3D Virtual Online Shopping

Lean Start-up Management

(MGT1022)
TE2 Slot Winter Semester 2019-20

J Component Project Report

Final Review

Submitted by

YASH DAHIWAL (17BEC0634)

A. ABID ALI (17BEC0513)
AMIT KISHORE RAINA (17BME0363)
POULOMI GHOSH (17BEE0213)
SURJASISH CHATTERJEE (17BEE0251)
AJAY MAHATO (17BEC0218)
RUSHIPRASAD DAMALE (18BME0563)
PRIYESHA JETHI (18BIT0125)

Under the guidance of

PROF.SOUMEN PAL

i
 CONTENTS

1. Type of business plan identified 1

1.1 The type of business plan (manufacturing oriented or service oriented or 1
retail oriented or both manufacturing & service oriented).
1.2. Proper justification for our identified business type. 1
1.3 The diagram of our product with dimensions 1
2. Organization structure 2
2.1 Discuss how the business plan will be organized (corporation type or 2
Partnership type or sole proprietorship)
2.2 Describe the number of hierarchical positions of manpower 2
to be decided.
2.2.1. Explain the process of discharging responsibility through 3
delegation of authority and responsibility
3. Background work for selecting the concerned business 4
3.1 Any reference supporting our current choice of business type 4
3.1.1 Any survey supporting our current choice of business type 4
4. Factors which motivates us to start the selected business 5
4.1 Any social problem being noticed in line to our choice of business 5
plan in our area of surroundings or regionally or nationally.

5. Business Background 6

5.1. Business Location 6

5.2. Company Logo and Name of the Business 6
5.3. Management and Employees 7
ii
 5.4. Hierarchy of our Administration 8
5.5. Employees required (Number and Qualification) 9
6. Target Customers 11
6.1 The regular customers/potential customers/target 11
Customers identified with respect to your start-up idea
6.2 The factors based on which you identified your target 11
customers with respect to your lean start-up business proposal
7. Strategies for attracting customers 12
7.1. The promotional strategies or marketing strategies or modes of 12
advertisement that are identified and followed to attract the
customers
8. Details about our product or service 14
8.1. Detailed information about the product to be manufactured or kind
of service to be rendered with respect to your lean start-up business
proposal
9. Alternative sources for our products and services 15
9.1. The alternative sources or substitutes for your product to be produced 15
or service to be rendered
10. Competitors 17
10.1. State the other businesses which we feel competitive to our
lean start-up business idea? Also explain the factors based on which our
competitors are competitive to our business?

11. Market Strategy 19

11.1 Briefly discuss the various marketing strategies which we identified 19
to promote our business with respect to our lean start-up idea?
12. Financial Planning 21
12.1. Give a brief description of financial requirement to attain the goals 21
of short-term planning, intermediate planning and long term planning?
Also give proper justification for these expenses?
13. Initial Expenditure 22

iii
 13.1. State and explain the amount of initial expenditure that incurs for 22
our business proposal? Also give proper justification for these expenses?
14. Running Expenses 24
14.1. State and explain the amount of running expenditure that incurs for 24
our business proposal? Also give proper justification for these expenses?
15. Objectives of the Business 27
15.1. Give a brief description on objectives of your business to be attained, 27

especially, in terms of profits for near future?

16. Break-Even Analysis 28

16.1. Give a brief description on the concept of break-even analysis and how 28

this could be useful in your business proposal?

17. Business Marketing Plan 28

17.1. State and explain your business marketing plan to be implemented for 28

short term, medium term and long term duration, with respect to your

lean start-up business idea?

18. Operating Plan 29

18.1. Briefly elaborate the details regarding operating plan for carrying out day 29

to day activities of your lean start-up business idea?

19. Exit strategy 30

20. Future Goals 35

20.1. State and explain the future goals that are framed in line to your 35

iv
 lean start-up business idea? Also, explain the strategies that are framed

to attain these goals?

21. Expansion 37

21.1. Briefly, illustrate your idea of expanding your lean start-up business 37

in future? Also, give the frame work that you set to expand your business?

22. Introducing new products and services 38

22.1. State and explain various new products that you planned to produce 38

or various services that you render in future?

22. Industrial Estate formation 39

22.1. Briefly, explain your idea of developing industrial estate in future? 39

v
 CERTIFICATE

This is to certify that the project work entitled “3D Virtual Online Shopping ” is a record of
bonafide work carried out for the fulfilment of J component of the course Lean Start-up
Management (MGT1022).The contents of this project work, in full or in parts have neither
been taken from any other source nor have been submitted for any other CAL course.

Place: Vellore
Date: 05-06-2020

vi
 ABSTRACT

Virtual shopping malls can be described as online 3D shopping malls where users can navigate
virtually in a shopping mall through 3D technology like in real life Our project application
provides a new way of online Shopping by surfing in a virtual mall User would be able to shop
online with a new touch experience owing to 3D-clone of user itself As virtual reality
technology improves, it creates new opportunities for travelers seeking new experiences
Virtual tour is a panoramic view or video simulation of an existing place that can be viewed
online, often for travel or vacation-related research.

vii
 Chapter 1
TYPE OF BUSINESS PLAN IDENTIFIED

1.1. The type of business plan (manufacturing oriented or service oriented or retail
oriented or both manufacturing & service oriented).

Our business plan is retail and customer oriented involving the sale of goods and services
from businesses to an end user (called a customer).
Our application provides a new way of online Shopping by surfing in a virtual mall.
User would be able to shop online with a new touch experience owing to 3D- clone of user
itself. The object will work as a Clone of the user and the user can enjoy the shopping by
making orders to his/her Clone
Our business plan includes

• Develop a 3D model of a website with different store fronts

• Provide authentic online store assistant for each store
• Set up store/mall reward points system

1.2. Proper justification for our identified business type.

It provides an experience similar to going to an actual mall where the user can shop through
virtual storefronts from one consolidated site providing a rich, immersive experience. The
virtual environment in our online business takes the online shopping experience to the next
level. It will help the customers to make better choices while purchasing. It will give a new
dimension for shopping. It will make shopping an entirely new, fun and interesting
experience.
1.3. The diagram of our product with dimensions
Below is the VR headset that is used for virtual Shopping.

1
 Chapter 2
ORGANISATION STRUCTURE

2.1. Discuss how the business plan will be organized (corporation type or Partnership
type or sole proprietorship)

Our business plan will be organized partnership type. Forging partnerships will optimize the
business models, reduce risk, and/or acquire resources.
Key partnerships are the network of suppliers and partners that make the business model
work.

2.2 . Describe the number of hierarchical positions of manpower to be decided.

Key partners include

• Web developers
• Suppliers

• Software engineers
• Technicians
• Product manufacturers
• Delivery helpers
• Bank services

Web devolopers(Salary – Rs.10,00,000), 20 members

Technicians

Testing (software devolopers) Salary – 7,00,000

,members
Hierarchial
Product manufacturers (VR headset) (Third party)
Positions

Delivery Helpers (Flight services, Train services, Van etc)

Third party servies

Bank services
2
 A team of web developers need to design a website for the virtual online store and virtual
tourism. The website must have the following features:
➢ User friendly
➢ Very interactive
➢ Easy payment procedure
➢ Detailed description of every product

2.2.1 . Explain the process of discharging responsibility through delegation of authority and
responsibility

A team of 3D animation specialists need to work on developing a virtual environment for

shopping. They have a key role to play in this business plan.
Customers must feel happy, satisfied and enjoyable while shopping in this virtual
environment. The virtual environment must be developed in such a way that it is in no way
short of a real life shopping experience.
Technical support includes the admin of the software. A team of software engineers need
to look after the technical functioning of the business. The success of this online virtual store
lies entirely in the hands of the technical team.
The other partner includes the inventory clerk who is responsible for managing incoming
and outgoing supplies and products within a business. It may involve the task of
maintaining the raw supplies and ordering new supplies
The admin maintains the record about the customer’s details, the stock details, the supplier
details, the delivery person details.

Delivery helpers and vehicle rental services include

➢ Flight services.
➢ Train services.
➢ Delivery vans, bikes .

3
 Chapter 3

BACKGROUND WORK FOR SELECTING THE CONCERNED

BUSINESS

3.1.Any reference supporting our

current choice of business type

In February, Walmart acquired the

virtual reality start-up Spatial and as
part of its effort to push VR initiatives,
and in June, it launched a virtual
shopping tour that let users peruse a
virtual apartment in VR. With that
feature, users could navigate through
the apartment, explore the dozens of
items within it that are sold by
Walmart and easily
get to those items' product pages if they wanted to learn more.

3.1.1. Any survey supporting our current choice of business type

Participants will don headsets and sit in motion-

controlled VR chairs powered by VR backpacks
to take a five-minute journey through the world.
In the meantime, Walmart is harnessing VR and
AR to enhance the online shopping experience.
The retailer is offering shoppers the ability to
browse a curated 3D apartment that shows off
70 branded and private label products.

4
They will then have an opportunity to browse related merchandise in an immersive branded
gift shop. The experience will travel to 16 cities between Feb. 15 and April 9, 2019.

Chapter 4
FACTORS WHICH MOTIVATES YOU TO START THE SELECTED
BUSINESS

4.1. Any social problem being noticed in line to our choice of business plan in our area of
surroundings or regionally or nationally.

Virtual shopping malls can be described as online 3D shopping malls where users can
navigate virtually in a shopping mall through 3D technology like in real life. Our project
application provides a new way of online Shopping by surfing in a virtual mall. User would
be able to shop online with a new touch experience owing to 3D-clone of user itself. As
virtual reality technology improves, it creates new opportunities for travelers seeking new
experiences. Virtual tour is a panoramic view or video simulation of an existing place that
can be viewed online, often for travel or vacation-related research.
There are several problems we face in our day to day life. We don’t have enough time to
get relaxation. In such type of situation, we face lot of consequences like,

• For those who work in irregular hours or are very busy, then they wouldn’t
probably have the time to visit the store.
• Need for the retailers to reach huge base.
• Difficult to search merchandise needed to buy in a store.
• Not all products are available in a store.
• There wouldn’t be much deals and promotions on products when buying it in a
store.

For them, virtual shopping seems an affordable and efficient method to escape their routine
monotony. 3D virtual online shopping reaches huge customer base and can serve entire
country or even worldwide without a physical store.

5
 One-stop for all their shopping needs and can experience a mall from the comforts of home.
We can save money on deals and promotions .We can have the feel of the product which
isn’t possible in e-commerce online shopping
These are some of the main social problems that we noticed and are one of the main reasons
for our choice of business plan in our surroundings. This will also benefit for the people.

Chapter 5
BUSINESS BACKGROUND

5.1. Business Location

To Develop a 3D model of a website with different store fronts and provide authentic online
store assistant for each store .

Factors why we identified this location :

➢ Provides an experience similar to going to an actual mall where the user can shop
through virtual storefronts from one consolidated site providing a rich, immersive
experience
➢ The virtual environment in our online business takes the online shopping experience to
the next level. It will help the customers to make better choices while purchasing.
➢ It will give a new dimension for shopping and will make shopping an entirely new,fun
and interesting experience.

5.2. Company Logo and Name of the Business

The name of the business is ‘VRealiTech 360’.

6
 We have given this type of logo because the logo (cube-shaped) resembles like big
Shopping Mall. It contains all the customer’s needs. But it is actually not happening in
reality, but with the help of Virtual Reality Device where it appears in front of the cube.

The name we chose is VRealiTech 360 because we work on product based on Virtual
Reality Specs particularly in the field of E-commerce. The ‘360’ says that our business
covers all the aspects , needs and produce fully satisfied output.We have given a slogan
below to attract the customers.

To be most effective, our company name had reinforced the key elements of our business. The
first and most important step in choosing a name is deciding what our business is. Logos are
intended to be the face of a company. They’re meant to visually communicate
the unique identity of the brand and what it represents. Depending on your design philosophy,
simple logos comprised of only essential elements are often the most difficult and also
successful. After all, logos need to communicate quite a bit in one visual…The logo for the
company name is chosen because the purpose of the company should be catchy and easily
understandable for the all types of customers that is what types of maintenance we are going
to provide and the purpose of our company.

5.3. Tagline to your Business

“A vision becoming reality”.

The main theme of our start up is to make people’s life easy and our project deals with virtual
reality to make our vision become reality in life .As our project title tells us that it deals with
3d reality ,so keeping that in mind we have decided this tagline. Tag line is a slogan which

7
helps us in marketing and advertising of business. Our business is basically a service-oriented
business, so we want to provide a good service which make their work easy.so this tag line
justifies our business. In the grand scheme of marketing strategy, coming up with a company’s
tagline is rarely anyone’s first concern. In fact, as audiences’ attention spans have shortened
and the screens on which ads display have become increasingly pocket-sized, some have even
argued that a tagline isn’t necessary at all.

5.4. Management and employees

• Key partnerships are the network of suppliers and partners that make the business model
work.
• Companies forge partnerships to optimize their business models, reduce risk, and/or
acquire resources.

Key partners include,

➢ Web developers
➢ Suppliers
➢ Software engineers
➢ Technicians
➢ Product manufacturers
➢ Delivery helpers
➢ Bank services

5.5. Hierarchy of our Administration

• A team of web developers need to design a website for the virtual online store. The
website must have the following features:
➢ User friendly
➢ Attractive Very interactive
➢ Self-explanatory
➢ Easy payment procedure
➢ Detailed description of every product
• A team of 3D animation specialists need to work on developing a virtual environment
for shopping. They have a key role to play in this business plan. Customers must feel
happy, satisfied and enjoyable while shopping in this virtual environment. The virtual

8
 environment must be developed in such a way that it is in no way short of a real-life
shopping experience.
• Technical support includes the admin of the software. An interactive User interface is
integrated with the system which allows the customers to get details about the products.
• By getting the information they can further proceed for ordering. To confirm their order,
they need to press the confirm order button.
• A team of software engineers need to look after the technical functioning of the
business. The success of this online virtual store lies entirely in the hands of the
technical team. If this team wins, the business plan will become a success story for sure.
• Delivery helpers and vehicle rental services include
➢ Flight services
➢ Shipping
➢ Train services
➢ Delivery vans
➢ Delivery motorbike

5.6. Employees required:

• To develop a 3D model of a website with different store fronts

➢ A team of web developers need to design a website for the virtual online store
with the following skills required to design it
▪ Front End
o Unity 3d (For play and graphics)
o C#
▪ GUI
o Adobe Illustrator
o Blender 3D
o Adobe Photoshop
▪ Back End
o MySql
o Magento

• To provide authentic online store assistant for each store

9
 ➢ An admin to maintain the record about the customer’s details, the stock details,
the supplier details, the delivery person details.

• Maintaining raw supplies and order new supplies

➢ An inventory clerk who is responsible for managing incoming and outgoing
supplies and products within a business. It may involve the task of maintaining
the raw supplies and ordering new supplies.
• Technical support staff
➢ A team of software engineers need to look after the technical functioning of the
business. The success of this online virtual store lies entirely in the hands of the
technical team.
• Logistic Services
➢ Consumers demand better service, and this mandate creates a need for shippers
to provide fast, accurate and quality service. Good management strategy is
aimed to constantly optimize transportation processes and eliminate disruptions.
Therefore, it has a direct impact on customers’ satisfaction.
➢ Improved customer service can bring a good reputation to a company’s brand
and help generate more business. Ultimately, well-handled logistics contributes
to the overall positive customer’s experience.

10
 Chapter 6

TARGET CUSTOMERS

6.1. The regular customers/potential customers/target Customers identified with respect

to your start-up idea
Constrained Strugglers:

Less empowered group with an average age of 45 years and highest mix of ethnic background.
Tend to be classified as , lower qualifications and less savvy at managing their household bills
and day-to-day commitments. As a consumer, tend to feel ill-at-ease with purchases, not likely
to research for deals or negotiate with companies.

6.2. The factors based on which you identified your target customers with respect to your
lean start-up business proposal
CUSTOMER SEGMENTATION

Worried Indecisive: Female, younger consumer who enjoys shopping but can be indecisive.
Influenced by peers, friends and consumer experts. As a consumer, engage more than then
'Constrained Strugglers' though have similar traits. These consumers would need more support.

Traditional Value Seekers: Older like the 'Consciously engaged, and in a strong financial
position. Motivated by promotions and empowered to research. Confident shopper who is
comfortable both negotiating and complaining. Conservative as they prefer to visit shops and
are loyal to well- known brands. As a consumer, they are highly-engaged and will find the time
to get the best deal. Qualified and affluent, compared to other segments and they are more
likely to use the internet so will switch brands. As a consumer, one of the most empowered
(with traditional value-seekers) and vocal to share their views post-purchase.

11
 Chapter 7

STRATEGIES FOR ATTRACTING CUSTOMERS

7.1. the promotional strategies or marketing strategies or modes of advertisement that

are identified and followed to attract the customers

Social Media Marketing

Social media platforms are an attractive marketing tool for new businesses, because promoting
yourself there has little or no monetary cost. The catch is that you'll need to invest significant
time in building a presence, and making your content engaging enough to be worth following.
Frequent premiums for your followers, in the form of discounts, giveaways or "flash sales,"
can help a lot. If you have a tangible product, you can also generate solid word of mouth by
providing evaluation units to influential bloggers with lots of followers.

Traditional Newspaper Ads

A traditional form of advertising, daily and weekly newspaper ads allow you to target specific
geographic neighborhoods. Attaching an incentive, such as a coupon, to the ad can help you
judge its effectiveness. Purchasing an ad in a section relevant to your business – for example,
a home improvement business ad in the home and garden section – can also help you to reach
target clients.

Targeted Radio Advertising

A catchy jingle and quick tag line can enhance a radio ad's effectiveness. Matching the station
you choose with your target demographic is key. If you want to reach adults aged 35 to 64, an
adult contemporary station is a good bet.

An alternative or urban station is good to reach youth aged 18 to 24. At the time of publication,
Neilsen reports that radio reaches around 59 percent of the population daily with a 45 percent
trust rating.

12
Local or National Television Advertising

Television ads on local stations might require time and effort to produce, but can be especially
effective if you sell a product or service with a high price point. A national TV ad can cost as
little as $63,000, though this price can vary widely based on market and programming. You
can certainly justify the difference in price if a TV ad can reach customers who would not
respond to radio.

Public Speaking Events

If the product you sell relates to your own expertise, public speaking can be a great
advertisement. Offer your services to organizations that could benefit from one of your
workshops or lectures. Bring business cards and promotional materials to the event to
encourage your audience to spread the word about your services.

Door Hangers and Flyers

Canvassing the neighborhood, placing flyers in mailboxes or hanging ads on doorknobs, is a

good way to target a specific area and to make sure your potential customers have seen your
information. Even if most homeowners will discard the information, gaining a handful of
clients may be enough for a positive return on the marketing campaign investment.

Event Sponsorship and Appearances

Advertising your product or service through event sponsorship can take many forms. You
might receive an acknowledgement in the event program, have an on-site location where you
can give out sample product, or your company logo might appear on the event posters. One
option for events that require a hand-stamp for entry is to provide the venue with a stamp that
bears your company logo; the attendees will then have your logo close by for a day or two
afterwards.

13
 Chapter 8

DETAILS ABOUT OUR PRODUCT or SERVICE

8.1. detailed information about the product to be manufactured or kind of service to be

rendered with respect to your lean start-up business proposal

Our application provides a new way of online Shopping by surfing in a virtual mall.

Virtual shopping malls can be described as online 3D shopping malls where users can navigate
virtually in a shopping mall through 3D technology like in real life

• User would be able to shop online with a new touch experience owing to 3D-clone of
user itself
• The object will work as a Clone of the user and the user can enjoy the shopping by
making orders to his/her Clone
• It is a new appealing and enjoyable way of shopping, sitting in your room.

14
 Chapter 9

AlTERNATIVE SOURCES FOR OUR PRODUCTS AND SERVICES

9.1. The alternative sources or substitutes for your product to be produced or service to
be rendered
This idea of virtual online shopping hasn’t been well implemented yet. But our alternative
sources in the future may include

➢ Walmart 3D virtual online shopping

➢ Amazon
➢ Flipkart
➢ eBay
➢ Newegg
➢ Myntra
➢ Zappos

Substitutes play an important part in the marketplace and are considered a benefit for
consumers. They provide more choices for consumers, who are then better able to satisfy their
needs.

When consumers make buying decisions, substitutes provide them with alternatives. Giving
consumers more choice helps generate competition in the market. While that may be good for
people, it may have the opposite effect on companies. Alternative services may cut into
companies' profitability, as consumers may end up choosing one more over another.

The greater the number of alternative services in the market, the more rivalry exists in the
industry. When the competition becomes intense, there are imminent risk-associated controls.

The factors that would be affected due to presence of alternative sources are

Price
If the price of one service rises, the demand for the other service rises since consumers will
prefer to pay a lower price if the utility derived is almost the same.

15
Quality of the services
If substitute services are highly differentiated and are of high quality, a consumer is likely to
switch to a product that offers better quality.

Service performance
If two substitute service perform differently when subjected to various conditions, the customer
will choose the option that is most convenient for the particular prevailing condition.

Comparative prices
If a product is priced fairly, there is a higher risk of consumers switching from one to the other
unless they are loyal to the particular service they have been using.

So, there would be a need to improve on all these fronts to stay well ahead in the competition
.

16
 Chapter 10

COMPETITORS

10.1. State the other businesses which we feel competitive to our lean start-up business
idea? Also explain the factors based on which our competitors are competitive to our
business?
The Main Competitors for our business are Walmart , Kmart

Factors for which competitors are competitive for our business :-

A).Categorize your Competitors

Whether you want to admit it or not, competitors are out there and they’re likely just as hungry
as you are. This gives a simple, easy-to-use process that will help you conduct a competitor
analysis that discovers and keep tabs on other retailers in your space. Afterward, you’ll be able
to:

• Capitalize on their weaknesses and strengths to help start your business

• Have a better understanding of the landscape, plus learn how to best position your
business for success
• Identify, understand and keep tabs on your competition so you never have to worry
about them sneaking behind you

B). Examine your competitor’s website & customer experience.

Once you’ve identified your competitors, you’ll want to analyze their websites. To start, take
a close look at the following items:

• How solid is their product photography? How do they display their products and help
communicate details?
• How detailed are their product descriptions? What information do they include? What
information is missing?
• Where are their calls to action throughout the online shopping experience? Are they
obvious or do they get lost due to a poor color scheme or positioning?
• Are they trying to build an email list with a newsletter sign-up prompt? How prominent
is it?
• Where are their social media icons positioned?

17
 • Do they have a blog? How frequently do they post? What type of information do they
tackle?

C). Identify your competitor’s market positioning.

• By identifying your competitor’s positioning strategy, you’ll start to get a feel for your
market’s demands and expectations.
• Take a look at their website and marketing messaging and ask the following:
• What are customers really buying from them? Are they going for price? Experience?
• How are they differentiating their product from their competition? What features and
benefits do they highlight the most in their marketing copy?
• What makes their product or service unique (according to them)?

D). Take a peek at pricing.

• Your pricing strategy is going to be one of the most important aspects of your online
business — and potentially a competitive advantage.
• The best place to start is to look at how your competitors have priced their products.
You’ll learn what your target market is willing to pay and get an understanding of what
prices might work well for your business.
• Be sure to look at their prices across a variety of channels, first Google and Amazon,
as well as eBay and Alibaba (for the B2B sector).

E). Problem solving for shipping.

• As with pricing, at this point in time, you’ll just want to gather intel as to how your
competition handles shipping, as well as how they communicate expectations.

F). Take a temperature check with reviews.

• This is just a no-brainer.

• Take the time to find as many reviews of your competitors as possible, including
everything from product reviews on their website to business reviews on social media
to comments left on their blog.
• Get a temperature check from their audience as to how healthy and client-centric their
business is and decide if it’s a strength or weakness you can capitalize on.

18
 Chapter 11

MARKET STRATEGY

11.1. Briefly discuss the various marketing strategies which you identified to promote
your business with respect to your lean start-up idea?

Social Media Marketing

Social media platforms are an attractive marketing tool for new businesses, because promoting
yourself there has little or no monetary cost. The catch is that you'll need to invest significant
time in building a presence, and making your content engaging enough to be worth following.
Frequent premiums for your followers, in the form of discounts, giveaways or "flash sales,"
can help a lot. If you have a tangible product, you can also generate solid word of mouth by
providing evaluation units to influential bloggers with lots of followers.

Traditional Newspaper Ads

A traditional form of advertising, daily and weekly newspaper ads allow you to target specific
geographic neighborhoods. Attaching an incentive, such as a coupon, to the ad can help you
judge its effectiveness. Purchasing an ad in a section relevant to your business – for example,
a home improvement business ad in the home and garden section – can also help you to reach
target clients.

Targeted Radio Advertising

A catchy jingle and quick tag line can enhance a radio ad's effectiveness. Matching the station
you choose with your target demographic is key. If you want to reach adults aged 35 to 64, an
adult contemporary station is a good bet.

An alternative or urban station is good to reach youth aged 18 to 24. At the time of publication,
Neilsen reports that radio reaches around 59 percent of the population daily with a 45 percent
trust rating.

19
Local or National Television Advertising

Television ads on local stations might require time and effort to produce, but can be especially
effective if you sell a product or service with a high price point. A national TV ad can cost as
little as $63,000, though this price can vary widely based on market and programming. You
can certainly justify the difference in price if a TV ad can reach customers who would not
respond to radio.

Public Speaking Events

If the product you sell relates to your own expertise, public speaking can be a great
advertisement. Offer your services to organizations that could benefit from one of your
workshops or lectures. Bring business cards and promotional materials to the event to
encourage your audience to spread the word about your services.

Door Hangers and Flyers

Canvassing the neighborhood, placing flyers in mailboxes or hanging ads on doorknobs, is a

good way to target a specific area and to make sure your potential customers have seen your
information. Even if most homeowners will discard the information, gaining a handful of
clients may be enough for a positive return on the marketing campaign investment.

Event Sponsorship and Appearances

Advertising your product or service through event sponsorship can take many forms. You
might receive an acknowledgement in the event program, have an on-site location where you
can give out sample product, or your company logo might appear on the event posters. One
option for events that require a hand-stamp for entry is to provide the venue with a stamp that
bears your company logo; the attendees will then have your logo close by for a day or two
afterwards.

20
 Chapter 12

FINANCIAL PLANNING

12.1. Give a brief description of financial requirement to attain the goals of short term
planning, intermediate planning and long term planning? Also give proper justification
for these expenses?

We need a small level investors and we take a loans to start our business Financial requirement
to attain the goals of

Short-term Planning:

Short-term planning looks at the characteristics of the company in the present and develops
strategies for improving them. Examples are the skills of the employees and their attitudes.
Considering the condition of production equipment or product quality also .To address these
issues, you put in place short-term solutions to address problems. Employee training courses,
equipment servicing and quality fixes are short-term solutions. These solutions set the stage for
addressing problems more comprehensively in the longer term.

Mid-term Planning:

Medium-term planning applies more permanent solutions to short-term problems. If training

courses for our employees solved problems in the short term, we schedule training programs
for the medium term. If there are quality issues, the medium-term response is to revise and
strengthen the company's quality control program.Where a short-term response to equipment
failure is to repair or fixing bugs in the site, a medium-term solution is to arrange for a service
contract.
Long-term Planning:

In the long term, we want to solve problems permanently and to reach their overall targets with
marketing. Long-term planning reacts to the competitive situation of the company in its social,
economic and political environment and develops strategies for adapting and influencing its
position to achieve long-term goals. It examines major capital expenditures such as purchasing
equipment and facilities, and implements policies and procedures that shape the company's
profile to match top management's ideas.When short-term and medium-term planning is
successful, long-term planning builds on those achievements to preserve accomplishments and
ensure continued progress

21
 Chapter 13

INITIAL EXPENDITURE

13.1. State and explain the amount of initial expenditure that incurs for your business
proposal? Also give proper justification for these expenses?

A). Rent and Operating Costs

• Security deposit for the rental lease ($1,877, based on 1,609 square feet in a well-
established, centrally located strip shopping center in North Austin, Texas)
• First month's rent in advance, plus triple net ($1,877; $835 for her portion of the center's
operating expenses and property taxes)
• Utilities security deposit ($300) Total Rent and Operating Expenses: $4,889

B). Location Improvement Costs

• Construction costs to customize the space ($4,000)

• Store fixtures, including poles, racks, shelves, gondolas, mannequins, a cash counter,
sizer, and bookcases ($3,500)
• Handyman and supplies ($150) Total Location Improvement Costs: $7,650

C). Inventory

• It has a huge advantage over other retailers in that she doesn't have to pre-buy her
inventory, which has allowed her to spend less than $750 on purchasing merchandise
since January 2011. Instead, she splits the proceeds of every sale 50-50 with her
consigners. Total Inventory Costs: $0

22
D). Miscellaneous Operating Expenses

• Hangers for clothing ($1,000)

• Liability insurance ($185 quarterly)
• Accounting setup ($25 per month for QuickBooks Online)
• Association fees and directories ($250)
• Office and cleaning supplies ($100) Hangers are an underrated cost for any retailer.
(Munroe tries to save money by buying recycled ones whenever possible.) Total
Miscellaneous Operating Expenses: $1,560

E). Marketing

• An exterior sign and center pylon signs (two) ($4,500)

• Interior signage and décor ($600)
• Trademark registration and legal services ($500)
• Logo design ($1,500)
• Business card design and printing ($1,300)
• Flier design and printing ($350)
• Coupon design, printing, and redemption costs ($150)

Not surprisingly, Munroe invested in multiple marketing efforts to help build the brand of
her new business. "Image is so important," she says. "I wanted to put my best foot forward in
setting the tone for what the store is about and how we do business.

Total Marketing Costs: $8,900

Grand Total of Startup Costs: $30,834(Rs.19,99,276 Lakhs

23
 Chapter 14

RUNNING EXPENSES

14.1. State and explain the amount of running expenditure that incurs for your business
proposal? Also give proper justification for these expenses?

i) Significantly Lower Cost Online :-

Starting an online Shopping business can mean significantly lower start up costs compared to
a bricks and mortar retailer. It is not free and a plan and budget are essential for success.

ii) Issues to look for :-

• Limitations in packages - e.g. number of products - every package will have some
limitations so you will need a package that fits your business requirements
• Transaction fees - some suppliers charge a fee in addition to monthly package fees
based on your revenue or turnover each month
• Annual revenue limitations - some providers apply revenue caps and then will force
an upgrade or charge more if you exceed the cap
• Setup fee - some providers will charge an initial fee to set up the online store
• Storage allowance - this is about how much data, images etc you can store online.
Check to see if there are excess storage charges.
• Bandwidth allowance - this means the amount of data that can be transferred monthly
to and from your online store. Check if there wil be excess data charges.
• Location of hosting - the country where you are hosted can have implications on
performance, support, maintenance and search engine optimisation
• Support fees - if you need technical help is it free or will they charge. How do you get
support i.e. phone, email, live chat, FAQs etc.

General online business costs

When starting an online business services there are some costs which you can expect before
you make your first sale. Your online store is a sales channel and acts like a sales person for
your business. Selling online can be very cost effective as there are less human resource and
infrastructure costs compared to a traditional "bricks and mortar" business.

24
There are costs such as:

• Human resources
• Cost of products
• Warehousing
• Logistics
• Traditional marketing
• Business taxes
• Accountant and financial institution fees
• Rent and utilities

All these traditional costs still exist and don't magically vanish if you sell online.

ANNUAL START SMALL GROWING LARGE UNLIMITED

RECURRING UP STORE STORE
COST

ESTIMATED 100 500 2000 10,000 unlimited

NUMBER OF
PRODUCTS

DOMAIN(2 YRS) $99.00 $99.00 $99.00 $99.00 $99.00

BUSINESS $60.00 $99.00 $150.00 $150.00 $150.00

EMAIL

SSL $185.00 $185.00 $185.00 $185.00 $185.00

CERTIFICATE(2
YRS)

TOTAL INITIAL $344.00 $383.00 $434.00 $434.00 $434.00

ANNUAL COST

25
MONTHLY START SMALL GROWING LARGE UNLIMITED
RECURRING UP STORE STORE
COST

WEBSITE(ONLINE 100 500 2000 10,000 unlimited

STORE)

SEARCH ENGINE included included included included included

OPTIMIZATION

PAYMENT included included included included included

INTEGRATION

SHIPPING included included included included included

INTEGRATION

TOTAL $27.00 $77.00 $122.00 $220.00 $899.00

MONTHLY
RECURRING
COST

ONE TIME COST

DESIGN $300.00 $600.00 $1500.00 $3000.00 $5000.00

CUSTOMIZATION Not Not Not required Not $10,000.00

required required required

ADD PRODUCTS Not Not $1000.00 $3000.00 $5000.00

AND CONTENTS required required

TOTAL ONE TIME $300.00 $600.00 $2500.00 $6000.00 $20,000.00

COST

FIRST YEARS $992.00 $1907.00 $4398.00 $9074.00 $31222.00

BUDGET
ESTIMATE

26
 Chapter 15

OBJECTIVES OF THE BUSINESS

15.1. Give a brief description on objectives of your business to be attained, especially, in

terms of profits for near future?

Business objectives are something which a business organisation wants to achieve or

accomplish over a specified period of time. These may be to earn profit for its growth and
development, to provide quality goods to its customers, to protect the environment, etc. Our
business objectives are the results we hope to achieve as we run and grow our business.

Our objectives include

• To achieve a minimum of 100 sales per day for customer service and delivery, in the
first year of operations.
• To offer our customer excellent services, at reasonable price, and provide outstanding
customer experience, measured by minimum 5 percent yearly sales growth, and
customer complaints less than 1 percent.
• To generate positive cash flow from operations, and at least 10 percent net profit to
sales and delivery.

27
 Chapter 16

BREAK-EVEN ANALYSIS

16.1. Give a brief description on the concept of break-even analysis and how this could be
useful in your business proposal?

For our break-even analysis, we assume running costs of approximately $16,874 per month,
which include payroll, utilities, insurance, rent and other fixed costs. We need to sell about
1996 units for minimum $35,155 per month to break even, based on our assumptions.

Since our normal capacity is 300 units per day(4,224 units for $122,400 per month), and
the average projected sales of $72000 per month, or 176 units per day(at only 58 percent of
normal operating capacity) are expected to be much greater than the computed break-even
point, we believe that our company is likely to easily reach and maintain profitability.

Take-out Orders from customers, is expected to break even in the third month of operations.

Chapter 17

BUSINESS MARKETING PLAN

17.1. State and explain your business marketing plan to be implemented for short term,
medium term and long term duration, with respect to your lean start-up business idea?

As our business is service based we would like to advertise using social media which can reach
to large group of people. We like to Focus on the uniqueness of our product or service and how
the customer will benefit from using the products or services we're offering. The pricing
strategy portion of the marketing plan involves determining how we will price our product or
service; the price we charge has to be competitive but still allow we to make a reasonable
profit. Being "reasonable" is key; we can charge any price we want to, but for every product or
service there's a limit to how much the consumer is willing to pay. our pricing strategy needs
to take this consumer threshold into account. The most common question our business people
have about the pricing strategy section of the marketing plan is, "How do we know what price
to charge?" Basically, we set our pricing through a process of calculating our costs, estimating
the benefits to consumers, and comparing our products, services and prices to others that are
similar. Set our pricing by examining how much it cost us to produce the product or service

28
and adding a fair price for the benefits that the customer will enjoy. Examining what others are
charging for similar products or services will guide we when we're figuring out what a fair
price for such benefits would be. We may find it useful to conduct a Breakeven Analysis. So
we had done breakeven analysis. the primary goal of the marketing plan is to get people to buy
our products or services. Here's where we detail how this is going to happen. How is our
product or service going to get to the customer? Will we distribute our product or service
through a website, through the mail, through sales representatives, home delivery, or through
retail? in a direct distribution channel, the product or service goes directly from the
manufacturer to the consumer. In a one stage distribution channel, it goes from manufacturer
to retailer to consumer. The traditional distribution channel is from manufacturer to wholesaler
to retailer to consumer. Outline all the different companies, people and/or technologies that
will be involved in the process of getting our product or service to our customer. If our business
involves selling a product, we should also include information about inventory levels and
packaging in this part of our marketing plan if applicable.

Chapter 18

OPERATING PLAN

18.1. Briefly elaborate the details regarding the operating plan for carrying out day to
day activities of your lean start-up business idea?

An operational plan can be defined as a plan prepared by a component of an organization that

clearly defines actions it will take to support the strategic objectives and plans of upper
management. However, to fully understand operational plans, we should first look at the overall
planning process within a business. We mainly operate through website and slowly go with the
app, so our daily activity is based on the improvement of the website user interface using daily
feedbacks from the visited customers and improving our website and giving the facilities they
want in the site. And continue with the products availability and the customer select the service
and then they will order the product that are available. As soon as the ordering takes place the
message will be given to the delivery system and they take care for the packaging and

29
 delivering the product to their address and in the expected time and then in that time courier
or delivery boys will deliver the product.

Chapter 19

Exit Strategy

Step 1: Identify Deal Breakers

Certain problems make your business entirely unsellable. Your job is to identify and
compensate for these deal breakers as best you can, so would-be buyers aren’t turned off
instantly.

According to business broker Mark Daoust, deal breakers fall into four main categories:

1. Growth Potential: A declining business isn’t unsellable unless the decline is rapid, sudden,
long-lasting, or irreversible.
2. Transferability: If you’re the only person who can run your business (maybe you possess a
unique skill or license that isn’t easily transferable), new owners can’t take over smoothly.
3. Verifiability: Buyers need a lot of documentation and evidence of your business’ financial
health. If your record keeping is messy, incomplete, or mingled with your personal finances,
they won’t feel comfortable with the sale.
4. Risk: Risks are any factors that can force a change in your business, like laws and regulations
or reliance on a single vendor. Buyers don’t want to get themselves into a precarious
situation.
If any of these deal breakers apply to you, take the necessary steps to fix them right away.

Step 2: Optimize Your Store

Once you’ve fixed your deal breakers, find ways to optimize your business to make it as
valuable as possible to potential buyers (and as streamlined as possible for managers).

For example, you might…

30
a) Set up Google Analytics so you can track your web metrics.

More data means more information to glean insights and identify problems, find ways to
optimize your store, and make buyers comfortable with the sale. (You’ll need Google
Analytics for marketing.)

b) Write standard operating procedures.

Buyers want well-documented procedures they can repeat without requiring your oversight.

“Even if you have zero employees, having SOPs in place makes your business more
attractive because it has a ready-made training guide for the new owner,” says Gregory
Elfrink of Empire Flippers.

To write SOPs, simply document the things you do on a regular basis as you do them (like
product selection, advertising, keyword research, promotions, and day-to-day operations).
Write step-by-step instructions for someone who has no idea what to do. Include screenshots,
gifs, or videos wherever necessary. Make sure to document any critical information like
account login credentials.

c) Track customer service hours.

Buyers want to know how much time your business requires, so it’s important to track your
customer service hours. Use a time-tracking tool like Toggl or Time Doctor to keep accurate
records. If you spend a lot of time talking to customers, consider hiring a part-time customer
service representative. Even though this increases your costs, buyers will love it.

d) Resolve SEO issues.

As an online business, your SERP position is critical. Before you exit a business, it’s
important to resolve any issues preventing Google from ranking your website. You should
clean up duplicate content, disavow spammy links, use best practices for on-page SEO, create
logical navigation, and redirect broken URLs.

31
[highlight]SEO is a massive topic. As a web business owner, you absolutely need a strong
understanding of the entire discipline. Check out this excellent guide
by Kissmetrics. [/highlight]

e) Negotiate deals with your supplier.

If you’re using Oberlo to sell products and you find yourself relying heavily on a single
supplier, contact the supplier and ask if you can arrange a deal. (For instance, ask if they have
special pricing for high-volume sellers.)

These are just several ideas to help you optimize your ecommerce business. You can find
countless others by looking for problems that can be solved at scale (e.g., setting up email
automation or writing processes).

Always keep in mind, buyers want a high return on their investment. Anything you can do to
improve their ROI will raise the perceived value of your business.

Step 3: Prioritize Your Optimization Efforts

You can’t do everything at once, so start with business optimization efforts that will add the
most value to your business. For each optimization idea, consider the costs, how quickly you
can implement it, and how much value it could add to your business.

For example, writing a set of guidelines to handle customer complaints and organizing your
finances are cheap and quick tasks that would add a ton of value to future owners and
managers, so they should be top priorities.

But changing all your product photo backgrounds from white to gray is a long, arduous task
(free, but time = money), one that wouldn’t add much value, so it should be a low priority.

Step 4: Implement Your Optimization Ideas

Once you’ve prioritized your optimization ideas, start with your most important idea, and
work your way through them. You won’t get them done right away, but with a little smart

32
 project management, you can push through your list and make your business attractive to
buyers (and easy to run for managers).

Step 5: Determine Your Store’s Value

Your final step is to determine your store’s value. Its value is what the market is willing to
pay for a business like yours. Admittedly, there’s no perfect formula to determine a store’s
value. It’s based on a number of factors, such as…

• Net cash flow: This is the most important metric. It indicates the amount of money in your
account every month after you pay for products, tools (like Shopify and Oberlo), and your
marketing expenses (like Facebook ads). Essentially, this is your profit.
• Social media presence: Naturally, social media is a big part of ecommerce. Lively social
media profiles (with many followers and high levels of engagement) can raise the value of
your business, especially if you can show how to turn those fans into customers.
• Revenue: Buyers want to know the total amount of cash you bring in, your average order
value for new as well as existing customers, and trends that affect buying patterns (like
seasonality or other market trends).
• Search metrics: Buyers pay more for stores with a healthier SERP visibility. They want to
see you ranking for keywords with high commercial intent. They also like to see advanced,
scalable pay-per-click campaigns.
• Infrastructure: The organization of your store is important. Buyers want to see you on a
stable platform that’s easy to use, but still leaves you in control of the store. They also want
well-integrated tools that seamlessly solve all the business’ problems.
• Your store: A well-made store (in terms of design and user experience) can add considerable
value to a sale. Buyers want sites with strong merchandising, personalization, and clear
navigation. Your site should function well on tablets and phones. Buyers are not willing to
pay a lot of money for a store requiring a complete overhaul or platform change.
• Traffic and sources: A lot of traffic is important, but buyers want to see your traffic convert
well (What good are users who don’t buy?), is economical (free traffic being best), and from
diverse channels. (You don’t want to rely on a single channel, because a change could tank
your store.)
• Owner dependency: The most valuable businesses are those that don’t require constant
oversight from the owner. Make your business self-sufficient, and its value will soar.
So how much is your store worth?

33
Generally, your store’s value is a multiple of your net cash flow. The multiple is determined
by the other factors listed above. If a store can generate consistent traffic, and has a solid
infrastructure as well as a healthy social media presence, buyers might give it a multiple of
five. So, if your store’s net cash flow is $50,000, the store would be worth $250,000.

Obviously, this isn’t an exact science.

At the end of the day, your store is only worth what someone is willing to pay for it. You can
argue all day long that your store is worth a million bucks, but if no one wants to pay more
than $500,000, that’s its value.

[highlight]Empire Flippers has a unique valuation tool to help you determine your business’
worth. The company uses it to price all of the businesses on its marketplace. It’s so accurate
that 90% of websites sell within 10% of their listing price. Check it out here. [/highlight]

Turning into Add-on features for other e-commerce websites

In the time of unsustainability to generate revenue, we can use our website technologies to
enhance other E-commerce websites like Amazon, Flipkart, Myntra.

34
 Chapter 20

FUTURE GOALS
20.1. State and explain the future goals that are framed in line to your lean start-up
business idea? Also, explain the strategies that are framed to attain these goals?

Goal setting is one of the most important activities we can do in our small business, regardless
of how old our business is, where we are located, how profitable it is, or what we sell. Goals
help we stay focused and they can prevent our business from becoming stagnant. Our business
goals keep we are moving forward and set the stage for ongoing success.

Although we often think of goal setting as something we do at the start of every year, the truth
is that it is extremely important to work on our business goals all year long. We should be
setting goals multiple times each year, tracking our progress, and refining the strategies we are
following in order to achieve our goals on an ongoing basis.

• Create a New Customer Service Process

How do we communicate with our employees and ensure their satisfaction with our
business and services and services? Set a goal that focuses on making our customer
service process exceptional, handling customer complaints more effectively, or
incorporating customer service into our social media practices. And don't forget about
the pours of asking our customers for feedback in order to identify
• Increase Our Market Share
Capturing a larger part of the market is a key component in making our business more
competitive and increasing profitability. One way to start with a goal of increasing
market share is by doing market research.
• Reduce Ongoing Business Expenses
This is a goal that is fitting for most small businesses. After all, what business owner
would not want to reduce the costs of running his or her business? As we set this goal
for the year, be specific about how we will reduce business costs - using more
technology, reducing debt, or changing up our operations - in order to make it stick.
• Hire Our First Employee
If our solo business has reached the point where we can't continue to maintain it in our
own, make this the year we expand by hiring an employee. Take time to consult our

35
 accountant and attorney to make sure we follow all of the necessary regulations, and
to confirm that now is the right time for we to hire an employee before moving
forward.
• Ramp Up Service in Our Business
Our level of service can directly impact our bottom line, so it's never a bad idea to set a
goal to boost our service and the service of our team. We can become more service
vie by eliminating distractions during the work day, improving the way we use
business tools such as email, and by incorporating the use of service apps.
• Start Using Social Media Marketing in Our Business
It is never too late to add a new marketing tactic in our business, and if we have been
resistant to social media, this is the year to dive in. by reading this collection of articles,
then pick on social platform and set a goal to incorporate it into our marketing plan
this year.

• Improve the Financial Health of Our Business

Do we have a handle on what money is coming in and going out of our business every
day? Do we have an ongoing budget to guide our expenditures? Make this year the
year we lock down our spending and improve the fiscal health of our business.
• Do a Thorough SWOT Analysis
A SWOT analysis is a tool that helps we identify the strengths and weaknesses of our
business, a new service offering and of the competition. It can be used in any stage of
business to help we determine what makes our business unique, identify potential new
areas of the market that are untapped, and explore what our competition is doing better
than we are. Do a SWOT analysis this year as part of a larger process to improve our
decision-making
• Work on Our Personal Brand
Many times in small business, success is reliant on the business owner and his or her
ability to stand out in the crowd. This is why it is so important to develop a personal
brand. If we have not spent time on creating our own brand yet, make it a goal for this
year, and boost our credibility at the same time.

36
 Chapter 21

EXPANSION
21.1. Briefly, illustrate your idea of expanding your lean start-up business in future? Also,
give the frame work that you set to expand your business?

To help expand your business into foreign markets, we’ve put together a list of five steps you
need to know.

Research International Markets

There is no doubt about it, you have to do homework before selling in international markets–
learn about your new potential customers, what types of products they will buy, and what their
buying behavior is like. You can gather some information by checking your current customer
database to see if there are already some international buyers in the mix. If you do, gather
market research in the areas where they live since you already have success in that region.

Handle Legal Needs

Once you’ve established the foreign locales to sell in, obtain the appropriate documentation to
do business in those countries. You may have to obtain a business license for the specific
countries or other documentation to be compliant legally. Again, this will require some
research. Different countries have different requirements.

Develop a Fulfillment Strategy

Next, come up with an order fulfillment plan. Fulfilling international orders is different than
doing so domestically. You may want to consider using suppliers that are located in the
countries where you sell to simplify the process. This will cut down on shipping time, which
is a big deal for online shoppers.

Set Competitive Pricing

Pricing for online stores is always a challenge. You have to be competitive but also make a
profit. It’s no different when selling internationally, but it requires knowledge of what pricing
is like in the countries where you plan to sell.

37
The main consideration is knowing how people value their money in the areas you plan to sell
products. The key to successful international pricing is adjusting your prices in different
markets to stay competitive locally. This might mean certain products can be sold in certain
areas because it just isn’t profitable.

Market Products for Local Audiences

Marketing for international sales also has to be localized. You may be selling in areas where
you must reach buyers who don’t speak English. Even though you may have various detailed
photos of products in your listings, many non-English speaking consumers will not buy
products from sites they cannot read. That means you need to provide foreign customers with
websites and marketing that are in their native languages.We can use any of the Magneto,
Shopify, Zend, Symfony, WooCommerce.

Chapter 22

INTRODUCING NEW PRODUCTS AND SERVICES

22.1. State and explain about various new products that you planned to produce or
various services that you render in future?

Long-term tactics used to grow a retail business include:

• Offer additional size options for a single product.

• Add a new variation to your existing product line.
• Create a new product that fits within an existing line.
• Create a new product line to complement an existing one.
• Create a completely new product in the same vertical.
• Expand to a new vertical.

This increases market share for future products.

• Run a marketing campaign targeting your competitors’ customers, encouraging them

to try your brand
• Optimize your product to fill a gap your competitors’ products currently don’t
• Expand your existing market by reaching into a new demographic

38
 Chapter 23

INDUSTRIAL ESTATE FORMATION

23.1. Briefly, explain your idea of developing industrial estate in future? Also, give the
frame work that you set to develop industrial estate?

Ideas for developing industrial estate are :

1.Make the case for cities as the main hubs of economic growth:

Cities, and city centers in particular, offer a number of inherent benefits to businesses, such as
access to lots of skilled workers and access to a network of businesses.

2. Identify the opportunities to unlock growth

Places need to get under the skin of firm-level decisions and develop a more granular level
understanding of sectors – and crucially where the assets and barriers to growth lie. Assets may
include universities and other local institutions, local partnerships, specific expertise or
concentrations of activity, while barriers may include skills shortages, lack of appropriate
business space and lack of coordination between complementary businesses.

3. Consider how the national and global economies are evolving

Partners should seek to support new activity and growth, responding to changes in the global
market, rather than trying to revive shrinking sectors. This is more likely to support growth
over the longer term. Individuals with skills are likely to find it easier to adapt in the changing
economy and access employment opportunities. Nurturing these types of skills is also likely to
support business and productivity growth.

39
4. Map out the available levers and mechanisms

Primary deals with industry and universities, there may also be opportunity to package
interventions around these investments – linking sector interventions with academic and skills
interventions, for example – with the aim of maximizing their impact on local growth.

5.Find new ways of working and better coordinating interventions

Money is important but how cities marshal existing resources is what really matters. With no
template, it is unclear whether places will be given additional powers, autonomy and money to
deliver their plans. The emphasis instead seems to be on finding new ways of working and
coordinating between local and national government.

It will also be important for local authorities to find new ways to deliver policies and work with
other local stakeholders, including: the private sector; schools, colleges and universities; other
local public sector institutions; and the third sector.

These five ways helps our industrial estate to expand greatly in future. This type of framework
is called Effective Industrial Expansion.

Plagiarism Check:

40
THANK YOU

41