JUVOS

A Project Report on

JUVOS!
Gaming Shopping Food

For Business Plan Development under partial fulfillment of BBA Programme 2010

Submitted To:

Submitted By: Aakash Chaudhary

Prof. R.S. Mathur Sir Dushyant Bafna

BBA Part III

MahaRshi Dayanand Saraswati UniveRsity, Ajmer
Aakash 1

JUVOS

1. Acknowledgment
Every work accomplished is a pleasure- a sense of satisfaction. However a number of people always motivate , criticize and appreciate a work with their objectives, ideas and opinions, hence I would like to use this opportunity to thank all, who have directly or indirectly helped me to accomplish this project. Firstly, I take this opportunity to thank Professor R.S. Mathur, senior faculty of Center ESBM who gave me this opportunity to develop and work on my own creative business idea. Next, I would like to thank Mr.Dushyant Bafna, faculty of business plan development for giving me an insight, his valuable advice, timely suggestions and constant support throughout my work. Let me also use this opportunity to thank my fellow batchmates who have contributed to this project with their invaluable opinions and suggestions, my neighbors who provide me with valuable data¶s which has gone a long way in soothing my rough edges as a budding entrepreneur.

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JUVOS

ContentsExecutive summary«««««««««««««««««««««««.5 1. General company description««««««««.......6 1.1 Ownership««««.«««««««««««««««..«««««.6 1.2 Mission statement««««««««««««..«««.««««.7 1.3 Goals and objectives«««««.«««««««««««.......7 1.4 Business philosophy««««««««««««««««........7 1.5 Industry«««««««««««««.«««««««««.«««..8 1.6 Key to success««««««««.«.««««««««««««.10 1.7 Risks «««««««««««««««««««««««««««..10 2. Overview««««««««««««««««««««.11 3. Products & services«««««««««««««««14 4. Marketing plan««««««««««««««.««...18 4.1 The Need««««««««««««««««««««««««...18 4.2 The Process««««««««««««««««««««««.....18 4.3 Products««««««««««..«««««««««««««««19 4.4 Customers...................................................«...20 4.5 Competitor«««««««.«««««««««««««««««22 4.6 Promotion«««««««««««««««««««««..«.«..26 4.7 Promotion Budget««««««««««««««««««««.27 4.8 Pricing«««««««««««««..«««««««««««««.28 4.9 Proposed location«««««««««.««««««««««..29 4.10 Distribution Channels««««««««.««««««««..29 1. Sales forecast««««..««««««««««««««.««..30 5. Operational plan««««««««««««««««33 5.1 Location«««««««««««««««.««««««««««..33 5.2 Personnel«««««««««««««««««««.«««««..35 5.3 Inventory«««««««««««««««««««««««««.36 5.4 Suppliers««««««««.««««««««««««««««...37 5.5 Professional and Advisory council««««««««««..38 1. Personal Financial Statement«««««««««.«««.39 5.7 Start up Expenses & Capitalization«««««««««...39 6. Financial plan«««««««««««««.«««...41

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1. 2.

Future expansion««««««««««.«««««.53

Appendices««««««««««««««««««..54 8.1 Machines«««««««..««««««««.««««««.««54 1. Questionnaire«««««««««.«««««««««««..56 8.3 Layout«««««««««««««««.«««««««.««..72 2. Brochure««««««««.««««««««««««.«««.74 9 .Conclusion«««««««««««««««««««75 10. Bibliography««««.««.«««««««««««76

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JUVOS

1.

Executive Summary -

³JUVOS´ ±a premier recreational store of its own kind is a boon to citizens of Ajmer. It is here to satisfy growing needs of children¶s entertainment, attire and tasty food, also easing the mothers evening pressure. JUVOS-fun zone is located at a distance of 1to2 km from leading 4 schools and residential colonies making it easily accessible to children, teenagers. It provides energetic, fun loving gaming section with delicious ice cream parlor and fast food to quench the fire in burning belly. It gives teenagers easy overview of an ongoing fashion and makes them affordable in their wardrobe. A fun zone providing shopping, gaming and eating at one destination are somewhat a new and creative concept in the city of Ajmer. Hence my main objective lies in turning my JUVOS into a profitable business venture. JUVOS will be opened with its mission to build a good customer relation by satisfying their needs also to build its brand image. Following are the services that JUVOS will provide to its customers1. 2. 3. A video game parlor fully acquainted with the latest technology play-stations. A fast food corner providing quick and qualitative serving of fresh varieties of fast-food. A shopping area fully acquainted with trendy outfits.

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JUVOS

1.

General Company Description-

Describes the work to be done, the objective, the philosophy and motive of starting the venture 1.

Ownership ²

Firm¶s ownership will be handled by one person in the form of sole proprietorship; the operations will be handled with the help of my family members. I also act as the manager for the firm who overlooks the work and when I am out for work my family members will help in operating the business.

2.

Mission statement-

Deciding the Mission is a crucial element for any business organization. It requires high strategy and planning to decide the Mission of a firm. Defining a Mission is a statement of Organizational Purpose. The aim of JUVOS is to give the mob at Ajmer an enchanting experience in gaming, shopping and food aspects. JUVOS is opened to directly attract the teenagers and children ranging from the 8-12 years of age group. JUVOS aim at maintaining good customer relation with its customer by giving them a quality experience in terms of services and product.

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JUVOS

3.

Company Goals & Objectives-

The main objective behind setting up this zone is to provide a universal store to the people of Ajmer under one roof. It stands with the name ³JUVOS´. The store in has three attractions± 1. 2. 3. A video game parlor, A store of readymade garments, shoe house and A lucrative and mouth watering food zone.

Also I would like to make JUVOS a major fun area in Ajmer where people and children¶s can enjoy with their friends and when needed can also have their belly¶s filled with yummy fast-food available at the corner.

1.

Business Philosophy-

The most important thing in starting and operating any business is the knowledge which one have about his/her product. I have a fascination for PS2¶s, trendy funky clothes and junk foods, therefore I think that it will help me in solving the problems related to my business Also any business cannot run without the support of the customers, this will be embraced if we provide them good products with good services as well. JUVOS is specially designed to provide these two things.

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JUVOS

2.

Industry-

Defining the industry in which I am working is an important task for me. Currently no such industry deals with this concept. Nor, such business comes under any kind of legal terms. It is unique in the sense that it is universal; one can put µn¶ number of items under such shops. The closest examples which I can find near to my store are retail stores like Vishal mega mart, National Handloom etc«

Video games industry ± Video games fascinates everyone be it a child or a young one or an old person. Games like Mario, contra, NFS have make their names and still a popular brand among its users. Studies show that the number of people playing video games/PS2 has increased in India in the past decade which is a good sign for my firm. Below the graph shows the increase in number of video games users in the past decade in India.

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Games industry Graph
10 9 8 7 6 5 4 3 2 1 0 2000 2002 2004 2006 2008 2010 Series 1

In 2000 the number of users on a scale of 10 are only 0.5 This increases to 1.5 in 2002. In 2006 the numbers reaches to 4.5 which at present are 9.

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Junk Food Industry ± Junk foods today are the appetite of every teenagers, one can find lots of teenagers hanging out at various fast-food corners, taking this in context positive

3.
1. 1. 1. 1.

Key to SuccessThe points to success are -

The key to success is the idea itself ¶JUVOS· will be first of its kind in Ajmer. Also the primary need for clothes, shoes and food never ends. Gaming zones are growing at a very fast rate and are attracting a large section of children¶s, teenagers and some adults as recreational centers.

1.

RisksThe points of risks are ±

1. 2.

The freshness of the concept can itself prove a risk as sometimes the customers can¶t appreciate the concept. The data collected through different sources can be biased.

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JUVOS

3. JUVOS OverviewJUVOS is somewhat a new concept to Ajmer. As this kind of concept is capturing recreational business in metro cities it will definitely work here. The main features that will be provided in JUVOS are1. 2. 3. 4. 5. 6. 7. Total Fun zone in itself Gaming zone Food zone Shopping zone for clothes, shoes and accessories All the products are at reasonable rates Good services, clean and attractive environment All this is provided under a single roof

For better understanding of business I have done a SWOT analysis of my firm

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JUVOS

1.
1. 1. 1. 2.

JUVOS Strengths:
The main strength of JUVOS lies in providing variety and quality of services to its customers. Well acquaintance with customer needs and preferences. Technical knowhow of the equipments used. One roofs many Products.

3.
1.

JUVOS Weakness:
Initially the whole set up requires a good amount of capital investment ranging from 20-25 lacs which puts a financial pressure on the entrepreneur. Video games are a source of recreation but parents do put a pressure on their child to not play.

2.

3. 1.

JUVOS Opportunities:
Clothing and food are never ending business in any city, state or country. Also if we add a gaming zone to this it will attract a large number of people as games are one of the highest earning business in the world where the opportunities grows day by day. JUVOS Threats: To gain a hold on the market, to overcome with the existing competition in the clothing and food sector To use the capital in an efficient manner is a major challenge for me. To overcome with the existence competitiors.

2. 3. 4. 5.

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JUVOS

1.

Capital investment:

Based on my study an initial capital of around 24 lacs is required. The capital is invested in land and building, in gaming machines, food-making and ice cream making machines, clothing store etc«

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JUVOS

2.

Products and Services:

Following are the products and services that JUVOS will provide to its customers-

3.

Gaming zone -

Play station 2 aka PS2. I will be using 5 sets of the PS2¶s of SONY brand. These PS2¶s are connected with LCD¶s to give the user the best graphics and visuals possible. Along with these I will be also giving the PS2¶s and game CD¶s on rent so that the children¶s can enjoy the whole day also.

The 1. 2. 3. 4. 5. 6.

rate list is as follows1 hour ± 30Rs. ± 1 user 1 hour ± 50Rs. ± 2 users 3 hours mega pack ± 75 Rs. ± 1 user 3 hours mega pack ± 125Rs ± 2 users Rupees 200 as rent of PS2 for 24 hours along with 2 CD¶s 1 CD rupees 30 as rent for 24 hours

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JUVOS

7.

Clothing zone ²

Clothing is one of the three basic requirements of each and every individual. As JUVOS is directed to attract teenagers the collection at JUVOS clothes will comprise of T-shirts, jeans, shoes and accessories. These collection provided are of the latest and trendy designs

T-shirts - I would sell t-shirts of different brands at my store. The three premier brands which I have in mind are Tantra, Levis Strauss Signatures and Barking Dog. Jeans Jeans I would buy from Delhi and Mumbai, there are custom shops in these cities where jeans are available at low rates. for shoes I would follow the same strategy as for Jeans.

Shoes -

Accessories ± the accessories will consist of belts, caps, earrings, wrist bands etc«

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JUVOS

The Rate list is as follows Items T-Shirts Brand Tantra Levis Strauss Signature Barking Dog Levis Strauss Signature Rumols Boyd Custom shoes Formal shoes Belts Caps Bands Earrings Amount in rupees 295 299 ± 399 250 ± 400 699 onwards 700 ± 900 750 onwards 900 onwards 1000-1100 50 ± 250 75 ± 200 30 ± 130 45 onwards

Jeans

Shoes Accessories

8.

Food zone ±

Ice cream and shakes counter ± this counter sells the yummy and cool ice-creams and shakes, which are of different brands like Amul, Vadilal etc and some are made by the cook himself. Junk food counter ± here different junk food like Pizza, Burgers, Hot Dogs, chowmein etc« will be served to the customers. Varieties of chocolates, candies will also be provided along with the food zone.

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JUVOS

The rate list is as follows Type Item Ice ±cream Packs Sticks, cones and cups Chocolate Vanilla Strawberry Mix Specialty Pizza Burger Chowmein Hot - dogs Patties Veg Rolls Samosas Chocolates Candies

Amount in rupees 40 onwards 15 onwards 30 30 25 40 45 45 onwards 30 onwards 30 onwards 45 onwards 10 15 onwards 10 onwards 10 onwards 5 onwards

Shakes

Junk ± Food

Chocolates

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JUVOS

1.

Marketing Plan ±
1.

The Need ± Marketing research is important for any organization, business, and production firm to assess the needs, taste, and habits of its customers. Marketing research for me provides an inner view of my target segments, it helps me in providing data which is useful and helps me to innovate in my business. It also gives me an idea about the degree of quality, variety and services which the population wants from such kind of business.

The Process ± What¶s a better method than primary research to find data regarding my business? Primary research surveys help me in knowing the population views directly with at most efficiency. It gives me an actually view about what the customers wants???, their financial backgrounds etc« 2.

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JUVOS

3. 1.

Products -

Features and benefits-

Gaming zone The video Game zone provides the customers with the following features 1. Latest technologies Play Station or PS2, embedded with high graphic cards 2. High definition view due to the LCD¶s 3. The charge is also minimal and is incognizance with the pocket fees and spending capacity of the children¶s and teenagers. Clothing Zone1. 2. 3. The clothing zone provides with a collection off trendy outfits, shoes and accessories. Those who are brand conscious can find brands like Tantra, Barking Dog and Levis Strauss signatures. All these brands are not expensive and in the range of normal middle class person.

Food Zone1. 2. 3. JUVOS provides the µGen X¶ with the delicious junk food corner where one can find variety of junk foods. The kids are also fascinated towards chocolates and ice creams; therefore I have decided to put them also. The food will be fresh and prepared on an order basis.

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JUVOS

1.

Customers-

As mentioned earlier JUVOS is opened to attract the kids and teenagers. They are the USB of JUVOS. Along with that JUVOS is also directed to attract older people through its junk food counter. A detailed analysis of the customers of Gaming zone is shown below.

Factors Age Group Gender Location Social level Hobbies

Need 6-12 Male/female Anywhere depends on their parents Middle class, upper middle class and higher class Playing games should be there Need 13-24 Male/female Middle class, upper middle class and higher class Getting pocket money 200+ Playing Games

Factors Age Group Gender Social Class Income level Hobbies

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Analysis of the Clothing Zone customers ± Factors Age Group Gender Income Level Social Class Outfits Need 13+ Male/ Female 200+ as Pocket money Middle class, upper middle class and higher class Those interested in trendy & fashionable outfits

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2.

Competition ²

Edging over the competitors is an important task for any business concerned. In short words ³the whole business is about this only´. My strategy is based on serving my market well. Concentration will be on maintaining quality in my services and establishing a strong identity in the local market. By providing a fun and energetic environment with unbeatable qualitative services at an acceptable price in the city of Ajmer, JUVOS will be the talk of the town; therefore, the execution of my concept is the most critical element of my plan. Video games parlor, clothing zone and food zone are available in individual form in a good number in Ajmer, but to supply them under one single roof is a new concept in the city, this concept is successful in big cities and metros of the country but to make it successful in a small town like Ajmer is a big challenge for me. The major advantage with me in this concept is its uniqueness where I provide the latest technology, good clothes and fresh food to the customers. Also no zone in Ajmer is opened directly targeting the teenagers I have the advantage of targeting them by providing them a large variety which excites them.

Analysis Of Competitors ± On the next page I provide a comparative analysis of different zones at juvos with their major competitors.

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1. Gaming zone ± Small shops and stores are available in plenty in Dargah Bazaar, Shastri nagar in Ajmer, but the major drawback is that they provide only 1 PS2. On my analysis of the market there are 2 direct big competitions to me. They are 1. Jai Stores Behind reliance fresh Vaishali Nagar Ajmer. 2. Game world Shastri Nagar Ajmer I have also done a comparative analysis of my firm with these two stores. * Poor ** Average *** - Good **** - Very Good ***** - Excellent JUVOS Factor Jai stores Game Customer¶s world importance Products **** ** *** 5 Price **** ** *** 5 Quality **** *** *** 5 Service **** * ** 4 Reliability *** **** *** 3 Location *** ** *** 4 Advertisement **** * ** 3 Parking *** * ** 3 Inference ± The comparative tables above clearly shows that JUVOS has an advantage over the other two firms on the basis of various Factors.

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JUVOS

1.

Clothing zone ±

Here I have taken two firms providing with Levis strauss signatures and Tantra clothes. 1. Levis Strauss Signatures Ana Sagar Link road Ajmer 2. HI- CHOICE Vaishali Nagar Ajmer Below I provide a comparative analysis of JUVOS with these two firms. Factor JUVOS LSS HI CHOICE **** **** **** **** **** **** ** **** Customer¶s importance 5 5 5 4 4 3 4 3

Products Price Quality Service Location Reliability Advertisement Parking

**** **** **** **** **** *** **** ****

**** **** **** **** ***** *** *** *****

Inference ± the comparative table above clearly states that my clothing zone has a tough competition with these two firms.

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JUVOS

1.

Food zone-

Junk food is available with various streets vendors, restaurants etc« but the major drawback with them is of quality and variety, on the basis of my analysis I found two stores providing the people with good quality and variety of junk food. I have taken Swami Foods and Pizza Point (Gangaur) for my analysis. 1. Swami Foods Swami Complex, Kutchery Road Ajmer. 2. Pizza Point (Gangaur) Kutchery road Ajmer. Comparative table JUVOS Factors Products Price Quality Service Reliability Location Advertisement Parking Variety of products **** **** **** **** *** *** **** **** *****

Swami Foods **** **** **** *** *** **** ** ** ****

Pizza Point **** *** **** *** **** **** *** * ***

Customer¶s importance 5 5 5 5 4 4 3 4 4

Inference ± the above table clearly shows that juvos is facing competition from these two stores, but due to its strong promotion policies and differentiation of products it does have an edge on these competitors.

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JUVOS

1.

Promotion -

After a detailed analysis of the market, competition now the need arises for promotion & sales of the products available at JUVOS. For this

1.

Usage of local newspapers like Dainik Bhaskar and Rajasthan Patrika is a good and cheap stratregy as these two are the largest selling newspapers in Ajmer. I will distribute brochures of JUVOS along with these newspapers.

2.

Usage of local news channel like sare raah and FM will also help me as they serve a large amount of people and one can find teenagers attracted to FM¶s.

3.

I will also put a hoarding of JUVOS at kutchery road to attract more people.

4.

I will also organize gaming competitions at JUVOS, this will help in attracting more children¶s.

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JUVOS

1.

Promotion Budget-

Initially I put rupees 60000 as my budget for promotional activities of JUVOS. Emphasis will be on using this money fairly and squarely. 1. Distribution of budgets -

I have a done a research on the charges of different media¶s to properly allocate my budgets.

1. Newspapers - a six monthly distribution of brochures at 50 paisa per page will cost Rs 10000 when 20000 brochures are published. 2. TV and FM ± on Sare Raah local news channel a paid ad for 1 minute cost Rs 600 for a month. I will advertise on it for 6 months. The Local FM station My FM charges rupees 1000per month for a 30 sec pay and I will b using it for 12 months. 3. Hoarding ± a hoarding permitted by Nagar Nigam cost Rs 18000 for 4.5 months. 4. For competitions I will distribute prices like Rs 1000 cash for the winner and so on«I will organize these competitions every six months i.e in the summer and winter breaks, so that children¶s can enjoy the more.

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JUVOS

1.

Pricing:

Pricing of goods is also an important decision in any business. It is factor determinant for the revenue and profit generation in a business. For each zone I have a different pricing strategy. 1. Video Games Parlor: for this I will do competition based pricing. Other video games zones are providing their services at Rs. 35 - 40 per hour, here I will provide my services at Rs 30 per hour and Rs 50 for 2 users. I will also allow renting of Play station at Rs. 200 per day (24 hours) along with 2 cd¶s of games, as play stations are very costly and ranges from 20000-22000 rupees. Clothing zone: for my clothing zone I will have fixed mrp concepts. This is based on cost plus pricing. I will by t-shirts, jeans, shoes and accessories from Delhi and Mumbai of Tantra, Levis and Barking dog brand where these things are available at a very low cost. I will follow a 40% mark up price concept on the cost. Fancy discounts will also be given at times of festivals like Diwali, holi and new- year. Food Zone: for food zone what¶s better than following the competitors price. I will also mark my food items as competitors like swami foods, Gangaur are selling their products.

1.

1.

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1.

Proposed Location ²

Location of the shop is an important factor influencing the enterprise and business opportunity. No business firm can prosper unless it is situated at a place chosen from the viewpoint of maximum possible efficiency of operations. Thus, for establishing JUVOS, I have 3 locations in my mind. 1. 2. 3. Near Levis Strauss Signatures showroom on Anasagar link-road. Near Bikaner Mishthan Bhandar (BMB) at vaishali nagar. At Vega Mall which is an upcoming venture in Ajmer at Kutchery road.

The main reasons behind selecting these three locations are4. 5. 6. 7. 8. Easy accessibility to these regions Premium shopping hubs of Ajmer Famous throughout the whole city Surrounded by a large number of population Major attractions for children¶s and teenagers

4.10 Distribution Channels ²
The main objective of JUVOS is to provide the localities good services; this can be obtained by maintaining a direct relation with the customer, thus, JUVOS acts as a manufacturer and makes direct contacts with its customer.

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4.11 Sales Forecast ²
Sales forecast is also an important concept for an entrepreneur; it will help in funding activities and other financial requirements, when dealing with financial institutions and to ascertain the profits of the firm. The sales forecast of the three departments at JUVOS is as follows1. Gaming zone ±

As I had already mentioned I will follow competition based pricing. I have taken two cases here i.e. the best and the worst case to predict my sales. 1. Best case - if one play station runs for 8 hours a day at Rs 30 per person and Rs 50 for 2 users then the calculation is as follows5 PS2¶s * 8 hours * Rs 50 for 2 users * 30 days * 12 months = 5*8*50*30*12 = Rs 7,20,000

2. Worst case ± if one PS2 runs for 7 hours a day at Rs 30 per person then the calculation is as follows5 PS2¶s * 7 hours * Rs 30 per user * * 30 days * 12 months = 5*7*30*30*12 = Rs 3,78,000

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Clothing zone ± As mentioned earlier clothing zone will operate on cost plus pricing basis, here the 2 cases possible are ± 1. Best case ± if I sell 20 t-shirts per month at Rs 250 per piece, 12 jeans at Rs 800 per piece per month and 8 pair of shoes at Rs 1000 per piece per month and accessories worth Rs 500 per month then the sales will be ±

1.

20 * 250 * 12 = 12 * 800 * 12 = 8 * 1000 * 12 = 500 * 12 =

60,000 1,15,200 96,000 6,000 2,77,200

2. Worst case - if I sell 14 t-shirts per month at Rs 250 per piece, 7 jeans at Rs 800 per piece per month and 5 pair of shoes at Rs 1000 per piece per month and accessories worth Rs 200 per month then the sales will be ± 14 * 250 * 12 = 42,000 7 * 800 * 12 = 67,200 5 * 1000 * 12 = 60,000 200 * 12 = 2400 1,71,600

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1.

Food zone ± to calculate the sales of food zone I used the average selling price method. I decide the average price of a product as Rs.40 per unit. The two cases possible in this are-

1. Best case ± selling 50 items per day at Rs 40 per unit makes = 50 units * 40 Rs * 30 days * 12 months = Rs 7,20,000 2. Worst case ± selling 30 items per day at Rs 40 per unit makes = 30 units * 40 Rs * 30 days * 12 months = Rs 4,32,000

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2. Operational Plan -

1.

Location ²

After selecting the proposed location sites now the need arises for a final location to be chosen, this is based on the detailed analysis of the requirements of the business along with the proposed sites. I have described the physical requirements for my store ± 1. Space ± approximately 250 square yards would be enough to open JUVOS. Building ± single storey building with good ventilation facilities. The building should also be expandable according to the future needs. Zoning ± the building should located in a commercial zone so that it can attract a large number of customers. Power & Water ± both the described utilities are an important issue for JUVOS, thus it has to be located in such an area where these two things are easily available. Parking ± the location should also have a good parking facility or a space for it. This will provide easiness to the customers.

2.

3.

4.

5.

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JUVOS

After a research on all the above points I decided to choose the location near Bikaner mishthan bhandar (BMB) as ± 1. It is now coming up as a shopping hub for Ajmer as many branded stores, restaurants are located near it. The land available is cheap in respect of the above two proposed locations. The locality is clean, quiet and business friendly. Accessibility to utilities like power and water is easy. The place is surrounded by a large number of populations making a good business opportunity for me.

2.

1. 2. 3.

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JUVOS

1.

Personnel/Staff ²

No business can operate without a team of employees. They are the backbone of any business and mine too. The minimum requirement of staff at Juvos will be-

Activity/Task Games operator Sales men at cloth store Sales men at Food zone Sweepers and cleaners Gate Keeper

Number of Personnel 1 2 3 1 1

1.

The Team ± Below I present a table showing the details of the staff that I will be going to recruit at juvos.

s. no 1. 2. 3.

Name of Type of employ labor ee Ramesh Kishan Pratap Skilled Skilled Skilled

Task Salary assigned per month Cook Cook Rs 1700 Rs 1700 Rs 1700 Rs 1700 Rs 1700

Recruitment process Advertisement Advertisement Cooks nephew

4. 5.

Sumer Vicky

Icecream/ shakes Unskilled Salesman Unskilled Salesman

Cooks son Advertisement

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JUVOS

6. 7.

Ravi Sunny

Skilled

Gaming operator Unskilled Sweeper Cum farrash Skilled Guard

Rs 1700 Rs 1500 Rs 1500

Advertisement Personal contact Local Agency

8.

Jai singh

1.
are 1.

Inventory ²
The inventories at different zones of juvos

Gaming zone ± the inventory at gaming zone are the CD¶s that I will be selling and giving on rent.

1. 1. 2. 3. 1.

Food zone ± food zone contains two types of inventories Raw materials like pizza base, burgers, bread, milk etc which are to be processed to form finished items Finished items like patties, samosas, ice creams, candies and chocolates etc«

Clothing zone ± clothing zone contains finished items only like jeans, t-shirts, shoes etc«, there will be no raw cloth or material for sale in the clothing zone.

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JUVOS

1.

Suppliers ²

Maintaining a good relation with the suppliers is an important task for any business concerned. They are the providers of raw materials and other form of good; through which a business runs. At Juvos I am maintaining a long list of suppliers as due to product differentiation the suppliers also differentiate. Below I present a detailed list of suppliers from whom I bought my items. s. no 1. Suppliers name/address Ashok singh, Sony world Kaiser ganj, Ajmer M/S Krishna traders, Videocon zone, Opposite Ajmer urban cooperative bank, Kaiser ganj, Ajmer Video world, Padav, Ajmer M/S Vijay traders, Vijay bakers and cakes, Kaiser ganj, Ajmer Lal Singh Blue castle, Padav, Ajmer M/S suresh singh and co. Diggi bazaar, Ajmer M/S Rattan singh Pallika bazaar, New delhi Vikram Chatwal, Requirement Mode of payment Cash

For PS2¶s

2.

For Televisions

Cash

3. 4.

5.

6.

7.

8.
Aakash

For CD¶s of games Food items, raw items and bakery items For milk and other dairy products For ice-creams and chocolates For t-shirts, Jeans and accessories Shoes

Cash Cash

Cash

Cash

Cash

Cash
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9.

Pallika bazaar, New delhi Rajiv leathers, Diggi chowk, Ajmer

For leather accessories

Cash

All the suppliers have a good reputation in their own field and are working for the past 10 years or more in the commercial world. I believe that no shortage in deliveries and other such stuff will be involved in making business with these traders. I chose them as some are my friends and some are my father¶s contacts.

2.

Professional and Advisory support ²

This point states the professionals that I will be using for better management, consultancies and other legal works that will help me in proper running and understanding of the business ± 1. 2. 3. Legal Consultant ± Mr. Rajesh Chaudhary (Lawyer) Financial Consultant ± Mr. Antriksh Bomb (CA) Insurance and Loan consultant ± Mr. B.R. Chaudhary (Manager Ajmer Urban Co-operative Bank) Mentors ± Mr. Dilip Puri & Mr. Ritvik S. Tolumbiya (Businessman¶s)

1.

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1.

Personal Financial statement ²

My personal financial statements include my assets and liabilities outside the business, they are ±

1. 2. 3. 4. 5.

House in Ajmer ± worth 40 lacks Land in Bharatpur worth 9 lacks Car worth 2 lacks Fixed assets worth 3 lacks Investments worth rupees 60,000 Currently I and my family don¶t have any liability on us.

1.

Startup Expenses and Capitalization ²

Before starting my business I have to make an analysis of the startup expenses and funding sources of my firm. 1. 1. 2. 3. 4. 5. 6. 7. Expenses ± the expenses includes ± Expenses on Fixed Assets Machinery worth rupees 3,15,000 Furniture and Fittings worth rupees 2,00,000 Vehicle worth rupees 50,000 Building worth rupees 6,00,000 Land worth rupees 10,00,000 Legal Expenses amount to Rs 2500; which include license for shop from nagar nigam ajmer, NOC for Games Parlor, Copyright license, Food license«

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8.

Capitalization- the sources for capitalization or funding my business areOwn capital worth rupees 9,60,000; my father will help me in providing this capital. Loan worth rupees 12,00,000 The loan is to be repaid at 164.4% of the total amount. EMI ± rupees 16,440 where Rs 10,000 accounts for the principal and Rs 6440 as interest charged to loan. The loan is to be repaid in 10 years which makes 120 EMI. 10 years * 12 months per year = 120 EMI¶s

1. 2.

1.

Legal Formalities ²
The legal formalities would consist of ±

1. 2. 3. 4.

Shop certificate from Nagar Nigam, Ajmer NOC certificate Copyright Certificate Food License

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5. Financial Plan The financial plan consists of the projected Trading & P&L accounts, ascertainment of Break even points etc« To begin with I present a statement of affairs of my firm; this statement is a sort of balance sheet to be prepared before the commencement of the business or during the first year.

Statement of Affairs as on 1st April 2010 Liabilities Capital Secured loans Loan from Bank Amount Assets 10,00,000 Fixed Assets Plant & 12,00,000 Machinery Furniture & fittings Building Land Vehicle Current Assets Cash in Hand Cash at Bank 22,00,000 Amount 3,15,000 2,00,000 6,00,000 10,00,000 50,000

15,000 20,000 22,00,000

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1. 1.

Fixed Assets ± includes Plant & Machinery 2 Air conditions - rupees 60,000 2 Microwaves - rupees 25,000 5 TV sets - rupees 1,00,000 5 Play stations 2 - rupees 1,00,000 1 Ice-cream & Milk shakes machine ± rupees 5,000 Equipments worth rupees 5,000 1 deep freezer worth rupees 20,000 Furniture & Fittings Furniture & Sofa worth 75,000 Glass Panes & Partitions worth 30,000 Ventilator and Chimney worth 15,000 Water Cooler worth 15,000 Electrical Fittings worth 25,000 Water Fitting worth 5,000 Paint of building worth 25,000 Decorations worth 10,000

2.

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JUVOS
Dr.

Projected Trading account as on 31st march 2011
Amount Particulars 7,35,000 By Sales Food 6,40,000 @5% vat- 32,000 = 6,72,000 Clothing1,85,000@5 %vat 9,250 = 1,94,250 30,000 Gaming 6,25,000 7,71,750 By Closing Stock Food 17,500 Clothing 28,000 15,36,75 0

Cr.

Particulars To Purchases Food4,90,000@5%vat - 24500= 5,14,500 Clothing 2,10,000@5%vat 10500 = 2,20,500 To Direct Expenses To Gross Profit

Amount 14,91,250

45,500

15,36,750

Dr.

P & L Account as on 31st march 2011
Amount Particulars 58,000 By Gross Profit 1,56,000 By Net loss 13,500 7,500 1,18,000 6,000 2,000 11,400 9,000 4,500 1,05,800 14000 1,21,275 78,125 2,000 77,280 7,84,380

Cr.

Particulars To Advertisement To Salary To Insurance To RepaiRs To Electricity To Audit fees To Miscellaneous To Telephone exp. To Selling & Dist. Exp To Printing & Stationeries To Depreciation To Traveling exp To Sales Tax @ 14% To Service Tax@ 12.5% To Legal exp To Interest on loan

Amount 7,71,750 12,630

7,84,380

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3. 1) 1. 2. 3. 4.

Working notes: Calculation of Depreciation ± Total Plant & Machinery = Total Furniture & Fittings = Building Vehicle = = 3,15,000 * 12% rate of dep = Rs 37,800 2,00,000 * 6% rate of dep = Rs 16,000 6,00,000 * 7% rate of dep = Rs 42000 50,000- Rs 40,000(scrap value method) = Rs 10,000

Total Depreciation = A + B + C + D = 37,800 + 16,000 + 42,000 +10,000 = 1, 05,800 2) Calculation of Sales tax = Total Sales * 14% tax rate = 14, 91,250 * 14% = Rs 1,21,275 3) Calculation of Service tax = Total Services * 12.5% tax rate = 6, 25,000 * 12.5% = 78,125 4) Calculation of Salary = a) 5 workers at Rs 1,700 per month = 6 * 1700 * 12 = 1, 22,400 b) 2 workers at Rs 1400 per month = 2* 1400 * 12 = 33,600 Total Salary = 1, 56,000 5) Calculation of interest on loan = Total amount ± 12, 00,000 12, 00,000 * 11% rate of interest =

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JUVOS
Dr.

Projected Trading account as on 31st march 2012
Amount Particulars 45,500 By Sales Food 6,90,000 @5% vat- 34,500 = 7,24,500 7,60,000 Clothing2,05,000@5 %vat 10,250 = 2,15,250 Gaming 6,50,000 By Closing Stock Food 18,000 32,000 Clothing 27,500 7,97,750

Cr.

Particulars To Opening Stock Food 17,500 Clothing 28,000 To Purchases Food5,15,000@5% vat24,500= 5,39,500 Clothing2,10,000@5 %vat 10500 = 2,20,500 To Direct Expenses To Gross Profit

Amount 15,89,750

45,500

16,35,250

16,35,250

Dr.

Projected P & L Account as on 31st march 2011
Amount Particulars 51,200 By Gross Profit 1,63,800 13,500 6,000 1,19,000 6,000 18,00 10,000 7,000 4,900 97,044 12,500 1,31,565 81,250 77,280 14,711 7,84,380

Cr.

Particulars To Advertisement To Salary To Insurance To Repairs To Electricity To Audit fees To Miscellaneous To Telephone exp. To Selling & Dist. Exp To Printing & Stationeries To Depreciation To Traveling exp To Sales Tax @ 14% To Service Tax@ 12.5% To Interest on loan To Net profit

Amount 7,97,750

7,84,380

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5. 1)

Working notes: Calculation of Depreciation ± A. Total Plant & Machinery = 2,77,200 * 12% rate of dep = Rs 33,264 B. Total Furniture & Fittings = 1,84,000 * 8% rate of dep = Rs 14,720 C. Building = 5,58,000 * 7% rate of dep = Rs 39,060 D. Vehicle = 40000-30000 (SCVM) = Rs 10,000

Total Depreciation = A + B + C + D = 33,264 + 14,720 + 39,060 +10,000 = 97,044 2) Calculation of Sales tax = Total Sales * 14% tax rate = 9,39,750 * 14% = 1,31,565 3) Calculation of Service tax = Total Services * 12.5% tax rate = 6, 50,000 * 12.5% = 81,250 4) Calculation of Salary = a) 5 workers at Rs 1,700 per month = 6 * 1700 * 12 = 1, 22,400 b) 2 workers at Rs 1400 per month = 2* 1400 * 12 = 33,600 Total Salary = 1, 56,000 * 105%(increment) = rupees 1,63,800

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JUVOS
Dr.

Projected Trading account as on 31st march 2013
Amount Particulars 45,500 By Sales Food 7,35,000 @5% vat- 36,750 = 7,71,750 Clothing2,30,000@5 %vat 11,500 = 7,60,000 2,41,500 Gaming 6,50,000 By Closing Stock Food 19,500 Clothing 29,000

Cr.

Particulars To Opening Stock Food 18,000 Clothing 27,500 To Purchases Food5,35,000@5% Vat 26,750= 5,61,750 Clothing2,20,000@5 %vat 11000 = 2,31,000 To Direct Expenses To Gross Profit

Amount 17,21,750

48,500

33,500 8,50,000 16,35,250

16,35,250

Dr.

Projected P & L Account as on 31st march 2011
Amount Particulars 46,200 By Gross Profit 1,71,900 13,500 2,810 1,20,000 6,000 19,00 10,500 7,500 5,100 89,140 12,900 1,41,855 82,500 77,280 56,065 8,50,000

Cr.

Particulars To Advertisement To Salary To Insurance To Repairs To Electricity To Audit fees To Miscellaneous To Telephone exp. To Selling & Dist. Exp To Printing & Stationeries To Depreciation To Traveling exp To Sales Tax @ 14% To Service Tax@ 12.5% To Interest on loan To Net profit

Amount 8,50,000

8,50,000

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6. 1)

Working notes: Calculation of Depreciation ± A. Total Plant & Machinery = 2,43,936 * 12% rate of dep = Rs 29,272 B. Total Furniture & Fittings = 1,69,280 * 8% rate of dep = Rs 13,542 C. Building = 5,18,940 * 7% rate of dep = Rs 36,326 D. Vehicle = 30000-20000 (SCVM) = Rs 10,000

Total Depreciation = A + B + C + D = 29,272 + 13,542 + 36,326 + 10,000 = 89,140

2) Calculation of Sales tax = Total Sales * 14% tax rate = 10,13,250 * 14% = 1,41,855 3) Calculation of Service tax = Total Services * 12.5% tax rate = 6, 60,000 * 12.5% = 82,500 4) Calculation of Salary = a) 5 workers at Rs 1,700 per month = 6 * 1700 * 12 = 1, 22,400 b) 2 workers at Rs 1400 per month = 2* 1400 * 12 = 33,600 Total Salary second year = 1, 56,000 * 105%(increment) = rupees 1,63,800 * 105% Total Salary third year = rupees 1,71,990

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1.

Graphical view of three years P & L

3 year profit and loss graph
60,000 50,000 40,000 30,000 3 year profit and loss graph 20,000 10,000 0 -10,000 -20,000 1st year 2nd year 3rd year

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1.

Graphical View of the Sales during three years

3 year sales graph
1,700,000 1,650,000 1,600,000 1,550,000 1,500,000 1,450,000 1,400,000 1st year 2nd year 3rd year 3 year sales graph

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3 year projected balance sheet

Liabilities Capital +/- net profit/loss Loan -paid

2011 1,000,000 -12,630 9,87,370 12,00,000 -1,20,000 1,08,0000

2012 9,87,370 +14,711 1,002,081 1,080,000 -90000 9,90,000

2013 1,002,081 +56065 1,058,146 990,000 150000 840000

Assets Fixed Assets P&M F&F Building Vehicle Land Total Current assets Cash Bank Total Grand Total

2011

2012

2013

2,77,200 1,84,000 5,58,000 40,000 1,000,000 2,059,200

2,43,936 1,69,280 5,18,940 30,000 1,000,000 1,962,156

2,14,664 1,55,738 4,82,614 20,000 1,000,000 1,873,016

Grand Total

2,067,370

1992081

1898146

3,170 5,000 8,170 2,067,370

14,925 15,000 29,925 1,992,081

10,130 15,000 25,130 1,898,146

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Calculation of BEP sales in Rs. For 3 years Formula = Fixed cost + Profit/ Total Sales = PVR in Rs.

= BEP sales = Fixed Cost / PVR Rs.

1st year Fixed cost = 2,092,000 Loss = -12,630 Total sales = 1,491,250

=> 2,092,000 ± 12,630 / 1,491,250 = 1.372 BEP Rs. 209,200 / 1.372 = 1,524,781 Rs. 2nd year Fixed cost = 1,962,156 Profit = 14,711 Total sales = 1,589,750

=> 1962156 + 14,711 / 1,589,750 = 1.243 BEP Rs. 1,962,156 / 1.243 = 1,578,565 Rs.

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3rd year Fixed cost = 1,873,016 Profit = 56,065 Total sales = 1,673,250

=> 1,873,016 + 56,065 / 1,673,250 = 1.152 BEP Rs. 1,873,016 / 1.152 = 1,452,474 Rs.

2. Future Expansion:
Future is uncertain! No one can forecast it«« The above statement is right in terms of a common person, but an entrepreneur is different from a common person. He is a visionary and sees future full of opportunities. He plans both short term as well as long term goals for his purpose. I also have a definite plan for my businesses future and for its expansion. After realizing my BEP and 5 years of my services I will open an online gaming zone where the children¶s can enjoy the latest games available online. I will also provide a server based gaming zone like ZAPAK and Ibibo where the customers can enjoy games sitting in their homes only.

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3. Appendices
8.1 The different machines which we will be used at JUVOS are 1. Play Station2 :

2.

Televisions:

3.

Refrigerators :

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4.

Ice cream making and Shakes making machine:

5.

Microwaves & Ovens:

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1.

Questionnaire

Age group: 7- 12 years q.1 do you like playing video games? 1. 2. Yes No

q.2 how much time do you spend in playing? 1. 2. 3. 1-2 hours a day 2-3 hours a day More than 3 hours

q.3 do you have a play station at home? 1. 2. Yes, I do have No, I don¶t have

q.4 do you want a video game parlor in your city providing you with a fun loving environment? 1. 2. 3. Yes, I want No, I don¶t want Don¶t know

q.5 will your parents allow you to come to a video game parlor with your friends? 1. 2. Yes, they will No, they wont

q.6 how much pocket money do you get? 1. 2. 50-100 100-200

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3. More than 200 q.7 which sought of fast food you like the most? 1. 2. Junk food like pizza, burger, chowmein« Indian snacks like pav-bhaji Dosa«.

q.8 would you like to have a fast food corner and a gaming zone at one place? 1. 2. 3. Yes No Don¶t know

Age group-13-21 yearsq.9 how often do you go out with your friends to a fast food corner? 1. 2. 3. Frequently Occasionally Rarely

q.10 do you like trying fast food varieties at new places? 1. 2. 3. Yes No Don¶t know

q.11 do you have a fascination for trendy clothes and shoes? 1. 2. 3. Yes, I do have No, I don¶t have Dint know

Q.12Would you like to access a store providing you with trendy clothes at affordable prices?

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1. 2. 3.

Yes,why not! No, not really Not sure

Age group- parents Q.13 would you like to send your ward to such kind of game zones? 1. 2. Yes No

Q.14 are your kid satisfied with the pocket money you give? 1. 2. Yes No

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Detailed analysisq.1 do you like playing video games? 1. 2. Yes No

Analysis says- while doing a survey of 50 kids of various ages, 90% of them likes playing video games while 10% don¶t. the pie chart below reflects the sectoral distribution-

yes no

InterpretationWith this analysis I can interpret that kids have a liking for videogames. Hence my business concept has a probability to work out successfully.

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q.2 how much time do you spend on playing? 1. 2. 3. 1-2 hours a day 2-3 hours a day More than 3 hours

Analysis-according to my survey,24% kids play for 1-2 hours a day, 56% for 2-3 hours a day and 20 % play for more than 3 hours a day.

1-2 hours 2-3 hours > 3 hours

InterpretationWith this I can interpret that on an average kid can afford to spare 2 hours for playing video games.

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q.3 do you have a play station at home? 1. 2. Yes, I do have No, I don¶t have

Analysis- my survey says that, in Ajmer, 7% have a play station at their home while 93% of them don¶t have.

yes no

InterpretationA major chunk of kids likes playing video game but they don¶t have a play station at home. This adds to an advantage to my business concept.

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Q4 do you want a videogame parlor in your city providing you with a fun living environment? 1. Yes, I want 2. No, I don¶t want 3. Don¶t know Analysis- according to my survey,81% kids crave to have a videogame parlor with a fun loving environment in their town whereas 16% says that they don¶t need it and 3% of them are not sure of whether want it or not.

yes no don't know

InterpretationThis is the most interesting result, as 81% kids do want such a fun zone in their city.

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Q5 will your parents allow you to come to a video game parlor with your friends? 4. 5. Yes, they will No, they wont

Survey result- according to the survey done by me, 73% kids said yes while, 27% said no.

Yes No

InterpretationThe result above clearly reflect that the parents donot have any problem from their kids playing video game.

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Q6 how much pocket money do you get? 6. 7. 8. 50-100 100-200 More than 200

Survey result- the survey that I did shows, 4 % kids get their pm ranging b/w Rs.50-100, 12% b/w Rs 100-200, whereas 84 % more than Rs 200.

50-100 100-200 >200

InterpretationAccording to the survey done by me, kids get a descent monthly pm which reflects that they can very well spend on playstations and food stuff.

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Q7 which sought of fast food you like the most? 9. Junk food like pizza, burger, chowmein« 10. Indian snacks like pav-bhaji. Dosa«. Survey result- according to the survey that I did 67% children¶s says that they like junk food whereas 33% says that they like Indian snacks like pav-bhaji Dosa.

junk food indian snacks

InterpretationThe above result clearly reflects the inclination of kids in food stuff. They prefer junk food over indian snacks, hence, I will provide food items which will meet their demands.

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q.8 Do you like playing video games? Yes 73% No 27%

Survey result- according to the survey result I did 73% of the population says that they like playing video games whereas 27% says that they don¶t like playing video games.

Yes No

InterpretationEven people of age group ranging between 13-21 years also have an interest in play stations, shows the demand among people of every age.

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Q.9 How often do you go out with your friends to a fast food corner? Frequently Occasionally Rarely Survey result- according to the survey I did 53% people says that they like going out with their friends, 26% says that they like going out occasionally with their friends whereas 21% says that rarely go out with their friends.

Frequently Occassionaly Rarely

InterpretationAccording to my survey result people frequently visit such fast food counters, which put my business concept at an advantageous point.

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Q. 10 Do you like trying fast food at new places? Yes No Survey Result - as per my survey 72% people like trying out new fast food corners whereas 28% people are trusted towards their old brands.

yes no

InterpretationThis suvey result shows that people frequently like visiting new fast food counteRs which will going to be a positive apect for JUVOS fun zone.

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Q.11 do you have a fascination for trendy clothes and shoes? Yes No Survey Result- as per my survey 81% people like wearing trendy clothes whereas 19% like what there parents wants.

yes no

InterpretationAccording to my survey report the people of Ajmer have fascination for trendy outlets and them like trying new clothing outlets. As JUVOS also provide with clothing Zone, hence it, will satisfy the growing need of customers for trendy outlet.

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Q. 12 would you like to access a store providing you with trendy clothes at affordable prices? Yes 97% No 3%

yes no

InterpretationSurvey shows that the teenagers are interested in trendy and fasionable outfits and would like to visit such kind of store

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q.13 would you like to send your kids to such kind of gane zones? Analysis- according to my survey 43% people are ready to send their wards at such kind of game zones, while 57% people does not want.

analysis

yes no

Inference- survey shows that many parents are not interested to sending their kids to such kind of gaming zones.

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q.14 are your kids satisfied with the pocket money that you give them? Analysis- according to my survey only 21% parents agrees that their wards are satisfied with the pocket money they give, while 79% are not satisfied.

analysis

yes no

Inference ± survey shows that the children¶s are not satisfied with the pocket money they receive.

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1.

Layout of juvos-

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2.

Brochure of juvos-

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11.

Conclusion

At the end of this Business Plan, I would like to say that while doing this Plan I have learned a lot of new things of whom I was totally unaware of. This Business Unit is a small business aimed at a big time in order to reach its lofty goals and stands for its quality and affordable prices in the markets of its products and services.

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10

Bibliography-

www.google.co.in www.bplan.com www.scribd.com

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