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“Business Proposal Report on E-Service Providing

Company”

A business proposal report submitted to IIMT, Greater Noida as


a partial fulfillment of full time Post Graduate
Diploma in Management
(Marketing Management)

Submitted to: Submitted By:


The Director(Academic) Avinash Agrawal(3020)
Manish Ranjan(3042)
IIMT Gr Noida PGDM(MM)
Batch-14th
.

ISHAN INSTITUTE OF MANAGEMENT AND TECHNOLOGY


1A, Knowledge Park-I, Greater Noida, Distt: G.B. NAGAR (U.P.)
Website: www.ishanfamily.com, Email: ishan_corporate@yahoo.co.in

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ACKNOWLEDGEMENT

First of all we would like to thanks Dr. D.K. Garg, Chairman Ishan Institute of
Management & Technology, for giving me this opportunity of doing the
observation of the organization. In this business proposal we have chosen the e-
business as an E-service providing firm.

Here we take the opportunity to express my gratitude to all of them, who in some
or the other way helped me to accomplish this assignment. The assignment
cannot be completed without their assistance & cooperation.

For successful accomplishment of task apart from hard work the most requisite is
the right direction. And for a student these become the major part for the study.
The study has indeed helped me to explore more knowledgeable avenues related to
my Business and we are sure it will help me in my future.

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DECLARATION

The “Business Proposal Report on E-Service Providing Company” is the original work
done by Avinash Agrawal (MMR-3020) and Manish Ranjan (MMR-3042). This is the
property of the Institute and use of this report without prior permission of the Institute will
be considered illegal and actionable.

Signature Signature
(Manish Ranjan) (Avinash Agrawal)
Enr:- MMR-3042 Enr:- MMR-3020

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TABLE OF CONTENT

Sr. No. PARTICULARS Page No.


1 PREAMBLE 5
2 PURPOSE OF STUDY 6
3 THE BUSINESS 7-10
4 LOCATION 11-12
5 MANPOWER REQUIREMENT 13-14
6 MACHINERY REQUIREMENT 15
7 TECHNICAL KNOW-HOW 16
8 DEMAND FOR THE SERVICE 17
9 SOURCES OF SERVICES 18
10 MAJOR COMPETITORS 19
11 RECEIPT AND PAYNENT 20
12 BREAK EVEN ANALYSIS 21
13 WHY I AM INTERESTED IN THIS PROJECT 22-23
14 TAX APPLICATION 24
15 LEGAL ASPECT OF THE BUSINESS 25-26
16 CONCLUSION 27

PREAMBLE

The business proposal is of an internet based business in which we provide different


services in Delhi-NCR. It is the business of generation next in which we can see how
the technology has got advanced. By any measure, the Internet is one of the fastest-
growing commercial phenomena ever witnessed by society. Host computers, or

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servers, have exploded from 3.2 million in 1994 to roughly 56.2 million as of July
1999. During the same time period, the number of websites roared to more than 5
million from only 3,000.

The above figures itself says the success story of internet. The e-business is
the latest trend in the formats of business with a huge potential to grow in the future
because of people getting more associated with computers and internet. Our business
is to provide various convenient services to the consumers which they do not want to
give time for.

We have association with various service providers like movie tickets, bus
tickets, courier, cake, bouquets, book a cab, hotel etc. all a user has to do is to just
click on any particular service, give some information, make online payment and the
service will be availed to them at home. For this, we charge a nominal amount in
addition to the price of the services.

The business requires very less amount of investment, manpower, machinery


but the profit is very good in this. As it is a service business, we don’t need to
manufacture or distribute, all we have to do is to work as a link between actual service
provider and the consumers.

PURPOSE OF STUDY

The world around us is so competitive where we have to implement all our theoretical
as well as practical skills and knowledge. And as a management student, our aim is to
start a business or manage a business in which we can astutely and successfully take
all the business decisions managing the nitty-gritty of it. And for the survival in this

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cut-throat competition, the perfection in each and every aspect is very much required.
You cannot move ahead in any business without the basic insight of it.
The purpose of this business proposal is to learn how to
implement and use theoretical knowledge by practically doing it in the real business
world.
Main purpose of this business proposal can be listed down as below.-
 Learning to implement all the managerial skills and qualities.

 Correlating the theoretical knowledge with practical one.

 Learning to manage the whole task and delegating the authority in a fully
fledged manner.

 Improving thinking and analytical power.

THE BUSINESS

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LinkNCR.com
LinkNCR.com is a website for the residence of NCR. The company aims at linking all
the major cities and towns in NCR by providing various info based services and other
facilities. These facilities will be provided online, thus making things easier for the
general masses. The company aims at enhancing customer satisfaction thus providing
a world class experience while online. It is also eager to meet its social objectives and
endeavours.
LinkNCR.com is a new step towards providing various services at your door step in
an era when time is in scarcity and service quality standard have been raised.
LinkNCR team targets to earn not only customers satisfaction but also ‘A happy
customer’ and ‘Customer delights’.

The business is based on internet. Basically the business is all about providing various
facilities or convenience through our web site that is LINKNCR.COM.

In today’s world people have lack of time and that gives us the scope of doing
our business. Our website is a service providing website which provides services like
online ticket booking for bus, train or airlines, movie tickets in various multiplexes,
courier, delivering cakes or bouquets, gifts, share price alert, mobile recharge,
location guide etc. we will provide all the above services through the tie ups with
various companies in that particular service. Any user can come to our site and order
any of the available services for example if anyone wants to send a courier through us
then he just have to go to the courier option, place an order, the person from courier
company will come to his home to take the courier and then it will be delivered to its
destination place. Just like this anyone can very comfortably and easily use our
services. The payment mode will be through the bank a/c, ATM cards or credit cards.

To provide the above services we will have to tie up with different companies
in those services. The basic services will be provided by those companies only and we
will only a medium or a link provider to those services and charging a nominal price
for our services.

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The manpower and the machinery required is not so big because it doesn’t
involve any major physical work and all the work is to be done on the computers and
internet that is regular updating of website. Apart from these the marketing and
accounts departments are needed to be there.

The very basic requirement for e-business is to have space in web and the web
site must be designed in proper way and should be convenient and easy to access.

The services we provide are

» Online booking of movie tickets


» Online City Tour booking
» Courier Booking
» Free SMS
» Recharge your Mobile
» Rent a Car
» Rent/Let out a Property
» Home Tutor
» Sell of Gifts
» Online Bus ticket Booking
» book a hotel
» book a cab

All payments on the LinkNCR.com site is Verisign SSL secured. This means all
personal information you provide to LinkNCR is transmitted using SSL (Secure
Socket Layer) encryption. SSL is a proven coding system that lets your browser
automatically encrypt, or scramble, data before you send it to us. The same process
happens when you make travel purchases on the LinkNCR.com site.

We can’t expect to launch your website then sit back and count the money. It doesn’t
work like that. You don’t get anything for nothing, and web businesses are no
exception. It will take a good deal of time and money to realize our dreams.
We have to set aside at least the cost of the website again as a marketing budget,

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Details of business

Vision
To become no. 1 convenient service providing website and expand the business all
over the country.

Mission
We will focus on providing quality and quick services and try making every service
available on computer screens of the consumers.

Objectives
 To expand business over other big cities of country as well.
 Overall growth of organization like return on investment, employees, services
etc.
 To provide quality and quick services.
 Safeguard of personal information of consumers.
 To provide security for online payment.

Keys to success
 Quality services with minimum service charge.
 Services at the door step.
 Good range of services
 Association with reputed service providers.

Marketing and promotional strategies


People generally have a misconception that start an e-business, sit back and count
cash. But this is not at all true. One need to work really hard to succeed in business
and same goes with e-business also. Proper marketing and promotion strategies are to
be formulated for promotion of website.
The marketing of an e-business is quite different from that of other businesses.
In any other business print and broadcasting media can be very effective but in e-
business it is less effective. In e-business, we need to give our advertisement in some
of the very frequently used websites like Naukari.com, matrimonial websites,

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yahoo.com etc with the link to our website. so that the users can directly come to our
site by using that link.
We can also give advertisement with our service providers like if Big Cinema
or DTDC couriers are doing any marketing campaign, we can also get associated with
them in their campaign.

Pricing strategies
The prices of services are as they are fixed by their providersbut, when we provide the
services through our site, we charge a nominal amount for the services and the
delivery charges are extra.
For example if anybody want to send a cake in a particular address, then the price will
be price of cake+ delivery charges+ 10% service charge.

LOCATION

The location is very important factor in success of any kind of business. But, when we
talk about the e-business, the location is whole world but in our type of business, we

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can say that we are providing services to the people staying in Delhi NCR area which
includes

 Delhi
 Noida
 Greater noida
 Gurgaon
 faridabad

As we are in the business of providing convenient services to the users like online
ticket booking, movies, bill payment etc. the area of functioning is limited to NCR
region only. In all the above localities, we have our tie ups with different companies
and local dealers as well. So that the quick and quality services can be availed to the
consumers.

The head office of our company is situated in Delhi from where we operate
our business and try providing services to whole NCR.

In the e-business format, the locations hardly matters because the type of
services we are providing are not directly provided by us to the customer. In fact we
just work as a link between the companies who are providing the services to the
customers. So, our location is virtual and we are present as a web site but the
companies with who we are having our tie ups are their in all different localities .
For example we are providing movie tickets of Big Cinema which is located in all the
locations of NCR like noida, Delhi, Faridabad etc.

Just like that, if we are promising to provide fresh bouquets, flowers, we have
tie ups with different flower vendors in different areas, so that fresh flowers can be
delivered quickly in all areas. In the same manner, all our service partners are there in
all our functioning areas. We have tie up with service providers having their range all
over the NCR like Big Cinema, DTDC couriers etc, we also have tie up with local
vendors of gifts, flowers etc.

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MANPOWER REQUIREMENT

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The basic purpose of our business is to provide the e-services to the needy customers
with the help of internet. The services like online bus ticket booking, online city tour
booking, online movie ticket booking, courier booking, rent a cab facility, rent out a
property, sell a gift etc all will be done with the help of our business partners who are
associated with our website.
So basically our business nature does not require a large no.
of manpower. Everything will be server oriented i.e. if the customer orders for any
services then the server will automatically give them the response and further it will
pass the order to the respective service provider companies who are associated with
us.
In other words we can say that our business is to provide a
link between the actual service provider and the customer. There is no such huge
manpower requirement in the business. Because our business partners are the actual
service delivering units and they have already got the sufficient manpower resources
to deliver the services ordered by the customers.

Hence we don’t require much of the manpower, we require


only the followings to manage our business.-
 A Software Developer

 A Network Analyst

 A Financial Expert

A Software Developer: - The basic work of a software developer will be to design an


attractive web-page that will include all the features very clearly to the customers. He
will ensure the transparency and clarity of the business website and he will also be
responsible for updating the database time to time.

A Network Analyst:- A network analyst will be responsible for any network related
problems that occurs while the business is on process. He will check the server related
problems and ensure the free-flow of the network connection throughout the business
chain.

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A Finance Expert:- The person who is expert in finance will be whole and sole
responsible for the fund allocation and all the accounting procedures related to the
sources and usage of funds. He will also look after the calculation of business profits
and distributing them to the different business partners.

MACHINERY REQUIREMENT

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As all other businesses, which manufacture and sell the products require huge and
expensive machinery. But the e business is free from this manufacturing and
packaging process. Thus we don’t require any kind of machinery for production. The
nature of our business is that we are in service business and work as a link between
the actual service providers and consumers. So, we are far away from the typical
manufacturing and packaging.

But, for operation of the business, we need some machineries and equipments
in administration. The most important tool that we need is computer without which
we can’t even think of doing e-business.

We require six laptops with high speed and capacity and an internal server so
as to connect these computers. Use of computer is there in every step of our business.
The employees we have are it experts and include web designer, software analyst,
financial expert etc and all need a computer to perform their task and then share it
with other computers. The software analyst and web designer need it to regularly
update the website and to solve the problem which occurs time to time like server
jam, traffic etc. it is required to manage the data base of the information of the users.

TECHNICAL KNOW-HOW

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When we are doing business with very much advanced technologies like computers
and internet, the technical knowledge becomes very much important and sometimes it
is inevitable to ignore the technicality of each and every small issues. There are very
much technicality involved in the e-Business because of some security purposes and
online payment issues etc.
The security is the biggest matter of concern when we are
doing e-Business because the consumers make payments through their debit/credit or
gold cards. So they expect a level of security provided to their personal information.
As the business is based on the website, the software and IT problems are obvious to
come in the way.
Sometimes the whole server may come down and the
website may be crashed. And in that condition the crucial and very important data of
the company as well as its customers may be lost. So some technical knowledge is
required to overcome those problems. The web page designers, software developers,
network analyst and computer engineers are the ones who can do this work properly.
The regular updating of website and ensuring the server’s functioning are also
necessary and security of company database is also very much essential.
The website must be provided with proper safety means,
so that the hackers and/or crackers cannot access to the database or any personal
information.
The content and the function of the site must be easy to
understand and operate so that it can be convenient to the customers.

DEMAND FOR THE SERVICE

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As the world around us has become globalised, it has also brought the huge
competition along with the larger opportunities for both the business houses as well as
the customers. The customers have become more brand conscious and they are highly
inclined towards the quality product and services. In the case of product, it is quite
easy to know the and judge the product qualities but if we talk about the services then
to know whether the services are of better future perspective and future benefits or
not. The customers are concerned about the service quality in better and affordable
price.
Today the customers are focusing on the better service that
saves their time. And our business fulfills their particular demand of the services.
Link NCR provides better services with affordable price to the customers and also to
their doorsteps. That means delivery of service is also there that saves the time
minimizes the difficulty level of the customers.
With the increasing number of upper class and educated
people in the region of our business, the scope of the business is very large and
extensive. Because the increasing number of Indian youth (almost 54% of Indian
population) and large number of Internet users in India, there is a very prosperous
future of this business and it may gives some daunting results to it.
Upper class and educated people who are also indulged in
some other activities like jobs and business do not have much of the times to go to
any service agencies for tour & travelling ticket bookings or for availing some other
services. They prefer better and convenient services without killing much of their
precious times. Hence they can pay few bucks extra than wasting their times by
roaming around the service agencies for the same service that we provide them to
their doorsteps.

SOURCES OF SERVICES

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As we are in the service provider business, there is no requirement of any sort of raw-
materials because there is not any kind of production that we are involved with. So we
don’t have any source of raw-material but we have our service providers who are
providing the services to their customer through the help of our website.
We have our tie-ups with different companies who provide the services like online
bus ticket booking, online city tour booking, online movie ticket booking, courier
booking, rent a cab facility, rent out a property, and sell a gift etc. to the customers.
There are the different tie-ups with different business partners which are as follows.-
1. Online Movie Ticket Booking: - In this category we have the tie-ups with
Big Cinema and PVR cinema.

2. Bus Ticket Booking: - In this business class we have Vishwakarma Travels


Agency, Alok Travels, Parswanath Travels and some other local travel
agencies with us as our business partners.

3. Courier Service: - In this category we have DTDC courier Agency as our


business partner.

4. Property Dealers: - In this we have all the local property dealers of all
different areas like Noida, Delhi, Gurgaon, Faridabad and other NCR regions.

5. Bouquets and Flowers Delivery: - We will have local vendors in different


areas.

6. Cake and Gifts Delivery Service: - We will have local vendors in different
areas.

7. Online Booking of Cab: - In this category of business we will have the Auto
association of Delhi and NCR region.

8. Online Mobile Recharge: - Most promising telecommunication companies


like Aircel, Reliance, Idea, Airtel etc will be our service providers who will be
rendering their service to the customers online.

9. Online Booking of Hotels: - in this we have tie-ups with different hotels at


different locations.

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So all our service providing partners are different
and each one of them are the service source to our business. And only with
their association we are able to provide the quality service to the customers.

MAJOR COMPETITORS

The e-business is a kind of business which is said to be in its introductory stage. In the
future, the business will be more tough and complex. No business is free from
competition today and e-business is also no exception.

Our business is to provide various convenient services through our websites.


We provide a wide range of services and there are many other service providers
providing many of those services. Few of them are as follows:

1. Bus tickets online

 Redbus.in
 Makemytrip.com

2. Flower
 123delhi.com
 Rightflorist.com
 Goaflorist.com

3. movie
 bookmyshow.com

Apart from the above many more websites are there providing convenient services.
IRCTC.COM which is site of Indian railways has now started permission to other
sites to book tickets online for which the company has to submit 20 lacs security
deposit.

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The above competitors are major threats for now but with the rising popularity
and usage of computers and internet, in the future, the business will definitely be
shared by many more companies. So, to get an edge over those companies, quality
services must be provided.

RECEIPT AND PAYMENT

Receipt Amount Payment Amount


Equity capital 20,00,000 Building 17,00,000
Loans from Bank 20,00,000 Computers 3,00,000
Projected Sale 30,00,000 Server 1,00,000
Company Registration Charge 70,000
Web page designing 2,50,000
Bank A/C (Payment Gateway) 1,00,000
3 Yr. Payment of Expense:
Web-space Cost 30,000
Administrative Expenses 3,00,000
Salaries to Staff 4,50,000
Advertisement Cost 3,00,000
Miscellaneous Exp. 1,00,000
Interest on Loan(10%) 6,00,000
Balance in Hand 28,00,000
Total 70,00,000 Total 70,00,000

BREAK EVEN ANALYSIS

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Fixed Cost= 3120000
Variable Cost= 390000
Sales per year (Expected) = 1000000

Contribution= Sales – Variable Cost

= 1000000 – 390000
= 610000

Break-Even Point= Fixed Cost*Sales/Contribution


= 3120000*1000000/610000
= 5114754

WHY I AM INTERESTED IN THIS PROJECT

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Today the world is getting advanced with the time and we are now fond of advance
technologies in our day to day life. Although the Internet is still evolving as a medium
for communications and commerce, it has already had a substantial impact on both
consumers and businesses. For consumers, the advent of online shopping has brought
greater convenience.
In a relatively short period of time, the Internet has provided the savvy
consumer with a number of benefits, particularly convenience and information.
Obviously, consumers who shop online face a much different experience than they
would in "real-world" retail. First and foremost, a shopper need not leave the comfort
of home or office in order to make a purchase. The convenience of online shopping
has proven to be a big attraction for many consumers. The dependence on
technologies is increasing and the reason behind this is the youth which makes more
than 60% of our Indian population and they only believe in technological
advancement. So, I think this is the perfect time to start an e-business and get
maximum profit out of it

We are the part of youth and better understand their needs and can fulfill those
needs in better and convenient way. We have studied the technological aspect and the
details about e business, so we can use that knowledge here in a productive way.
I am much interested in this business because it is very much different from
the stereo type business that we have always seen around us. This differential factor
has also made me interested in this business.

These are some interesting features and aspects of this business which attracted me

 The project requires less amount of investment.


 There is no manufacturing and direct selling involved and we just work as a
link.
 The advance technologies used.
 Less requirement of manpower or support staff.
 Very less paper work.
 Deals with youth or educated people.

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The above factors are some of the reasons of my doing this business.

The people today are having lack of time to do their day to day work and they
need a kind of service so that they can pay their bills, book tickets etc very
conveniently from their office or home only .this factor provides us the scope of doing
this business. We can say that it is the business of future because of technological
development and people getting familiar with computer and internet. This gives rise
to e-business.
In this kind of new format of business, new ideas and thoughts can be put into
action because of its flexible nature. So, it gives us scope of experimenting and come
up with new things in internet based business.
Another factor of this business is that it has huge opportunity of expansion in
the future. Having already established the relationships and infrastructure, Web
Services Provider will continue to search for emerging and existing technologies to
improve and expand lines of business. As advances in technology continue, Web
Services Provider will upgrade to meet specific objectives of present and future
clients.

Web Services Provider plans to respond to market needs by keeping abreast of all new
technologies and updates to be first to market using its already established lines of
business as a market vehicle. Web Services Provider will move quickly on plans for
next generation products/services.

TAX APPLICATION

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The tax application is different for the different types of business like manufacturing,
product, and services business. In the service business 12% tax on total turnover of
the firm is applicable. Till the revenue of the firm is Rs. 9 lakhs. , no service tax
number is required but after Rs. 9 lakhs turnover of the firm, a service tax number is
required. And for getting the service tax number the firm has to apply for the same to
the government department. Once the tax number is given to the business firm, we
will pay our service tax to that particular number only.
In general, when a firm’s turnover is below Rs 10 lakhs, the
firm cannot charge service tax from the customer. But if the firm’s turnover exceeds
Rs 10 lakhs revenue then in that case the firm or company can charge 12% service tax
from the customer for the service provided. This 12% tax is received from the
customer and it is paid as it is to the government.
In E-business, the payment by the consumers is done
through online by ATM card, Credit card and debit cards that also require 1.8%
charge on total amount received for service provided.
The company can pay the employees their salaries only after
the deduction of income-tax or without deduction so that employees will pay their tax
themselves.
After deduction of all the expenses from revenue like
salaries, travel expenses, operational expenses, the company pays 30% tax on income.

LEGAL ASPECT OF THE BUSINESS

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Starting an e-business i.e. a business based entirely upon a website, is not as simple as
many people think. Starting a new business always involves a bit of legal risk. But
that risk is multiplied when starting an e-business.
The notion that you can come up with an idea, create the website and then sit back
and count the cash is, in my experience, pervasive, and yet nothing could be further
from the truth.Starting an e-commerce business is, for the most part, no different that
starting any other business. However, taxes and trademark matters can have different
legal consequences.
Business Entity

The type of structure I have chosen for our business requires the same analysis for any
business. First of all I will do some research into the various forms of legal and tax
business structures available. Our business can be a sole proprietorship, a partnership,
a limited liability partnership, or a corporation. Each has different legal and tax
consequences that we should be sure to understand. We can talk to an accountant and
a lawyer, or can take the risks of doing the research and formation on our own and
then fix mistakes later when our business has enough revenues.

In most cases, we should pick a structure that gives our business a separate legal and
tax identity from ourselves. This allows you to be sure that for tax and legal purposes,
the money and acts of our business are separate from our own. For example, if the
users of your dating service sue us because a fellow user posted libelous information
and I lose, the company's assets can be taken, but not my personal assets; the losses
from the lawsuit would be deducted on my company's tax statements, not my personal
one. A sole proprietorship means that a person does business as himself--which means
that legally and for tax purposes, you are one entity. Many businesses start as sole
proprietorships and then change their structure later.

Sales Taxes
The revenue collection agencies in most states now have some kind of formal position
on e-commerce sales. Most treat the sales in the same way they treat mail-order sales;
however, we will contact our state tax agency and ask for help and information with
regard to our particular business to be sure.

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Trademarks
Because our domain is such a big part of our e-commerce business, I'll want to be sure
to protect it. The best way to do that is through trademark law. A trademark is a word
or symbol used to identify the source of goods or services to consumers.

We may apply for registration of a trademark or service mark, word, phrase or image
after we use the mark to identify a product sold or service performed "in commerce,"
which means that we've used it for advertising and/or sale to customers. Our online
business name can be a service (for trademark purposes) if it provides any kind of
service to consumers: information access, ticket booking, online dating and so on.
Trademark rights arise upon use in commerce--with or without national registration--
of the name of the good or service. However, national registration expands and
protects your trademark rights, giving our company a presumption of first use of the
mark in association with particular goods or services.

The trademark office will not register a domain name that does not also meet the
requirements of being a trademark; a domain name by itself is considered merely an
address. Having trademark rights will allows us to protect our domain name against
others who might allege that it infringes on their trademark and try to have it legally
taken from us, and also allows us to enforce our trademark rights against others who
use domain names similar to ours to try to divert our customers.

CONCLUSION

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As we have our project on business study and the limitation on the part of selecting
the business, the working capital of organisation should not be more than forty lakhs.
So we both Avinash Agarwal and Manish Ranjan have selected an e-business for
providing e-services to the customers who will order the services through our website
Service industry accounts for a major part of the GDP of any country. E-business is
the latest format of doing business for the service industry which is having a great
potential to grow in the future. As we have started a sort of E-business, we are
expecting the same kind of business growth in the business of e-service providing
business. Especially in the countries like India where IT industry is booming, the
future of e-business is very much lucrative.
In India, e-business has got lots of potentialdue to the
following reasons and facts:-
1. India has the largest number of youth (almost 54%) that any businessmen sees
it as a potential customers who are generally educated and also prefer the
better service at any price.

2. India has got the highest number of internet users after China. Hence
somewhere down the line it will help all the business based on internet.

3. In ITES’s (Information Technology Enabled Services), India has got its rank
in the whole world. So, it’s a great strength that Indian youth has given to the
country and its businessmen.

4. Improving Purchasing Power of the Indian consumers is one of the influencing


factors to the new businessmen like us who want to establish their own
business.

Hence India becoming the IT hub in the world, the


future of the e-Business service providing firms seems to be so promising and
prosperous. And it will give lucrative results in coming years.

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