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Entrepreneurship

Home > Study Notes > Entrepreneurship
Published in: Management Subjects
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Business Plan

Rashmi J / Noida

7 years of teaching experience

Qualification: pgdm

Teaches: English, Mathematics, Science, Biology, Physics, Management Subjects

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  1. EXECUTIVE SUMMARY We are writing this business plan about opening a franchise of e-bike of HERO Company in Greater Noida in UP. E-bike is a bike which is chargeable and runs on battery. This plan of opening a franchise needs 25 lakhs of rupees without the cost of land. In this plan we will discuss about how we will set up this plan, what will be my strategies, how we will finance our plan, how we will market this plan, and all. 1
  2. PROBLEM AND NEED As natural resources are declining day by day, we have to find alternative for running our vehicles. Petrol and diesel is becoming costly day by day which is becoming unaffordable for many people. Secondly the vehicle which runs on diesel and petrol pollutes the environment .these vehicles produces noise pollution, air pollution which affects the health of many people. They cause many types of lung diseases. As to give healthy environment to our future generation it's our duty to make environment friendly products and do less pollution and save the resources. Go-green is our main-motive at the cost of serving our consumers. Economical Objective : Secure and long term development in the industry as we teamed with a company that has already exceeding vastly in economic wealth, credibility and accomplishment. Provide quality service to our customer. Values: Business ethics Customer focus Professional pride Mutual respect Speed and innovation Total quality 2
  3. Mission: To achieve success in implementing concept of e-bikes among customers of all age groups. BUSINESS IDEA: In today's scenario pollution is like a disease which can't be cured but can be reduced. We as a team member are youth by generation and young in ideas want to create something that will be more efficient and productive in nature. Throughout the journey of idea generation to make something innovation, the concept of e- bikes came into our mind. Attributes related to e-bikes compel us to do project on it. Economical in nature, rechargeable, affordable and eco-friendly make it very useful to students as well as old-aged people. As we are taking franchise of Hero, it is an extra advantage to us because we don't have to introduce our brand again in minds of customer. START-UP TEAM: Dreamz vehicles is a franchise of Hero Motor Corporation. All the Franchisee have equal ownership of 20% - Nidhi, 20, % - Disha, 20% - Rashmi, 20%, Subhashree and Mini 20%. Disha Sharma has her specialization in Bsc. Maths and is currently persuing pgdm in Finance and Marketing. Mini Bhutani has her specialization in BCOM and is currently persuing pgdm in Marketing. Nidhi Kurian has her specialization in Psychology and philosophy. She is currently persuing PGDM in HR and operations Rashmi Jha has her specialization in B.Pharma and is currently persuing pgdm in Marketing and HR 3
  4. Subhashree Roy has her specialization in BCOM and is currently persuing pgdm in Marketing and Operations. INTRODUCTION: An electric bicycle, also known as an e-bike or booster bike, is a bicycle with an integrated electric motor which can be used for propulsion. There is a great variety of different types of e-bikes available worldwide, from e-bikes that only have a small motor to assist the rider's pedal-power (i.e., pedelecs) to somewhat more powerful e-bikes which tend closer to moped-style functionality. With growing trends E- scooters are also launched. E-bike or scooter are environment friendly and runs on battery. It is chargeable product which is charged through electricity. It takes around 4- 6 hrs to charge the full battery and runs around 60 km per charge. The battery takes one unit of electricity to charge which cost around 6 rupees. This means you can ride 60 km in 6 rupees on E-bike which is very affordable as compare to any other 2 wheeler. Key features: Fitness In an increasingly sedentary world, more exercise would be a good thing for many of us, and building cycling into your routine is a good way to get that exercise. Even on a bike that has a motor helping you, you will get exercise, unless you choose to run it entirely on the motor. Many electric bikes require you to turn the pedals for the motor to work anyway, and just turning the pedals will keep joints mobile and burn more calories than sitting in a car or on a bus. If you suffer from painful leg joints, then the gentle workout offered by an electric bike might help, even if pushing hard is beyond you. Of course, if you want an all-out no-pain-no-gain workout, a standard bike will make you work harder. Like a crash diet that leaves you feeling hungry all the time, taking on a long commute or a hilly locality might mean you start off with good intentions, but then start to find excuses to back out, and leave the bike in the shed. An electric bike, like a sensible balanced diet, could help you to maintain your level of activity, meaning that you get more 4
  5. exercise in the long run, using it several times a week. And of course, as you gain fitness, you can choose to use the assistance less and less, perhaps only on the worst hills, or into the strongest headwinds. And with assistance, you might feel able to travel further, increasing the amount of time you spend exercising. Cycling isn't just about physical fitness either - there can be huge benefits in terms of well being, just from being out in the fresh air, seeing the countryside at a human pace, hearing the birds and experiencing the seasons. An electric bike can help you to do all that, just as a standard bike can. , Save Money With the cost of motoring or public transport ever rising, cycling for regular transport is one way to save your money. Cycling is much cheaper than running a private car. Electric bikes do cost a little more than non-assisted bikes to buy in the first place, but they often hold their value well, and if you replace regular short car journeys with cycling, you can recoup the money quite quickly, and gain all the advantages of cycling. Timesaver As with non-assisted cycling, electric bikes can offer door-to-door convenience for commuting and shopping. Rows of cycle parking stands are usually available in the middle of town or outside supermarkets, and if not, you can often find a lampost or sturdy railing to lock your bike to. There's rarely any hunting for a parking space, or finding the right change for the ticket machine. With a basket on your handlebars, you can easily pick up a few odds and ends, and with a good set of panniers on your rack, you can fit in a few carrier bags of groceries. And if you're really keen, then just like a regular bike, an electric bike can tow a trailer, for even more shopping, or a couple of kids. 5
  6. Go-further,faster,fresher. Even if you already cycle a little, an electric bike could extend your range, allowing you to do regular trips that you'd struggle to manage otherwise, such as a long commute, or a route that can't avoid the big hills. If you'd like to cycle to work, but are afraid it would leave you too hot and sweaty on arrival, electric assist could allow you to moderate your effort, and still arrive on time. And in the rush hour, bicycles are often faster than cars, because although a car can achieve a higher speed, it's more often stuck in a jam, while the bike filters past or takes advantage of cycle-paths and short cuts. For the same reason, journey times by bike can be more reliable, and less subject to delay due to road-works, or a set of faulty traffic lights. Go-green While electric bikes obviously consume some energy, that consumption is still far less than even the greenest car or motorbike - the only C02 emitted in use is from your lungs, and there are no fumes from an exhaust pipe. And if you get your power from a green supplier, or even generate your own with a wind turbine or solar panels, an electric bike is truly sustainable. Havefun! A lot of the points above seem very 'worthy', but cycling can also just be great fun! If an electric bike allows you to cycle when otherwise you'd struggle to, then all sorts of activities are open to you - rides with the children or grandchildren, days out with friends for a picnic - even a touring holiday, if you can carry the charger and recharge the battery each night - staying at a Bed and Breakfast or hotel ought to make this possible. With a bike ready to go, you're not constrained by bus timetables, and you can see the world at your own pace. If you've cycled regularly, but are finding it harder with age, then an electric bike could keep you cycling, and therefore fit and active for years to come, and if you've not ridden since you were a child, or you're not so fit, then it might be your introduction to a whole new way of getting about. 6
  7. BUSINESS MODEL A business model describes the rationale of how an organization creates, delivers, and captures value (economic, social, cultural, or other forms of value). The process of business model construction is part of business strategy. Whenever a business is established, it either explicitly or implicitly employs a particular business model that describes the architecture of the value creation, delivery, and capture mechanisms employed by the business enterprise. A model of seven elements: 1) Value Proposition 2) Target customer 3) Value Chain 4) Competences 5) Networked partners 6) Relations 7) Profit formula. As every business has model according to which it runs and functions. As my firm offers a product which is new in the market so it is needed to develop a different type of strategies to perform smoothly and efficiently. The unique thing about product is it does not run on petrol or diesel as other vehicles .it is a scooter which is chargeable and runs on battery. It is a substitute to vehicles which runs on petrol or diesel. 7
  8. MARKET: Location: We have decided to start business in Jagat farm, Greater Noida because we have first-mover advantage there. There are no bicycle shop and e-bikes shop present in Jagat farm. To be a franchisee of Hero is another advantage as no brand apart from Yamaha is there in that market. We will take a proper and spacious room on rent. Market map: Density of Greater Noida: 800-1600 person per hectares Segmentation is done on the basis of demography of Greater Noida, life-style of people. Target market: Target customers are mainly old people, working woman, school going children and college students who needs vehicle which is easy to drive, safe & economical. We can say the target age group of people is: Age group: School children: 13-16 years, working women: 20-50 Old people: 50-60years Environment and trends of market: Jagat farm is very highly populated area of Greater Noida. People of all age group irrespective of their gender, age, income-level and status visit there. Due to numerous colleges, living-societies and offices presence near Jagat farm, it is a very popular market where every need of customer is satisfied. So our business will be a source of attraction for all age group and a tremendous opportunity to grow as environment is suitable. All income groups come regularly. 8
  9. Competition: There are no competitors in Jagat farm as there are no shops of e-bikes. But there is only one agency of Yamaha that can come as competitor in future. So there is immense chance to attract customers. Positioning: Product differentiation and positioning are key parts of a company's marketing strategy and are necessary to keep ahead of competition. They also require an innovative spirit coupled with careful analysis We are setting up in such an area that will create a need in minds of customer, as large no of school, colleges and banks are located in nearby area. Autos fares are an extravagance for people so it can be a better and advantageous product. Roads are not over populated so one can easily drive it. Product is affordable for all income group and people of all age group. Ease of accessibility is there and most preferred by working women and old-people as it is light in weight. We will enjoy competitive advantage of well settled franchise and after sales services as per company rules and regulations. substitute to bicycle in form of scooter. The value is very small and efficient as we are opening franchise of the company, we are having direct contact with company, no middle man is involved in between who can add extra cost to product and made it costly. The relations will maintained direct with company people and customers by providing best services to my customer and best results to company so that company trust that they choose a right franchiser for their product. Relations are not made by saying big words, they are maintained by deliver the quality service which customer prefers and which you promise at the time of selling. 9
  10. At starting time of our business my main motive is not to earn profits, my main motive will to build relations with customers by providing best services as they needed and as company offers. When we will satisfy customers with services which my firm provides, then we will automatically earn profits because it is very much needed to satisfy customer's needs and preferences so that they can become loyal to your firm and u can enjoy good profit. ABOUT INDUSTRY, AND STRATEGY E-bike is a growing industry. China is a leader in this industry and also a largest producer of E-bike in the world. It is expected that market of electric scooter will grow at the rate of 9% annually till 2016. In India the main players of producing of the electric two wheelers are hero electric and yo bike and small players are Avon, BSA and some local players. Currently, the size of the e-bike industry in the country is around 85,000 units per year. This includes around 50,000 units sold by the organized sector players like Hero Electric, Electrotherm, Ajanta Group etc, and the rest belong to the smaller traders. SWOT ANALYSIS OF EBIKE BUSINESS SWOT analysis (alternatively SWOT Matrix) is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. A SWOT analysis can be carried out for a product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. 10
  11. Strengths Environment friendly product No legal formalities required for registering the vehicle No licensed required for driving the vehicle Low maintain cost Good substitute to petrol, diesel vehicles No gear problems, easy to drive Safe of crude oil sources Weakness New product to the market Low awareness about the product in market Lack of trust by customers Low running speed Less advertisements and promotion Opportunities Fuel prices are touching the highest peak rates Use electrical vehicle to drive exponential growth as it is noise less,non polluted and environment friendly Government subsidies on electric vehicles Launch of three wheelers and four wheelers of electric vehicles Proud of saving earth from global saving New and better option for change Threats Lack of electricity Raw material is becoming costlier New product to the market Increasing competition 11
  12. TECHNOLOGY AND RELATED PROCESS ELECTRIC HUB MOTOR to drive the rear wheel directly and there are two types of Electric Hub Motor i.e. DC Brush Motor and DC Brush less motor having two basic parts namely Permanent Magnet Stator and Wound Rotor. ELECTRONIC MOTOR CONTROLLER is the central controlling unit of any Electric two wheelers provides electric power to the motor based on inputs from the accelerator. ELECTRONIC ACCELERATOR sends electronic signals to the Electronic Motor Controller to man oeuvre the bike or scooter. BATTERY PACK is like the fuel tank of E Bike or Scooter. There are different kinds of batteries like Lead Acid, Nickel Metal Hydrate (Ni-MH), Lithium, etc. that are used for supplying energy. BATTERY CHARGER is used to charge the battery pack of E Bikes or Scooters, just like a mobile phone or a laptop. Some battery chargers are in- built and some are separate that carried always on the move. The charger converts an AC supply to DC to store power in the battery and it can be used with any normal domestic AC plug point. This makes charging of battery pack easy and convenient. 12
  13. MARKETING MIX The marketing mix is a business tool used in marketing and by marketing professionals. The marketing mix is often crucial when determining a product or brand's offering, and is often synonymous with the four Ps: price, product, promotion, and place; in service marketing, however, the four Ps have been expanded to the Seven Ps or eight Ps to address the different nature of services. The four Ps which marketing mix includes are: Price: to set a price of the product according to customers is a difficult task for any company. As we are franchisee we don't need to set up price, they will be fixed by the company. The govt is providing subsidy to e-bike as it lowers its price by Rs 5000. Product: the product is new in the market and it is in growing stage, it needs time to create awareness among people and be successful in the market. Every product has its life cycle according to that the strategy differs as per situation of the product. Place: place is the important factor to open the showroom or set up the venture. The place should be much focused, should be in well known area which should know to everybody and everybody can reach there. It should be not like that you have open a showroom and nobody knows about it. So we have chosen a premium location in the main market of city which is known to everybody and easy to reach. Promotion: promotion is a main tool of marketing mix. We should be very careful in designing the promotion campaigns. The promotion of e-bike should be done in a different way as we have to introduce this product to the market and create awareness among people. we will 13
  14. organize road shows, festival discounts, promote at regional functions and fairs. We can promote by doing exhibitions in college fests, offering test-drive in different areas of Greater Noida, interact with the people of different areas to know the mindset. HOW WE WILL SELL PRODUCT AND CREATE CUSTOMER RELATIONSHIP Selling the product to customer is an art. Many few of us know it. As a franchisee of e-bike we are selling the product through my retail showroom where customer comes and interact with us and we give proper solution to customer in form of product. There are different models e- bike are available with us like: Hero maxi Hero optima plus Hero Zion Hero wave Hero photon plus Hero sprint Hero Cruz These models have different specifications and have different prices which ranges from Rs 32000 to Rs 42000. We will maintain the customer relationship by providing best quality before and after sale service and welcome customers for giving us feedback that how we can better our services and what is best about us. We will also organize royalty programs once in a year to feel customers as part of our group. 14
  15. HUMAN RESOURCE PLANNING The ongoing process of systematic planning to achieve optimum use of an organization's most valuable asset - its human resources. The objective of human resource (HR) planning is to ensure the best fit between employees and jobs, while avoiding manpower shortages or surpluses. The three key elements of the HR planning process are forecasting labor demand, analyzing present labor supply, and balancing projected labor demand and supply. As we stated above HR is the most important part of any type of firm because it includes employees from top level to lower level who are the main asset of any firm, if they are not efficient, the operations cannot be efficient and will not give prefect output. The structure under which we will manage human resource planning is that: Managing Director Sales Manager Service Manager 15
  16. Managing director will manage the overall activities of business firm and will also handle the financial and accountancy department. Sales manager will be main and experienced person who will handle the customers directly and under him there will two sales men who will help him in interacting with customers, billing and other formalities. Service manager will senior and experienced person who will in service department and spare part department .under him also two workers will there who handle functions like washing of vehicle, servcing vehicle all other activities related to service and repair. The environment of our organization will very friendly. We five have equal authority to contribute to our shop and changes can be made under consideration of all. 16
  17. FINANCIAL PLANNING Financial Planning is the process of estimating the capital required and determining its competition. It is the process of framing financial policies in relation to procurement, investment and administration of funds of an enterprise. Objectives of Financial Planning Determining capital requirements- This will depend upon factors like cost of current and fixed assets, promotional expenses and long- range planning. Capital requirements have to be looked with both aspects: short- term and long- term requirements. Determining capital structure- The capital structure is the composition of capital, i.e., the relative kind and proportion of capital required in the business. This includes decisions of debt- equity ratio- both short-term and long- term. Framing financial policies with regards to cash control, lending, borrowings, etc. A finance manager ensures that the scarce financial resources are maximally utilized in the best possible manner at least cost in order to get maximum returns on investment 17
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