BUSINESS PLAN

OF
FRANCHISEE
MART




Executive Summary

Website: http://www.franchiseemart.com/
This report reflects the financial analysis of Franchisee
Mart new brand of CNPL. The main purpose of this
company is to makes life easier as it provides various
options in which everybody can start up his/her own
business and advertise it through internet portals and
mobile portals.
Franchisee mart clients include start-up Business owners
who are planning to start a new business and established
Business owners who own and operate small to medium
sized businesses.
Main objective of this project is to give a clear vision
about the new company (FM) i.e. where the company will
be in forthcoming years through profit projection of 5
years.



Company Description

Franchisee Mart
Franchisee Mart is an internet marketing consulting company in India. It
helps qualified investors in selecting the right business opportunity. FM
is a young company of creative neurons, Singapore which is specialize
in offering online business and its solutions to various investors who
wish to invest in new and prevailing online businesses. Moreover, we
had experience in every industry segment like:
Education
Media
Travel & Tourism
Automobile
Retail
Website & Digital marketing
Job portal
NGO
Health & Fitness
Pet shop
Real estates





About the Group
FM(Franchisee mart) is the one of the dot.com of RIPL(Reneyfrancis
International private limited), India. Reneyfrancis International private
limited was registered on 13 March, 2012. This is associates partner of
creative neurons (CNPL), Singapore.

OUR MISSION:
Delight every customer so they want to contact us further

OUR VISION:
To be a recognized institution that provides best-of-class Internet
marketing business solutions


Main products/services we are offering:

Business advertising through (i) e-commerce portal and (ii) m-
commerce portal.

Web design and development.

Franchise consultancy.

Industry Analysis

What is franchising?
A franchise is basically a right granted by a company (known as
franchisor) to an investor (known as franchisee) to market the
companys goods or services within a certain territory or
location for a percentage of gross monthly sales and royalty fee.
It is:
A right to the name, system and knowhow of a business
A process to duplicate the proven business system that is
tried and tested
A mode to establish the franchise network for faster growth
and expansion
The ownership and the operation of the franchised outlet
by the franchisee
An ongoing development of the brand

Popular industries for franchising

I. Home Based Franchises
II. Women's Franchises
III. Business Services Franchises
IV. Veteran's Franchises
V. Automotive Franchises
VI. Business Consulting Franchises
VII. Business Opportunities
VIII. Children's Franchises
IX. Cleaning Franchises
X. Computer & Internet Franchises
XI. Education Franchises
XII. Fitness & Beauty Franchises
XIII. Food Franchises
XIV. Healthcare & Senior Franchises
XV. Home Services Franchises
XVI. Hotel & Travel Franchises
XVII. International Franchises
XVIII. Pet Franchises
XIX. Photography Franchises
XX. Real Estate Franchises
XXI. Retail Franchises
XXII. Tax Preparation Franchises
XXIII. Vending Franchises
XXIV. Master/Area Developer Franchises

Experts claim that franchising is the fastest growing
retailing format in the world. The International Franchising
Association (IFA) predicts that future growth in franchising
is likely to come from developing markets such as China,
India, Pakistan and Russia. This trend is expected to
accompany the rapid shifts toward market driven economic
reforms.









TARGET MARKET:
For deciding right/target customer, follow 3 steps of target marketing:
1. Market segmentation
2. Target marketing
3. Market positioning

Market segmentation: we have segmented our clients/customers on basis
of their size:
Startups owners
Small and medium scale companies owners
Large scale companies owners
Multinational companies

Target marketing:
Franchisee mart is in starting stage. Therefore, at present they have not
much resource and knowledge about the industry.
So, the largest and most logical target markets at the present are
Start-up Business Owners who are planning to start a new
business
Established Business Owners who own and operate small to
medium sized businesses

That means Franchise mart is adopting a Concentrating target market
strategy i.e. focus on small share of the large market.

Competitor analysis

Identification of competitors :

i. Franchise India
ii. Francorp
iii. Franchise mart
iv. WSI internet franchise consultant
v. AIS Media, Inc.
vi. Expetec Technology Services
vii. United Marketing Solutions
viii. Franchise Zing

Introduction:


Franchise India Holdings Limited is Asias leading
Integrated Franchise consulting Company since 1999
Franchise India holds 90% of market share in Franchising
in India
They have 15 years of experience in franchising
They have provided 1100 brands to the right kind of
opportunities that match their prole, vision and ambition


Francorp is the world leader and expert in franchise
development and consulting, with headquarters in Chicago
and 24 offices worldwide.
Francorp has 30 years of experience worldwide.
Francorp has assisted more than 10,000 companies for
expansion
But their Fee/charge of services is very high.



Franchise Mart is belong to U.S. and originally established
in 1999 and has helped hundreds of individuals find
franchise concepts through a perfected franchise matching
system.
Franchise mart is well established in Gujarat and has one
office in surat(Gujarat).




WSI is the worlds #1 franchise offering digital marketing
services to suit the needs of multiple industries.

Headquartered in Toronto (Canada)

And WSI has been developing profitable Digital Marketing
Solutions for small and medium sized businesses (SMBs)
since the mid 1990s.

They also have world largest digital marketing consultant
network.



AIS Media, Inc. is a company in the Software & Internet
industry. Its headquarters is based in Atlanta, GA.

They have 16+ year proven track record of consistently
exceeding client expectations.

They are expertise in working with a multitude of clients
including some of the worlds top brands and Fortune 500
corporations.


Expetec is a private company. Expectec meaning is
experts in technology.
This company was founded in 1996. Earlier his name was
Computer Doctor.
Expetec offers cloud solutions, managed services, network
administration, network security, business continuity and
web services. Expetec also delivers exceptional marketing,
personnel solutions, accounting, and technical support to
his franchisees and partners.

United Marketing Solutions, Inc., a direct mail company,
provides advertising and marketing solutions to small to
medium sized businesses in the United States.
The company also franchises its business, and provides
franchisees with an online portal for managing their
franchise.
United Marketing Solutions was founded in 1981 as
United Coupon Corporation and changed its name to
United Marketing Solutions, Inc. in January 1999. The
company is based in Springfield, Virginia.


Franchise Zing is an Indian consulting company. They are
active under this industry comprise diverse categories such
as retail, real estates, education, health & spa, food &
beverages, hospitality etc.
Franchise zing head office is in Saket (Delhi).
It has one branch i.e. in Lucknow.

Our key competitors:
At present, our best key competitor is WSI consultant and
AIS media because they are also offering online business
opportunity to small and mid size business.




SWOT analysis of Franchisee mart
Strengths Our team has approx. 20 years of experience in providing
online business opportunities.
FM also had experience in 15 industry segment such as
education, retail and services, health & fitness and
automobile etc.
Having large network in digital marketing.
Weaknesses New in franchise consultancy business.
Specialize only in online business
Opportunities New age generation is moving towards franchising, to
expand their business.
Franchising is the fastest growing format in the world.
Threats Strong competition from Multinational companies.
Industry is not matured enough.







Marketing Plan and Sales Strategy

Marketing Plan
Two methods through which we can advertise our services:
1. Traditional Method
2. Internet Method

Traditional Marketing utilizes strategies like: Direct sales,
TV, Radio, mail, Print advertising (like Magazines, coupon
books, billboards etc)
Internet marketing utilizes strategies like: SEO (search
engine optimization), banner ads, social media, pay per click
advertising and email marketing.

Marketing strategies which suits FM may be:
Direct mail advertising
Radio advertising
(SEO)Search engine optimization
Pay per click advertising
Email marketing

We are applying 80/20 rule to your marketing mix i.e. Invest
80% time and money into Internet marketing and 20% into
traditional marketing.

The main reason is we are in starting stage thats why we cant
take risk by spending excess money on premium advertisement
(like television). We selected above advertisement because
Direct mail and Radio (traditional method) helps us to
reach our particular group of clients. For instance, we
are interested in targeting retired employees than utilizing
the internet or social media channels is not much effective
than direct mail and Radio marketing .
Internet method is because it is less expensive and more
effective from any other traditional marketing.








Operational Plan

Following are the Operations of the FM (franchisee mart):
1. Web design and development
2. Franchise consultancy
3. Provide training and knowledge
4. Online Advertisements(e-commerce & m-commerce portal)

Since this is an online business, so office facilities is not
required. Only the computer equipment and other utilities
needed to reach the Internet and the company records.

i. Location:
Initially the business will be located at Gurgoan. As the
business grows, there is no geographic advantage to locating
it at one location over another. This is because the business is
a completely online business with no requirements to be tied
to a specific physical location. As such, it can be managed
and operated from any location.
ii. Production:
In order to conserve the funds, we will be producing our
products in-house.

Web design and development: All the web design and
maintenance will be developed in-house.
Franchise consultancy: will be given in-house.
Online advertisement portal: All advertising portal will
be developed in-house.


Management and Organization
Franchisee mart consists of the two owners/partners. They will
manage the business of FM on a day to day basis. Due to the
nature of the company, hiring additional staff will not be
necessary yet. They are the only responsible for above
operations in the business.
As it is an initial start-up period for the company the owners
will not receive salaries or benefits. Salaries will be determined
based on cash profitability and some part of the profit will be
reinvested into the company and used to expand business
further.




Financial Plan
This financial plan conservatively projects the overall finances
of the corporation. Although many of the projections are based
off pilot programs and statistical averages, the projections are
merely approximations. The success of this business is
determined by its ability to offer enough free products such that
the websites generate enough traffic to result in substantial
advertising revenue.

i. Startup Expenses and operating budget
Following are the two items which is needed to start a new
business:
1. Fixed capital
2. Cash (up to some months) to incur operating expenses
like stationery, advertisement, maintenance & other
utilities.
Franchisee mart will be funded by its owner equity of Rs
351055. The total costs involved (starting the business +
monthly operating budget) are given below:










Estimated Monthly Expenses
Item
Estimated Monthly
Expenses
(A)
Number of Months
(B)
Cash Required To Start
Business (A X B)
Advertising 28998 5 144990
Office stationery 2000 5 10000
Internet charges 1500 5 7500
Telephone charges 4000 5 20000
Other Utilities 6000 5 30000
Maintenance 1833 5 9165
Legal and Other Professional Fees 0 5 0
Miscellaneous 1500 5 7500
Total Cash Required for Monthly Expenses: (C ) INR 229,155
One Time Capital Costs
Cash Required to Start
Business
Fixed Assets
Computer/Laptop 30000
Laser printer/scanner 6000
Phone 2000
Wireless internet via Modem 1900
Power backup(Inverter+Battery) 20000
Furniture 12000
coffee maker 2000
Air conditioner + fan 32000
Other equipment 6000
Total One-Time Cash Requirements: (D) INR 111,900
Total Estimated Cash Required to Start Business: (C) + (D) INR 341,055

ii. Profit and Loss Projection (5 Years):
A projected profit and loss statement is a tool that reflects
the amount of profit or loss you expect your business to
generate in future periods.

Projected profit and loss statement will list revenues
(from sales or services provided), operating expenses
(such as wages, rent, and advertising) and net income or
loss as given below:





















Profit and Loss Projection (5 Years)
FRANCHISEE MART
1 year 2 year 3 year 4 year 5 year
Sales 768,884 INR 879,895 INR 1,138,865 INR 1,171,650 INR 1,421,273 INR
other income - INR - INR - INR - INR - INR
Total income 768,884 INR 879,895 INR 1,138,865 INR 1,171,650 INR 1,421,273 INR
Expenses
Salary (Office & Overhead) INR 0 - INR INR 192,000 INR 403,200 INR 616,320
Internet expenses INR 18,000 INR 18,000 INR 18,000 INR 18,000 INR 18,000
Stationery INR 24,000 INR 24,000 INR 30,000 INR 32,000 INR 32,000
Repairs/ Maintenance INR 22,000 INR 22,000 INR 22,000 INR 22,000 INR 22,000
Advertising 443,976 INR 539,976 INR 539,976 INR 347,976 INR 347,976 INR
Accounting and Legal - INR - INR - INR - INR - INR
Telephone expenses INR 48,000 INR 48,000 INR 56,000 INR 56,000 INR 56,000
Utilities INR 72,000 INR 72,000 INR 74,000 INR 76,000 INR 76,000
miscellaneous expenses INR 18,000 INR 18,000 INR 20,000 INR 22,000 INR 22,000
Depreciation 11,190 INR INR 10,071 INR 13,164 INR 15,748 INR 14,173
Other expense - INR - INR - INR - INR
Other expense (specify) - INR - INR - INR - INR - INR
Total Expenses 657,166 INR 752,047 INR 965,140 INR 992,924 INR 1,204,469 INR
Net Profit/Loss Before Tax 111,718 INR 127,848 INR 173,725 INR 178,726 INR 216,804 INR
Income Taxes - INR - INR - INR - INR - INR
Net Profit/Loss After Tax 111,718 INR 127,848 INR 173,725 INR 178,726 INR 216,804 INR
Expected profit projections are presented in graphical format
below, profit Projections:











0
50000
100000
150000
200000
250000
1 Year 2 Year 3 Year 4 Year 5 Year
Profit Projection
Annual Profit
iii. Cash Flow Projections
If the profit projection is the heart of your business plan,
cash flow is the blood. Businesses fail because they
cannot pay their bills. The Cash Flow Projection shows
how cash is expected to flow in and out of your
business. Expected cash flow projections are presented
in graphical format below, Cash Flow Projections.








iv. Break-Even Analysis:
Break-even analysis predicts the sales volume required to
recover the total costs. In the other words, its the sales
level that is the dividing line between operating at a loss
and operating at a profit.
It may find in terms of volume as well as in units as given
below:

Break-even point in sales



Break-even point in clients





Break even point(in sales) = Break-even client X unit price
Break even point = 10 X 76888.42
Break even point(in Sales) = Rs 768884.2
Break even point = 111900/ 76888.42- 65716.60
Break even point(in clients) = 10 clients
Break even point(in clients)= Fixed costs/*unit price - variable cost
REFERENCES

Websites
http://davp.nic.in/EM_RCAV.html
http://www.themediaant.com/business-magazines-advertising-
india
www.entrepreneur.com
www.moneycontrol.com
http://www.ebrandz.in/seo-packages.html
http://www.ebrandz.in/pay-per-click-campaign-management-
services.html
http://www.moneycontrol.com/stocks/company_info/print_main
.php


Books and magazines
Franchise World magazine
Indian e-retailer report 2013