TrakChain - Business Plan

Redefining trust in the Jewellery Industry

Anubhav Anurag Dhananjay Heeranshi Kush

Verma Bagaria Rawat Mishra Khera

18021021042 18021021043 18021021080 18021021102 18021021142

Parul Ritika Rittika Shreyansh Tanya Kishore

Sinha Sadh Bali Yadav

18021021197 18021021241 18021021242 18021021300 18021021328

Group - 2

Semester - VI

SCMS, Noida
 Business Plan
[21st May 2021]

Company name: TrakChain

Street address - C-48, Urbtech Trade Centre
Street address - Rohini
City- Delhi state, ZIP- 110039
Business phone-01120182021
Website URL-
Email address-Trakchain@gmail.com

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Confidentiality Agreement

The undersigned reader acknowledges that any information provided by trakchain in this
business plan, other than information that is in the public domain, is confidential in nature,
and that any disclosure or use of the same by the reader may cause serious harm or damage
to the respective entity who is held responsible . Therefore, the undersigned agrees not to
disclose it without express written permission from the TrakChain Team .

Upon request, the undersigned reader will immediately return this document to the
TrakChain Team .

___________________
Signature

TrakChain

Name (typed or printed)

21/05/2021
Date

This is a business plan. It does not imply an offering of securities.

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 Table of Contents

Confidentiality Agreement 3

I. Executive Summary 6

II. Company Description 7

III. Products & Services 10

IV. Marketing Plan 13

Market research 13
Barriers to entry 14
Threats and opportunities 14
SWOT Analysis Worksheet 16
Product/service features and benefits 18
Target customer 18
Key competitors 18
Competitor Data Collection Plan 19
Competitive Analysis Worksheet 20
Positioning/Niche 21
How you will market your product/service 21
Promotional budget 23
Marketing Expenses Strategy Chart 23
Pricing 24
Pricing Strategy Worksheet 24
Distribution channels 25
Distribution Channel Assessment Worksheet 26
12-month sales forecast 27

Operational Plan 28
Production 28
Quality control 28
Location 28
Legal environment 29
Personnel 29
Suppliers 29
Credit policies 30

VI. Management & Organization 31

VIII. Financial Plan 36

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I. Executive Summary
Our organisation, TrakChain offers superior quality diamonds directly to the customers and diamond
retailers so as to eradicate the problems of trust and unethical behaviour of small retailers in this
industry. The purpose of this is to bring transparency in the whole supply chain process, starting
from where the diamond has been extracted from, where and how has it been processed, stored and
delivered.
This way, if a customer has to purchase the goods, he/she gets to know the richness and purity of his
product.

Our brand uses Blockchain technology to make the process smooth, clear and efficient.
So far, the number of employees in the business are 100 and the location of our first store is
Street address - C-48, Urbtech Trade Centre
Street address - Rohini
City- Delhi state, ZIP- 110039

Till now, we have decided to spread our business in India only and with some generated revenue and
profits, we would be attracting and focusing on pilot testing in the nearby countries as well.

The target market of our firm is the diamond industry experts contributing as jewellery
manufacturers and jewellery retailers.

The structure of our firm is a type of ‘General Partnership’, with 10 owners contributing different
amounts of funds in the organisation and with the aim of sharing the profits equally.

Our competitor is Everledger and our business will be different, since we are domestic market
players and are near our customers in terms of demographics.

Based on the size of our market and our defined market area, our total fundings are 17 crores, which
has been collected using individual funds of the 10 owners, bank loan and some angel investors. This
would be the amount required to fund our business in the beginning.

The uniqueness of our brand is the level of transparency we maintain in our business, using a
technology which is still not very much into the market in this particular segment of industry.
Although, through various researches it has been proved that customers are willing to pay more for
something authentic!

Hence, with our mission being this,

A passion to deliver trust, pride and respect to create partnerships and experiences that
engage and inspire, we wish to create value that makes a difference!
We would be moving forward with our ethics and morals to help our customers generate trust and
a feeling of pride to be a part of our family, we would be increasing our customer base and ultimately
generate profits.

II. Company Description

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 1. Company mission statement

VISION and MISSION

Trust and ethics are a problem in the diamond industry. The diamond industry has long
faced problems with reporting the origin of a diamond and authenticating its ID and grading.
Traditionally documented on paper, but sometimes it’s still difficult to trace the diamond’s
true origins and providence. People may ask, where did the diamond come from? Was it
blood diamond? Who owns it? Who bought it? Where is it now?

The block chain is immutable, fast and scalable, and it brings trust and transparency
to diamond trading. In the future, people can know the diamond's origins, every owner of a
diamond in history, its 4Cs and 40 metadata points. This can not only benefit customers,
online retailers, and vintage diamond market, but also TrakChain can work with insurance
companies when diamonds are reported stolen, and with Cyber Crime Bureau when
diamonds are crossing borders and entering black markets.

The Mission of our company- TrakChain is

A passion to deliver trust, pride and respect to create partnerships and experiences that
engage and inspire, we wish to create value that makes a difference!

2. Company philosophy and vision

a. Blockchain replaces trust. It gives a new way to verify flawlessly and the
end-users don’t need to take someone’s word on it - which can be
underperformed at any point in time. It verifies that the operation is being
performed correctly and lets every participant know at which stage the item
is located in the supply chain. In such a way that the quality and quantity of
high-value goods enable the end customer to verify and make a decision
based on the legitimacy of the process.
b. We believe that this technology, if used ethically and responsibly, can change
the world as we see now. It has the potential to empower any infrastructure
that requires trust. Be it, monetary payments - Peer 2 Peer transactions,
donations, etc. transparency of supply chains, ethical maintenance of
healthcare records, the list goes on.

3. Company goals
To build trust and bring transparency, thereby ultimately increasing the customer
base and hence increasing profitability

4. Target market
Diamond industry and its customers

5. Industry
TrakChain will use blockchain technology to track the supply chain roots of a finished
piece of jewellery. The term blockchain is generally used to refer to a set of shared
databases that can be used for transactions between participants. Within the context

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 of the jewellery industry, the technology will be considered as a means to track the
entire spectrum of processes for manufacturing, from the extraction of raw material
to shipping finished pieces. The proposed private blockchain will be “permissioned”
in that only supply chain participants will be able to write data to the ledger. By
placing the current, physical process on a blockchain, we will be able to provide
better visibility to the consumer throughout the entire supply chain, to allow
exchanges of information amongst participants
6. Legal structure
a. Partnership firm, and specifically being ‘general partnership’, where all is
shared equally.
b. It allows the partners to share profits and losses, and make decisions
together within the business structure.
c. It has advantages, as it is easy to form, has growth potential because of the
different ideas present in different mindsets and also, helps in some way to
save tax.

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 Company Description Worksheet

TrakChain
Business Name

A passion to deliver trust, pride and respect to create partnerships and

Company Mission
Statement
experiences that engage and inspire, we wish to create value that makes a
difference!

Company Blockchain replaces trust and verifies that the operation is being performed
Philosophy/ correctly and lets every participant know at which stage the item is located in
Values the supply chain. In such a way that the quality and quantity of high-value goods
enable the end customer to verify and make a decision

To not only benefit customers, online retailers, and vintage diamond market,
TrakChain can also work with insurance companies when diamonds are
Company Vision
reported stolen, and with Cyber Crime Bureau when diamonds are crossing
borders and entering black markets in the near future.

1.To build trust and bring transparency

Goals
2.To increase customer base and make a strong place in the industry by having a good
competitive edge

3. To gain profitability

Target Market Diamond industry experts contributing as jewellery manufacturers and jewellery
retailers

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 1.Focuses on diamond industry using blockchain technology
Industry/
Competitors 2.Competitor is:
- Everledger.

Legal Structure/ Partnership firm - General partnership

Ownership

III. Products & Services

Business
Name TrakChain

● TrakChain aims to construct a blockchain infrastructure to track the supply chain of

diamonds from the origin to the final consumer.

● The infrastructure creates an append-only log that can then be used to form an
auditable database (log of the flow of diamonds and other high-value items in the
supply chain).

● This database is constructed by multiple participants and is secured using

cryptography so that every entry can be audited and verified by each member
participating in the blockchain.
Product/
Service Idea ● It verifies that the operation is being performed correctly and lets every participant
know at which stage the item is located in the supply chain. And can view the past
transactions in the supply chain.

● The result is a common, consensus-based record of the flow of goods that is

updated in real-time, one with the log of the flow of goods in the particular supply
chain.

● This will allow the end customer to verify the quality and quantity of diamonds and
make a decision based on the legitimacy of the process.

● Supply chain transparency will make it easier for consumers to distinguish

Special authentic pieces of jewellery from fake ones. In the end, consumers will be
Benefits able to see a visual of the entire supply chain right on their smartphones and

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 determine the supply chain provenance of a piece of jewellery simply by
scanning the QR code associated with it.

● There exist trust mechanisms in place to ensure the authenticity of jewellery.

however, they tend to be more unsystematic and this one will be designed to be
more comprehensive. The proposed mechanism will be much more efficient.
Instead of shuffling paper, the process becomes much more digital and reduces
a lot of the manual paperwork along the way.

● This level of trust is essential because consumers are demanding transparency in

the jewellery they buy. They want to be sure the diamond or precious metal in the
jewellery was not mined by exploited labour and in a sustainable way. Research has
found consumers are willing to pay more for such proof.

● The industry’s players (Jewellers, refineries, etc) may find the technology useful to
Unique analyze and streamline their supply chain processes.
Features
● A transparent record of transactions could also help in dispute resolution. If
there is a dispute, instead of calling and following back through the process in a
manual way, participants can click on the trusted chain, and they will be able to
see what happened in real-time. That reduces the number of steps in the
process and speeds up what has been a paper-based and manual effort.

● Slow adoption because it is relatively new to both retailers and retail customers.

● Initial setting up of the infrastructure for each client could have hurdles as there are
Limits and various different parties involved in the supply chain.
Liabilities
● Onboarding all the players through the value chain - miners, manufacturers, traders,
and retailers to buy in the concept and practice of blockchain.

● The infrastructure will be set up for each client

Production
● IoT devices will be set up on different points where the transaction along with the
and Delivery
description could be recorded.

● IT consultants

Suppliers ● Database Management

● IoT infrastructure providers

Intellectual
Property ● Intellectual Property of the process of recording logs at each step in the supply
Special chain.
Permits

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 ● TrakChain will enable jewellers to capture an asset’s production, transport, and
environmental data in real-time with sensors, intelligent labelling, and tamper
detection with the immutable and transparent validation of the blockchain.

● At each stage in the manufacturing process, TrakChain’s protocol allows users

Product/ (participants in the supply chain) to enter data, such as the time and date of the
Service process and the name of the artisan performing it. Retailers can enter information
Description about any jewellery piece containing the diamond, such as store location and
warranty details. Customers can view the entire provenance simply by scanning the
QR Code and logging in with their credentials.

● Once such information has been uploaded into the blockchain, the record is
tamper-free, it’s immutable and can therefore be trusted.

Limited to no Human Interaction: The weak part of any technological system of

controls is human interaction. In many cases, a blockchain overcomes this weakness by
using digital signatures.

For example, when a certified mine puts a diamond on the blockchain, it signs the
transaction with its private key. The signature can be verified by anybody using the
mine’s public key. This means that the mining company cannot later deny that it was the
source of the diamond. It also means a rogue company cannot put a diamond on the
What blockchain claiming to be the certified company because the rogue company’s signature
Problem does will be seen immediately as being invalid.
it Solve?
Transparency for Retail Consumers: The end customer can view the origin of the
diamonds that they are planning to purchase. It will ensure that the diamonds are not
sourced unethically. Which will lead to less demand for the unethically sourced
diamond and may help in eradicating the practice altogether.

More Revenue for Our Target Customer (Jewellers): According to Research,

customers are willing to pay more for the products if they could verify their origin and
if they were sourced in a sustainable manner.

● Gold - Rs 25,000/month (Core Functionalities - Blockchain Ledger & Validation,

Profile Dashboard, Maintenance)

● Silver - Rs 30,000/month (Core Functionalities, Certificate Validation,Vault)

Pricing ● Platinum - Rs 40,000/month (Core Functionalities, Certificate Validation,Vault,

Provenance Records)
Blockchain Ledger & Validation : Enterprise-grade managed blockchain services.
Profile Dashboard: Supply, compliance, and sustainability data visualisation.
Provenance Records: Display of event, transaction, and certification information
Certificate Validation: Optical character recognition (OCR), Compliance checks.
Vault: Digital rights for access and ownership of data.

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IV. Marketing Plan

1. Market research
- We would do primary research in the NCR region and get in touch with the diamond
retailers that are present in the area we are targeting. We would ensure that the interviews
and questions conclude in such a manner that they are able to justify that the blockchain in
the diamond industry would be easy to use for them since the technology involves a lot of
trust to be generated before getting them into use.
- Coming to the secondary research, we would have a look at the already existing business in
the market that could be our potential competitors. Back in 2018, two Surat based
companies- Dharmanand Diamonds and Hari Krishna Exports had become the first in the
world to adopt blockchain technology of Everledger which tracks a stone’s journey from
rough diamond in the mines to the end consumer. The world’s largest diamond mining
company “De Beers” did a pilot testing on the blockchain technology for the diamond
industry so that they could have tamper proof, and permanent digital record for every
diamond registered on the platform.

● The total size of your industry- since the diamond industry is ever increasing due to the
increase in demand of diamonds from the general public, the industry size of blockchain is
considerably large as we need to cater to a lot of people and serve them with our services.
In consideration of the worldwide industry, some 142 million carats of diamonds were
produced from the mines worldwide in 2019. Major producing countries include Australia,
Canada, South Africa.
● Trends in the industry – although there is a considerable amount of opportunity in the
Indian market since diamonds are a status symbol for many people in India but according to
the secondary data there has been an expected decline in the production of the diamond by
2025. It is expected to fall from a production level of 141.5 million carats worldwide in 2019
to 124.6 million carats by year 2025.
● The total size of your target market, and what share is realistic for you to obtain- the target
market for us are the diamond retailers and jewellery dealers who are concerned about the
quality and timely delivery of the diamonds. In December 2020, gems and jewellery exports
registered a 7% increase YoY at US$2.6 Billion, compared with the same month last year
● Trends in the target market – it is definitely very attractive to the dealers as well as the
customers and the trend of blockchain is now picking up. T he blockchain would serve the
multipurpose of supply chain traceability, third party verification and documentation as well
as keeping the records in physical form.

2. Barriers to entry

What barriers to entry does your startup face, and how do you plan to overcome them? Barriers to
entry might include:

● High startup costs- setting up the infrastructure could be very costly considering that it has
to be properly set up and even a small error in establishing the web domain building as well
as the IoT infrastructure could cost the business a hefty amount of money

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 ● High marketing costs- initially we would be spending more on marketing so that we can
create our presence in the market and as well as on the minds of the consumers
● Brand recognition challenges- it would initially be a tough task since our competitors already
existing in the market are already having an existing customer base with them that they cater
to. Being a partner to business in Surat, Everledger would have an advantage since they are
geographically well placed too as we know Surat is known for diamond cutting and diamond
polishing.
● Finding qualified employees- By creating systems that appear simultaneously open and
opaque, blockchain tech can provide maximum security in both the physical and digital
worlds. The process must have streamlined payroll, contractor payments

3. Threats and opportunities

● Changes in government regulations- according to a news source,India’s gem and jewellery

industry expects the government will consider its demand for lower import duty on raw
materials. According to NITI AYOG following are the recommendations that they have listed
o Regulatory and policy considerations for evolving a vibrant blockchain ecosystem
o IndiaChain: creation of a national infrastructure for deployment of blockchain
solutions with inbuilt fabric, identity platform and incentive platform.
o India as blockchain hub: promotion of research and development in blockchain, in
addition to focus on skilling of workforce and students
o Procurement process for government agencies to adopt blockchain solutions

● Changes in technology- A blockchain is made up of two primary components: a

decentralized network facilitating and verifying transactions, and the immutable ledger that
network maintains. Everyone in the network can see this shared transaction ledger, but there
is no single point of failure from which records or digital assets can be hacked or corrupted.
● Changes in the economy- a lot depends on how much and what is the priority of the
government at a particular point of time and whether the use of blockchain will serve a
better purpose or holistic development will
● Changes in your industry- there are modifications due in the working or planning procedure
when it comes to nay industry, however since blockchain technology is saving a lot of time
and effort and the transactions and all the details are being saved automatically, this is, at
present looking like the best solution possible

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SWOT Analysis Worksheet

Strengths Weaknesses Opportunities Threats

Product/ Service End to end state Sometimes there There is a lot to the The competitor has
Offering of diamond from may be a glitch opportunity aspect already set their
mining to delivery since this involves since in India only foot in the market
that brings the use of two firms are using and has the trust of
convenience. technology this technology and the two diamond
completely. there can be businesses based in
additional features Surat
added to the model
with time.

Brand/ Marketing Word of mouth The testimonials We can collaborate There may be a
marketing will be would be a real task with established negative word of
a major strength for us to gather diamond retailers in mouth flowing in
of our firm and since we are new in India that could the market and that
we will also this industry. further help in could possibly be
provide promoting our done by either our
testimonials on services. competitors or
the website. someone who
wants to tarnish
our image.

Staff/HR Highly skilled There might be that The training and Some individuals
employees will be some employees development will might not have the
employed and the are not fully aware add to the already capability to pick up
workload of the working existing knowledge the things very
management will procedure and are of the individual quickly and might
be done ready to put their feel demotivated.
effort in training

Finance We have adequate There is everledger We can look to There is a potential

funding as per our already existing and re-invest the threat to our
primary and so we need to make reserve amount business in the form
secondary sure that we keep into fixed income of loss due to cyber
research that we the pricing that is securities that are crime or hack in the
have done. acceptable by the risk free in nature. database or fire in
users the building.

Operations/ There is complete Management of the Since the business There could be legal
Management transparency and infrastructure and model is new, hassles or even
therefore there technology could be various new cyber attack if the
would be trust of a barrier to techniques can be business model is
the users. successful incorporated and not made properly
implementation the errors can be and executed.
minimised(if any) There is a risk of

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 non acceptance as
well.

Market The market is Since we are new in There is a lot to the Change in taste and
wide open for us, the market, sudden opportunity aspect preferences of the
and we will also change in policies since in India consumers as well
work in or any lag in the everledger is as the brand image
collaborations delivery of service providing their at the back of the
with other firms could be dangerous blockchain services mind is very
that could get us to the firm’s image as of now and there important and that
more customers is a great must not have a
on board. opportunity for us if negative impact on
we do proper the services offered
research on the by us.
requirements of the
people.

Can any of your strengths help with improving your weaknesses or combating your threats? If
so, please describe how below.

- A good brand image in the initial days will help us attract and retain the customers on board. If we plan
to be completely transparent and make sure that there are no gaps to be filled this is surely possible.
Additionally we may indulge ourselves in Corporate Social Responsibility in order to serve the general
public and help them to achieve their goals.

Based on the information above, what are your immediate goals/next steps?

- We are planning to initially gain popularity with the help of the business partner’s word of mouth to
their friends and families since they have an already established trust going ahead in doing business with
us.

Based on the information above, what are your long-term goals/next steps?

- We aim to expand our business in nearby countries like Sri Lanka, Bangladesh, Maldives and Nepal by
doing a pilot testing and also the response of the Indian consumers.

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 4. Product/service features and benefits

We aim to create a blockchain business for the successful tracing of diamonds from the production
stage to the final stage when it reaches the final consumer. The blockchain does not involve any
human touch and there is efficiency in the tracking process. This will help customers to trust on the
authenticity of the diamond and the seller. Customers will be able to make a worthy purchase and
develop their trust. Targeting big jewellery companies needs a big amount of trust which our product
guarantees.

The after sales services provided by our firm are as follows

● Service contracts ● Ongoing support
● Maintenance ● Changes according to current trends

5. Target customer

Our target customers are jewelry shops who deal in diamonds. Big giants of the diamond industry will be
our main target as they are the one who holds the maximum market share.

Diamond Manufacturers are also in our list and one of our potential customers.

6. Key competitors

One of the factors that can directly or indirectly affect our business is our competitor, they play a very vital
role in our business success and failure.
Our competitor is EVERLEDGER which provides blockchain in the diamond industry in the initial stage.

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Competitor Data Collection Plan

Price

● Provides blockchain in diamond

● Took the first mover advantage
Benefits/Features ● Reveals the authenticity of
diamond

● Everledger is company based in

London which is in India with
Size/profitability collaboration with IBM
● It's a big organization

Everledger being the first one to

introduce this blockchain is earning trust
Market strategy among the market and marketing them
with their guarantee of authenticity and
word of mouth.

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Competitive Analysis Worksheet
For each factor listed in the first column, assess whether you think it’s a strength or a weakness (S or W) for
your business and for your competitors. Then rank how important each factor is to your target customer on a
scale of 1 to 5 (1 = very important; 5 = not very important). Use this information to explain your competitive
advantages and disadvantages.

Competitor Importance to
FACTOR Me
A Customer

Products S S 1

Price S S 1

Quality S S 1

Selection S S 2

Service S S 2

Reliability S S 2

Stability S S 3

Expertise S W 1

Company
W S 2
Reputation

Location S W 3

Appearance S S 2

Sales Method S S 2

Credit Policies S S 2

Advertising S S 2

Image W S 1

7. Positioning/Niche

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Our company would be positioned as increasing transparency and authenticity of the diamond industry and
create trust among the buyers. Trakchain will help organizations and customers to trust their product as we
know diamond is not something small, it's an expensive purchase.

8. How you will market your product/service

Below are some advertising strategies to market our database technology:-

● Business Website- We will build an online website for our business mentioning all the services
that we would like to offer to our customers who are mainly the Jewellery manufacturers,
jewellery retailers and the final purchasers of diamond jewellery so that they would get
detailed information.

● Advertising through newspapers,magazines and brochures- This will provide mass media
marketing of the company as newspapers and magazines like Forbes India,Outlook and
Business World have enormous subscribers around the country. We will give brochures to
Jewellery shop owners like Tanishq, Kalyan,TBZ and other small retailers in India also.

● Networking and Word of mouth- Word-of-mouth marketing helps build positive feelings
about products and services, and that helps build a company’s brand image. Moreover we
would focus on networking with the top jewellers to enlarge our market reach as in the
jewellery industry people trust their community more than others .

● Social Media Marketing- We will create our channels on facebook,instagram,twitter and

collaborate with blockchain business influencers to get to our potential customers. Initially this
would be done on every month basis.

● Paid collaboration with Caratlane- In this we would provide regular advertisements of our
company on their website as well as social media platform for a period of one year as the
people visiting their sites are individuals interested in diamond jewellery who are also our
potential customers.

Image Projected through our Brand

TrakChain’s main objective is to bring Blockchain technology to the diamond industry in India. Our brand will
promote transparency and trust in diamond trading by providing a database tracking system to our direct and
indirect customers. The block chain is immutable, fast and scalable, which will facilitate people to know the
origin of the diamond and every owner of a diamond in the history,

Our Brand Logo and Tagline

Since we are making a useful improvement in the already existing model we are eligible for patents.

19
 - We as a true and first inventor will submit our application to “The Patent Office, Government
of India, Boudhik Sampada Bhavan, Plot No. 32., Sector-14, Dwarka, New Delhi – 110075”.
Phone: (91)(11) 25300200 & 28032253. Fax: (91)(11) 28034301 & 28034302 E.mail:
delhi-patent@nic.in
- THE DESIGNS ACT, 2000 SECTION 30 DESIGN ASSIGNMENT
- The design stands in the name of TrakChain LTD., registered under the Designs Act 2000 has
been assigned in the Register of Designs in the name as follows:
- Patent Classification is a code which provides a method for categorizing the invention.
Design No. Classification Name

703437 09-03 TRAKCHAIN LTD, A

BLOCKCHAIN BUSINESS
OF C-48, URBTECH
TRADE CENTRE, ROHINI,
DELHI-110039
- The invention is publicly known and the invention is obvious.
- We as a patentee have the right to license the patent to another entity, assign the patent to
another entity, surrender the patent and sue for the infringement of the patent.

We have chosen this logo and tagline because it is depicting what we as a brand want to showcase to
everyone. The tagline “Redefining trust in the Jewellery Industry” shows our vision of bringing authenticity,
building trust and facilitating ethical conduct by the suppliers in the diamond industry. The brand logo which
has a diamond with multiple lines shows how we are connecting the suppliers,retailers and customers involved
in the diamond industry.

9. Promotional budget

A promotional budget is a specified amount of money set aside to promote the products or services
of a business organization. We have set aside 20% from the total raised funds for undertaking
promotional activities.
free
The classic method of advertising is done through newspapers,magazines,brochures,word of mouth
and networking. Since there is a shift to online based and social media marketing we will focus on it
as well. Paid collaboration with Caratlane will be done to advertise the blockchain technology among
the suppliers,retailers and users of diamond.

20
Marketing Expenses Strategy Chart

Target Market 1
Target Market 2 Target Market 3
(Jewellery shop
(Retail Jewellers) (Final Customers)
owners)

For building a business For building a business For building a business

website it would require website it would require website it would require
initial investment of initial investment of initial investment of
One-Time Rs.14,600-18,000. Rs.14,600-18,000. Rs.14,600-18,000.
Expenses

Monthly expenses of Newspaper expenses for Paid collaboration with

Rs3600 would be the whole year would be caratlane will be done for a
incurred for maintenance around Rs 1-1.2crore and year leading to Rs48 lakh per
Monthly or Annual of the website for magazine the cost is annum.
Expenses Rs6,60,000 Business influencers would
require Rs4,500 to be paid
for every post they upload.

Salespeople employed for A salesperson for 12

target market 2 will also major cities would be
cater to them as well. employed leading to total
expense to be Rs30 lakh.
Labor Costs The personnel are
required to spread word
of mouth and give an
overview about the
company.
10. Pricing

Pricing Strategy Worksheet

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 TrakChain
Business Name

Which of the following pricing strategies will you employ? Circle one.

Cost Plus Value Based Other:

The costs of making/obtaining your Based on your competitive

product or providing your service, advantage and brand
plus enough to make a profit (perceived value)

Provide an explanation of your pricing model selection.

We have applied a value based pricing model by offering different packages which are mentioned below.

● Gold - Rs 25,000/month (Core Functionalities - Blockchain Ledger & Validation, Profile Dashboard,
Maintenance)

● Silver - Rs 30,000/month (Core Functionalities, Certificate Validation,Vault)

● Platinum - Rs 40,000/month (Core Functionalities, Certificate Validation,Vault, Provenance Records)

Our prices are somewhat similar to our competitors but the features we are offering are comparatively larger.
By keeping the prices the same we want our customers to differentiate our service with the competitors so that
they get to know that we are offering more transparent features and options to them.
A loyal customer who would be with us for a period of one year would be given an additional month to operate
the blockchain technology as a reward.

Location or proposed location

If you have a location picked out, explain why you believe this is a good location for your startup.
- We have chosen Delhi NCR as the location for the business since it has easy access to the whole of
India and also there is an added advantage since the already existing competitors are in Surat that is
West. A blockchain collects information together in groups called blocks, that hold sets of information.
Blocks have certain storage and when filled, are chained into the previously filled block forming a chain
of data known as blockchain.
- Gurugram, the second largest Information Technology hub being very close to our office would help
us get assistance in establishing the business as well as help us in long term growth. As we all know
that NCR has good road, rail and air connectivity, hence there is availability of every kind of transport
connectivity required for our business. A lot of emphasis would be given on power backup since the
IoT devices would be requiring a very good backup so that there is no gap in service.
- Nearby businesses include massive shopping complexes that have a mix of retail shops of clothing as
well as grocery stores. There are food outlets as well and certain corporate offices in the top floors of
the complex.

22
11. Distribution channels

As we are Saas company we will be choosing Referral program, Search engine optimization, Social media and
content marketing as are main distribution channels.

23
Distribution Channel Assessment Worksheet
Distribution Channel 1
Referral Program
It uses the influence of
existing customers to
encourage new customer
Ease of Entry
acquisition. Easy to enter by
building a proper network
Online or through mobile
application. Delhi NCR being
Geographic
the capital has proper
Proximity
infrastructure to access these
facilities.
A little to no cost is incurred
in this
Costs
Dharmanandan diamonds do
Competitors’ not provide for referral
Positions programs
In this little to no experience
Management is required.
Experience
Business website featuring
Marketing the referral program and
Needs providing rewards
Distribution Channel 2
Search Engine
Optimization
SEO is the process of
improving one’s site visibility
for relevant searches by the
potential customer.
It is complex and ever
changing.
Search engines like
Google,Yahoo and Bing are
used.
Rs54,750 per month will be
incurred for SEO services
The competitors use this
channel of distribution to
reach the customers.
It is required to understand
and learn about the complex
SEO systems.
A well built business website
and use of relevant keywords
to increase site’s visibility.
Distribution Channel 3
Social media and content
marketing
It is mainly the use of social
media platforms to connect
with the target audience to
build brand image.
It is easy to enter.
Social media platforms like
Facebook, Instagram and
Twitter
An annual expenditure of
Rs48 lakh would be incurred
The competitor is also
utilising this channel of
distribution as well.
Skilled and experienced
employees in social media
and content marketing would
be required.
Display ads, well written
content
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12. 12-month sales forecast

In the initial stage we don’t expect much sales as this is a new product and customers don’t have that trust on
our product whether it is relevant for them or not.

We expect our sales to rise in the later half as we are working towards our product and its benefits and its
relevance to our customer and that to their customer also.

We expect that our product speaks for itself and gain some customers through word of mouth with our
existing customers.

The worst case scenario would be that customers would be hesitant to use our product initially but in near
future we would definitely convert them into customers.

25
Operational Plan
1. Production
We are providing our customers with the service of tracking diamonds used in their jewellery at all times, in
order to provide with the satisfaction that their diamonds have come from a legit source that is straight from
the diamond mines, in appropriate conditions, free from human touch in a safe environment.
To achieve our objective, we have installed IoT (Internet of Things) devices in the vehicles used for
transportation. The devices include the following features: location tracking along with the condition of the
vehicles (efficient engine), road maps, information about the driver and people responsible for loading and
unloading, locations of the processing units and checkpoints on the way. To make sure there is no tempered
information or data, blockchain technology will be employed.
The said information will be conveyed through a mobile application which will display real-time data on the
screens, facilitated through codings which will be done by our employees along with some guidance from
experts.

2. Quality control
To qualify with our promises, Six Sigma would be implemented, so that the right information is delivered to
the right customer. To perform this, various tools would be utilized such as the 5Whys, Project Charter, Cause
and Effect Analysis (also known as Fish Bone Analysis), Pareto Chart, Value Stream Mapping and Responsibility
Assignment Matrix (RACI Matrix) along with error detecting mechanism in place.
5Whys will help in finding the root cause of a problem.
Project Charter works both as the blueprint for the business process and as legal authorization of the project.
It’ll include the project overview and its scope, details about the team and the resources, and the timeline.
Cause and Effect Analysis helps in brainstorming various possible causes of a problem.
Pareto Chart visualizes what part of the process influences output the most and therefore will point out the
scope of attention.
Value Stream Mapping outlines the information and materials required to bring the information to the
customer screens.
RACI matrix will describe the responsibilities of each team member on every task of the business process.
RACI stands for Responsible, Accountable, Consulted, and Informed – the key responsibilities most commonly
used in the matrix.

3. Location
Our company is located at the following address:
C-48, Urbtech Trade Centre, Rohini, Delhi State (India). It is a commercial building based in Rohini in the
heart of Delhi NCR which comes under North West District of Delhi. North West Delhi district is one of
the 11 districts of Delhi. Rohini is a subdivision. Delhi NCR has become one of India's fastest-growing
economic regions, contributing for 7% to 8% of the country's overall GDP. The city is a promising IT hub
due to its proximity to government institutions, the availability of a business-friendly infrastructure, and a
rising entrepreneurship culture. Since the business is in a prime location, we pay rent of ₹60,000/-.

4. Legal environment
As far as the legal environment is concerned, we have a legal team of 2 dedicated lawyers to help us with
any sort of legal issue that may arise in future. The patent for both the technology as well as the
trademark and is in the process. For technology companies like ours, superior services are usually backed
up by a team of qualified specialists who work together to power projects with their individual specialised
skill sets. The expertise of your employees is often irreplaceable, so it's critical to prioritise their safety

26
 and well-being. That's why for our employee welfare we have in place a group health insurance which will
cover employees in an indemnity blanket that encompasses a plethora of diseases and also covers potential
expenses related to maternity or surgery. Other than this, we have a cyber risk insurance policy that will
protect our firm against a liability or loss arising from a breach of data, a glitch in a payment gateway, or an
act of cyber fraud. We also have a property and a fixed asset cover to protect our company from losses or
damages accruing from fires, lightning, air crashes, riots, strikes and explosions.

5. Personnel

● The employees need to have a computer science background with a minimum degree of B.Tech in
computer science and an understanding of what we really want to give our customers. They must have
competent skills in coding as well as communication skills along with the ability to convert complex
technical information and jargon into easily understandable language.
● In the initial phase, we will have a coding and marketing department along with administration staff and
therefore the requirement would be in 50s. However, later on we plan to add a customer care centre
for those who may find it difficult to use our app. Therefore, the base of requirement will be close to
60 employees. Then, we will proceed with the demands in the market.
● The job for the coders is to well, write codings for our application and maintain it. For the marketing
department, it is to carry out marketing activities and campaigns to bring awareness to our services.
The call centre executives will be responsible for handling customer queries and the management is
there for administration, planning, legal and expansion needs.
● The pay structure will be on a monthly basis.
● We will source our employees from campus recruitments, job websites and advertisements.
● We will have experts invited for training in the coding field and communication skill for call centre
executives. For management trainees, it is going to an apprenticeship programme and for the
marketing department, we are going to have orientation and communication and digital marketing
training. As we value fresh ideas, there will be biweekly brainstorming sessions and good ideas will be
awarded along with those who have achieved the targets for customer expansion.

6. Suppliers

● Our IoT devices are manufactured by Markon Electronics Corporation, Green Park New Delhi,
http://www.gpssystemindia.in/
● We are a service providing company and our raw material is codes scripted by our own employees
and the needed IT components come from LappyTech Solutions, Sec-18 Noida,
https://www.lappytech.in/
● As systems are required to process codes, we buy the laptops in bulk usually, so we get company
discounts. Our bills are settled in the next month of purchase.
● LappyTech has made a name for itself and has 10 stores across India. They are a reliable partner as
they also provide repair and maintenance for the bought products.
● We have a backup supplier for IT components, CDP Computers, Sant Nagar, Kailash East, Delhi.
● For IoT devices, we rent them from Markon Electronics, and the payment is settled on a monthly
basis. We do get a reminder three days before the end of the month.

7. Credit policies

● This is something new in the industry and as it has been the fate for every new product, people will be
reluctant to experience this. Therefore, credit policies will be liberal in the initial phase of
introduction. It will be free for a couple of trials which only be available through the jewellery shops’
discretion.

27
 But as it has been observed that people are kind of hungry for information and as the trend picks up
pace, credit policies being liberal or stringent will depend upon the customer base provided by the
shops as well as past records.
● The length of credit provided will depend upon the buying behaviour of the store. The more they buy
our service or recommend it to their customers, the more credit will be provided. But despite all
sales, the credit period will not extend more than 90 days.
● For the indirect customer, a credit will be offered only if our direct customer(the jewellery shops)
backs it or guarantees it. For our direct customer, annual sales and customer base will be taken into
consideration along with the 90 days policy.
● Credit will only be provided if there are a minimum of 15 orders. If not, no credit services shall be
offered.
● IoT Devices are costly to install and maintain and adding the cost of setting up IT infrastructure for
coding and setting up the mobile application, our credit policies are reasonable.
● If there is a case of non-payment of the due fees even after 90 days, after delivering to the current
clients, all future services will be eliminated till the payment is made. A warning will be issued at 80
days and after the period of 90 days is complete, legal action will be taken.

28
VI. Management & Organization
1. Biographies
Anubhav Verma
Our partner has great abilities in combining perseverance and ambition in setting goals and
achieving when it is about turning passion into endeavours. Before joining TrakChain, he
relentlessly worked for fundraisers, did guitar teaching classes and had ground level working
experience which led the company to gain a profitable and esteemed reputation by his
forthcoming innovative ideas about our products and services with superior quality.

In his words: TrakChain should aim to provide service as a desirable experience.

Anurag Kamal Bagaria

He is the best of us when it comes to package and market our products and services which
are mostly intangible and to do this is a difficult task. He has previous experiences of
marketing endeavours allowing TrakChain to be on the top of the marketing game as our
company’s goodwill is highly ranked.

Dhananjay Rawat
Dhananjay has been super flexible with company partners and employees and has always been
all ears to everyone’s ideas regarding his domain of marketing plans of TrakChain and hence
we see the result of brainstorming the best of the idea gives you out of the box results and a
trending sales turnover too.

Heeranshi Mishra
She is responsible for the management and organization of our company as she has exceeded
in her previous endeavours related to managing her time for art and studies. Currently, She is
in the process of incorporating a single person company named “Mermaidify”. Meanwhile, she
is a dedicated partner and employee of TrakChain.

Kush Khera
Never leaves a stone unturned while seeking angel investors for more cushion and better
sources and strategies regarding the Finances of our company.

Parul Sinha
Her work previously with multiple corporations like ShareKhan allowed us to already know
the A to Z of the Corporate world and proceed accordingly. Parul is highly dedicated and
made sure to work in synchronization with Shreyansh for Operational Activities and that’s why
TrakChain stands tall.

Rittika Bali

29
 Our esteemed partner has deep knowledge in regards to the establishment of the company
and the resources needed behind the making of TrakChain. She has constantly put her views
forth and still abided by the team by being agreeable at terms where profit and success could
be tapped and at the same time she has been the one who takes the most of the initiatives
from financial planning to our expenses and capitalization, she has been quick and rightfully
decisive.

Ritika Sadh
She has experience in theorized marketing, the establishment of business, expense
management and financial management in startups. She takes all the work from raising funds
through various strategies and marketing it to the masses via penetrative pricing as well.

Shreyansh Yadav
His previous experiences with other companies have made sure, TrakChain is not left without
an anchor. Shreyansh has been in charge of quality control, inspection, equipment and other
operational activities making TrakChain breathe every day. He made sure the work goes on no
matter what, even in the face of the pandemic.

Tanya Kishore
Tanya had a humungous experience in MUN’s and other societies, making her the star
performer. Multiple times she has taken the responsibility to go ahead with new marketing
ideas and never leave her marketing team members and associates unheard and unsynced with
the company’s brand message and service.

2. Gaps
As all our partners are not well versed in roles and responsibilities regarding new cutting edge
technology, we hired experts in the fields of blockchain, Internet of Things, Equipment Maintenance
and other domains to fuel TrakChain on its success path.

The experts hired are qualified to tackle any mismanagement or error coming out of daily operational,
managerial or organizational activities regarding the tracking of chains and managing and making sure
the data of our esteemed customers is encrypted and sealed.

The employees are also well versed with anti-money laundering tracking systems making sure the
transactions are transparent and fair.

3. Organization Chart

Members Roles

Anubhav Verma Product and Design Manager

Anurag Kamal Bagaria Marketing Associate

Dhananjay Rawat Marketing Planner

30
Heeranshi Mishra Senior Manager

Kush Khera Finance and Expense Planner

Parul Sinha Operational Manager

Rittika Bali Finance and Expense Manager

Ritika Sadh Finance and Expense Associate

Shreyansh Yadav Operational Manager

Tanya Kishore Senior Marketing Planner

31
VII. Startup Expenses & Capitalization

EXPECTED START-UP EXPENSES

Fundings Amount (RS)
Owners (Investor's funding)
Anubhav Verma 30,50,000.00
Anurag Kamal Bagaria 20,05,000.00
Dhananjay Rawat 40,00,000.00
Heeranshi Mishra 5,50,000.00
Kush Khera 1,11,45,000.00
Parul Sinha 7,50,000.00
Ritika Sadh 1,60,50,000.00
Rittika Bali 2,00,00,000.00
Shreyansh Yadav 10,00,000.00
Tanya Kishore 14,50,000.00
Total ₹ 6,00,00,000.00
Loan
Bank loan ₹ 6,00,00,000.00
Other fundings
Angel Investors ₹ 5,00,00,000.00

Total fundings ₹ 17,00,00,000.00

One Time costs Amount(Rs)

Advertising expenses for opening ₹ 1,20,00,000.00
Basic Website ₹ 18,000.00
Brand development
Signage ₹ 7,250.00
Tagline ₹ 2,750.00
Total brand develop ₹ 10,000.00
legal/professional fees ₹ 5,000.00
business licensing & patents ₹ 25,000.00
Infrastructure (office space) ₹ 5,24,80,000.00

32
office furniture ₹ 3,00,000.00
IOT Devices
computer hardware/software ₹ 70,00,000.00
security system installation ₹ 2,00,00,000.00
Total IOT devices ₹ 2,70,00,000.00
Insurance cost
devices (computer setup) ₹ 30,000.00
building(office) ₹ 50,000.00
Opening Inventory ₹ 1,50,00,000.00
total One time costs ₹ 13,39,28,000.00

Working capital in beginning

Cash Inflows (expected monthly)
membership services
Gold ₹ 25,000.00
silver ₹ 30,000.00
premium ₹ 40,000.00
other recurring revenue ₹ 50,000.00
expected number of customers 300
Total cash inflows ₹ 4,35,00,000.00
Cash Outflows
internet service charges ₹ 20,000.00
telephone charges ₹ 10,000.00
Salary of owner/ manager/ employees/outsourced IT
consultants ₹ 2,00,00,000.00
Insurance Premium ₹ 833.33
Total cash outflows ₹ 2,00,30,833.33
Reserve for contingencies ₹1,60,41,166.67

VIII. Financial Plan

Projected balance sheet

TrakChain
Balance Sheet as at 31st March 2022

33
Liabilities Amount(Rs) Assets Amount (Rs)
Creditors 5,00,00,000 Building 5,24,80,000
Bank Loan 6,00,00,000 Machinery 50,00,000
Capital A/c: Furniture 3,00,000

Anubhav Verma 15,00,000 Computer Software 20,00,000

Anurag Bagaria 10,00,000 Website 18,000

Dhananjay Rawat 20,00,000 Debtors 4,35,00,000

Heeranshi Mishra 2,00,000 Cash at Bank 3,31,02,000

Kush Khera 50,00,000
Parul Sinha 3,00,000
Ritika Sadh 52,00,000
Rittika Bali 1,00,00,000

Shreyansh Yadav 5,00,000

Tanya Kishore 7,00,000
Total 13,64,00,000 Total 13,64,00,000

Project Profit and Loss Statement

Year of Projection 2022-2023

Sales ₹

34
 ₹
Gold 9,00,00,000.00

Sliver ₹ 10,80,00,000.00

Premium ₹ 14,40,00,000.00

other recurring revenue ₹ 18,00,00,000.00

₹
Total Sales 52,20,00,000.00

Cost of Sales

₹
Internet service charges 2,40,000.00

₹
Telephone charges 1,20,000.00

₹
Salary of owner/ manager/ employees/outsourced IT consultants 24,00,00,000.00

₹
Insurance Premium 9,999.96

₹
Total Cost of sales 24,03,69,999.96

₹
Gross Profit 28,16,30,000.04

35
36