Business PlanFor

Door-2-Door Delivery Services

Presented for:MSE 602

Dr. Mark Rajai9 August 2015

Team:Ashwin Kumar Mosale NarayanaswamyDivya Vivek JoshiLikhitha TatigutlaNaveenteja Reddy AlavalaRishi Nagh SattoorVinaya Kodihalli Vijaykumar

Door-2-Door 2

Table of Contents

Table of Contents...............................................................................................................................2

Executive Summary...........................................................................................................................3

Company Description.........................................................................................................................4

Industry Analysis and Trends..............................................................................................................5

Target Market..................................................................................................................................... 6

Competition........................................................................................................................................ 8

Strategic Position and Risk Assessment.............................................................................................9

Marketing Plan and Sales Strategy...................................................................................................10

Operations........................................................................................................................................ 12

Technology Plan...............................................................................................................................14

Management and Organization........................................................................................................14

Social responsibility and sustainability.............................................................................................15

Development, Milestones and Exit Plan............................................................................................16

Financials......................................................................................................................................... 17

Appendix – A....................................................................................................................................22

Appendix – B.................................................................................................................................... 23

References.......................................................................................................................................23

Team:Ashwin Kumar Mosale NarayanaswamyDivya Vivek JoshiLikhitha TatigutlaNaveenteja Reddy AlavalaRishi Nagh SattoorVinaya Kodihalli Vijaykumar

Door-2-Door 3

Executive SummaryThe CompanyDoor-2-Door is a Los Angeles based company started by a group of 6 graduate student entrepreneurs. It aims at providing same-day delivery of products and services at affordable costs, at the location and time of the customer’s convenience. The same day delivery services industry has seen huge growth in the past 2 years and Door-2-Door intends to capture a huge market share in this industry. The founders currently own the company with equal share.

Company MissionOur service is designed keeping the needs of students living around college campuses in mind. Our mission is to ensure students do not freight over daily chores and are able to focus on their studies and work. Our services will ensure students can enjoy a comfortable living experience without the worry of errands to run.

Products and ServicesDoor-2-Door focuses on delivering a huge variety of products from local stores to the customer’s doorstep within an hour. Groceries, personal care products, office stationary, over-the-counter medication can all be delivered 24/7 to a customer’s house. We also provide restaurant pick-up and delivery with other services like printouts delivery, same day laundry washing and delivery.

Marketing and Sales StrategyWith the growing use of Social Media, our plan is to use Facebook, Twitter, YouTube and certain SEO/SEM optimization strategies to increase interest in our services and also increase sales. We also intend on offering free trials and promotional offers for our services in the initial months of operations. Our business model is based on marking-up the retail costs of products and services to meet the delivery costs and profit margins.

CompetitionSame-day delivery service is the new boom in the traditional logistics based delivery services. A lot of new players like Alfred(Wunwun), Instacart, Task Rabbit and Grubhub are currently in the race to gain market share. Multi-nationals like Amazon, Google Shopping Express and Uber are also including same-day delivery as an exclusive service. There is a huge market for this service, as more people today are comfortable ordering products/services online. Door-2-Door intends to capitalize on this huge opportunity.

Target Market Currently our target market is students and working professionals living around the Cal State campus in Northridge, CA. We plan to expand this business model to other campuses across Los Angeles, California and finally the entire country as we grow in the business. Though companies today provide same-day delivery, the service is designed for the masses. Through our targeted marketing, we intend to carve out a niche in this industry and gain majority market share in a service that focuses on student needs. Helping students through the formative years of university education is our mission, so we will focus on making our services available to more and more college campuses in the future.

ManagementDoor-2-Door’s management team comes from a diverse experience in management, supply chain, marketing, human resources and technology. The founders currently hold the key positions. The mission of the company is to solve a problem that is very dear to the founders; so they will continue to hold strategic positions in the business to ensure the right translation of the company’s mission into specific objectives and results.

Door-2-Door 4

OperationsDoor-2-Door currently operates out of a rent-free business headquarter and distribution center, which is owned by one of the founders. Hired students and freelancers will use the company’s motorized electric bikes and bicycles for timely delivery of products and services. The company website, application and phone call services would be available to place orders. We also plan to include Square, Apple Pay and Android Pay services to simplify the payments for customers.

Stage of DevelopmentDoor-2-Door is in its final stages of procuring licenses and is set to launch in the 2nd week of August, 2015, just two weeks before the beginning of Fall 2015 semester at Cal State, Northridge. The website and application are still under construction, and would be ready right before launch. Promotions and marketing have already started beginning of August, 2015 to create a buzz about the service.

FinancialsThe founders have invested the initial seed capital of $36000 collectively. Door-2-Door projects a gross profit of $60,023 in the first 6 months. The projected gross profit for 2016 is $144,055 and for 2017 is $172,866. Net profit is projected at $46,868 in 2016 and $ 73,678 in 2017. We aspire to net $100,000 by EOY 2018.

Funds Sought and UtilizationWe are currently seeking $50,000 for a 20% equity stake in our company. We will use this amount to fund a strong SEO/SEM based marketing algorithm, a fuel-efficient delivery car, and IOS application development. Beyond an investor, we are also seeking a strategic business partner who can help us to get advertising rights on the CSUN website, as well as Apple Pay and Android Pay rights. In the further stages of expansion, we will procure our products directly from high volume businesses like Costco, Walmart, Ralphs etc. We seek a partner who can help us to enter into strategic vendor relations with these businesses.

Company DescriptionDoor-2-Door is a Los Angeles based start-up, founded in July 2015. This start-up is set to revolutionise the on-campus stay experience for students by providing home delivery for a wide range of products and services that is affordable, timely and easy to use. Our company’s corporate headquarters including the distribution center are currently located at 111, West St, Downtown Northridge, CA - 11453.

Company MissionStudents living around the campus have to juggle studies alongwith a host of other responsibilitiies. Not everyone has a car, or an easy means to shop for essentials. Door-2-Door’s mission is to save our customers valuable time and effort required to step out to run errands. Our customers will be able to receive the products and services they seek at their door step. At Door-2-Door we do our part by ensuring students get a seemless on-campus experience without the added hassle of chores.

Door-2-Door 5

Logo

ServicesOur start-up focuses on delivering products and services on-demand at people’s doorstep. The objective is to serve the student community around school campuses with basic services like: Groceries delivery Personal care essentials delivery Office Stationary Delivery Over the counter medicines delivery Restaurant pick-up and deliveryWe also offer certain non-conventional services like: 1 hour print-out services and delivery Same day laundry washing and foldingIn our Phase 1 of launch, we will cater these services to in and around the California State University Northridge Campus. In subsequent phases, we will expand our presence to other universities in California by offering similar product mixes.Our delivery services can be availed through a phone call on our number 676-676-DOOR or through our website ordering system at https://d2dcom.wordpress.com. We are in process of developing a user friendly app for our customers. Our services aim to eliminate a customer’s need to run to the store for any sudden purchase. The customer will have to register for services once, and he can then order from us using a unique username and passcode.

Management and LeadershipDoor-2-Door is currently managed by the 6 founders as listed below:Chairman and Chief Executive Officer– Divya Vivek JoshiBoard of Directors Ashwin Kumar Mosale Narayanaswamy Likhitha Tatigutla Naveenteja Reddy Alavala Rishi Nagh Sattoor Vinaya Kodihalli VijaykumarApart from being owners, the six of us also serve strategic positions in the management team. Our collective business acumen, strong technical background and experience of working in diverse multinational companies is a huge opportunity for Door-2-Door. Through our endeavor we hope to culminate these skills into building Door-2-Door to be a market leader in serving the student community and revolutionalize the delivery industry.Legal StatusDoor-2-Door is formed as a Limited Liability Company under the state of California. All the founders own an equal stake in the company equity. We have each invested $6000 in the company. Our current business premises are owned by the CEO Divya Joshi. We will be using the premises for the next 2 years rent free and do not owe any liability for the said premises except utilities, electricity and any other services we may use. We do not carry any debt at the moment. We are seeking $50,000/- for a 20% equity. This amount will be used for the following: A fuel efficient delivery car IOS and Android Application development Refrigerator for highly perishable inventory

Door-2-Door 6

Advertising on CSUN website Research and Recommendation based interfaceWe also seek a business partner with a strong network in the Northridge, CA retail community. In Phase 2 of expansion, we wish to procure products directly from businesses like Costco, Walmart, Rite-Aid, Ralphs etc. instead of our current model of purchasing these products at the store as per orders received. We believe this can reduce our cost of goods drastically.

Industry Analysis and TrendsDoor-2-door is set to take advantage of the growing same-day delivery industry to reduce delivery time drastically. With Amazon, Google and EBay changing the face of online shopping, companies today are in competition to get to the customer’s door-step quicker while offering more and more products at affordable costs.

Growing Same Day Deliver Services IndustryWith Amazon being the pioneer in introducing same-day delivery to its already vast network of customers, a number of companies are now following in its footsteps to tap this newly found market. While companies like Grubhub, LAbite and Postmate focus on food delivery, Instacart delivers groceries to your home. Companies like TaskRabbit and Alfred(formally Wunwun) promise to run errands and take care of small jobs for customers.(1) Google Shopping Express is also reducing delivery time to reach its customers faster. Corner Store, a service currently in the experimental phase is Uber’s attempt to tap into the same-day delivery market. The current delivery services comprise 25% of net sales in the global delivery industry. The total revenue from delivery services was $ 1.4 million in 2014 and is growing quicker than ever. (2)

Industry TrendsMost of the companies in the Same Day Delivery Services Industry are start-ups. They cater mainly to the local population, thus being able to keep delivery time under an hour of ordering. They also use local distribution networks to reach their customers in the quickest possible way. Door-2-door is a niche company in this industry that focuses particularly on the needs of the local student population. Majority of our hiring will also be from the local student community, thus creating part-time jobs for students.

Potential Future RisksThough overheads are low, the margins may also be less. The potential for profit is predominantly in volume sales. It is therefore difficult to decide if this industry would survive just to be a standalone business. Companies would have to reinvent themselves in a few years and adapt to the changing needs of the market. The current industry leaders must be aware of new entrant competition and acquisition opportunities if they want to maintain or improve their current positions in the industry.

SeasonalitySeasonal factors have a huge impact on the same day delivery industry. The demand over the Christmas holiday season causes increased seasonal hiring, larger inventory capacities and ability to meet a demand much larger than the regular one. Our service is closely linked to the education industry too. In this industry, the major seasonal factors are the start of a semester, exam season and spring break. They influence demand, sales, inventory capacities and hiring of new employees. Overall the industry, being a growing one, is an exceptional opportunity for Door-2-Door to develop a same day delivery system that benefits students across all colleges in the US.

Door-2-Door 7

Target MarketMarket DescriptionIn Fall 2014, 40131 students enrolled at CSUN. The enrollment is around 35000 to 41000 students each semester. A large number of these students live in student housing or in the areas around campus. CSUN occupies about 353 acres.(5) Our Door-2-Door delivery service will be offered in and around CSUN, in the first phase. The geographic area is the one marked within the red polygonal area in the map below. We will target other university campuses in California as we expand our business in the future.

Figure 1: Door-2-Door Distribution Area, Northridge, CA(4)

Market Size and TrendsThe market for same day delivery services is increasing day-by-day as more and more people become comfortable with online shopping. According to a research by Los Angeles Times based on the 2008 census, the county of Northridge, CA has a highly diverse population of 61993 in 2008.

50%

26%

14%

5%5%

EthnicityCaucasianLatinoAsianAfrican AmericanOther

Figure 2: Ethnicity Distribution in Northridge, CA in 2008 (3)

The median age is 32; and collectively young people in the 19 years to 50 years age group amounting to a population of 28752 are most likely to use our services.

Door-2-Door 8

77616155

16262

12490

8040 6852

Age

10 or less 11 - 18 19 - 34

35 - 49 50 - 64 65 and up

Figure 3: Age Distribution in Northridge, CA in 2008 (3)

Target CustomersDoor-2-door primarily targets the following customer profile: Person living in and around Northridge, CA Young Student, working professional, homemaker Internet and smart phone savvy Comfortable with online shopping Values time and appreciates saving it Does not enjoy running errands

Market ReadinessIn order to understand the readiness of the market for our services, we conducted a market research survey among 100 CSUN students who live on and around the CSUN campus. The survey questionnaire and results can be found in Appendix-B. This survey indicated the patterns of customers in relation to same day delivery service need: 83% of participants indicated a very positive or somewhat positive reaction to the new service

idea 24% indicated that such a service is required in today’s busy environment while 58% indicated

the service was a ‘want’ but not truly a necessity yet 69% indicated they were extremely likely or very likely to use this serviceThe participants indicated an interest in having the following products and services delivered to their doorstep: Office Supplies Print outs Laundry Groceries Restaurant pick-up In questions specific to media for using the service and payment: 58% indicated they would want an ‘App’ specific service while the rest indicated a Website or

interactive voice response phone service would also be useful 44% of the participants would prefer paying by a credit card service such as Square at the door

while 35% indicated they would prefer to do all cash transactions.

Strategic OpportunityOn analyzing the survey data, we at Door-2-Door feel the same day delivery service is a currently untapped or limitedly explored market. There is huge potential for local players to enter. The survey also indicates that students should be our main target customers. Most of our services are therefore designed keeping a local student’s needs in view. The survey results indicate a huge

Door-2-Door 9

potential for local delivery services around CSUN and by starting this service we see a profitable business opportunity.

CompetitionMajor CompetitorsThe below radar chart lists our perceived competitors and provides a comparison of our competition on various factors. The factors are rated 1 to 10. A company gets a rating of 10 for a factor if it is doing exceptionally well to meet the expectations of that factor. A company gets a rating of 0 for a factor if it is not able to meet the requirements of that factor. This analysis is our own interpretation of our competition and the areas of strengths and weaknesses for each of them. We believe all these factors are fundamental for success in the same-day delivery industry.

Products and ServicesPricing

Cost to reach market

Quality of Product/Service

Perceived Value

Brand Recognition

Target Customer BaseLocation

Customer Service

Delivery Time

Ease of use

24/7 Delivery Options

Risk Propensity

Sustainability

0

5

10

Customer Perception Factors - Competition Compar-ison Radar Chart

Rating [ Best - 10, Worst - 0]Door-2-Door

Amazon

Google Shopping Express

GrubHub

LABite

Postmate

Instacart

Task Rabbit

Alfred(Wunwun)

Corner Store

Figure 4: Competition Comparison Radar Chart as per our analysis

Advantage over competition Delivery Time - Our business model is based on delivery within a few minutes to an hour

based on the products purchased. The companies that do delivery in an hour are specific restaurant delivery companies. We think this factor gives us a strategic advantage over all the other companies.

Pricing - Since we cater to the student population, our objective is to keep the pricing as low as possible. We use bicycles for delivery, hire local students and try to get the best deals in the surrounding areas. We also do not have a large inventory, so the inventory holding cost is very less. Thus we manage to keep the overhead costs and the pricing exceptionally low.

24/7 Delivery Options - Most of our competitors have designated delivery timings during the day. We have ranked ourselves as the best in the market in this area as we will offer delivery 24/7 in most of our products and services except restaurant pick-ups (where timings would depend on the operating hours of the restaurant)

Our wide range and quality of products and services, and our strong customer service initiatives also provide a huge advantage over the others.

Door-2-Door 10

Barriers to entrySince we are entering the market space as a start-up, there are specific factors that we will have to work on to reach a sustainable position in the market. The following are the factors: Risk Propensity – Low, since we do not have a strong company backing our risk Brand Recognition – We will have to work on building a brand by clear marketing initiatives,

since most other players in the market already have an established and well-recognized brand. Location – As we start off our business, we will only be operating in the city of Northridge, CA.

Our next immediate goal, after establishing a market presence in Northridge will be to duplicate the business model in other colleges in order to reach more and more customers.

Strategic Position and Risk AssessmentAlthough same-day delivery services already have a market presence, we at Door-2-Door offer our customers much more than just the products they need at their doorstep The following factors together build our unique selling proposition:

Figure 5: Factors that make Door-2-Door unique

Strategic PositionTo stay stronger in the competition, we promote our items through all possible media while striving to bring down our cost as much as could be expected under the circumstances. Increase quality of service and products, exceptional service and 24/7 delivery gives us our strategic business advantage. Unique pricing for service: by focusing on partnerships with full service restaurants and

stores, we will be able to save the standard service charge from the cost and then recharge it to customers as delivery fees. With that we will be able to lower the delivery fees and to some extent not charge customers a lot above the normal market prices.

Ease of ordering: In addition to the web page and phone call that will enable us to provide a convenient way to order the service, we plan to introduce an easy way to use application for smart phones that makes ordering service as easy. Students will not have to worry about anything apart from enjoying their service.

Anywhere service on Campus: In addition to our large bouquet of services, available to the customer’s house, we will also offer delivery and services anywhere on campus premises. Students and faculty can order something as simple as a cup of coffee, or an additional notebook without having to step out of the classroom or office.

Risk AnalysisIn each stage of our business planning, we have taken precautions to minimize risks that could prove detrimental to the business. We use bicycles or electric car (for delivery of larger items) for

Unique Selling

Proposition

Competitive Pricing

Fastest Delivery

Local Produce and

Services

Student employment24/7 Service

Eco-Friendly Delivery Channels

Easy to Use

Door-2-Door 11

delivery to reduce risk of increasing expenses on delivery. With low inventory, and smaller store to doorstep cycles we plan to keep the cost of delivery very low. While doing this, we would also maintain a small but steady inventory of quick-moving products. The market research conducted to look for market readiness reduces our risk of not being able to target correctly. With the right promotional strategies, we will be able to reach every target customer in our defined market. We are currently debt free, and do not own any largely expensive fixed assets. Our operations are completely local for now, and are unaffected by state and federal regulations.

Marketing Plan and Sales StrategyOn analysis of the industry and projected revenue, we have a $12000 budget for marketing overall in the current financial year. The budget allocation is shown in the table below:

We will be using a combination of all the marketing channels listed above. The effective use of resources for marketing like social media, student reach out using our on campus branding, and SEO optimization will help us reduce the marketing costs. We are also depending highly on word of mouth so that there is a positive vibe about this service in the community. Social MediaGoogle, Facebook, YouTube, Twitter, Instagram and Yelp offer a platform to directly reach our customers who mostly are college students between 18years and 35 years. Only a small portion of advertising on these platforms is paid, thus saving us huge marketing costs. Promotions, coupons and free trials will be posted on our page on these websites. These pages also help us to gather data on customer profiles, customer reviews help us to improve our services.University Student NetworkWe will carry out promotions on campus trhough direct student interactions, flyers, free coffees and other such promotional activities.In our next phase of expansion, we will approach the university newspaper to have article based stories to advertise our services on campus.

Figure 6: Budget Allocation for Marketing Channels *We would seek assistance in procuring this contract from our investor

Marketing Vehicle Specifics Frequency Cost per year

Application DesignHelp in designing a clear, easy to use app

One time development cost

$200

Continuous SEO and SEMTo ensure our company website shows up in search results

Monthly $150 1800

Flyers Designing and Printing cost Monthly $200 $2400

Promotional OffersFree trials, free delivery for first 10 instances

Monthly $1000 $12000

Online Advertising on CSUN Website*

A small advertisement and mention in the campus services

Annual contract $5000

Online advertising on YouTube

To be played before video starts on all IP addresses in Northridge, CA

Monthly $200 $2400

Online advertising on Facebook, Yelp, Twitter, Instagram

Continuous ads and social activity Monthly $200 $2400

Informal Marketing/Networking

Attend numerous CSUN events and network directly with students

Monthly $200 $2400

Total $28,600

Total Monthly Cost $2383.33

Door-2-Door 12

SEO and SEMDoor-2-Door will also use various SEO and SEM optimization techniques to ensure our services are visible in search results. Being in the top search results is a continous effort and our capable marketing team maintains an upto date database of key words which we use in our promotions and website.

B2B MarketingDoor-2-Door has been actively working with vendors, restaurants and local grocery stores to host stickers advocating our services to get products from their stores delivered to the doorstep. in various facilities of the vendors along with which we also plan to do marketing events and market surveys at vendor locations. The above marketing plan is only for the rest of 2015. We will tweak our marketing strategy judging on how our services are taken by the customers in the first few months.

Marketing and Business DevelopmentThe marketing and business development is led by the Marketing Head. The rest of the marketing team includes freelancers, and students called campus ambassadors. This team drives the company’s on ground marketing efforts and identifies new market opportunities

Service Delivery and Customer SupportThis team, led by the Service Delivery Head, includes freelancers and students who get the products and services from different vendors and deliver them to the customers’ doorstep as per orders. They have to wear the Door-2-Door uniform and undergo on-the-job training to deliver the best customer experience.

Average Single Order Projected figures till December 2015

Products & Services

Mark-up

Our Cost

Cost to Customer

Profit per order

No. of orders per day

No. of orders per month

Monthly COGS

Monthly Sales

Monthly Profits

Groceries 25%$10.

0$12.5 $2.5 20 600 $6,000 $7,500 $1,500

Personal Care Essentials

25%$10.

0$12.5 $2.5 10 300 $3,000 $3,750 $750

Restaurants 20%$20.

0$24.0 $4.0 20 600 $12,000 $14,400 $2,400

Office Supplies 40%$10.

0$14.0 $4.0 15 450 $4,500 $6,300 $1,800

Printing/Scanning 70% $5.0 $8.5 $3.5 20 600 $3,000 $5,100 $2,100

Over the Counter Medications

30%$10.

0$13.0 $3.0 8 240 $2,400 $3,120 $720

Laundry Washing, Drying and Folding per load

120%

$3.1 $6.9 $3.7 5 150 $468 $1,030 $562

Total Monthly Figures $31,368 $41,200 $9,832Figure 7: Projected Monthly Profits for Door-2-Door

OperationsLocation and LeaseOur head quarters are located at the California State University, Northridge Campus. We currently operate out of an office, owned by the Chairman and CEO. We do not pay any rent and will continue

Door-2-Door 13

to operate from this facility till end of 2017. The location is private owned, so operations can be carried out 24/7.

ServiceDoor-2-door delivery product lines include stationary items like Books, Printouts etc. It also includes Services like Restaurant pick up, Groceries, Laundry, Health and personal care items, Birthday cakes etc. The delivery of such services is mainly dependent on demand.

Inventory ManagementWe follow the ‘Just-in-time’ approach to manage our inventory. We hold a small inventory of quick moving products, but the rest of the services are delivered as per requirement. We have MIS experts on our team who have designed a robust inventory management system that helps us keep track of all our product orders and services rendered.

Supply and DistributionCurrently we purchase products directly from local stores in bulk, store them for a brief amount of time at our inventory and deliver them as the orders come in. The deliver is carried out around the CSUN campus on bicycles but distribution of large volume items, or delivery in unsafe areas during night-delivery would be carried out using electric cars. Our focus is always on keeping an eco-friendly delivery system.

EmployeesDoor-2-door hires local talented individuals mainly students living around CSUN to work in various roles in the company. Key management positions are held by the 6 business owners, while the rest of the employees are currently hired on freelance basis only. We currently have 20 students working different shifts with us and we plan to increase the hiring depending on demand and seasonality.

Customer ServiceOur company vision is to serve our customers with good quality of service. The employees are trained on the job to watch and learn to deliver the best service possible. Feedback and concerns are addressed immediately, and the management team looks into ensuring the customer is happy with the interaction at all times. We welcome customer feedback and reviews on social media and attend to them on a regular basis. Customers can contact us through all the media on which we have our presence to talk to the management team directly and raise any concerns. This helps us to understand and improve our quality of service.

CostsSalaries and Wages Annual Cost

No. of Employees

Total Cost

Salaries $2,220.00 20$44,400.0

0Payroll Taxes (Federal income tax withheld, social security tax, medicare tax, state income tax withheld, disability insurance)

$360.00 20 $7,200.00

Total Salaries and Wages$51,600.0

0

Salaries and Wages per month $4300

Figure 8: Annual & Monthly Salaries & Wages Costs for Door-2-Door

General Administrative Purchases and ExpensesAnnual Cost

Quantity

Total Cost

Door-2-Door 14

Second hand Electric Car $2,500.00 1 $2,500.00

Electric Bikes $329.00 4 $1,316.00

Cycles $139.00 8 $1,112.00

Insurance - General liability, workers compensation and property casualty coverage at a total annual premium

$2,400.00 Annually $2,400.00

Registration Charges $539.00 One time $539.00

Legal Charges - of obtaining license and permits $1,300.00 One time $1,300.00

Square for I-phones for payments at doorstep $11.99 12 $143.88

Square for I-pads for payment and records $99.99 2 $199.98

Gas $1200.00 Annually $1200.00

Industrial Refrigerator $4,500.00 One time $4,500.00

Industrial Weighing Scale $530.00 One time $530.00

Scanner $350.00 One time $350.00

Rent – No rent for first 2 years $0.00 None $0.00

Printer $150.00 One time $150.00

Internet $1,200.00 Annually $1,200.00

Electricity $7,200.00 Annually $7,200.00

Miscellaneous Expenses - Other start - up expenses like utility deposit, stationary, phones, employee uniforms etc.

$2,500.00 Annually $2,500.00

Total Administrative Purchases and Expenses$27140.8

6

Administrative Purchases and Expenses $2261.74

Figure 9: Annual & Monthly General Administrative Expenses for Door-2-Door (6)

Initial Projected Inventory Holding Costs Monthly Costs

Non-perishable goods by weight

< 5 lbs $1,000.00

5 to 10 lbs $400.00

>10 lbs $500.00

Office Supplies $300.00

Total Costs $2,200.00

Figure 10: Initial Projected Inventory Cost for Door-2-Door

Door-2-Door 15

Technology PlanSince we are at the initial stage of our business, we intend on keeping technology costs to a bare minimum. The management team would continue to use their personal computers, phones and other communication devices for the current year.Some of the important operating costs are already covered in the operations section. They include:

Buying a printer Buying a scanner Signing up for an Internet connection Signing up for the payment processing service ‘Square’ for phones and Ipads

Door-2-Door uses technology in every aspects of the business to increase the performance and efficiency of the product. We look forth to using the network of our investor to get Apple Pay and Android Pay connections so our services are more up to date with the current times. Apart from the costs related to technology mentioned in the operating expenses section, additional projected cost involve building a website and app and hosting them. We have a prototype of the website which can be seen in Appendix-A. However, we would need to hire a third party to design and maintain this service for us. We would also get the I-phone and android applications developed from a third party developer. The projected costs for are as follows:Technology Costs Annual Costs

Website Domain Name $10

Website Hosting $50

Website Maintenance $500

I-phone & Android App Designing $500

I-phone & Android App Hosting and Maintenance $25

Total $1,085

Figure 11: Annual Technology Costs for Door-2-Door

Management and OrganizationOur management team is comes from a diverse experience in management, supply chain, marketing, human resources and technology. Currently, the founders hold the key management positions. All the hiring is restricted to students and freelancers. This flat structure based on hiring part-time employees helps us to keep personnel costs low. In the future, me may consider hiring full time employees based on our expansion strategy. The current organization structure is as follows:

Figure 12: Organization Structure for Door-2-Door

Chairman & CEO

Divya Vivek Joshi

Service Delivery & Customer

SupportVinaya

Kodihalli Vijaykumar

Freelance Students

Marketing & Business

Development

Rishi Nagh Sattoor

Freelance Students

CTO

Naveen teja Reddy Alava

CFO

Likhitha Tatigutla

Director & Advisor

Ashwin Kumar Mosale

narayanaswamy

Door-2-Door 16

Divya Vivek Joshi - Chairman & Chief Executive OfficerMs. Divya completed her undergraduate degree in Electronics & Telecommunication Engineering and also holds a Masters in Management Studies. She has over 5 years of work experience in project planning like, maintaining schedules, keeping track on project resources. She also has a good exposure in the field of Entrepreneurship, Finance and Marketing pertaining to small businesses. She is currently pursuing MS in Engineering Management.

Ashwin Kumar Mosale Narayanaswamy - Director & Advisor Mr. Ashwin Kumar who is currently pursuing his Masters degree in Management also has a Bachelor's degree in Industrial Engineering Management with 3 years of work experience in the Managed Cloud Services Business.

Vinaya Kodihalli Vijaykumar - Service Delivery & Customer Support Ms. Vinaya is a Graduate student in Engineering Management program. She has Bachelors in Electronics & Communication Engineering and 2 years of work experience at Amazon.com as Catalog Associate in the field of customer service, marketing, manufacturing and management.

Rishi Nagh Sattoor - Marketing & Business Development Mr. Rishi is a Graduate Student in Engineering Management program. He has Bachelors Degree in Mechanical Engineering from Osmaina University. He was a member in ASME- American Society of Mechanical Engineer where he worked as a coordinator in Marketing and Business development.

Naveen teja Reddy Alava - Chief Technical OfficerMr. Naveen is Graduate Student in Engineering Management program and he completed his undergraduate studies in Computer Science Engineering and Masters in Software Engineering. He has 2 years of work experience as Program Analyst and more than a year of experience in R&D department at Cognizant Technologies.

Likhitha Tatigutla - Chief Financial OfficerMs. Likhitha is a Graduate Student in Engineering Management at California State University, Northridge. She has Bachelors degree in Computer Science at Sreenidhi Institute of Science and Technology. She has a good knowledge in the field of Management, main areas of Economics and Finance

Social responsibility and sustainabilityAt Door-2-Door, we believe we are good corporate citizens. Our entire business model works to ensure we remain socially responsible while chasing our profit bottom line.We focus on growing as a business while continuing to do our bit for the Northridge community and the environment.

Eco-friendly delivery services – Our deliveries happen on bicycles or electric cars, thus preventing a carbon footprint altogether. We also follow eco-friendly methods to procure products.

Job-Creation – We only hire local resident students who know the Northridge area well. We currently are hiring 20 locals and will keep increasing these numbers as our business expands, thus creating more and more job opportunities in our local community.

Paper-less Transactions – With our app and website to order, and a business deal with Square, Apple pay and Android pay, we should be able to make the entire end-to-end service purchase experience a paper-less one.

Our company strives to bring a novel service experience to our customers, something that’s quite different from other companies in the market. Same-day delivery service is currently a nascent market and we want to be not just market leaders, but market influencers in defining the future of this industry.

Door-2-Door 17

Development, Milestones and Exit PlanDoor-2-Door plans a steady growth in the next 2 years and establish a strong presence in Northridge, CA.

Long-Term GoalsDoor-2-door intends on growing steadily by increasing number of customers and sales volumes in the next 3 years. We are confident of becoming a loved and respected service provider in Northridge, CA. We plan to have a steady 70% annual increase in number of the regular customers as we grow. By the end of 2016, we expect to have $603,666 in gross sales and $ 724,399 in 2017. In 5 years, we aspire to be market leaders in same-day deliver service across all university campuses in California.

Strategies for Achieving Long-Term GoalsOur first step is to get the word out by providing free delivery trials, promotional offers, social media advertising and college event promotions. The goal is to create a buzz and initiate sales. We will then focus on achieving a seamless delivery experience by increasing repeat orders and word of mouth publicity. We will also procure contracts directly with the vendors to increase profits by reducing cost of goods. Increasing the products and services offered and providing best deals on them will also be a priority.

Expansion Plan and RisksOnce we achieve sufficient sustainability in Northridge, our goal is to replicate this business model in other university campuses to target markets in these areas. Below is our development plan for the next 5 years:

Figure 13: Door-2-Door Expansion Strategy for the next 5 years

We are aware that there is a certain amount of risk involved in expansion. In our case, the major risk is the possibility that we may not be able to replicate the business model successfully in other campuses. There are various reasons why this could happen:

Different mindset among customers Possibility of a company already holding majority market share in that geographic location Other environmental, social, legal factors that may reduce the possibility of success.

We have taken the risks into consideration, and feel that campuses in Los Angeles, share a much similar background and needs. And hence, the risk, though possible, is still low.

Exit PlanWe will evaluate the health of our business on the basis of sustainability and profits that we can fuel back into the business by the end of 2020. At this point, we may do one of the following plans:

We will replicate our business model in other campuses across the country. We will also focus on offering more diverse services and products while doing so.

Or we will open our business up for franchising where other players from different cities in the US can purchase our business idea and replicate it to fit their local college student needs.

In either case, the exit plan is to grow large enough to go public and have a definite presence and association with each and every university campus across the country.

CSUN CSU LA, CSU LB USC, UCLA

College Campuses in

California

Colleges Campuses across the Country

Door-2-Door 18

FinancialsIncome Statement – Three Year Projection – with 20% projected growth per year

2016 2017 2018

INCOME

Gross Sales $603,666.43 $724,399.71 $869,279.66

(Commissions, Returns and allowances) $0.00 $0.00 $0.00

Net Sales $603,666.43 $724,399.71 $869,279.66

(Cost of Goods) $459,611.46 $551,533.76 $661,840.51

GROSS PROFIT $144,054.96 $172,865.96 $207,439.15

EXPENSES - General and Administrative

Salaries and Wages $44,400.00 $44,400.00 $44,400.00

Payroll taxes $7,200.00 $7,200.00 7200

Marketing and advertising $15,000.00 $15,000.00 $15,000.00

Rent $0.00 $0.00 $0.00

Car Payment $1,250.00 0 0

Electric Bikes Payment $658.00 0 0

Cycles Payment $556.00 0 0

Insurance $2,400.00 2400 2400

Registration Charges $539.00 $539.00 $539.00

Legal Charges $1,300.00 $1,300.00 $1,300.00Square for I-phones for payments at doorstep $143.88 $143.88 $143.88

Square for I-pads for payment and records $199.98 $199.98 $199.98

Gas $1,200.00 $1,200.00 $1,200.00

Industrial Refrigerator Payment $2,250.00 $0.00 $0.00

Industrial Weighing Scale $0.00 $0.00 $0.00

Scanner $0.00 $0.00 $0.00

Printer $0.00 $0.00 $0.00

Internet Subscription $1,200.00 $1,200.00 $1,200.00

Electricity $3,600.00 $3,600.00 $3,600.00

Technology $1,085.00 $1,085.00 $1,085.00

Miscellaneous Expenses $2,500.00 $2,500.00 $2,500.00

TOTAL OPERATING EXPENSES $85,481.86 $80,767.86 $80,767.86

Net income before taxes $58,573.10 $92,098.10 $126,671.29

Provision for taxes on income $11,714.62 $18,419.62 $25,334.26

NET PROFIT $46,858.48 $73,678.48 $101,337.03

Door-2-Door 19

Figure 14: Income Statement – Three-Year Projection

Income Statement Annual – FY15Q1 & FY15Q2Year 2015 (Actual through 8/4/2015)

JAN FEB MAR APR MAY JUN

INCOME

Gross Sales $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

(Commissions, Returns and allowances) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Net Sales $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

(Cost of Goods) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

GROSS PROFIT $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

EXPENSES - General and AdministrativeSalaries and Wages $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Payroll taxes $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Marketing and advertising $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Rent $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Car Monthly Payment $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Electric Bikes Monthly Payment $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Cycles Monthly Payment $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Insurance $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Registration Charges $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Legal Charges $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Square for I-phones for payments at doorstep

$0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Square for I-pads for payment and records

$0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Gas $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Industrial Refrigerator Monthly Payment $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Industrial Weighing Scale $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Scanner $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Printer $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Internet Subscription $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Electricity $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Technology $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Miscellaneous Expenses $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

TOTAL OPERATING EXPENSES $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Net income before taxes $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Provision for taxes on income $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

NET PROFIT $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Figure 15: Annual Income Statement for FY15Q1 & FY15Q2

Door-2-Door 20

Door-2-Door 21

Income Statement Annual – FY15Q3 & FY15Q4Year 2015 (Actual through 8/4/2015)

JUL AUG SEP OCT NOV DEC

INCOME

Gross Sales $0 $41,200 $45,319.56 $49,851.52 $54,836.67 $60,320.33(Commissions, Returns and allowances) $0 $0 $0 $0 $0 $0

Net Sales $0 $41,200 $45,320 $49,852 $54,837 $60,320(Cost of Goods) $0 $31,368 $34,504.80 $37,955.28 $41,750.81 $45,925.89GROSS PROFIT $0 $9,832 $10,815 $11,896 $13,086 $14,394EXPENSES - General & AdminSalaries and Wages $3,700 $3,700 $3,700 $3,700 $3,700 $3,700Payroll taxes $600 $600 $600 $600 $600 $600Marketing and advertising $2,383 $2,383 $2,383 $2,383 $2,383 $2,383Rent $0 $0 $0 $0 $0 $0Car Monthly Payment $208 $208 $208 $208 $208 $208Electric Bikes Monthly Payment $110 $110 $110 $110 $110 $110Cycles Monthly Payment $93 $93 $93 $93 $93 $93Insurance $200 $200 $200 $200 $200 $200Registration Charges $539 $0 $0 $0 $0 $0Legal Charges $1,300 $0 $0 $0 $0 $0Square for I-phones for payments at doorstep $144 $0 $0 $0 $0 $0

Square for I-pads for payment and records $200 $0 $0 $0 $0 $0

Gas $100 $100 $100 $100 $100 $100Industrial Refrigerator Monthly Payment $375 $375 $375 $375 $375 $375

Industrial Weighing Scale $530 $0 $0 $0 $0 $0Scanner $0 $350 $0 $0 $0 $0Printer $0 $150 $0 $0 $0 $0Internet Subscription $100 $100 $100 $100 $100 $100Electricity $600 $600 $600 $600 $600 $600Technology $1,085 $0 $0 $0 $0 $0Miscellaneous Expenses $208 $208 $208 $208 $208 $208TOTAL OPERATING EXPENSES $12,475 $9,177 $8,677 $8,677 $8,677 $8,677

Net income before taxes -$12,475 $654 $2,137 $3,219 $4,409 $5,717Provision for taxes on income $0 $98.14 $321 $483 $661 $858

NET PROFIT -$12,475 $556 $1,817 $2,736 $3,747 $4,860Figure 16: Door-2-Door Annual Income Statement FY15Q3 & FY15Q4

Door-2-Door 22

Cash-Flow Projection FY15 Q3 & Q4MAY JUN JUL AUG SEP OCT NOV DEC

CASH RECEIPTS

Income from Sales

Cash Sales $0 $0 $0 $41,200 $45,320 $49,852 $54,837 $60,320Collections $0 $0 $0 $0 $0 $0 $0 $0Total Cash from Sales $0 $0 $0 $41,200 $45,320 $49,852 $54,837 $60,320Income from FinancingInterest income $0 $0 $0 $0 $0 $0 $0 $0Loan proceeds $0 $0 $0 $0 $0 $0 $0 $0Equity capital investments $36,000 $0 $0 $0 $0 $0 $0 $0

Total Cash from Financing $36,000 $0 $0 $0 $0 $0 $0 $0

Other Cash Receipts $0 $0 $0 $0 $0 $0 $0 $0TOTAL CASH RECEIPTS $36,000 $0 $0 $41,200 $45,320 $49,852 $54,837 $60,320

CASH DISBURSEMENTSExpenses

Inventory $0 $0 $2,200 $2,000 $1,800 $1,600 $1,400 $1,200$0 $0 $0 $31,368 $34,505 $37,955 $41,751 $45,926

Operating Expenses $0 $0 $12,475 $9,177 $8,677 $8,677 $8,677 $8,677Commissions/Returns & Allowances $0 $0 $0 $0 $0 $0 $0 $0

Capital Purchases $0 $0 $0 $0 $0 $0 $0 $0Loan Purchases $0 $0 $0 $0 $0 $0 $0 $0Income Tax Payments $0 $0 $0 $98 $321 $483 $661 $858Investor dividend payments $0 $0 $0 $0 $0 $0 $0 $0

Owner's draw $0 $0 $0 $0 $0 $0 $0 $0TOTAL CASH DISBURSEMENTS $0 $0 $14,675 $42,643 $45,303 $48,715 $52,489 $56,661

NET CASH FLOW $36,000 $0 -$14,675 -$1,444 $17 $1,136 $2,347 $3,660

Opening Cash Balance $0 $36,000 $36,000 $21,325 $19,881 $19,898 $21,034 $23,381Cash Receipts $36,000 $0 $0 $41,200 $45,320 $49,852 $54,837 $60,320Cash disbursements $0 $0 -$14,675 -$42,643 -$45,303 -$48,715 -$52,489 -$56,661ENDING CASH BALANCE $36,000 $36,000 $21,325 $19,881 $19,898 $21,034 $23,381 $27,041

Figure 17: Door-2-Door Cash Flow Projections for FY15 Q3 & FY15 Q4

Door-2-Door 23

Balance SheetFor Door-2-Door Delivery Services

For Year Ending: December 31, 2015

ASSETSCurrent Assets

Cash $36,000.00

Accounts receivable $0.00

Inventory $10,200.00

Other current assets $0.00

Total Current Assets $46,200.00

Fixed Assets

Land $0.00

Facilities $0.00

Equipment $5,244.00

Computers and telecommunication $500.00

less accumulated depreciation $1,148.80

Total Fixed Assets $4,595.20Other Assets $0.00

TOTAL ASSETS $50,795.20

LIABILITIES

Current Liabilities

Short-term notes payable $4,714.00

Income taxes due $2420.44

Other current liabilities $0.00

Total Current Liabilities $7,134.44

Long-Term Liabilities

Long-term notes payable $0.00

Other long-term liabilities $0.00

Total Long-Term Liabilities $0.00

Net Worth

Shareholder's equity $36,000.00

Retained earnings $7660.76

Total Net Worth $43660.76

TOTAL LIABILITIES AND NET WORTH $50,795.20

Figure 18: Door-2-Door Balance Sheet Year Ending December 31, 2015

Door-2-Door 24

Appendix – AWebsite Screenshots

Visit us at: https://d2dcom.wordpress.com

Home Page

Options

Application ScreenshotsHome Page

Options

Door-2-Door 25

Appendix – BSurvey Questionnaire

References1. Roose, Kevin. "6 Ways Competitors Are Trying to Kill Amazon." NYMag.com. New York

Magazine, 26 Aug. 2014. Web. 24 July 2015. 2. Alruhaymi, Amani. "Multi-Menu Delivery Project." Universitat Pompeu Fabra, 2012. Web. 11

July 2015. 3. Barba, Ronald. "Amazon Prime Saw 10M New Customers This Holiday Season." Tech.co.

Tech.co, 26 Dec. 2014. Web. 15 July 2015. 4. "Northridge, CA." Google Maps. N.p., n.d. Web. 2 Aug. 2015.5. "Mapping L.A. San Fernando Valley Northridge." Maps.latimes. Los Angeles Times, 2008.

Web. 20 July 2015. 6. "Coffee Shop Business Plan." Bplan. Java Culture. N.d. Web. 2 Aug. 2015.