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Page 1
Table of Contents
Page 2
My Business Plan
The company will offer reliability and industry insight to government establishment ,hospitals
and others , enabling it to provide superior service relative to the current service providers.
This will allow the company to rapidly gain market share. Profitability will be reached by month
nine, and revenue for year three will be very comfortable.
.DeliveryEazy is a bike/car/truck delivery service which delivers everything from pin to
automobile.Pick-up and delivery around the clock at a much faster rate than its
competitors.24/7 service comes with customizable option which will attract companies which
will lead to delivery of the
Chart: Highlights
1.1 Objectives
• To create a online service based company which will be targeting the customers who needs
delivery at a faster rate.Our primary goal is to exceed customers expectation when
compared to other companies.
• To partner with other service companies to deliver the goods much faster.
• Acheiving a target of more than 30% each year through superior quality of service
• To acheive profitability within in the first year of operation.
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My Business Plan
1.2 Mission
DeliveryEazy's mission is to provide environment friendly delivery service both for the firm and
individual customers.We always try to attract high end and low end customers.We will always
try to exceed the expectations through quality service provided.If everything goes well we will
start making the profit by the end of the first year.
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My Business Plan
Table: Start-up
Start-up
Requirements
Start-up Expenses
Insurance $20
Rent $100
Computer $25
Other $25
Legal $50
Stationary etc $10
Brouchers $30
R&D $100
Total Start-up Expenses $360
Start-up Assets
Cash Required $10,000
Other Current Assets $2,500
Long-term Assets $7,500
Total Assets $20,000
Chart: Start-up
3.0 Services
DeliveryEasy will provide full 24/7 delivery services both for firm and customers.Service can be
used by law firms ,hospitals and other governmental organization.In addition to these
organization we cater service to individual customers and small NGOs.Monthly subscription
options will be given to organizations for better customization and the delivery of products.We
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My Business Plan
will target government officers and departments and will be alloting time especially for them
from 7 am to 5 pm and maximum priority will be given for them.Larger packages will be
transported via trucks and smaller packages will be transported through bikes and dimensions
doesnt matter for company.
Our company will service to three distinct group.First group is the government
organizations.This will be the primary target all the files and documents across the state will be
transported through as whether it is to law firm or private instituions documents will be
directed through us.We always try to satisfy the organizations we are dealing with.Next target
will be hospitals,here we will transport medicine and medical equipments and in case of
emergency we act as a ambulance service also.That will be a competitive advantage that no
others ever offered.The third set of customers are the assorted delivery by the customers.This
could come from individual customer to small organizational delivery.
Market Analysis
2019 2020 2021 2022 2023
Potential Customers Growth CAGR
Government organizations 12% 10,000 11,200 12,544 14,049 15,735 12.00%
Hospitals 10% 5,000 5,500 6,050 6,655 7,321 10.00%
other 6% 8,000 8,480 8,989 9,528 10,100 6.00%
Total 9.57% 23,000 25,180 27,583 30,232 33,156 9.57%
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My Business Plan
Brouchers will be given to government and hospitals and customization options will be
discussed.Advertisement will be placed in all the delivery vehicles.Flyers and newspaper ads will
be passedout every month.
Our company will target it's market through channels that all goverment firms typically see.
The first is the internally circuited magazine. This is the newsletter that all departments get.
Advertisements will be placed in the journal to increase visibility of different offices inside
government establishment.
This market will also be targeted through a networking scheme based on departmental
contacts.Creating initial breakthroughs especially in departments which are new to the public
which new to the public like health department or excise department will be targeted upon.It is
easy to earn trust if the company has a reputation among government departments.So
customization with discounts will be discussed with the superior chairperson in charge.Allowing
them to get a customer base from the other departments also.The service offered for the
hospitals will be through doctors who will take up the charge during the initial stages.Later on
the information flow will be direct to the lower employees of the company.
There are approximately 20 different delivery services in the bangalore area, a quarter of these
are bike and truck services that also makes deliveries. The rest are courier or messenger
services. Some use cars and a few use electric bikes as the means of transportation. In general,
the bike deliveries are less expensive because they have lower overhead. In the heart of
downtown, the bike service can be as fast or faster than the car-based courier services because
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My Business Plan
Our company has two competitive edges: reliability and industry insight. Reliability is a
characteristic that is very important to delivery firms. The firms require reliability of delivery.
Often the delivery of documents and medical equipments is critical. Our company achieves
reliability through a redundant back-up system that always provides an alternative method of
delivery if the specific bike service encounters difficulty. By having a back-up system, the
company ensures that even if the primary delivery fails, there is a back-up ready to complete
the delivery.
The second competitive advantage is industry insight. It is a true advantage for DeliverEasy to
have worked as an delivery service for few months in private organizations. This work gave the
industry insight that is not replicable without actually doing the work.The front runners of the
company has a dedicated frienship based than other companies which will allow them to know
the scenario in the government and medical industry.
DeliveryEasy will provide full 24/7 delivery services both for firm and customers.Service can be
used by law firms ,hospitals and other governmental organization.In addition to these
organization we cater service to individual customers and small NGOs.Monthly subscription
options will be given to organizations for better customization and the delivery of products.We
will target government officers and departments and will be alloting time especially for them
from 7 am to 5 pm and maximum priority will be given for them.Larger packages will be
transported via trucks and smaller packages will be transported through bikes and dimensions
doesnt matter for company.
Delivery Easy has two main advantages over other companies reliability and industry insight.
Reliability is a characteristic that is very important to delivery firms. The firms require reliability
of delivery. Often the delivery of documents and medical equipments is critical. Our company
achieves reliability through a redundant back-up system that always provides an alternative
method of delivery if the specific bike service encounters difficulty. By having a back-up
system, the company ensures that even if the primary delivery fails, there is a back-up ready to
complete the delivery.
The second competitive advantage is industry insight. It is a true advantage for DeliverEasy to
have worked as an delivery service for few months in private organizations. This work gave the
industry insight that is not replicable without actually doing the work.The front runners of the
company has a dedicated frienship based than other companies which will allow them to know
the scenario in the government and medical industry.
Our sales will be generated from repeat clients. This service will be established as an easy and
friendly way to shop without the hassle. We will offer low introductory costs for our services. To
ensure that all purchases will be worthwhile for the organization, all of our orders will have a
minimal amount required to cover any expenses incurred. This will be minimal, allowing for our
services to be affordable.
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My Business Plan
our company has enough contacts in the bangalore area which has expressed interest in the
service that no expensive advertising will be needed for the first year of operation. Subsequent
advertising will depend on word-of-mouth, a website, telephone directory ads, local newspaper
ads and articles, and brochures.
DeliverEasy recognizes that it is difficult to break into many government organizations and
hospitals and displace their current service provider and will offer a 30% discount for a months
worth of services. While this is a bit of a hit in terms of profitability, it is only a short-term
concern. The long-term gain is securing a repeat customer.
In addition to this economic incentive, DeliverEasy will employ Co-founder's powers of
persuasion when the team is speaking with prospective clients and firms. They will directly
target the company's reliability and fool-proof back-up systems, as well as impress his
recognition of the needs of his clients based their experience with private firms. Experience
features to attract new client.
The first month will be used to set up the office and hire and train delivery boys.The second
month will begin to see some sales activity. Sales will ramp up from month three on. There will
be an incremental increase each month as more and more firms become aware of the services
of the company.
Sales Forecast
FY 2020 FY 2021 FY 2022
Sales
Government $12,823 $12,500 $15,000
Hospitals $6,959 $8,000 $10,000
Others $5,412 $7,000 $7,500
Total Sales $25,194 $27,500 $32,500
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5.4 Milestones
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My Business Plan
1.Infrastructure completion. This will be done as a roadmap for the organization. While we do
not need a business plan to raise capital, it will be an indispensable tool for the ongoing
performance and improvement of the company.
3. Set up office.
Table: Milestones
Milestones
Totals $10,500
Chart: Milestones
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My Business Plan
Anin,Akhil and Ayush the founders and owners received their bachelor degree in engineering
from Bangalore university. During the summers, They worked for a bike messenger service in
south bangalore. Upon graduation, they managed a service centre, pursuing his interest in the
service industry. After two years of work in the service industry they were no longer
challenged. In addition to a lack of challenge,they were pressured by their parents, implicitly
but forcefully, to achieve a graduate education.
After three years of experince in service industry they started to float a company. They
gradually earned experience in the field and started there delivery service in the private firm
later moved to government organization.
The company will consist of three co founders completing HR functions, marketing functions,
and general business management. The company will hire a full-time dispatcher and 10 bike
messengers. While bike messengers seem to be transient, the training of a new one is relatively
quick and cheap, so if one leaves, he can be replaced quickly.
Table: Personnel
Personnel Plan
FY 2020 FY 2021 FY 2022
Akhil $421 $450 $550
Anin $536 $570 $600
Ayush $642 $700 $750
delivery boy1 $0 $50 $55
delivery boy2 $0 $70 $65
Total People 42 42 42
Growth will occur according to the number of clients and cash flow.
With approximately half of our services provided on credit, collection will be essential. With this
still being a service that is not essential to everyday living, we will show that payments are
necessary immediately. With a concrete system for cash flow, we will be able to keep debt to a
minimum, while still providing a high level of sales.
Start-up Funding
Start-up Expenses to Fund $360
Start-up Assets to Fund $20,000
Total Funding Required $20,360
Assets
Non-cash Assets from Start-up $10,000
Cash Requirements from Start-up $10,000
Additional Cash Raised $0
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My Business Plan
Liabilities
Current Borrowing $1,500
Long-term Liabilities $3,000
Accounts Payable (Outstanding Bills) $780
Other Current Liabilities (interest-free) $550
Total Liabilities $5,830
Capital
Planned Investment
Owner $0
Investor $0
Additional Investment Requirement $14,530
Total Planned Investment $14,530
The following assumptions are made responding to growth, and are based on economic trends
from the preceding two years.
· A strong economy is expected to continue in the future.
· Many people have annual dates on which purchases are made.
· It is assumed that people are willing to pay for a service if it is an agreeable and convenient
experience.
This is a conservative figure since contacts have been made, and have already generated many
orders for our services. Companie's goal is to generate twice as much as the breakeven point
for a monthly standard.
Break-even Analysis
Assumptions:
Average Percent Variable Cost 31%
Estimated Monthly Fixed Cost $716
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My Business Plan
Buy the Time's projected profit and loss is indicated in the following table. Gross margin should
remain average above 20% the first year, with highest profits due near the end of the year.
This should prove to be accurate, since that is a time when many clients increase their spending
Expenses
Payroll $1,599 $1,840 $2,020
Marketing/Promotion $1,337 $1,500 $1,800
Depreciation $548 $650 $720
Rent $2,398 $2,500 $2,800
Utilities $1,347 $1,350 $1,400
Insurance $1,120 $1,150 $1,200
Payroll Taxes $240 $276 $303
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My Business Plan
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My Business Plan
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My Business Plan
There will be a increase of 21% in the cash received within 2 years.The expenses increased by
31% and the there will be a increase of 154% in cash balance within in 2 years
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My Business Plan
Chart: Cash
Current Assets
Cash $37,000 $64,725 $94,616
Other Current Assets ($489) ($3,654) ($6,889)
Total Current Assets $36,511 $61,071 $87,727
Long-term Assets
Long-term Assets $4,532 $1,177 ($2,343)
Accumulated Depreciation $548 $1,198 $1,918
Total Long-term Assets $3,984 ($21) ($4,261)
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My Business Plan
Current Liabilities
Accounts Payable $1,240 $928 $1,117
Current Borrowing $1,675 $1,850 $2,025
Other Current Liabilities $1,412 $2,460 $3,655
Subtotal Current Liabilities $4,327 $5,238 $6,797
The following table provides significant ratios for the delivery services industry. The final
column, Industry Profile, shows ratios for this industry as it is determined by the Standard
Industrial Classification (SIC) Index 7299, "miscellaneous delivery services."
Table: Ratios
Ratio Analysis
FY 2020 FY 2021 FY 2022 Industry Profile
Sales Growth n.a. 9.15% 18.18% -0.77%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 52.35% 50.18% 47.69% 72.36%
Selling, General & Administrative Expenses 41.30% 41.39% 39.79% 20.43%
Advertising Expenses 5.31% 5.45% 5.54% 0.19%
Profit Before Interest and Taxes 18.26% 16.49% 16.18% 7.28%
Main Ratios
Current 8.44 11.66 12.91 1.43
Quick 8.44 11.66 12.91 1.38
Total Debt to Total Assets 27.27% 27.14% 27.93% 79.57%
Pre-tax Return on Net Worth 13.51% 7.77% 6.10% 130.03%
Pre-tax Return on Assets 9.82% 5.66% 4.40% 26.56%
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My Business Plan
Activity Ratios
Accounts Payable Turnover 16.34 24.33 24.33 n.a
Payment Days 14 18 14 n.a
Total Asset Turnover 0.62 0.45 0.39 n.a
Debt Ratios
Debt to Net Worth 0.37 0.37 0.39 n.a
Current Liab. to Liab. 0.39 0.32 0.29 n.a
Liquidity Ratios
Net Working Capital $32,184 $55,833 $80,929 n.a
Interest Coverage 7.39 4.20 3.31 n.a
Additional Ratios
Assets to Sales 1.61 2.22 2.57 n.a
Current Debt/Total Assets 11% 9% 8% n.a
Acid Test 8.44 11.66 12.91 n.a
Sales/Net Worth 0.86 0.62 0.54 n.a
Dividend Payout 0.12 0.15 0.16 n.a
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Appendix
Sales Forecast
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Sales
Government $500 $565 $638 $721 $815 $921 $1,041 $1,176 $1,329 $1,502 $1,697 $1,918
Hospitals $350 $300 $330 $385 $412 $560 $612 $710 $700 $500 $900 $1,200
Others $250 $300 $280 $290 $310 $412 $430 $500 $500 $650 $740 $750
Total Sales $1,100 $1,165 $1,248 $1,396 $1,537 $1,893 $2,083 $2,386 $2,529 $2,652 $3,337 $3,868
Direct Cost of Sales Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Government $200 $220 $242 $266 $293 $322 $354 $389 $428 $471 $518 $570
Hospitals $120 $140 $147 $152 $157 $162 $169 $176 $189 $192 $194 $198
Others $80 $100 $105 $112 $118 $122 $125 $129 $135 $138 $148 $150
Subtotal Direct Cost of Sales $400 $460 $494 $530 $568 $606 $648 $694 $752 $801 $860 $918
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Appendix
Table: Personnel
Personnel Plan
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Akhil $20 $22 $24 $26 $29 $32 $35 $38 $42 $46 $51 $56
Anin $22 $25 $28 $31 $35 $39 $44 $49 $55 $62 $69 $77
Ayush $20 $23 $27 $32 $37 $43 $50 $58 $68 $80 $94 $110
delivery boy1 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
delivery boy2 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 20 21 22 24 26 28 30 32 34 36 39 42
Total Payroll $62 $70 $79 $89 $101 $114 $129 $145 $165 $188 $214 $243
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Appendix
Gross Margin $500 $485 $512 $600 $676 $965 $1,081 $1,303 $1,349 $1,380 $1,959 $2,380
Gross Margin % 45.45% 41.63% 41.03% 42.98% 43.98% 50.98% 51.90% 54.61% 53.34% 52.04% 58.71% 61.53%
Expenses
Payroll $62 $70 $79 $89 $101 $114 $129 $145 $165 $188 $214 $243
Marketing/Promotion $75 $80 $86 $92 $98 $105 $112 $120 $128 $137 $147 $157
Depreciation $25 $28 $31 $34 $37 $41 $45 $50 $55 $61 $67 $74
Rent $150 $158 $166 $174 $183 $192 $202 $212 $223 $234 $246 $258
Utilities $85 $89 $93 $98 $103 $108 $113 $119 $125 $131 $138 $145
Insurance 15% $70 $74 $78 $82 $86 $90 $94 $99 $104 $109 $114 $120
Payroll Taxes 15% $9 $11 $12 $13 $15 $17 $19 $22 $25 $28 $32 $36
Total Operating Expenses $476 $510 $545 $582 $623 $667 $714 $767 $825 $888 $958 $1,033
Profit Before Interest and Taxes $24 ($25) ($33) $18 $53 $298 $367 $536 $524 $492 $1,001 $1,347
EBITDA $49 $4 ($2) $52 $90 $339 $412 $586 $579 $553 $1,068 $1,421
Interest Expense $39 $41 $42 $44 $47 $49 $52 $55 $58 $61 $65 $70
Taxes Incurred ($5) ($20) ($23) ($8) $2 $75 $95 $144 $140 $129 $281 $383
Net Profit ($11) ($46) ($53) ($19) $4 $174 $221 $337 $326 $301 $655 $894
Net Profit/Sales -0.97% -3.91% -4.22% -1.34% 0.29% 9.21% 10.59% 14.13% 12.91% 11.36% 19.62% 23.10%
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Appendix
Expenditures Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Net Cash Flow $674 $1,099 $1,218 $1,410 $1,600 $1,987 $2,222 $2,590 $2,824 $3,086 $3,852 $4,438
Cash Balance $10,674 $11,773 $12,990 $14,401 $16,001 $17,989 $20,210 $22,801 $25,624 $28,710 $32,562 $37,000
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Appendix
Current Assets
Cash $10,000 $10,674 $11,773 $12,990 $14,401 $16,001 $17,989 $20,210 $22,801 $25,624 $28,710 $32,562 $37,000
Other Current Assets $2,500 $2,337 $2,162 $1,974 $1,772 $1,555 $1,322 $1,071 $801 $512 $202 ($131) ($489)
Total Current Assets $12,500 $13,011 $13,935 $14,964 $16,173 $17,556 $19,311 $21,281 $23,602 $26,136 $28,912 $32,431 $36,511
Long-term Assets
Long-term Assets $7,500 $7,405 $7,294 $7,164 $7,012 $6,835 $6,629 $6,391 $6,116 $5,799 $5,434 $5,014 $4,532
Accumulated Depreciation $0 $25 $53 $84 $118 $155 $196 $241 $291 $346 $407 $474 $548
Total Long-term Assets $7,500 $7,380 $7,241 $7,080 $6,894 $6,680 $6,433 $6,150 $5,825 $5,453 $5,027 $4,540 $3,984
Total Assets $20,000 $20,391 $21,176 $22,044 $23,067 $24,236 $25,744 $27,431 $29,427 $31,589 $33,939 $36,971 $40,495
Liabilities and Capital Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Current Liabilities
Accounts Payable $780 $478 $519 $556 $603 $651 $730 $788 $865 $925 $981 $1,121 $1,240
Current Borrowing $1,500 $1,510 $1,520 $1,531 $1,543 $1,556 $1,570 $1,585 $1,601 $1,618 $1,636 $1,655 $1,675
Other Current Liabilities $550 $590 $634 $682 $735 $794 $859 $931 $1,010 $1,097 $1,192 $1,297 $1,412
Subtotal Current Liabilities $2,830 $2,577 $2,673 $2,768 $2,880 $3,000 $3,158 $3,304 $3,476 $3,640 $3,809 $4,072 $4,327
Long-term Liabilities $3,000 $3,165 $3,348 $3,551 $3,776 $4,026 $4,303 $4,610 $4,950 $5,327 $5,744 $6,205 $6,715
Total Liabilities $5,830 $5,742 $6,021 $6,319 $6,656 $7,026 $7,461 $7,914 $8,426 $8,967 $9,553 $10,277 $11,042
Paid-in Capital $14,530 $15,030 $15,595 $16,233 $16,954 $17,769 $18,690 $19,731 $20,907 $22,236 $23,738 $25,435 $27,353
Retained Earnings ($360) ($371) ($384) ($399) ($416) ($436) ($459) ($485) ($515) ($549) ($588) ($633) ($685)
Earnings $0 ($11) ($56) ($109) ($128) ($123) $51 $272 $609 $935 $1,237 $1,891 $2,785
Total Capital $14,170 $14,648 $15,155 $15,725 $16,410 $17,210 $18,282 $19,518 $21,001 $22,622 $24,387 $26,693 $29,453
Total Liabilities and Capital $20,000 $20,391 $21,176 $22,044 $23,067 $24,236 $25,744 $27,431 $29,427 $31,589 $33,939 $36,971 $40,495
Net Worth $14,170 $14,648 $15,155 $15,725 $16,410 $17,210 $18,282 $19,518 $21,001 $22,622 $24,387 $26,693 $29,453
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