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Words are indeed inadequate to convey my deep sense of gratitude to all those who have
helped me in completing this business plan to the best of my ability. Being a part of this
project has certainly been a unique and a very productive experience on my part.
I am really thankful to xxxxxxxxxxxxxx for guiding and helping me to solve all kinds of
quarries regarding the project work. His systematic way of working and incomparable
guidance has inspired the pace of the project to a great extent
I would like to thanks to all the colleague who have directly or indirectly helped me with
their moral support for the completion of my business plan.
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Decleration
This is to certify that this business plan of Tops Bit Web Solutions
embodies the original work done by xxxxxx during this business plan
submission as a partial fulfillment of the requirement of Master of Business
Administration IV Semester, Department of Business Administration,
University of Lucknow, Lucknow.
xxxxxxx
MBA IV Semester
Finance
Page | 2
Table of Contents
Serial
No.
01
1.0
1.2
1.3
02
Tittles
Page No.
Executive Summery
04
Objectives
Keys of Success
Mission
Company Summery
2.1
2.2
2.3
03
04
05
06
07
13
13
14
16
16
16
18
20
21
Organizational Structure
Management Team Gaps
Personnel Plan
Financial Plan
7.1
7.2
7.3
7.4
7.5
7.6
09
10
11
11
11
Competitive Edge
Market Strategy
Sales Strategy
Management Summery
6.1
6.2
6.3
09
06
06
08
Service Description
Sales Literature
Fulfillment
Technology
Future Services
06
Company Ownership
Start-up Summery
Company Location and Facilities
Services
3.1
3.2
3.3
3.4
3.5
04
05
05
Important Assumptions
Key Financial Indicators
Break-even Analysis
Projected Profit and Loss
Projected Cash Flow
Projected Balance Sheet
21
21
22
23
23
23
24
25
26
28
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Executive Summary
Tops Bit Web Solutions is a small start-up firm located in Hazaratganj, the district of
Lucknow, Uttar Pradesh. We offer Internet and Web-related services to small businesses
in the North-East reason of the country. The services we offer include website
development and design, hosting, maintenance, marketing, and analysis.
Given our experience and expertise in both commercial Web development and businessto-business sales, we believe we can offer a unique and superior service to small business
owners, in comparison to what is currently available.
The demand and growth rate for Web development and marketing services in the small
business market is at an all time high and shows no sign of slowing anytime soon. Even
more astonishing is the fact that very few Web development companies have taken
advantage of the opportunity, as there are no dominating participants in this huge market.
We believe the reason for this virtually untapped market is due to expensive project costs,
the highest profit margins in Web development today are in servicing large- and mediumsized corporations. We have developed a system that dramatically reduces steep project
costs and henceforth will allow us to offer the same high-end Web development services
as larger companies receive at a much lower cost to the client.
This business plan will highlight many aspects of our system and our business. It will
detail market growth and demand, and it will outline our projected cash flow and profit
margins over the next three years. All numbers regarding our projected company growth
are based on previous information gathered by activity in the company over the last few
months of operation.
1.1 Objectives
1.
Revenues of Rs.900,000 by month 10.
2.
Net Profit of 20% in year one and 35% in year two.
3.
60% Gross margin by month 10.
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1.3 Mission
Our mission is to provide affordable, accessible, and streamlined Internet and Web
services to small businesses. We have developed a system for offering many different
types of Web services (site development, hosting, marketing, and maintenance) that are
exclusively tailored to fit the needs and resources of small companies.
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Company Summary
Tops Bit Web Solutions is a start-up company that will provide high-end, affordable
Internet related services to small businesses that are looking to expand their existing
marketing efforts to reach the Web. We have a system established that will allow us to
offer website development, hosting, marketing, and maintenance of the same caliber that
large companies take advantage of, at a very affordable rate.
The logo for Tops Bit Web Solutions have been designed by us like:
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equipment, and software has been made. Both owners have also invested a combined
time of rupees 100,000 working hours toward the start-up of Tops Bit Web Solutions.
The cash requirement of rupees 350,000 are funds that we need to provide the capital to
run our business for the first few months. This capital will fund two employees payroll
and equipment/supplies to get them started. It will cover business expenses for a few
months until our cash flow takes over.
The four-year rupees 500,000 loan has been secured from the ICICI bank interest rate @
15 % to supply the needed capital explained above.
Start-up
(in Rupees)
Requirements
Start-up Expenses
Phone Line Install
Computer Monitor
Office Rent (lease)
Office Equipment
& Rent
Dedicated Server
Setup Fee
Company
Registration Fees
Total Start-up
Expenses
Start-up Assets
Cash Required
Other Current
Assets
Long-term Assets
Total Assets
Total Requirements
2,000
60,000
40,000
60,000
4,900
11,000
177,900
350,000
200,000
0
550,000
727,900
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Start-up Funding
Start-up Expenses to
Fund
Start-up Assets to Fund
Total Funding Required
Assets
Cash Requirements from
Start-up
Non- Cash Asset on Start
Cash Balance on Starting
Date
Total Assets
177,900
550,000
727,900
350,000
200,000
350,000
550,000
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Services
Tops Bit Web Solutions. is a full-service Internet solutions provider for small businesses.
We focus mainly on the Web, offering the following as our key 'Bread & Butter' website
services:
E-commerce development.
Website renovations and upgrades.
Application development (i.e. chat rooms, message boards, online polling, livefeed audio/video, etc.).
Database construction.
We have plans to offer the following services within the next year:
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In the next six months, we plan to produce and distribute bulk mail and fax flyers
promoting our Web development and hosting services to small businesses .We have plans
to offer a more compact version of our main sales folder in a brochure format. This
brochure will be available both as a mailer to interested parties and as a sales solicitation
in area businesses.
3.3 Fulfillment
For the website design, development, marketing, analysis, and maintenance we will
employ industry professionals to handle our clients' needs. Working for the company
presently is Dharmendra Kumar, a professional website development engineer and
strategist with two years of experience in the commercial Web development industry. To
keep employee costs low, we have designed a "team" development system that will
consist of one full-time sales person and two full-time Web developers. Of the Web
developers, one position will be filled by a highly-qualified senior Web professional and
one lesser-qualified, lower paid developers. All two will work full-time on separate
projects provided to them by the sales person. However, the senior developer will have
the duty of maintaining the same high quality level of work in the junior developers'
projects, that our clients have learned to expect from us now.
For the website hosting services we offer, Tops Bit Web Solutions. has formed several
alliances with industry leaders to provide top-rate, reliable hosting solutions. Forming the
alliances has allowed us much flexibility in important hosting features, customizability,
and it has drove costs down dramatically. All these benefits are crucial to preserving the
integrity of our company as being a 'fully-rounded Internet solutions provider' for small
businesses.
3.4 Technology
It is a given that technology and keeping up with new innovations strongly influence our
business. We operate a Windows based Local Area Network (LAN) in the office that is
equipped with the most current software and hardware tools available to meet our project
requirements. Within the next year, we will be investing in additional tools that will
extend our capabilities in handling various types of program files. We also have plans to
purchase licensing agreements with our major software vendors to allow for automatic
upgrades in new software tools.
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E-commerce/shopping cart.
Database driven websites.
Dynamic content and website features.
Aggressive online website marketing.
rate and making their online presence a higher priority than in earlier years. We have
noticed an enormous hole however in the small business services that are currently
available.
Without a doubt, there is a need for custom, high-end, dynamic services designed
exclusively for small businesses. At this point, the majority of our competitors are
offering services tailored around big business, to small business owners, or they are
offering the exact opposite and one-dimensional.
While every small business has now recognized the need for having a presence on the
Internet, many do not know where to start, how much it will cost, or even how it will
benefit their company. It has been our experience by talking to small business owners that
the decision to take advantage of the Web is not a matter of 'if' but a matter of 'when.'
4.1.2 Market Trends
An important market trend right now is the one toward aggressive online and website
marketing. Although many small businesses are still waiting to gain an Internet presence,
those who already have are beginning to look for more options along the lines of
improving their existing efforts. We believe that in the upcoming years, small companies
especially, will start to look for more ways to increase the traffic to their websites.
Another important trend is the overall merging of daily business operations with the
Internet and World Wide Web. Just as the majority of large companies have already
started to use the Web to handle inter office tasks, we believe that many smaller
companies will begin to realize the time and money saving advantages to this strategy.
4.2 Service Business Analysis
Web services and development companies vary greatly in the type of service they offer
and the type of client they attract. Tops Bit Web Solutions. will be relatively unique in the
fact that we are marketing exclusively to small businesses.
This industry consists of many small Web development firms usually less than 10 years
old that generally start out offering services to smaller companies but with long-term
goals of catering to large, corporate Web accounts.
Strengths: It invite to learn more about their services Software Development, Web
Development, IT Consultancy, Database Migration, Data Warehousing, Office
Automation System, Hardware & Network, Full Flash Website/Flash Animation and
CMS Blog Website. IT follow Industry Certified Process to deliver quality services to our
offshore clients from the U.S., Europe, Australia, New Zealand, Japan and Dubai.
Weaknesses: Prosolvis Technologies Pv.Ltd. is a young company with very high
overhead. Their very high prices do not in any way reflect the needs of small business
owners. It is also our opinion, after reviewing Prosolvis Technologies' portfolio that they
lack a certain level of technical and aesthetic design knowledge that so many small
businesses are beginning to demand.
4.2.2 Business Participants
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The Web services and development industry consists mainly of three different types of
firms.
The first type are the very large, high revenue companies who service larger Fortune
1000 corporations and well-funded Internet based start-ups exclusively. In this category
are only a few worldwide participants that dominate.
The second type of firm offers pre-fabricated, all-in-one, proprietary type Web services to
any size company at a very low cost or without any cost. The participants in this category
consist of a few dominating companies that mainly all have additional sources of revenue
and only offer Web services as a value-added service or additional attraction.
The third type of firm is our classification, that is the smaller, usually very young
companies that market to small- and medium-sized businesses in their local area.
Currently there are a large number of participants in this category, but no dominating
forces.
development experience and has been recognized as a leader and innovator in the graphic
design and layout areas of website development.
5.2 Marketing Strategy
Successful marketing of Web services to small business owners depends on how you
approach and follow-up every potential client. It is very important to deliver our
marketing pitch in a clear, no non-sense method. Details of the Internet and Web are still
relatively unknown by many small business owners, giving it the tendency to confuse and
intimidate easily.
5.2.1 Marketing Programs
We plan on doing a large scale marketing project during this month including (May 5 June 5, 2016):
Ad in newspapers
Radio advertising (FM).
Ad placement in local trade publications.
Billboard Ads to promote wide-spread name recognition.
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Website Hosting (from Rs.200 to Rs.300 per month): Depending on the type and
size of the website, the price for hosting can vary greatly. The average cost of hosting
for most clients is Rs.250 per month.
Website Maintenance (Rs.300 per hour): We charge a set fee of Rs.300 per hour
billed in 10 minute increments. If a client feels as though they will need their website
updated or maintained on a regular basis, packages are available at a discount rate.
Currently we advertise in eight separate area yellow page directories. All our ads
appear under either the Internet Services or Website Design headings.
Tops Bit Web Solutions. also has an ad listing in a national business directory
under the heading of Web Developers.
We have sent out targeted bulk mail flyers promoting special offerings by our
company.
In the near future we will begin a new aggressive, ongoing bulk mail campaign to
promote our Web development and hosting services.
Mass Media Ads:
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We will begin advertising on a broader scale within the next six months. Radio
spots will be continuously played during local area talk shows and news programs,
this placement is intended to reach the highest percentage of our target client possible.
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The following table and chart summarize our forecast sales. We expect the first month of
operations (May) to be spent training the new developer and new salesman. June will be
our first month of operation and we expect to grow steadily in the following months.
Website development sales will be the largest portion of our revenue with result-based
marketing following. Maintenance and hosting revenue will be built up slowly but are the
residual base we will stand on in the future.
Sales Forecast (In Rupees)
Sales
Website
Development
Result-based
Marketing
Maintenance
Hosting
Total Sales
Direct Cost of Sales
Website
Development
Result-based
Marketing
Maintenance
Hosting
Subtotal Direct Cost
Year 1
Year 2
Year 3
650,500
1100,650
1560,550
160,200
198,200
310050
96,300
93,000
10,00000
130,600
120,550
1550,000
221,300
208,100
23,00000
Year 1
Year 2
Year 3
64,650
106,050
121,200
0
35,900
100,550
0
43,950
150,000
0
59,320
180,520
Management Summary
Tops Bit Web Solutions. is owned and operated by two partners with equal equity in the
company, and both directors in the corporation.
Girijesh Kumar has completed Master of Business Administration with specialization of
Finance from Departmrnt of Business Administration, University of Lucknow, Lucknow
Uttar Pradesh. He has also an experience in Internet and Web-related languages.
Dharmendra Kumar is an experienced website developer and strategist with over two
years of commercial Web and Internet services experience, plus numerous attendance to
various related seminars and educational classes.
6.1 Organizational Structure
Tops Bit Web Solutions. will depend on the two main principals, Girijesh Kumar and
Dharmendra Kumar, for all management responsibilities. This will include office
management, accounts receivable and payable, marketing, and talent recruitment.
Girijesh Kumar will serve as chief operations officer and finance manager. He will
supervise all salesmen and all sales promotions, financial position and projects. He will
Page | 21
also be holding the office of the treasurer therefore will be responsible for all financial
related matters.
Dharmendra Kumar will serve as chief technology officer and lead Web developer. He
will be directly supervising all Web development (employee and sub-contracting
projects), and will also be responsible for any necessary training in the same department.
6.2 Management Team Gaps
The current management team will require support in both the business development and
administrative departments. Both managers have had prior experience in these fields, but
feel as though their experience is limited given the fact that prior working environments
rarely required this type of support. Our finance and accounting firm, to provide expert
advised and counseling in both the business development and administrative support
departments. This strategy will allow the partners of Tops Bit Web Solutions. to lend the
majority of their time to their respective areas of the company.
6.3 Personnel Plan
We visualize implementing a "team" development system that will consist of two fulltime sales person and two full-time Web developers. Of the Web developers, one position
will be filled by a highly-qualified senior Web professional and one lesser-qualified,
lower paid developers. All two will work full-time on separate projects provided to them
by the sales person. However, the senior developer will have the duty of maintaining the
same high quality level of work in the junior developers' projects, that our clients have
learned to expect from us now.
The following table shows how we plan on making the above a reality.
Personnel Plan
(In Rupees)
Production Personnel
Dharmendra / Web
Developer
Developer #1/Hired in
Oct
Developer #2/Hired in
Dec
Other
Year 1
Year 2
Year 3
80,500
100,000
120,200
120,000
180,000
216,000
96,000
180,000
216,000
0
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Subtotal
296,000
460,000
552,200
80,500
100,000
120,200
160,000
192,000
240,000
0
240500
0
292,000
0
240,000
536,500
752,000
912,400
Total People
Total Payroll
Financial Plan
Tops bit IT Solution's financials summarize the following areas:
Important Assumptions.
Key Financial Indicators.
Break-even Analysis.
Projected Profit and Loss.
Projected Cash Flow.
Projected Balance Sheet.
Year 1
1
Year 2
2
Year 3
3
Page | 23
Current Interest
Rate
Long-term
Interest Rate
Tax Rate
Other
10.00%
10.00%
10.00%
15.00%
15.00%
15.00%
25%
0
25%
0
25%
0
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Break-even Analysis
Monthly Revenue
Break-even
Assumptions:
Average Percent
Variable Cost
Estimated
Monthly Fixed
Cost
4,649
9%
4,210
Sales
Direct Cost of Sales
Production Payroll
Other
Year 1
1000,000
100,550
296,000
0
Year 2
1550,000
150,000
460,000
0
Year 3
2300,000
180,520
552,200
0
Page | 25
396,550
610,000
732,720
Gross Margin
Gross Margin %
603,450
60.34%
940,000
61.77%
1567,280
68.14%
240,500
292,000
360,200
12,000
5,000
0
13,500
6,000
0
14,500
7,500
0
257,500
311,500
382,200
10,000
5,000
5,000
28,650
13,000
7,000
6,000
50,200
16,000
10,000
10,000
132,480
48,650
76,200
168,480
702,700
997,700
12,83,400
297,300
552,300
10,16,600
75,000
22,230
60,000
49,230
30,000
197,320
Operating Expenses
Sales and Marketing
Expenses
Sales and Marketing
Payroll
Advertising/Promotion
Travel
Miscellaneous
Total Sales and
Marketing Expenses
General and
AdministrativeExpenses
General and
Administrative Payroll
Rent
Utilities
Insurance
Payroll Taxes
Other General and
Administrative Expenses
Total General and
Administrative Expenses
Total Expenses
Profit Before Interest and
Taxes
Interest Expense @15%
Taxes Incurred
Page | 26
Net Profit
Net Profit/Sales
200,070
20.01%
443,070
28.58%
789,280
34.32%
Year 2
Year 3
280,650
560,500
475,200
920,800
650,500
1190,500
841,150
13,96,000
18,41,000
841,150
12,96,000
18,41,000
Year 1
Year 2
Year 3
536,500
752,000
912,400
Cash Received
Cash from Operations
Cash Sales
Cash from Receivables
Subtotal Cash from
Operations
Additional Cash
Received
Sales of Long-term
Assets
New Investment
Received
Subtotal Cash Received
Expenditures
Expenditures from
Operations
Cash Spending
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Bill Payments
Subtotal Spent on
Operations
182,200
50,700
310,920
718,700
802,700
12,23,320
500,000
500,000
718,700
132,700
17,23,320
122,450
472,450
93,300
565,750
117,680
683,430
Year 2
Year 3
472,450
565,750
683,430
132,770
410,200
650,550
200,000
200,000
200,000
805,220
11,75,950
15,33,980
Assets
Current Assets
Cash
Accounts
Receivable
Other Current
Assets
Total Current
Assets
Long-term
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Assets
Long-term
Assets
Accumulated
Depreciation
Total Longterm Assets
Total Assets
Liabilities and
Capital
Current
Liabilities
Accounts
Payable
Current
Borrowing
Other Current
Liabilities
Subtotal
Current
Liabilities
Long-term
Liabilities
Total
Liabilities
Paid-in Capital
Retained
Earnings
Earnings
Total Capital
Total
120,000
190,000
420,000
6,000
15,000
63,000
112,000
175,000
357,000
925,220
12,83,950
18,90,980
Year 1
Year 2
Year 3
53,050
68,710
130,800
53,050
68,710
130,800
500,000
400,000
200,000
553,050
565,710
630,800
350,000
350,000
350,000
(177,900)
22,170
420,900
200,070
372,170
925,220
443,070
815,240
12,83,950
789,280
15,60,180
18,90,980
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Liabilities and
Capital
Net Worth
372,170
815,240
15,60,180
Page | 30