INNOVATION AND ENTREPRENEURSHIP

Project Ideation & Business Plan

“UNARVU”

Presented by,
Ashly
Jayakumar VK
What pain points are you trying to solve?

 The following key difficulties in the life of older people were discovered through the review
of many customer journey maps.
 Most elderly persons who live alone.
 Family members, lack time to spend with them.
 They often feel isolated and disconnected from the world around them, leading to loneliness and
social isolation.
 This loneliness can have a negative impact on their physical and emotional health, leading to a
higher risk of depression, anxiety, and other health problems.
 It is important to address these challenges and find ways to improve the quality of life for older
people, whether it be through community programs, volunteer efforts, or other initiatives aimed at
providing social support and companionship.
Who are you solving it for ?
 We are targeting elderly people who are deprived of Social and Physical engagement.
How are you trying to solve it ?
 We are establishing an organization ‘Unarvu’ that provides opportunities for elderly
people to engage in physical and social activities. We are planning to build an ecosystem
where that help this elderly people actively engage in a multipronged way, for example,
will arrange workshop or training programs a to enhance their knowledge and skills or
we will arrange one-day picnics and trekking activities or any other recreational activities
to make them physically active.
 Initially we focus on Kochi area, where we try to reach these elderly people through omni
channel approach. (Housing societies, Clubs, Old age homes, social media)
 To bring them under one umbrella, we launch a multipurpose mobile application. This
app, help elderly people to socialize with peers, and we use it as a communication
channel to provide necessary information on the activities initiated from our side.
 We also arrange exhibitions and fairs to exhibit the skills of these elderly people and help
them income out from their newly acquired skills.
Is anyone else doing it ?
 Pakal Veedu : a day care center for mental patients introduced under the Thrissur District
Mental Health Program.
 However, we are focusing on old age people who want to enhance their skills and to engage
themselves in other social activities.
 Can you do it differently ?
 Our ultimate aim is bring value in the life of elderly people through behavioral change.
 We offer wide variety activities that help in engaging old age people physically and socially
(we also provide customized service as per their need).
 We provide an environment where elder people can engage in activities as per their interest,
like handy craft workshop, tailoring, baking and cooking.
 We also facilitate collaborative environment where like minded people can engage in
income generating activates once they get trained.
 We also provide platform for engaging in social activities and get-togethers like picnics,
personal development workshops ,film shows, drams etc.
What is your revenue model ?
 Membership Subscription (Monthly/Yearly)
 Income from advertisement (Companies sell products specially targeting old age people)
 Commission generated from providing platform for selling products of members.
 Donation from Philanthropist.
 Commission from trainers for providing platform.
BUSINESS PLAN
 ORGANISATION - UNARVU
Executive Summary
Our organization “Unarvu” is committed to providing opportunities for the elderly to engage in
physical and social activities. We aim to build a comprehensive ecosystem that offers a range of
activities, workshops, training programs, and recreational oportunities to enhance their quality
of life. We will focus on the Kochi area initially, reaching out to elderly people through various
channels and launching a multipurpose mobile application to facilitate communication and
socialization. We will also organize exhibitions and fairs to showcase the skills of the elderly
and help them earn income from their newfound abilities.
 ORGANISATIONAL STRUCTURE
CEO

COO CFO

Program Marketing
Manager Manger Accountant

Event Coordinators Trainer

Support Staff
 MARKET POTENTIAL
The elderly population is growing globally, with a projected 2 billion people aged 60 and over
by 2050. In India, the number of elderly people is expected to reach 340 million by 2050. There
is a significant need for services that cater to the elderly, particularly in the areas of wellness and
activity. Our organization aims to fill this gap by providing comprehensive solutions to the
elderly population in Kochi and beyond.
 DISTRIBUTION CHANNEL

We will use a combination of online and offline platforms to reach out to our target audience.
We will leverage social media to connect with potential customers and promote our activities
and events. We will also establish partnerships with housing societies, clubs, and old age homes
to reach out to the elderly. Our multipurpose mobile application will be the primary
communication channel for our organization, allowing us to provide information about our
activities and events and facilitating socialization among the elderly.
 INTIAL INVESTMENT
  FIXED COST  AMOUNT INR
1 Premises, land and building (Rent) 480000
2 Furniture and fixtures 350000
3 Computers, printers, internet connection and other accessories 150000
4 Webhosting 150000
5 Telecommunication devices mobile phones for customer care 20000
6 LLP registration 15000
7 Market analysis 10000
8 Legal consultancy 20000
INITIAL FIXED CAPITAL 1195000
10 Online hosting 250000
11 Application hosting for download 350000
12 Advertisement expenses 75000
  INTITIAL INVESTMENT 1870000
 ESTIMATION OF MANPOWER
Remuneration Annual salary expenses
MANPOWER Number of persons INR/MONTH INR
CEO 1 40000 480000
COO 1 35000 420000
CFO 1 32000 384000
Program Manager 1 30000 360000
Marketing Manager 1 29000 348000
Accountant 1 25000 300000
Event Coordinator 1 25000 300000
Trainer 5 20000 1200000
Support Staff 5 15000 900000
TOTAL MANPOWER EXPENSES     4692000
ESTIMATION OF OVERHEAD EXPENSES

OVERHEAD EXPENSES MONTHLY ANNUAL

Electricity 5000 60000
Internet connectivity 10000 120000
Mobile phone charges 10000 120000
Website maintenance 1500 18000
Rental for vehicles 8000 96000
Auditing charges   8000
Stationery and others   120000
Insurance premium 2500 30000
Interest on working capital   0
TOTAL OVERHEAD EXPENSES   572000
 SOURCE OF FUNDING
We plan to fund this project through a combination of equity and debt financing. We will seek
investors who are interested in social impact investing and align with our mission. We will also
apply for loans from banks and financial institutions that support social enterprises.

Total capital requirement for our organisation is Rs.20 lakh. It is proposed to mobilize the required
capital from the following sources.
 Bank loan
 Investors
 Own Contribution
BANK TERM LOAN REPAYMENT SCHEDULE
Particulars Bank finance
Term loan 1500000
Bank interest rate 12%
Repayment period 5 years

Balance money
(Principal to be
Year Principal Interest Instalment paid) EMI/month
1 300000 180000 480000 1200000 40000
2 300000 144000 444000 900000 37000
3 300000 108000 408000 600000 34000
4 300000 72000 372000 300000 31000
5 300000 36000 336000 0 28000
 CASH FLOW STATEMENT
Cash flow includes cash inflows and out flows-cash receipts and cash payments-during a period
.Movements of cash are of vital importance to the management. The short term liquidity and
short term solvency positions of a firm are dependent on its cash flows. (In this we computed
cash inflow @ 20 % yearly increase, and cash out flow @ 12% yearly increase)
Sl No Particulars 0th year 1st year 2nd year 3rd year 4th year 5th year

1 Initial investment 1870000          

2 Cash inflow - 5400000 6480000 7776000 9331200 11197440

3 Cash outflow -
5264000 5895680 6603161 7395540 8283004

4 Net Cash Inflows -

136000 584320 1172839 1935660 2914436

For the present calculation commercial taxes are not included; taxes apply as per taxation
policy of the Government as and when applicable.
 FINANCIAL FEASIBILITY

The financial feasibility of the project are analyzed by the application of the following capital budgeting
techniques:

Payback period
Net Present Value (NPV)
Benefit Cost Ratio (BCR)
 FINANCIAL FEASIBILITY – PAYBACK
PERIOD
The Pay Back Period is one of the popular methods useful to ascertain the number of years required
to recover the initial investment of the project. Thus, this method reveals the length of time required
for the inflow of cash proceeds generated from the investment.

Payback period of the current project is estimated to be almost Three years (2.98 years) . Thus the
present proposal may be accepted.
 FINANCIAL FEASIBILITY – NET PRESENT
VALUE
NPV may be defined as the excess of present value of project cash inflows over that of cash outflows.
The discount rate is 15%.

Year Cash Inflows in the Project Cash Inflows

Discounting Factor @15% (Rs.) (Rs.)
1 0.870 136000 118320
2 0.756 584320 441746
3 0.658 1172839 771728
4 0.572 1935660 1107198
5 0.497 2914436 1448475
a. Total Present Value of Cash Flows (Rs.) 3887467
b. Initial Investment (Rs.) 1870000
c. Net Present Value [a-b] (Rs.) 2017467

The present value of cash inflow is greater than zero. Hence the project satisfies the criteria of
having positive value for NPV and hence viable.
 FINANCIAL FEASIBILITY – BENEFIT COST
RATIO (PROFITABILITY INDEX)
Benefit Cost Ratio or profitability index is the ratio of the present value of cash inflows, at the required rate
of return, to the initial cash outflow of the investment. It is the ratio of payoff to investment of a proposed
project. A profitability index of 1 indicates breakeven. Value of lower than one indicates that the
project's present value of cash inflows is less than the initial investment. As the value of the profitability
index increases, the financial attractiveness of the proposed project also tends to increase.

Amount
Sl.No Particulars
(in Rs.)
a Present Value of Cash Inflows 3887467
b Initial Investment 1870000
  Profitability Index [a/b] 2.07

Profitability index obtained is 2.07 which is greater than the optimum criteria of 1. So the project can
be accepted.
 CONCLUSION
The Proposed business plan aims to establish an organisation that provides opportunities to elderly people
to engage in Physical and social activities. The organisation “Unarvu” plans to build an ecosystem that
enables elderly people to participate in variety of activities, including workshops, training programs,
picnics and trekking activities. The financial, technical and economic analysis of the proposed
organisation is viable and has good market potential. The tools used for the financial analysis including
Pay Back Period, Net Present Value and Profitability Index show the worthiness and bankability.
Investment in the proposed project will be worthwhile. The model business plan depicted here has not
taken into account any subsidy component that is available under present schemes offered by Government.
In the instance of availing subsidies meant for the purpose, it is definite that profitability of the business
will improve.
Thank you