NEW VENTURE CREATION

BUSINESS PLAN

SUBMITTED BY:BHUMIKA PATIDAR

114208

IDEA
The idea of organic store came in to my mind first
when I got to know that my family has lot of area of
agriculture and also by seeing some of my family
members trying to do something good but failed.
Seeing today the use of chemicals, pesticides being
used for growing of cereals and different products I
thought of getting into this field. As this is a upcoming
opportunity in the coming time.

WHY ORGANIC
Organic has been an outcome of consumer concerns
regarding the quality of food.
Today the discerning consumer is demanding and
willing to pay for food without contamination.
Organic is essentially natural and is based on a
philosophy that respects nature and its dynamism to
meet all the requirements of present and future
generations.

OBJECTIVES
Provide our customers with the freshest, organically
grown vegetables, fruits, cereals.
Offer foods without artificial colours, flavours, or
additives.
Sell earth-friendly cleansers; pure, natural supplements;
and gentle, cruelty-free body care products.
Support organic farms that keep our earth and water
pure.

MANANGEMENT FESIABILITY
EDUCATION QUALIFCATION
MY SKILL MATRIX
SKILLS REQUIRED FOR THE BUSINESS

ORGANISATION STRUCTURE

OPERATIONAL PROCESS

MARKETING FESIABILITY
PORTERS FIVE FORCE MODEL
Threat of New Entrants
Bargaining Power of Suppliers:
Bargaining Power of Buyers:
Threat of Substitute Products:
Competitive Rivalry

SWOT ANALYSIS
STRENGTHS
Large, customized stores
Huge selection/variety over 100 items
WEAKNESSES
Price up to 75% higher
Locations only in affluent areas
Advertising Budget very low (WOM approach)
OPPORTUNITIES
Expand private label selection lower price for customers
Advertise more, create coupons and promotions to get people in the store
THREATS
Conventional Supermarkets
Bad Economy

MARKETING STRATEGIES
Marketing strategies and organisational structure The choice of market
strategy determines the selection of the certification scheme to be
followed. The choice could be domestic or export markets. In the
domestic markets, there are various channels for organic produce,
including direct membership schemes, weekly markets and fairs,
occasional markets, retail health shops, specialised health supermarkets,
modern trade supermarkets and even organic restaurants.
Product
Price
TARGET MARKET SEGMENT
Age
Region

DEMAND AND SUPPLY

DEMAND SIDE
Raising Income
Age Factor
SUPPLY SIDE

TECHNICAL FESIABILITY
MATERIAL SUPPLIED
LOCATION
INVENTORY
SALES LAYOUT
OPERATIONAL PROCESS

PROJECT COST

COMPONENTS
Office furniture

Office table

Chairs

File Rack

Cupboard

Computer table
Computer peripherals

Desktop

Printer
Software

Bar code scanner

All-in-one
(printer, scanner, fax, copier)
Air Condition
cold storage
Vehicle
TOTAL

AMOUNT

TOTAL AMOUNT
20000
20000
16000
40000
10000

106000

160000
12000

172000

50000

50000

15000
400000
50000
200000

15000
400000
50000
200000
993000

OPERATING EXPENSES
OPERATING EXPENSE
Rent
inventory cost
pre op.exp---salary
Advertisement Cost
Training & awareness program expense
website
Salary Expense

Manager

Helper

Accountant

Agriculture expert
Internet Expense
Electricity Expense
Telephone Expenses
landline
stationary
Vehicle Fuel Expenses
Misc. Expenses
Miantaince
TOTAL

PER YEAR
300000
1116012
300000
60000
600000
50000
240000
450000
96000
180000
12000
360000
12000
24000
60000
36000
12000
3932012

PROFIT AND LOSS

SALES

2013-2014

2014-2015

2015-2016

2621700

3932550

5898825

312000

312000

312000

2180000

2398000

2398000

2492000

2710000

2710000

PBDIT

129700

1222550

3188825

DEP

304000

304000

304000

PBIT

-174300

918550

2884825

INT

PBT

-174300

918550

2884825

TAX

-52290

275565

865447.5

PAT

-122010

642985

2019377.5

FIXED COST
VARIABLE
COST

CIF

181990

946985

2323377.5 4220106.25 7132343.375

COF

993000

-52290

275565

865447.5 1678331.25 2926432.875

NCF

-993000

234280

671420

1457930

NPV

2856872.21

IRR

83%

2541775

4205910.5