We have estimated the initial set up cost to be around Rs.

20,00,000 which will include everything from the registration fees to furniture, Interiors, Racks etc. Our inventory would be amounting to Rs. 10,00,000 which is equivalent to 1.25 times of our monthly sales. At initial stage of our operations we are expecting our revenues to the tune of Rs.7-7.5 lakhs and that is expected to rise by 10% monthly. The footfall that we have forecasted is 90 persons per day on weekdays and 150 persons on weekends that makes a total of 3300 people visiting our store in a month. A conversion rate of 10% is expected. We have estimated the average bill size per customer to be Rs.2200 initially. Also, the revenues from the school uniform will be on seasonal basis, and as we are expecting to tie up with atleast 10 schools with average head count of 500 students. The average bill size expected in this case is Rs.2000 which will generate a revenue of around Rs. 1 crore annually. Hence, Cumulative revenue for the year would be around Rs. 2 crores. Gross profit margin is kept at 25% as per the industry norms while for the uniform it is around 30% of which upto 10% will be offered to the schools as commissions. So, gross profit for the year will amount approximately to Rs. 45,00,000 (excluding the increase in sales over the period) On the expense side the major contributors are firstly, the rent i.e. Rs.2,20,000 per month excluding the electricity and the common area maintenance(CAM) charges that will add up to Rs. 1,25,000 per month. Secondly, the selling and distribution charges that includes the promotions through radio, paper media, local TV channels, Hoarding & banners and the events that will be organised at various locations and schools. The cost for this is estimated to be around Rs. 3 lakhs per month that makes the total variable expenses to Rs. 6.5 lakhs per month.