ENTREPRENUER INTERVIEW OF METRO.COM PRIVATE LIMITED (CO.

FOUNDER, Kunal Pandya)

PREPARED BY: RASIK BHANDERI (09034) BHAGWATI CHAUDHARY (09007) BHARAT KOTADIYA (09008) AMIT LUVANA (09047) SUBMITTED TO: SWATI MEHTA DATE: 28/10/2010

G. H. PATEL P.G. INSTITUTE OF BUSINESS MANAGEMENT SARDAR PATEL UNIVERSITY VALLABH VIDYANAGAR- 388120. ANAND

PREFACE

As a part of the curriculum activities, every student has to undergo various practical aspects of the subjects to get an edge on the subject. In the similar context, the college has assigned to prepare a business plan to attract investors to invest in your business. This report contains brief about the activities we performed for the preparation of this plan.

This report aims to provide entire information regarding opening of a Book store, the market feasibility, financial feasibility, technical feasibility and other parameters regarding to it.

The following page also contains the various reasons attracting why investors should invest into our organization.

ACKNOWLEDGMENTS

We would like to thank all the people who helped us for making this research possible.

Firstly, we would like to express our sincere gratitude towards the Professor H. J. Jani for allowing us to conduct this study.

We would also like to appreciate the tradition of our Institute, G.H.P.I.B.M., which encourages such activities. We gratefully acknowledge the value guidance and useful suggestion offered by faculties of my college.

We would like to thank the entire GHPIBM Team, who during the study helped us with their valuable thoughts and inputs.

Introduction
An entrepreneur is one of the important segments of economic growth. Basically he is a person responsible for setting up a business or an enterprise. An entrepreneur is the person who does not follow the ordinary course. The word comes from a French word, which means an undertaker. In the ancient times the people who collected the taxes were called entrepreneur. But in the modern times economist like Joseph Schumpeter called entrepreneurs the corner stone of economic development and prosperity in an economy. Modern day America is a live example right from the Rock Fellers to Henry Ford. In the study of New Enterprise management we study the various aspects of how to become a successful entrepreneur. Preparing a business plan is one of key factors of attracting investors to invest in your business venture. Without a proper business plan it would be very hard for a systematic procedure to organize the entire firm. So studying this subject with a pragmatic approach is very necessary. So here in our report we are presenting a business plan of opening up a Book store to attract investors to invest in our store. The name of our organization is Krishna Book Store. Krishna Books is a start-up used bookstore in the Vallabh vidyanagar, nana bazaar area. It is the goal of the company management to acquire local market share in the used bookstore industry through low price, a dominant selection of products, a competitive variety of services including a buyback/trade program and hard to find book search, plus a relaxing, friendly environment that encourages browsing and reading.

OBJECTIVES

1. To provide books and magazines for all age groups. 2. To provide better services to the customers. 3. To provide better sitting facility to the customers for reading. 4. To provide silent and cozy environment to the customers. 5. To provide customers a friendly and homely environment for reading. 6. Earn approximately Rs. 85, 00,000 in sales by Year. 7. Pay owners a reasonable salary while running at a profit. MARKET ANALYSIS We believe that education is a key element for the growth of the country. Government are providing budget in manufacturing educational institution in different discipline in towns and villages. So, the business of book store will never decline as the people needs books in order to complete there education as well as to face different competition to get their job in their respective field. So according to the previous market record the business of book store are growing every year and there will be increase in the market share of books in future too. Our market is facing a decline in growth over the past two years. This is attributed to the overall weak economy. Book store industry sales rose only 3.6% for 2002 whereas overall Indian retail sales grew by 4.3%. Management believes that the economic slump may be an advantage to the used bookstore industry. As customers cut back on purchasing, used bookstores will look more attractive to customers who still wish to purchase books. Therefore, management believes this may be a good time to get into the industry and gain market share. Used bookstores serve the entire purchasing population of its geographical area but focuses on the customer who desire to purchase books/music at a discount price and, with regards to books, often do not see a long-term attachment to the product. Our main competitors are: Barnes & Noble (which holds approximately 22% nationwide market share), Borders (which holds approximately 15%), and other local new and used bookstores.

COST OF PROJECTS: The cost of project has been estimated at total Rs. 80, 00,000. Furniture Air conditioner 10,00,000 1,60,000

C.C. Camera Computer printer Other fixed expenses Preliminary & Preoperative Expenses Working capital margin :

50,000 50,000 5,000 30,000 2,00,000 65,05,000

MEANS OF FINANCE

MEANS OF FINANCE AMOUNT RS. 1 PROMOTERS CONTRIBUTION 60,00,000 2 LONG TERM LOAN 20,00,000 TOTAL 80,00,000
CAPITAL STRUCTURE MR. RASIK BHANDERI MR. BHAGWATI CHAUDHARY MR. BHARAT KOTADIYA MR. AMIT LUVANA BORROWED CAPITAL Preliminary and preoperative Expenses: Legal Expenses and security Fees (Deed) Project Report Preparation Establishment Expenses Electrification and Deposit Inauguration Expenses and other Expenses Man power requirements: Sr. No. 1. 2. 3. Particulars Partner Cum Officer Peon Swiper Nos. 2 2 1 Rs. Rs. Rs. Rs. Rs. Amount 1,50,000 12,000 1,500 12,000 25,000 Yearly Rs. 2,40,000 72,000 9,600 15,00,000 15,00,000 15,00,000 15,00,000 20,00,000

Salary per month Rs. 10,000 3000 800

Infrastructure Facility: (Utilities and Overhead) Sr. No. 1. 2. Particulars Electricity Transportation Monthly Rs. 1,500 2000 Yearly Rs. 18,000 24,000

Administrative Expenses: Sr. No. 1. 2. 3. 4. 5. 6. Particulars Stationary and Printing Postage Telephone/Telegram/Fax Travelling Office Rent Miscellaneous Total Rs. Monthly Rs. 1,000 500 1,000 1,000 15,000 500 19,000 Yearly Rs. 12,000 6,000 12,000 12,000 1,80,000 6,000 2,28,000

Analysis of Break Even Point: Sr. No. A. B. Particulars Sales Realisation Variable Costs - Books, Magazine, etc - Stationeries -sweepers Total Variable cost Fixed Costs -Repaire and maintenance -Rent -Taxes Amount Rs. 45,00,400 15,50,000 9,600 60,60,000 50,000 1,80,000 Total Amount Rs. 90,00,000

C.

Strategy and Implementation Summary Krishna's competitive edge will be the lower prices we will charge our customers and the dominant selection above what our used bookstore rivals can offer. This is based on management's industry knowledge, greater capitalization and excellent location. One of the most critical element of Krishna's success will be its marketing and advertising. In order to capture attention and sales our company will use prominent signs at the store locations, billboards, media bites on local news, and radio advertisements to capture customers. We expect an average 4.5% increase in sales during the first three years as we establish ourselves in the community. After that we assume a much higher average growth of between 10%-15% growth over the next five years with growth then tapering off to the industry average of 2.5% from year to year. These figures may seem very high, but considering the level of initial sales and the growth possibilities, management actually considers this to be conservative.

Future Expansion 1. Open our chain stores in various cities of Gujarat like Vadodara, Surat and Ahmedabad.

2. To conduct various promotional schemes in these cities. 3. Diversification through theme lounges. We plan to open our chain stores in various cities of Gujarat like Vadodara, Surat and Ahmedabad. For this we will be conducting various promotional schemes in these cities to make our presence feel among the people. Also in our prevalent store in Anand we will be opening cafe coffee day centre and a separate section of kids so they can make themselves comfortable and play and study there.

CONCLUSION Looking at the present scenario of the current market position everyone including youth and fall age people are interested in getting updated through books and music. Our theme book store Krishna would be a very rare combination that provides books along with good ambience to sit and read. From our financial analysis it is clear that we are making huge profit and it is increasing year on year. Accordingly, we are planning our future expansion by capturing new markets which will enhance our market performance.

2. PERSONAL INFORMATION ABOUT PROMOTERS: Name: Rasiklal J Bhanderi Address: S-8, Param Appartment, B/H Isckon Temple, V. V. Nagar-388120. Tele. Nos.: (M)- 09726129697 Date of Birth: 12/09/1983 Age: 26 Years Education qualification: B.B.A. (Marketing) Family back ground: Your strengths in the field: Experience to the market of more than five years. Name: Bhagwati Prasad Chaudhary Address: D-45, University Staff Colony, V.V. Nagar-388120. Tele. Nos.: (M)- 09537918192 Date of Birth: 08/04/1984 Age: 26 Years Education qualification: B.E. (Electronics & communication) Family back ground: Your strengths in the field: Name: Address:

Tele. Nos.: Date of Birth: Education qualification: Family back ground: Your strengths in the field: Name: Address: Tele. Nos.: Date of Birth: Education qualification: Family back ground: Your strengths in the field:

Age:

Years:

Age:

Years:

Finding the Initial Inventory When you are looking to start a bookstore business, the first thing you must look for is where your initial inventory will come from. Getting your initial inventory for a used bookstore can be both fun and inexpensive and it doesn't have to eat away at your cash flow. First you should check with your local library; libraries are always looking to get rid of extra or outdated stock. Make a deal to give a percentage of your profits to the library as a donation and you can guarantee yourself a supply of stock. Another place to find initial inventory is your home; this is especially true if you have a huge collection or duplicates. Family members can also help with this. You can also hit the garage sales and flea markets. These people are always looking to get rid of items, and if you wait until near the end of the day and make an offer for the entire lot, usually you can get it. You dont need lots of books to start; try aiming for 250 and spending under $1 per book. Finding the Fixtures The next large expense, before finding the location, is the fixtures. These do not need to be bookshelves to start. You can start a bookstore business with shelves, tables, crates or counters. Get creative in this area and it will help make your store both inexpensive and creative. Find fixtures the same way you look for books. Libraries and stores often look to replace displays. Tables and crates can be found at yard sales and flea markets. Paint and decorative items can always make everything match. Imagination is free and can go a long way in making the store inviting. Finding the Fixtures The next large expense, before finding the location, is the fixtures. These do not need to be bookshelves to start. You can start a bookstore business with shelves, tables, crates or counters. Get creative in this area and it will help make your store both inexpensive and creative. Find fixtures the same way you look for books. Libraries and stores often look to replace displays. Tables and crates can be found at yard sales and flea markets. Paint and decorative items can always make everything match. Imagination is free and can go a long way in making the store inviting. Storage Issues When starting a used bookstore, one of the biggest concerns when first starting out will be storage. Do not rent storage. Use basements, attics, garages, and spare patios. Stack

everything in boxes. Have the books organized by category if possible. This will help you with setting up and selling later. Another issue you will have when you open the store is where to put the piles of books you will be getting from people bringing in their used books. This will be not only your biggest method of gathering inventory, but your biggest use of space. If not done properly, storage can become a nightmare. Finding the Site This will be the largest initial startup cost for your bookstore. Go for the smallest space you can start with. If you find a space under 1000 square feet take it. Consider the possibilities of expansion later; especially if you find space in a strip center or mall. Small spaces which are too small for other types of stores are excellent for a bookstore. Look for landlords which have long standing unused small spaces; make a deal to do renovations in exchange for security or first month's rent. Offer a percent of the income for lower rates if you think it would work. Shop around before settling, and you can still find a place for $500. If you live in a commercial area, consider rezoning your garage or porch. Marketing When you start a bookstore business, marketing is important, but doesnt need to be expensive. You can get much of it for free if you look and use your brain. Remember the library you made a book deal with? Use them for marketing and getting the word out. Use huge window-sized signs in your new store to announce yourself. Make your own flyers, and pass them out to all of the schools; this is especially useful when you work with colleges and college bookstores. Students always look for cheap textbooks. Dont buy advertising when opportunities are all around you.

2010

2011

2012

2013

2014

SOURCES OF FUNDS Shareholders' Funds a) Share capital rasik bhanderi- 15,00,000 bhagwati chaudhary- 15,00,000 amit luvana- 15,00,000 bharat kotadiya- 15,00,000 b)Reserves and Surplus Loan Funds a) Secured Loan b) Unsecured loan Current Liabilities a) Accounts Payable Total Application of Funds Fixed Assets Telephone connection Interior Decoration a) Gross Block Less: depreciation Net Block Investments Current Assets : a) Inventories b) Cash and Bank Balances c) Loans and Advances i) Rent

60,00,000 7,86,726

60,00,000 11,50,850

60,00,000 1726261

60,00,00 0 26,37,93 5 13,87,24 8

60,00,000 3881334

10,00,000

16,80,000

15,43,200

12,09,463

5,07,500 62,94,226

6,34,375 74,65,225

7,30,415 79,99,876

8,35,835 8758403

10,22,595 10113392

1,500 140,000 299000 29,900 2,69,100

1500 140000 269100 26910 242190

1500 140000 242190 24219 217971

3000 140000 217971 21797 196174

3000 140000 196174 19617 176557

37,17,900 21,27,226

36,94,500 33,48,535

31,84,788 4,417,117

28,82,25 6 5,499,97 3 1,80,000

20,17,668 7,739,167

1,80,000

1,80,000

1,80,000

1,80,000

TOTAL ASSETS

62,94,226

74,65,225

79,99,876

8758403

10113392

INCOME STATEMENT
Particulars Revenues Books, Magazine, etc Stationeries Total Cost of Sales -Repair and maintenance -Utility and Overhead Expenses -Taxes -Insurance -Salary and Wages -Administration Expenses -Depreciation TOTAL COS Operating Income -Interest on Term Loan Net Profit Income Tax Flat Rate @30% Education Cess @2% ( Flat Value) Secondary and higher secondary education 15,12,000 6,48,000 21,60,000 17,12,000 6,60,000 23,72,000 20,00,000 6,75,000 26,75,000 23,50,000 6,95,000 30,45,000 26,60,000 7,10,000 33,70,000 2010 2011 2012 2013 2014

50,000 60,000 1,50,000 30,000 3,21,600 66,000 1,63,430 8,41,030 13,18,970 2,40,000 10,78,970 3,23,691 6474 3236.91

55,000 66,000 1,57,500 35,000 3,53,760 72,600 82,875 8,22,735 15,49,265 2,70,000 12,79,265 3,83,780 7676 3837.80

60,500 72,600 1,65,375 40,000 3,89,136 79,860 70,444 8,77,915 17,97,085 2,40,000 15,57,085 4,67,125 9342 4671.25

66,550 79,860 1,73,644 45,000 4,28,050 87,846 59,877 9,40,827 21,04,173 2,10,000 18,94,173 5,68,252 11365 5682.52

73,205 87,846 1,82,325 50,000 4,70,855 96,630 50,895 10,11,756 23,58,244 1,80,000 21,78,244 6,53,473 13,069 6534.73

cess@1% (Flat value) plllTotal Income tax Net Profit (PAT)

3,33,401.9 1 7,45,568.0 9

3,95,293.8 8,83,971.2

4,81,138.25 10,75,946.75

5,85,299.52 13,08,873.48

6,73,076.73 15,05,167.27

2010 SOURCES OF FUNDS Shareholders' Funds a) Share capital Bhagwati pd chaudhary15,0,00,00 Rasik bhanderi- 15,00,000 Amit luvana- 15,00,000 Bharat kotadiya- 15,00,000 b)Reserves and Surplus Loan Funds a) Secured Loan b) Unsecured loan Current Liabilities a) Accounts Payable Total Application of Funds Fixed Assets Furniture Other Fixed Assets 20,00,000 60,00,000 0

2011

2012

2013

2014

60,00,000 7,45,924.13 5 18,00,000

60,00,00 0 9,48,322 16,00,00 0

60,00,00 0 12,45,54 4 14,00,00 0

60,00,000 16,35,466 12,00,000

1,80,000

2,00,000

2,25,000

2,55,000

2,85,000

6,50,000 3,44,650

6,50,000 3,59,650

7,00,000 3,70,000

7,00,000 3,85,000

8,00,000 4,00,000

Investments Current Assets : a) Inventories 2,55,0250 3,05,0250 3,55,025 0 4,05,025 0 4,55,0250

b) Cash and Bank Balances

36,77,018

40,44,720

44,49,19 2

48,94,11 0

53,83,522

TOTAL ASSETS

4894226

5267225

5803426

6661018

8050392