business plan

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Contents. Infrastructure required. Departments. Machinery required. Production plans. Annual turnover. Initial investment. Sales and marketing strategies.

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Business plan for building an ATV.

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Contents.

Infrastructure required. Departments. Machinery required. Production plans. Annual turnover. Initial investment. Sales and marketing strategies.

Infrastructure required. Office room.This is for performing the administrative work.

Shop floor.Floor area needed to build the ATV from the ground up and also houses the various machines and tools needed for carrying out the necessary operations.

Testing ground.Each vehicle will be put through its paces in the testing ground to ensure that it performs as per our expectations.

Warehouse.This is where all the spare parts for the ATV are stored.

Departments. Design department.Concerned with designing the various components and also analyzing the same using software like ANSYS and Lotus Shark. Fabrication, paint and assembly department.Takes care of welding operation, assembling the various components on space frame and finally the paint work of the different body panels. Cost and logistics.Deals with purchasing of materials required, forming the business plan and inventory control.

Machinery required.Following is a list of machineries required for the production of the Quad Bike:

TIG welding machine. Lathe. Milling machine and grinder. Socket set, wrenches etc. Air compressor. CNC machine. Drills. Testing equipment. Furnace 3D printer. Electrical equipment. Metal forming tools.

Production plans.

Forecasting market expectations.This involves estimating potential sales based on historical information, market trends and/or established orders.

Inventory control.It is the supervision of supply, storage and accessibility of items in order to ensure an adequate supply without excessive oversupply.

Availability of equipment and human resources.This is the period of time allowed between processes so that all orders flow within your production line or service.

Standardizing steps and time.This step involves mapping processes in the order that they happen and then incorporating the approximate time to complete the work. This process helps to identify and eliminate wastage and shrinks the process.

Risk Factors.Where risks are significant, a failure mode effect analysis method (FMEA) is conducted and controls are put in place to eliminate or minimize them.

Annual turnover.The annual turnover of our start-up for the first financial year, as estimated considering the sales of 100 Quad Bikes in the first year of its production will be . 2.1 cr. (app.)

Initial Investment.It has been a general misconception in the Indian mind that, since the cost of a Quad Bike and other ATVs burn a hole in their pocket, their production cost is also fairly high and thus the investment done in starting up such a business will be huge. However, on the other hand, the reality is that the Quad Bikes and the ATVs sold in India cost a fortune because they incur heavy custom duty (100%) and other taxes since they are imported from other countries. Now, since this is the first production plant of a Quad Bike, the only considerable investment, that will be required, would be in the unit set up and marketing of the product. So, this needs to be managed wisely so as to reduce the overall investment.ITEMCOST

TIG WELDING MACHINE6,200

LATHE3,00,000

MILLING MACHINE62,000

SOCKET SET AND WRENCHES13,330

AIR COMPRESSOR6,300

OVERHEAD COSTS (RENT + ELECTRICITY1,00,000

TOTAL COST

4,87,830

Sales and marketing strategies.

There is a potential market for Quad Bikes in our country as they prove to be highly effective for farming purposes, and at the same time, these vehicles are also a great source of recreational activities, as it is evident from their extensive use around sea beaches and deserts in India.

As these bikes run on different terrains, they are of great help to the border forces and state police departments.

An uprising in the Quad Bike market can be expected as several professional ATV tracks are now being developed, some of which are used for various competitions.

A unique marketing proposition we are taking up is inspired from the JIT concept wherein we try to incorporate maximum customer inputs to bring out very individualized products.

The unit production model helps as we can bring individual options into the build.

The sites that we have sorted out for marketing our business and product are: 1. Facebook 2. Twitter 3. LinkedIn 4. Google+