards the service and have helped us recognize and fabricate the service packages that we
would be offering. Based on the feedbacks and after understanding the customers’ concerns,
2nd
Innings team has prepared three service packages namely Aadhar (Basic Plan), Aasha
(Executive Plan) and Aashrey (Premium Plan). We understand that out of those 50 responses
30 have been receptive of our Aadhar plan which is our basic offering and 15 have been
receptive of our Aasha plan while only 5 have found the Aashrey plan useful. We have also
included some Extra services which would be provided on a cost to customer basis. Based on
our customer surveys we noticed that the “one-call-all-service” has been the biggest crowd
puller of our service and would be our biggest USP while marketing our product. Our services
would resolve much of the hassles for our customers who can then enjoy their 2nd
phase of life
comfortably.
4. Competition Analysis –
The concept of services for the Elderlies in the city of Lucknow is fairly unique
and un-explored. Being a Tier III city, with only approximately 50%, there has not been much
progress in this industry. However, the rising trends of elderlies staying alone coupled with the
hassles of managing their daily lives has thrown a gap in the opportunity which has not been
explored exclusively in the city.
There are as such no competitors for 2nd
Innings considering the type of services
they would provide. Aastha Geriatric Hospital in Lucknow does provide hospital and medical
services exclusively for the elderly population. They provide medical help for their customers
which is quite similar to a standard hospital. However, they do provide exclusive old age
homes within the hospital premises which is not common amongst the generic hospitals. There
Page 6 of 16
7. 2ND INNINGS PVT. LTD.
is also Samarpan Trust which operates an old age home in Lucknow. We do not view these
two service providers as our direct competitors as our variety of daily services differentiates us
from them. The biggest difference between us and these two competitors is that we allow our
customers to stay in their homes yet resolve their daily hassles and arrange regular services
for them to ease their daily living. Lucknow city also has various clubs like Golf Club, M.B.
Club, Genesis Club and Country Club but all of them are not accessible by the middle class
people due to their expensive memberships which are open to the public only once in 5 to 10
years. Moreover, they do not tend to resolve the daily hardships of their customers and merely
act as a meeting point for socializing thus restricting their reach to the upper middle class and
the affluent people. The Country Club which is located on the highway in the outskirts of the
city has a major location disadvantage as it is located far away from the city and most of its
facilities have not yet started.
2nd
Innings would be providing a single number for the services agreed upon
with the customer which would relieve them from looking into Yellow Pages or looking into
internet for the service providers and their timings of operations. Thus they just need to make a
single call to address most of their needs. This is a significant differentiating factor for us and
thus would help us expand swiftly in the market. There does not seem to be much competition
for 2nd
Innings in this city primarily due to its unique concept and the lack of proper
infrastructure in this city of Lucknow.
The primary challenge for 2nd
Innings would be to be able to acquire the trust of
its customers and convince them of the reliability of our services. However with a carefully laid
out communication plan and well managed operations we intend to nullify this effect. The
switching costs for the customer would be very low as they would not have ascribed to any
similar service in the city.
5. Marketing Strategy –
Price – The pricing of the various products has been kept competitive keeping in mind the high
price sensitivity of the customers and their paying capacity. The Basic plan Aadhar has been
priced at INR 10,000, the executive plan Aasha priced at INR 12,000 and the premium plan
Aashrey at INR 15,000 on a monthly basis. The services covered in these plans are covered in
the product category. The extra services of vehicle cleaning are priced at INR 50 per day per
vehicle. The Vehicle Maintenance pick and drop would be provided at INR 300 for a two
wheeler and INR 500 for a four wheeler.
Product – Based on the customer feedback and after understanding their needs and
preferences, the management team at 2nd
Innings has devised the following three product
packages for its customers.
Page 7 of 16
8. 2ND INNINGS PVT. LTD.
Aadhar Plan
(INR 10,000)
Aasha Plan
(INR 12,000)
Aashrey
Plan (INR
15,000)
Extra cost/
extra visit
Doctor / Hospital Visit (escort) 2 visits, 3 hrs.
each
3 visits, 3
hrs each
4 visits, 3
hrs each
INR 400
Movie Visit (pick-drop) , 11am
– 11pm
1 visit 2 visits +
popcorn +
soft drink
3 visits +
popcorn +
soft drink +
nachos
INR 600
Grocery shopping / Mall Visit
(escort)
4 visits, 3 hrs
each
5 visits, 3
hrs each
6 visits, 3
hrs each
INR 500
Utility Services ( Electrician,
Carpenter, Plumber), 11 am –
5 pm
3 visits 4 visits 5 visits INR 500
Bank Visit (pick-drop) , 10am-
3pm
1 visit 2 visits 3 visits INR 200
Utility Bill Payments All bills All bills All bills .
Note – The above services include the usage of the car of the customer with the fuel charges
taken care by us. However, if the customer does not wish to use their car, then we would be
providing a Premium Mid Segment Luxury Sedan – Maruti Swift Dzire at INR 4000 per month.
Extra Services –
a. Vehicle Washing Service – INR 50 per vehicle per day in the morning before 8 am or
evening after 7 pm.
b. Vehicle Maintenance Service – Pick and Drop of the vehicle to the Service Centre
with all paperwork, INR 300 for a two wheeler and INR 500 for a four wheeler.
c. Ambulance Service – This is a 24 hour service where we would arrange an
ambulance at your doorstep within 30 minutes for no extra cost. The Ambulance
charges would be included in your medical bill of the corresponding hospital. We have
tie ups with all the hospitals of Lucknow – Mayo Hospital, Sahara Hospital, Ram
Manohar Lohia Hospital, King George Medical College, Shekhar Hospital, Vivekananda
Hospital, SGPGI.
The Hospital/ Doctor visit would be an escort service in which our Service Associate would pick
and drop the customer from their home and would escort them to their respective doctor taking
care of their paperwork and medicines from the dispensary. This service is for regular visits
and not for emergencies for which the customer needs to inform us for which we would
arrange an ambulance.
In the Movie visit, the customer just needs to inform us a day in advance about the movie they
wish to see and in their preferred timings. This visit includes the cost of their movie tickets but
Page 8 of 16
9. 2ND INNINGS PVT. LTD.
does not include Friday evening and night shows. In the Aasha and Aashrey plans, the
customers would also be provided with popcorn+softdrink and popcorn+softdrink+nachos in all
their visits. This is a pick and drop service only.
Grocery shopping/Mall visit would be an escort visit where in the Service Associate would pick-
drop the customer and help them with their groceries or shopping.
The Utility services include the carpenter, electrician and plumber services where in the
customer need not pay any labour or attendance charges to the service man. Any repairs or
raw material costs would have to be born with the customer. The customer can dial us for any
of these services and the same would be provided within two hours to the customer. The
customer would also receive a message with the name and contact number of the service
man. In order to provide consistent and reliable utility service, 2nd
Innings would be making a
service agreement with a Plumbing, Electrician and Carpenter Service in Lucknow and would
provide them with INR 300 per visit of theirs as an attendance charge. The average attendance
charge paid in the market is INR 100-150, which is 100% lower than our price quote. The
service man would be chosen after careful scrutiny to ensure safety of our customers.
Considering that Lucknow is a small city where travelling end to end does not take more than
40 minutes, we hope to deliver on our promise of providing the service within 2 hours.
The Bank visit would be a strictly pick-drop service to the designated bank of the customer and
would be provided only in the Bank working hours of 10am to 3 pm.
Place – All these services would be provided on call by the customer based on the plan
selected by them. Generally the services and their timings would be agreed upon with the
customer in advance before the start of the month; however we would provide reasonable
flexibility in the delivery of services as long as they are requested within the time durations as
mentioned in the plan.
Promotion – The promotions of 2nd
Innings would be mostly through a dedicated Facebook
page where-in we would include posts and feedbacks of our esteemed customers along with
their pictures. The emphasis of our promotions would be on providing reliable, timely and trust
worthy service to the elderlies of Lucknow. We would also develop a user friendly website
where our service plans and success stories would be uploaded. As per our initial promotion
strategy, we would start a Referral Program where in if a present customer brings a
prospective customer then they would be provided 10% discount in their monthly plans.
6. Operating Plan –
2nd
Innings intends to employ a Service Associate who would be a local graduate
with the values which are aligned with our Company Values. The Service Associate would be
provided a competitive salary of INR 8,000 which is approximately 10% higher than the present
average of INR 7200 per month. Presently I would not be withdrawing any salary from the
Page 9 of 16
10. 2ND INNINGS PVT. LTD.
Venture until I join it full time. Meenakshi would also not be withdrawing any salary for the first
3 months until when we aim to acquire at least 5 customers. Thereafter she would withdraw a
salary of INR 15,000 per month. Considering that this is mostly a social venture where profits
are not the main criteria, hence most of the revenue generated would be utilized to expand the
business. This is the reason the management team has agreed to part with their salaries
initially. Myself and Meenakshi would jointly visit the customer and based on their needs and
preferences would select a suitable plan for them. Henceforth, my role would be ensure
smooth operations and maintaining service agreements with the concerned Hospitals for
Ambulance services and the Utility Service providers.
2nd
Innings would be operating either by the customer’s car or by their own
vehicle as chosen by the customer. The vehicle is a Premium Mid-Sized Luxury Sedan Maruti
Swift Dzire keeping in mind the comfort of our customers.
Once the customer selects a plan, they would be required to Sign up on our
website with a unique email id and password which they can use to access the details of the
services chosen and the regular updates of the services rendered. The details of the plan
would be sent via a Whats App message to both the customer and their children located
overseas. Our Website would be featuring an online payment portal provided by CC Avenues
and would include various payment modes of credit/debit card, Internet Banking and Paypal.
The customers can also pay via online transfer to our Corporate Account at HSBC Bank,
Lucknow or provide a cheque in favour of our account.
2nd
Innings would not be operating from any commercial office space as of now
and would look into this option after a year once they acquire 30 customers. This would not
only reduce their operating costs but also long term liabilities. We would be providing two
contact numbers to our customers which would be attended to by Meenakshi Srivastava to
arrange services for them. We would not be investing in any Hotline or Toll Free number as of
now and would look into this option only after we acquire our two year target of 30 customers.
7. The Management Team –
The Management Team of 2nd
Innings consists of two members – myself Arjit
Saran and Meenakshi Srivastava. I have been in the Supply Chain and Logistics industry for
the last 15 years after having graduated from S.P. Jain School of Global Management in year
year 2000. During this tenure, I worked with various multi nationals within the Supply Chain
and Logistics domain thus enhancing my logistical skills and understanding the value chain
from the customer’s perspective. This business model has been my brain child ever since I
passed out from my MBA school and I always wanted to pursue it once I achieve my career
goals. It’s for this reason that I have decided not to quit my present job until my venture is fairly
established with a customer base of more than 30 customers and to not draw any salary from
it. I have previously assisted my friends in establishing their entrepreneurial ventures providing
Page 10 of 16
11. 2ND INNINGS PVT. LTD.
them guidance on Logistical and Operational issues. This has exposed me to the various
challenges and risks involved in such a venture.
Meenakshi Srivastava has been my class mate from my MBA School where she
specialized in International Banking and Wealth Management. Meenakshi has always been an
enthusiastic and practical person who shares the same enthusiasm for this venture as myself.
She has been working as a Senior Consultant in HSBC Bank and has been exposed to various
financial nuances of setting up a venture. She brings with herself her superior accounting and
financial knowledge and industry experience which we seek to utilize during the IPO launch of
our firm. Lately Meenakshi has been involved in her family responsibilities and hence has
decided to manage this venture from her home after quitting her present job. Her primary
responsibility would be to attend calls of customers and arrange services for them in a timely
fashion.
2nd
Innings would be employing one Service Associate who would share the same
values as of the firm. We would be recruiting him from a local college in Lucknow like BBD
College or Lucknow Public Collegiate. The average placement package from these colleges
has been at INR 7,000 per month with a placement of 60% of their batches. Hence a salary of
INR 8,000 would suffice the needs of our recruit.
8. Financial Plan –
Assumption 1 - Based on the customer feedbacks we can safely assume that 60% of our
customers would buy the Aadhar Plan, 30% customers would buy the Aasha Plan with only
10% customers buying the Aashrey Plan.
Assumption 2 – We assume to acquire 15 customers in our first year of operations and 30
customers in two years’ time. Henceforth we assume to add 20 customers each year for the
next 3 years.
Assumption 3 – The package price would remain as mentioned in the Marketing Plan for the
first two years after which it would be increased by 10% in the 3rd
year and by another 10% in
the 5th
year. This price increase would be just to offset the inflation of 5% per annum.
Assumption 4 – Within one year I expect to employ 2 Service Associates with a salary of INR
8000 per month each and increase my employee base by 1 Associate each year for the 2nd
and 3rd
year and 2 Associates each year in the 4th
and 5th
years. Their salaries are also
expected to rise by 10% each year. The salaries of Meenakshi are calculated considering that
she would withdraw only for 9 months in the first year and henceforth her salary would
increase by 12% per annum. Similarly, I would not be withdrawing any salary for the first two
years after which my salary would be the same as her’s.
Page 11 of 16
12. 2ND INNINGS PVT. LTD.
Assumption 5 – The vehicle runs for a distance of 100 kms per day with an increment of 20%
each year. We would also be buying a new vehicle each year to cater to the increased
demand. At a conservative mileage of 10 kms per litre and assuming the same diesel cost of
INR 50 / litre, the daily vehicle fuel cost would be = (100/10)*50 = INR 500 in the first year.
Assumption 6 – The vehicle would be purchased from True Value Maruti Dealership in
Lucknow which provides used cars in excellent condition with a reasonable loan facility at
12.5%. The present value of our vehicle is INR 400,000 which is assumed to be constant for
the next five years for sake of calculations. Considering a Down Payment of INR 100,000, the
loan Principal Amount would be INR 300,000 thus obtaining an EMI of INR 6,680 per month.
Assumption 7 – The Utility services costs have been calculated assuming a pay out of INR 300
per visit considering 2 visits for Aadhar, 3 for Aasha and 4 visits per month for Aashrey. For
sake of convenience it is assumed that all the customers fully utilise these services on a per
month basis.
Assumption 8 – The movie costs have been calculated considering that cost of INR 200 per
ticket equalling INR 400 per visit per couple and INR 150 extra for the popcorn+softdrink
combination and INR 200 extra for the popcorn+softdrink+nachos combination.
Assumption 9 – 2nd
Innings would be incurring a cost of INR 10,000 for website development
initially and then further enhancements in the website would be done in Year 3 at a cost of INR
20,000. We would be setting up an office space at the end of year 2 as a small 500 square feet
space in an upcoming strategic market location. This would cost the firm INR 1,500,000.
The NPV analysis shows a healthy cash flows from operations which ensures that the fixed
costs are self-funded from the enterprise.
Fixed Costs 2015-16 2016-17 2017-18 2018-19 2019-20
Website Development 10,000 20000
Vehicle Down payment 1,00,000 1,00,000 1,00,000 1,00,000 1,00,000
Office set up 1500000
Total Fixed Cost 1,10,000 1,00,000 16,20,000 1,00,000 1,00,000
Figure 1: Fixed Costs
Page 12 of 16
14. 2ND INNINGS PVT. LTD.
Figure 3 : Vehicle Loan Repayment Cycle
Also conducting a Break-Even Analysis, and assuming the sales mix of 60% Aadhar, 30%
Aasha and 10% Aashrey,
COST = REVENUE
(110,000 + 560160) = ( 0.6X * 10,000 *12 ) + ( 0.3X * 12,000 * 12 ) + ( 0.1X * 15,000 * 12 )
Break Even Point = 5 unit packages.
Hence it can be safely assumed that 2nd
Innings would break even within the first 3 months
when it gets 5 customers.
9. Risk Analysis –
The primary risk to the success for 2nd
Innings is its acceptability amongst the
customers and the rate by which its publicity and awareness increases. This would be the first
impediment to overcome for 2nd
Innings. This can only be mitigated by creating sufficient
awareness and online promotion campaigns.
The second risk could be maintaining the smooth daily operations of 2nd
Innings ensuring safety of customers at all times and providing timely service to its customers.
However, with an efficient operations plan which is flexible enough to sense the market
sentiments, this can be reduced. Dealing with trust worthy plumbers, electricians and
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15. 2ND INNINGS PVT. LTD.
carpenters who would provide the required service in a timely fashion without asking for tips
from the customers would be a challenge to overcome. In order to mitigate this risk, 2nd
Innings
would be paying them double of their regular visit costs to maintain their good service. In the
later years, 2nd
Innings can look into the option of employing a team of plumbers, electricians
and carpenters who would be sufficiently trained in dealing with the elderly customers. We can
also include the details of these servicemen on our websites to ensure that the customers are
well aware of them and hence do not entertain unwanted guests at home. We would also need
to provide a unique photo ID to each of our Service Associates which would be communicated
to the customer as soon as they request the service and to their children based abroad. This
would maintain transparency of operations and help in building trust with our customers.
As seen from the financial projections, 2nd
Innings would be able to break
even within a span of 3 months which ensures that a healthy Liquidity is maintained in the
business. This is important from the perspective that if the business is not received well by the
customers and even after repeated attempts to salvage it, there is a need to dissolve it, there
should not be exemplary liabilities to pursue. Keeping its fixed costs low would be a key task to
maintain steady cash flows and reducing solvency risks.
10. Venture Feasibility Study –
Based on the O’Connor score card for measuring the feasibility of an entrepreneurial venture,
we can assign the following points for the various categories –
a. Product – Points given 7 since it is a unique business concept.
b. Intellectual Property – Points given 8 since it requires the set-up of only a website and
hence does not require applying for a patent.
c. Market – Points given 5 since it is a moderately urgent market and there are substitute
services available.
d. Industry – Points given 7 since it is a lucrative industry to establish a business venture
in and has yet not been explored much in the city of Lucknow.
e. People – Points given 9 since this venture has been my brain child since my MBA days
and both the managers are extremely passionate about it.
f. Entrepreneurial Managers’ connections – Points given 7 since both the managers bring
a glut of experience and corporate connections which could be leveraged to help
expand the business.
g. Cost Structure – Points given 8 since given the financial plan, there seems to be a very
low break-even point and steady cash flows for operations.
h. Cash cycles – Points given 8 since there is a very low Account Receivables days and
thus an efficient cash cycle.
i. Revenue Model – Points given 8 since the service requires repeat sales and thus
continuous revenue generation.
Based on this score card we get a total points of 67 which make it a feasible venture to start
with
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16. 2ND INNINGS PVT. LTD.
11. Future Growth Plan –
2nd
Innings intends to grow slowly yet steadily and increase its customer base
in Lucknow city. The venture plans to set up an office space after two years and further develop
its website to make it more appealing and family friendly which aligns with the firm’s values.
However, we can also look into more extra-curricular activities for our customers like group
picnics and outings where the elderly couples can meet each other and thus enhance their social
circle. We can also look into the option of setting up yoga sessions and laughter clubs for our
customers thus expanding our service base. However, it should be remembered that any future
growth plans require a steady increase in customer base and hence a worst case scenario should
always be kept in mind before taking over optimistic decisions. Sustainability is key to the
success of such a venture and hence expansion plans should not be over optimistic.
References
Srivastava, M. R., Sachan, B., Gupta, P., Bhardwaj, P., Srivastava, J., Bisht, A., & Choudhary,
S. (2013). Morbidity Status and Its Social Determinants among Elderly Population of
Lucknow District, India. Scholars Journal of Applied Medical Sciences.
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