Give your grey, Let the silver revolution start

1. Executive Summary
In a few years from now, there will be approximately 3 million jobs generated by the manufacturing industry for engineers, plus 5 million more by the services sector. Not all these jobs will be filled by graduates from metros. Already, companies are moving to tier-II and tier-III cities for talent. The above passage is an excerpt from an article in BusinessWorld, September 2007 edition. The passage also gives another startling fact. Studies show that only 10-15% of Indias non-technical graduates and about 25% of its technical graduates are actually employable. That gave us the idea of the need of a multi-sector training firm. Our company will be a Multi-sector training firm. The sectors in which we will provide training will include IT firms, banks, financial institutions, insurance companies and BPOs.We will also consider the retail sector in the future prospects. We will be mainly concentrating in the NCR region in the initial phase with trainees from both technical and non-technical background having a college degree or diploma. Our service will be to provide vocational training to college graduates. The training will be specific to the latest technical know-how in different sectors. We will give them a common knowledge of a particular sector and training for a specific class of companies.

Business:

Our company will be providing services to both our clients-the jobless youth and the companies looking for recruitment. We will provide vocational training to college graduates. The training will be specific to the sectors requirements. Hiring the trained employees is cost effective because it decreases HR costs associated with turnover and other employee training costs. On the trainees side, their professional knowledge will increase and they will be provided with good job opportunities. We will also be thinking of increasing our revenues through outsourcing in three years span. Students can also take this training as their internship opportunity. This source of revenue can also act as a business backup.
Customers: Students from non- technical background, even students from technical institutions and have a college degree (B.Tech., B.Com., B.Sc., B.A. and also the ones with a diploma) but havent been able to get employment after their graduation.

On the other side, our main target will be companies who will be assigning us the task to recruit manpower trained on specifications provided by the company. Management: On the top there will be four persons, two persons will dealing with companies, other two will be working with our training centers in which there will be some professionals and some amateurs in their specific fields.

2. The Product
Our main product will be the trained individuals which will be coming out of our training centers after completing the course. These individuals will be placed in the companies which will be contacting us for recruitment or we are going to contact to those companies. Our services include providing vocational training to college graduates which is relevant to them for getting jobs. The training will be specific to the latest technical know-how in different sectors. We will also help the companies in their recruitment procedure and provide them individuals with good knowledge of the latest technical know how. Also we will also provide outsourcing services to the companies which will act as practical training for the individuals.

Product Description Since our venture is that of a training institute, our product will be the trained individuals with quality technical knowledge specific to the requirements of the companies. These requirements will be discussed with the companies before the starting of the project. The course curriculum will be prepared depending on the response of the companies and the latest technologies. The course curriculum will be changed from time to time depending on the upcoming trends. The companies will be from different sectors:1. Information Technology 2. Banking 3. Insurance 4. Manufacturing Initially we will be concentrating on these four sectors, but later, after two years or so, we will be including new sectors like retail and financial services.

Service Description The most important aspect of our business is the quality of the services we provide. We will provide vocational training to the college graduates. The training, as discussed above, will be relevant to the modern-day technologies and the curriculum will be designed keeping the latest trends in mind. The curriculum will comprise of different sectors. We will give them a common knowledge of a particular sector and training for a specific class of companies.

Not only will we add value to the graduates by providing them training and put them on a career path but we will also contact the companies for their direct employment. The training will be focused on the needs of the companies for which we will contact the companies to know their requirements from the trainees. Thus we will be providing a common platform both for the trainees and companies benefit. Also, we will be providing training to the trainees, which can be in the form of work outsourced to us by the companies. This way the trainees will get practical training.

Competitive strengths We will be imparting quality technical knowledge to the students which will make them compatible with the industry and at the same time we are also trying to get them employed. We have the advantage of entering early into the market, plus, we are not limiting ourselves to only one sector. The sectors range widely from IT and insurance to retil and manufacturing. Companies will prefer us because we will give them trained individuals as per the requirements specified by the company. Our services will be economical and this exercise will lead to great time saving for the company concerned. Plua we will have a flexible course curriculum compatible with current demand of companies. Also the IIT brand name will help us in getting college graduates from various colleges.

Competitive weaknesses The main problem with our team is that each one of us has negligible experience in the training field. Also the project requires a large initial investment and the breakeven point will be reached after 2 years, and this being our first entrepreneurial venture, there will be problems of convincing people about our credentials and investing in this venture. Plus, we will be operating in a region of which we have very little knowledge. However, we will be hiring professionals who will help us in the teaching procedure. So that might help in canceling the negative impact of having no teaching experience.

3. Market
Our market is divided into two different segments. 1. Students/Graduates seeking training: Students from non- technical background, even students from technical institutions and having a college degree (B.Tech., B.Com., B.Sc., B.A. and also the ones with a diploma) but havent been able to get employment after their graduation. "In speaking about the projected shortfall of 5,00,000 skilled workers by 2010, the issue is not about availability of candidates, but their suitability. The challenge would lie in how our education system matches availability to suitability,'' says S. Ramadorai, CEO, Tata Consultancy Services. Only 10-15% of Indias non-technical graduates and about 25% of its technical graduates are actually employable. So the market opportunities are huge.

Quality of graduates in India

As in the first phase of our company we will mainly be targeting the NCR region, so lets look at the status of unemployment in Delhi.

Magnitude of unemployment in rural and urban Delhi

As shown in the bar chart 1.81% (1.48 lakh) of the rural population and 1.01% (0.16 lakh) of the urban population is unemployed.

Focusing on the educational attainment of unemployed persons in order to assess their capabilities qualification wise and accordingly their chances of employability in due course of time we found out that out of the total
unemployed population 14.95% includes graduates, post graduates and diploma holders. Our main focus will be on training of this sector of the population, making them employable by giving them the necessary industrial training. 2. Companies seeking trained employees: Our other target will be companies who will be assigning us the task to recruit manpower trained on specifications provided by the company. In first phase we will be targeting only the NCR as New Delhi is the most preferred destination for business process outsourcing or the BPOs. A large number of global companies are targeting Delhi & NCR to outsource their businesses to the cost effective and customer oriented service providers in Delhi. Multi national companies like GE Capital, Dell Computers, British Airways, Aviva Insurance, and British Telecomet have their business outsourcing units in Delhi and NCR. With the increase in number of

technical processes being outsourced to India and the growth of the KPOs, there is a growing demand for technical graduates in BPO companies. Currently there are more than 70 software companies in NCR, around 50 banks, a number of financial institutions and insurance companies. Studying the state wise distribution of new companies we can conclude that Delhi(27%) is the most preferred region. So we will be focusing on NCR in initially.

4. Marketing Strategy
We are thinking of starting our centers in two regions (Faridabad and Ghaziabad) in the NCR. These regions are fast developing right now and new companies are starting up their centers near these regions. Then we will start contacting the companies and professionals who will be hired for giving training to graduates. The companies will be contacted and persuaded to hire our trainees as we will be providing them an economical solution to their recruitment problems. Then we will be shifting our focus to colleges and institutions. We will organize workshops in colleges and will tell them the benefits of attending our training program. Road shows will also be organized. Newspaper ads will be given in the employment section of newspapers that comes once a week. The youth will also be targeted by giving ads at cinema halls. Pamphlets will be distributed near colleges and cinema halls. For attracting trainees the name of the companies will also be used .We will be using our brand name of IIT for advertisement of our company. IITR, being the oldest technical university in Asia has got a huge alumni base and with the help of this we can get contacts of companies from almost any sector.

5. Operations Plan
In order to give training to the students we will need to develop proper course material depending on the industrial needs and requirements. As we intend to give training specific to certain companies with which we will have contracts so a proper training material will be designed taking help of professionals of these companies. Once the course material is ready the next issue will be the training on which of the products of company. Once the students are taught about the products of the company they will be given training on live projects of the company. They will have a whole overview of the workflow of companies related to that particular field. We will contact the different companies having requirements of human resources. We shall discuss with them about their requirements in terms of number of employees and their skill sets. Further we will recruit the professionals having good amount of experience in that particular field (possibly the retired professionals of the company). Then we will prepare our curricula which will include a common knowledge of the field and specific training as per the needs of the company. At the same time we will be publicizing the programmes of our company among the students by organizing interactive sessions and road shows in different colleges. Then we will provide training to the interested students. Finally the trained students will be recruited by different companies. Research will only be done for preparing the course material as this is the most important part and this is what distinguishes us from other institutes.

6. The Executive Team

There are four members in the team. They are Dinesh Maheshwary, Durgesh Singh, Jagavar Nehra and Saket Saurav. Dinesh Maheshwary: Did a course on Entrepreneurship Development Strategies in IITR and also prepared a Detailed Project Report(DPR) as part of the course. Durgesh Singh: participated in Youth parliament where gave a business plan to develop Rural Sector. Jagavar Nehra: Worked with a startup company during the internship where learned how to tackle the problems faced by such a company. Saket Saurav: Worked in organizing committee of Thomso-Youth festival of IIT Roorkee and brought few sponsors for the event. Since each one of us have some unique skills and experience in different fields so we will be able to become the perfect team.

7. Financial Strategy
We are expecting a minimum batch of 50 individuals for the 6 months course. We are taking Rs. 4000/- per month from each individual. Thus there will be two batches per center and there are two centers. All figures are in Rupees. Sales Forecast is as shown below->

Sales Forecast
Unit Sales
Individuals Companies Outsourcing

FY 2008 200 10 0

FY 2009 300 15 0

FY 2010 400 25 4

Unit Prices
Individuals Companies Outsourcing
24,000 20,000 0 24,000 20,000 0 24,000 20,000 2,00,000

Sales
Individuals Companies Outsourcing
4,800,000 200,000 0 5,000,000 7,200,000 300,000 0 7,500,000 9,600,000 500,000 800,000 10,900,000

Total Sales
Profit Loss Statement

Expenses are taken to include payroll. We are thinking of adding one professional per center and one trained assistant every year thus increasing the payroll.

Profit and Loss

FY 2008 FY 2009 7,500,000 4,230,000 500,000 288,000 100,000 170,000 5,288,000 2,212,000 2,212,000 663600 1,548,400 0.21 FY 2010 10,900,000 5,480,000 400,000 288,000 100,000 170,000 6,438,000 4,462,000 4,462,000 1338600 3,123,400 0.29

Sales
Expenses Payroll Sales and Marketing Building Rent(Annual) Utilities Other expenses

5,000,000 3,030,000 600,000 288,000 950,000 170,000 5,038,000 -38,000 0 0 -38,000 0

Total Profit before Interest and Taxes EBITDA Taxes Incurred Net Profit Net Profit/Sales

All figures are in Rupees except that for Net Profit/Sales which is in fraction and has no denomination.

8. Contingency plan
It is always better to analyze the reasons which can lead to failure of a business before starting the business. This helps the entrepreneurs concerned to find a viable solution before that situation rises up. Our business depends on how many students we are able to get in our institute. There can be various reasons due to which we are not able to attract the students. One of these can be that the experienced faculty of professionals may leave us during the starting period. This can be resolved by keeping contact with an extra group of professionals who can temporarily help us in taking classes during the holidays, like during weekends. We can also have a contract, with the professionals we hired, for three years as this is the time we expect to be the most crucial for our course. Another reason can be that the curricula may not remain updated during the threeyear period. But this is on the part of the partners that they keep the curricula flexible and updated according to the latest technical know-how. In any case if we are not able to reach our break-even point within two years, we can go for business outsourcing from the third year onwards as an extra source of income and also a means of providing employment to trained individuals.

9. Concluding Summary
To satisfy the 8 million jobs to be generated in coming years with skilled people, the market offers huge opportunities to grow. The demand of skilled people is very stable and so our products are bound to generate huge revenues. We are generating skilled people with our own unique ways different from any current policies of the institutions. The investors will benefit hugely from us. There are some factors giving competitive disadvantages-Less or negligible experience in the training field for all the members of the team, large initial investment so the breakeven point will be reached after 2 years, and scarcity of professionals. Maybe they can copy our method but they cannot copy our enthusiasm and will to grow. Market is so big; even if somebody follows us still we will be able to maintain our growth. Further we have certain advantages -Early entry into the market , flexible course curriculum compatible with current demand of companies and a platform for both the trainees and companies to interact. Also the IIT brand name will help us in getting college graduates from various colleges.