Entrepreneurship Course - Business Plan - Tiffins 'R' Us

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This Business Plan was submitted as part of the curriculum requirements in August 2009. The idea still holds, the numbers need to be re-verified. Anyone game?

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Entrepreneurship Course - Business Plan - Tiffins 'R' Us

  1. 1. Pulkit Bhatnagar b.pulkit@gmail.com Entrepreneurship & Small Business Mgmt Entrepreneurship & Small Business Management Business Plan Presentation Tiffins ‘R’ Us Pulkit Bhatnagar D03218464 b.pulkit@gmail.com 404.403.2980 This presentation is prepared towards partial fulfilment of the course: GM560 – Entrepreneurship & Small Business Management being instructed by Dr. Aaron Brody for the July 2009 session at the Gwinnett campus of Keller Graduate School, DeVry University. The logo for Keller is reproduced here as a student and not an endorsement by the School. The views expressed in this report are solely of the author and without any intention of infringement or harm. Images have been sourced through Google and sources can be included if pointed out. Copyright © 2009 Pulkit Bhatnagar as author for this report. Dr. Aaron Brody GM 560 August 17, 2009
  2. 2. Pulkit Bhatnagar b.pulkit@gmail.com Entrepreneurship & Small Business Mgmt  An Indian Business in an American Setting.  The ‘Tiffin’ Concept  Snapshot of the Business Idea  Significance of the Website  Tiffins ‘R’ Us – Business Plan  Identification of Gap  Vision, Business Model, Long Term Direction  Target Market  Marketing Mix  SWOT  Financials AgendaAgenda
  3. 3. Pulkit Bhatnagar b.pulkit@gmail.com Entrepreneurship & Small Business Mgmt An Indian Business in an American Setting…
  4. 4. Pulkit Bhatnagar b.pulkit@gmail.com Entrepreneurship & Small Business Mgmt  In India, tiffin refers to a packed meal prepared for working Indian men by their wives to be eaten at work, or for school children by their mothers.  Professional Tiffin systems are quite popular in India. In fact, one of the world’s experts in Supply Chain and Logistics is the “Mumbai dabbawala system).  5000 employees deliver over 200,000 tiffins every day using green/local transportation.  Error rate: 1 in 16 mil. (6 Sigma certified)  Service at < $ 10 per month.  Featured by CNN, BBC, Forbes, Economist, NY Times, and many business schools.  Mumbai Dabbawala video  In India, tiffin refers to a packed meal prepared for working Indian men by their wives to be eaten at work, or for school children by their mothers.  Professional Tiffin systems are quite popular in India. In fact, one of the world’s experts in Supply Chain and Logistics is the “Mumbai dabbawala system”.  5000 employees deliver over 200,000 tiffins every day using green/local transportation.  Error rate: 1 in a mil. (6 Sigma certified)  Service at < $ 10 per month.  Featured by CNN, BBC, Forbes, Economist, NY Times, and many business schools.  Mumbai Dabbawala video The ‘Tiffin’ ConceptThe ‘Tiffin’ Concept
  5. 5. Pulkit Bhatnagar b.pulkit@gmail.com Entrepreneurship & Small Business Mgmt A Simplified SnapshotA Simplified Snapshot Business Idea User Browses Website & Places Order Selected Vendor Prepares Order Hands Over to Delivery Home Delivery User has Meal and Rates the Vendor Input Mechanism: Website – Orders; Payments; Feedback Delivery Mechanism: Vans / Cars – Food; Promotional Material Food Delivery to pay for ALL Expenses. Additional Revenue Streams add to bottomline directly. (Alternative Advertising/Promotion Media with direct access to consumer)
  6. 6. Pulkit Bhatnagar b.pulkit@gmail.com Entrepreneurship & Small Business Mgmt Selected Restaurant Pricing Details Checkout/ Payment Options Other things of Interest Rate the Supplier Advertising Significance of the WebsiteSignificance of the Website What should I order? Let me log-on to Tiffins R Us where I can order according to my preference. Tiffins R Us Returning / New Customers Food / Ongoing Schemes Featured/ Sponsored RestaurantsRest’nt 1 Rest’nt 2 Rest’nt 3 Vendor 4 Vendor 5 Provide Feedback / Rate a Supplier Advertising Advertising Tiffins R Us Returning / New Customers Food / Ongoing Schemes Featured/ Sponsored RestaurantsRest’nt 1 Rest’nt 2 Rest’nt 3 Vendor 4 Vendor 5 Provide Feedback / Rate a Supplier Advertising Advertising Customer-end
  7. 7. Pulkit Bhatnagar b.pulkit@gmail.com Entrepreneurship & Small Business Mgmt Tiffins ‘R’ Us – The Actual Business Plan
  8. 8. Pulkit Bhatnagar b.pulkit@gmail.com Entrepreneurship & Small Business Mgmt Identification of GapIdentification of Gap  South Asians: Around 200,000 Indians, Pakistanis, Bangladeshis, Nepalese, and Sri Lankans in Atlanta. Students and Working professionals on 1 – 3 projects. Hotspots: Alpharetta, Decatur and Lilburn / Gwinnett, Dekalb, Fulton  Food / Meals: Spend $ 7 - $ 15 per meal; eat-outs 8-10 times a week. Remaining meals are cooked at home or skipped. Don’t mind paying a small premium (~ $ 9-10 overall) if food is delivered.  Restaurants: Family-owned units; Generally operate with decent profits. Not interested in starting own deliveries but interested in partnering.
  9. 9. Pulkit Bhatnagar b.pulkit@gmail.com Entrepreneurship & Small Business Mgmt Vision, Business ModelVision, Business Model  Vision: To allow access to food according to your taste buds.  Business Model: Select a target region with high density of South Asians; partner with local Indian restaurants/chefs & offer home delivery services; allow users to create their profiles on a Web 2.0 interface and place their orders (longer duration get better discounts); have 3-4 vans for delivery per region.  Long Term Direction: To establish a chain of delivery mechanisms in countries other than South Asia (like USA, UK, Canada, Australia), which have a large population of South Asian students and professionals. To be the next ‘localized’ Amazon.com specifically for food delivery services.
  10. 10. Pulkit Bhatnagar b.pulkit@gmail.com Entrepreneurship & Small Business Mgmt Target MarketTarget Market Details:  ~ 1500 South Asians.  20 sq. miles Area.  Four Indian restaurants.  Zero with Home Delivery.  Nearest to Emory: 3 mi  Nearest to GT: 3.5 mi  Strong Local Competition  Good MARTA connectivity  Parking issue in Mid-town  18 Indian restaurants in 50 sq. miles coverage.
  11. 11. Pulkit Bhatnagar b.pulkit@gmail.com Entrepreneurship & Small Business Mgmt Marketing MixMarketing Mix  Place / Distribution:  20 sq. miles between GT, Midtown, Emory, North Druid  Expansion in year 2 to Alpharetta.  Distribution: Customer to order, pre-pay via Website.  Distribution: Supplier free to source own RM.  Distribution: Day-routes to be decided each morning.  Delivery of order by venture. Driver will be venture employee and vehicle will be venture asset.  Prepaid transactions – hence no money transfer issues  Promotion:  No expensive campaigns.  Flyers distribution; College Bulletin Boards placement.  Marketing Collateral like T-Shirts and Bumper stickers.  M-1 soft launch with 8-10 known contacts: Free Meals in return for Buzz Marketing.  M0 launch scheme: Long Term Committers discount.  Referrals scheme – discounts for people introducing their friends.  Product:  Delivery Mechanism from Kitchen of Supplier to Doorstep of Customer.  Interactive Web 2.0 website.  Advertising opportunities on the Website and through in- tiffin promotional catalogs.  Price:  Cost + Flat Margin component model; Pre-paid system  Amount billed per order + 40% of billed amount  40% based on estimates to cover delivery costs and required margins  Discounts to be offered for Higher-priced orders or longer-duration orders  Avg Est: Cost: $ 7 per meal. Price: $ 9 per meal.  Advertising Pricing still to be worked out but expected to grow from $400 in Month 1 to $ 1500 by Month 6.
  12. 12. Pulkit Bhatnagar b.pulkit@gmail.com Entrepreneurship & Small Business Mgmt  Threats:  Low entry barriers.  Restaurants can begin own delivery service.  People can start to cook for themselves.  Pre-packaged and Existing Options Available  Unforeseen legal & regulatory issues.  Unforeseen financial expenses; since external funding not sought.  Atlanta may not remain a preferred study/work location.  Weaknesses:  Lack of experience (regulatory, marketing, logistics, design).  Assumption that social relationships will translate into business relationships. SWOTSWOT  Opportunities:  Un-served South Asian population (incl. cooking-averse target segment).  Inexpensive media (similar target mkt).  Opportunity to start small, make mistakes, learn and correct to have a better business model while scaling up.  Additional revenue generating opportunities (like the website, mobile delivery vans, in-tiffin promotional catalogs).  Bootstrap financing and viral marketing opportunities.  Strengths:  Low start-up costs; financial independence.  Strong relationships with incumbent restaurant owners.  Easy access to student population of G. Tech & Emory (Essential to establish a regular following/customer base).  Openness to learn from others advice and experiences.  Passion to have own venture and succeed in it.  Ability to be practical to limit losses.
  13. 13. Pulkit Bhatnagar b.pulkit@gmail.com Entrepreneurship & Small Business Mgmt Pre-Launch FinancialsPre-Launch Financials all figures in USD, unless indicated Avbl Price Maximum Expected Optimistic Remarks Delivery Mechanism * Car 14,695 16,000 12,000 9,000 Ford Focus 2008 * Scooter 2,000 2,500 1,800 1,200 JCL-MP250A Financed through Bank of America SBA Financing Options at 10% (http://www.bankofamerica.com/small_business/business_financing/index.cfm?template=sba_financing) Website Domain Name Registration 1,000 1,000 400 100 Free Resources available Website Construction 6,000 6,000 4,500 1,000 For Security, partner with Paypal & Google Finance Done through friends in India; local Student friends; Software experts Necessary Expenses Legal Fees 5,000 5,000 5,000 3,000 Terms of Use for website, other legalities * Insurance (GEICO) 500 500 400 300 Vehicles, Website, Life, Business, Liability Marketing Expenses Collateral Development 1,000 1,000 700 400 Flyers/Explanatory Docs for Vendors, Investors Travel and Meeting 1,000 1,500 1,200 700 Gas, MARTA ($50 p.m. card), Meals Laptop / Mobile 900 1,000 850 650 Laptop: 550; Mobile: 100 Financed through Bank of America SBA Financing Options at 10% (http://www.bankofamerica.com/small_business/business_financing/index.cfm?template=sba_financing) TOTAL 32,095 34,500 26,850 16,350 Initial Investment Required $ 16,000 - $ 35,000 Depending on Finance Availability, initial investment can be channeled as per priority/requirement To recover $ 35,000 at $ 2 per meal margin and 350 days per work year, indicates 50 deliveries per day. That is not viable for one person to handle; hence at least one more employee is required. Therefore * - additional Car will be purchased on achieving required volumes.
  14. 14. Pulkit Bhatnagar b.pulkit@gmail.com Entrepreneurship & Small Business Mgmt Year 1: Month-wise P&LYear 1: Month-wise P&L
  15. 15. Pulkit Bhatnagar b.pulkit@gmail.com Entrepreneurship & Small Business Mgmt Projected Income StatementProjected Income Statement 2010: Atlanta, 1 region 2011: Atlanta, 2 regions 2012: Atlanta, 2 regions Seattle, 1 region OR San Fran, 1 region OR Houston, 1 region all financials in USD 2009 2010 2011 2012 Revenues Operations - 413,145 826,290 1,239,435 Advertising - 15,800 23,700 31,600 Revenue generated - 428,945 849,990 1,271,035 Expenses Operations - 321,335 610,537 899,738 Expenses incurred - 321,335 610,537 899,738 Gross Profit - 107,610 239,454 371,297 Insurance Premiums 400 8,800 18,480 30,800 Marketing Expenses 2,000 5,050 9,595 17,675 Salaries & Wages 2,480 46,720 116,800 163,520 Communication Expenses 200 2,400 4,800 8,400 Maintenance Expenses - 1,200 1,800 4,200 Unaccounted / Misc. Exps. 5,000 6,200 9,300 18,600 Depreciation Expenses 400 8,400 16,800 25,200 Total of 'Other Expenses' 10,480 78,770 177,575 268,395 Operating Profit 10,480- 28,840 61,879 102,902 Interest Expenses 250 3,000 6,000 12,000 Profit Before Tax 10,730- 25,840 55,879 90,902 Tax Expenses - 9,280 16,764 27,271 Profit After Tax 10,730- 16,560 39,115 63,631
  16. 16. Pulkit Bhatnagar b.pulkit@gmail.com Entrepreneurship & Small Business Mgmt Projected Balance SheetProjected Balance Sheet all financials in USD 2009 2010 2011 2012 Current Assets Cash 4,920 26,197 80,379 168,333 Accounts Receivable - 4,289 8,500 12,710 Prepaid Expenses - 2,145 4,250 6,355 Total Current Assets 4,920 32,631 93,129 187,399 Fixed Assets Cars and Scooters 14,000 27,700 48,200 59,400 less Accumulated Depreciation 300 7,500 16,800 25,200 Laptop / Mobile 1,000 900 - - less Accumulated Depreciation 100 900 - - Total Fixed Assets 14,600 20,200 31,400 34,200 Total Assets 19,520 52,831 124,529 221,599 Current Liabilities Accounts Payable - - 4,250 6,355 Accrued Wages / Salaries Payable - - - - Current Portion of Long Term Loan - 5,000 7,000 11,000 Accrued Interest Payable 250 3,000 6,000 12,000 Total Current Liabilities 250 8,000 17,250 29,355 Long Term Liabilities Bank loan from BofA / SBA - Cars/Scooter 14,000 25,667 51,667 75,667 Bank loan from BofA / SBA - Other Exps 16,000 13,333 10,667 8,000 Total Long Term Liabilities 30,000 39,000 62,333 83,667 Total Liabilities 30,250 47,000 79,583 113,022 Owner's Equity - 10,730- 5,830 44,945 Add: Retained Earnings 10,730- 16,560 39,115 63,631 Total Owner's Equity 10,730- 5,830 44,945 108,577 Total Liabilities and Owner's Equity 19,520 52,830 124,529 221,599 LOAN REPAYMENT SCHEDULE Loan TakenAmount 2010 2011 2012 2013 2009 14,000 2,333 2,333 2,333 2,333 2010 14,000 2,000 2,000 2,000 2011 28,000 4,000 4,000 2012 28,000 4,000 2009 16,000 2,667 2,667 2,667 2,667 2014 2015 2016 2017 2018 2019 2,333 2,333 2,000 2,000 2,000 2,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 2,667 2,667
  17. 17. Pulkit Bhatnagar b.pulkit@gmail.com Entrepreneurship & Small Business Mgmt Sources: Indian Trade/Business Associations in Atlanta Restaurant Owners Google Amazon Wikipedia Youtube www.Mydabbawala.org Thank You

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