Presentation Presentation on on

Business PlanBusiness Plan

By,By,N.Padma Priya N.Padma Priya

DharshiniDharshiniM.GururajanM.Gururajan

VERSATILE SERVICES LTDVERSATILE SERVICES LTD

Head Office:Head Office:

Versatile Services Ltd,Versatile Services Ltd,No. 4, Ground Floor,Canal Bank Road,Tidel Park,Taramani,Chennai - 600 113India Website: www.versatile.comE-mail: service@versatile.comPhone: 044-22541634

IntroductionIntroduction

Presently Chennai is witnessing giant growth in Presently Chennai is witnessing giant growth in Information Technology (IT) and Information Information Technology (IT) and Information Technology Enabled services (ITES) sector.Technology Enabled services (ITES) sector.

As a result, there is a huge jump in number of As a result, there is a huge jump in number of knowledge workers (employees) in IT industry knowledge workers (employees) in IT industry which is spread all over the city. which is spread all over the city.

This sector does not have time to fulfill their This sector does not have time to fulfill their personal requirements like on time payment of personal requirements like on time payment of bills, booking etc...bills, booking etc...

VERSATILE is a company which focuses on this VERSATILE is a company which focuses on this service industry and helps them to make their service industry and helps them to make their life easier. life easier.

Company descriptionCompany description

Miss.N. Padma Priya Dharshini & Miss.N. Padma Priya Dharshini & Mr.M.Gururajan are planning to launch Mr.M.Gururajan are planning to launch this company. this company.

This company will be located in This company will be located in Chennai. The company is currently in Chennai. The company is currently in the seed stage and expects to move the seed stage and expects to move rapidly towards further growth and rapidly towards further growth and profitability.profitability.

MissionMission

VERSATILE is an innovative service VERSATILE is an innovative service provider which offers unparalleled provider which offers unparalleled quality and service. We value quality and service. We value integrity, honesty, creativity and integrity, honesty, creativity and respect our relationships with each respect our relationships with each other, our customers, and the world other, our customers, and the world at large.at large.

Products & ServicesProducts & Services

The Company’s main service offerings The Company’s main service offerings is the payment of the telephone bills, is the payment of the telephone bills, E.B bills from the customers. The E.B bills from the customers. The uniqueness in our service is, that our uniqueness in our service is, that our services will be provided door to door services will be provided door to door with 24 *7 availability with 24 *7 availability

Payment of Telephone bills and E.B Payment of Telephone bills and E.B billsbills

Facilitating rental accommodationFacilitating rental accommodation

The service is customizable and can The service is customizable and can be configured to meet a wide variety be configured to meet a wide variety of customer needs. of customer needs.

The The advantagesadvantages for the customers for the customers will be will be

Timely Services with Zero Timely Services with Zero defectdefect

Cost EffectivenessCost Effectiveness Trust worthy and Reliable Trust worthy and Reliable serviceservice

Products & ServicesProducts & Services

TargetTarget MarketMarket

Our Company management recognizes Our Company management recognizes an enormous unmet need in the service an enormous unmet need in the service industry. Large number of customers industry. Large number of customers surveyed recently said that they were surveyed recently said that they were very likely to avail a service if it were very likely to avail a service if it were available.available.

This segment of the market has This segment of the market has tremendous potential that has been tremendous potential that has been untapped by any of the other competitors untapped by any of the other competitors in this industry. in this industry.

Marketing & Sales StrategyMarketing & Sales Strategy

Our Company’s marketing strategy is to Our Company’s marketing strategy is to represent its services as the best and most represent its services as the best and most logical solution to customer’s needs, logical solution to customer’s needs, problems. problems.

We are positioning the company as the low-We are positioning the company as the low-cost, highest quality & best value provider cost, highest quality & best value provider of services in the marketplace. of services in the marketplace.

The company will use a variety of The company will use a variety of marketing approaches and materials marketing approaches and materials including brochures, websites & tele including brochures, websites & tele marketing. marketing.

Sales of the company’s services will be Sales of the company’s services will be handled by an internal sales force. handled by an internal sales force.

TechnologyTechnology

WebWeb InternetInternet Mobile CommunicationMobile Communication TelemarketingTelemarketing

CompetitionCompetition

Our Company faces competition from Our Company faces competition from many small and unstructured firms. many small and unstructured firms. These companies do not specialize in These companies do not specialize in services hence do not provide the same services hence do not provide the same quality /price / convenience/service that quality /price / convenience/service that our Company does in this field. our Company does in this field.

We distinguish our self from its We distinguish our self from its competitors through its Unique Selling competitors through its Unique Selling Proposition. Its competitive edge is its Proposition. Its competitive edge is its ability to provide services to its ability to provide services to its customers more economically/faster & of customers more economically/faster & of better quality than any of its competitors. better quality than any of its competitors.

Management Management

The core management team of The core management team of VERSATILE Company includes VERSATILE Company includes several executives with successful several executives with successful backgrounds in the service industry backgrounds in the service industry and experience with startup and experience with startup operationsoperations

Business StructureBusiness Structure

MD

Manager

Admin HR

Finance Security

OPS Team Leader

Associates

Sources & Uses of FundsSources & Uses of Funds

Company formed with a capital of Company formed with a capital of

Rs.60, 00,000. Rs.60, 00,000. Proceeds will be used to finance the Proceeds will be used to finance the

Company’s ongoing start-up Company’s ongoing start-up expenses, the enhancement of its expenses, the enhancement of its systems and infrastructure, and the systems and infrastructure, and the cash shortfall until cash flow cash shortfall until cash flow breakeven is achieved. breakeven is achieved.

Source of FundsSource of FundsSOURCES OF FUNDSSOURCES OF FUNDS

CapitalCapital 20, 00,000 20, 00,000

Bank loan (ICICI)Bank loan (ICICI) 25, 00,00025, 00,000

NBFI (Sundaram Finance Ltd)NBFI (Sundaram Finance Ltd) 15, 00,000 15, 00,000

  

Total value of the project (A)Total value of the project (A) 60,00,000 60,00,000

ESTIMATED COST REQUIRED FOR PROJECTESTIMATED COST REQUIRED FOR PROJECT

Land & BuildingLand & Building 30, 00,000 30, 00,000 

Recruitment and other expensesRecruitment and other expenses 10, 00,00010, 00,000

  

Total initial cost required (B)Total initial cost required (B) 40,00,00040,00,000

ESTIMATED FUNDS AVAILABLEESTIMATED FUNDS AVAILABLE

Funds available for General reserve and Funds available for General reserve and

Other operational expenditure (A-B)Other operational expenditure (A-B) 20,00,000 20,00,000

  

  

Projected Income Statement Projected Income Statement (Quarterly)(Quarterly)

ParticularsParticulars Amount Amount

Sales (Service charge) (9,37,500 * 3) Sales (Service charge) (9,37,500 * 3) (A)(A) 28,12,50028,12,500

ExpenditureExpenditurePayroll to employees (1,50,000 *3)Payroll to employees (1,50,000 *3) 4,50,000 4,50,000Marketing expenses Marketing expenses (25,000 *3)(25,000 *3) 75,000 75,000Leased equipment rent Leased equipment rent (25,000 *3)(25,000 *3) 75,00075,000InsuranceInsurance 1,00,000 1,00,000Loan repayment (ICICI & Sundaram Finance)Loan repayment (ICICI & Sundaram Finance) (67000 * 3)(67000 * 3) 2,01,000 2,01,000

Total Expenditure (B)Total Expenditure (B) 9,01,000 9,01,000

Gross profit (A-B)Gross profit (A-B) 19,11,500 19,11,500

Gross Profit / Profit before Interest and TaxGross Profit / Profit before Interest and Tax19,11,50019,11,500

(-) Interest on Loan (-) Interest on Loan 67,00067,000

Profit after Interest Before TaxProfit after Interest Before Tax 18,44,50018,44,500

(-) Tax @30%(-) Tax @30% 5,53,350 5,53,350

Expected Net ProfitExpected Net Profit 12,91,15012,91,150

Return on InvestmentReturn on Investment

Profit before interest and taxProfit before interest and tax

ROI = ROI = x 100 x 100

Capital employed Capital employed

19,11,500 19,11,500

ROI = x 100ROI = x 100

60,00,00060,00,000

  

  

ROI = 31.85%ROI = 31.85%

  

Break EvenBreak Even

Invested Capital Invested Capital (A)(A)60,00,00060,00,000

(-) Expected Net Profit & Loan Repaid (-) Expected Net Profit & Loan Repaid

after one year after one year (B)(B) 59,68,60059,68,600

Balance in Capital Balance in Capital (A-B) = (A-B) = (C) (C) 31,40031,400

Versatile is expected to achieve its BEP within Versatile is expected to achieve its BEP within 18 months from its operations18 months from its operations

Industry AnalysisIndustry Analysis

Research estimates that the market Research estimates that the market will grow to an enormous level will grow to an enormous level within in 5-10 years. within in 5-10 years.

VERSATILE company is expected to VERSATILE company is expected to have revenues of around 40% in this have revenues of around 40% in this financial year based on the industry financial year based on the industry and market predictions. and market predictions.

Risk and its mitigationRisk and its mitigation

Brand NameBrand Name New startup companyNew startup company CompetitionCompetition

Mitigation planMitigation plan for above risks are: for above risks are:

Aggressive marketing to create more Aggressive marketing to create more visibilityvisibility

Adequate promotion will be carried out in Adequate promotion will be carried out in Short time to build customer confidenceShort time to build customer confidence

Scale up of service offerings horizontally and Scale up of service offerings horizontally and vertically to negate competitionvertically to negate competition

Long-Term GoalsLong-Term Goals

We are going to add few more services like We are going to add few more services like booking movie tickets and other similar servicesbooking movie tickets and other similar services

We will open few more branches in an around We will open few more branches in an around Tamilnadu especially in Coimbatore in the near Tamilnadu especially in Coimbatore in the near futurefuture

We will also extend our operation to private We will also extend our operation to private banking sectorbanking sector

Household maintenance workHousehold maintenance work

THANK THANK YOUYOU