Entrepreneurshi

p & Innovation
B Plan Submission
Company Name The Urban Sky
Save time grow profits
Submitted to
Prof. Shriram Pruankar
Submitted by
Akash Nelson 14609006
Mohit K Sharma 1460942
Prakhar Pathak 14609056
Prateek Sharma 14609059
Radhika Sharma 14609065
(Section A)

Table of Contents

S No.

Particular

Page
No.
1

1.

Executive Summary

2.

Business Description

3.

Marketing

4.

Operations

11

5.

Management

16

6.

Financial

19

7.

Critical Risks

25

8.

Harvest Strategy

29

9.

Milestone Schedule

30

I.

Executive Summary
II.

The following is the proposed business plan for the company conceived
by us, the company is known as "The Urban Sky".

III.

The Urban Sky is situated in Delhi, Noida and Gurgaon it is the result of
the ideas of Radhika Sharma, Mohit Krishna Sharma, Prakhar Pathak, Akash
Nelson and Prateek Sharma each of which are qualified and experienced
individuals who are majorly inclined towards the field of Marketing of different
kinds.

IV.

The following report covers all the facets of the modern business
providing a holistic view of the idea we are trying to implement.

V.

It covers all the functional areas of a business which are all handled by
each of us

VI.

The business is an Integrated Marketing Solutions firm that is gearing up

to provide new and innovative ways to promote a business bringing in a new
and fresh perspective to the market.

VII.

The key highlights of the plan are the marketing plans undertaken and
the operations of the business that we are doing.

VIII.
IX.
X.
XI.
XII.
XIII.
XIV.
XV.
XVI.
1 | Page

XVII.
XVIII.

Business Description
A. Description of the business
XIX.
Name of our venture is The Urban Sky (an integrated
marketing solutions) with a tag line Save time grow profits.
XX. Between 2015 and 2020, India is projected to be

the

second fastest growing advertising market in Asia, The Indian

market is expected to grow 10.7 percent annually. However, PwC
projected that in 2018 ad spend would not play as significant a role
in Indian economy as it would in other Asian countries. According to
the forecast, the share of ad spend in Indian gross domestic
product in 2018 will amount to 0.45 percent

XXI.
XXII.

The Urban Sky specializes in providing the following on-line,

and off-line marketing solutions to help companies succeed:
increase traffic to web site and/or business
build customer list
convert that traffic into sales

XXIII.
XXIV.

We offer the following services to successfully accomplish these

goals and ultimately increase revenue for any business.

Location Based Marketing (LBM)
Search Engine Optimization (SEO)
Search Engine Marketing (SEM)
Social Media Marketing (SMM)
Web Site Design
Print Media Advertising
TV Advertising
Outdoor Media Advertising
Media Consultancy Service
XXV.
Our knowledge which we gained till now with the Internet and
emerging technologies will give us an advantage in understanding
how to utilize todays latest strategies, techniques, and trends to
position any company ahead of the competition, today and in the
future.

XXVI.
2 | Page

B. Industry Background

XXVII.
XXVIII.

Firms in the advertising and public relations services industry

prepare advertisements for other companies and organizations and
design campaigns to promote the interests and image of their
clients. This industry also includes media representatives-firms that
sell advertising space for publications, radio, television, and the
Internet; display advertisers-businesses engaged in creating and
designing public display ads for use in shopping malls, on billboards,
or in similar media; and direct mail advertisers. A firm that
purchases advertising time (or space) from media outlets, thereafter
reselling it to advertising agencies or individual companies directly,
is considered a media buying agency.

XXIX.
Most advertising firms specialize in a particular market niche. Some
companies produce and solicit outdoor advertising, such as
billboards and electric displays. Others place ads in buses, subways,
taxis, airports, and bus terminals. A small number of firms produce
aerial advertising, while others distribute circulars, handbills, and
free samples. Groups within agencies have been created to serve
their clients electronic advertising needs on the Internet. Online
advertisements link users to a company or products Web site,
where information such as new product announcements, contests,
and product catalogue appears, and from which purchases may be
made.

XXX.
XXXI.
XXXII.

3 | Page

XXXIII.
XXXIV.

The above image Shows the overall distribution of advertising

solutions provided by the industry.

XXXV.

XXXVI.
XXXVII.

The above image shows the recent trends followed by the

industry, and we can see clearly that it is showing the increasing
trend in the advertising, therefore it would be helpful for our
company to grow in the sector.

XXXVIII.
XXXIX.
C. Goals and potential of the business and milestones
4 | Page

XL.

India offers huge business potential for online advertising

industry with rising population, growing income level and changing
lifestyle. With increasing number of educated people and migration
to urban areas, increase adoption in Internet and online advertising
is being witnessed. Despite the growth, many challenges continue
to plague the industry such as underdeveloped infrastructure and
lack of faith of both advertisers and audiences.

XLI.
XLII.
XLIII.

Milestones
Our milestones are to
Expand in Delhi NCR region within 1 to 2 years of time.
Expand more in all metro cities within 5 to 6 years.
To come among top 10 in 4 to 5 years.

XLIV.
D. Uniqueness of the services

XLV.
XLVI.

Our USP will be of providing services in in to four categories or

stages which are as follows:

XLVII.
Category I Below 2lacs budget.
XLVIII.
This category will include only startups which are recently
established and have low advertising budget. This will include
only social media visibility and promotional tools online only,
because for an initial startup online visibility is more
important rather than other advertising tools.

XLIX.
Category II 3 to 20lacs budget.
L.
This category will include

startups

who

have

been

established before 2-3 years, above mentioned tool as well as

print

media

advertising

with

small

advertisements

in

newspapers and magazines to promote the product or

services of the company to the public with a motive of
providing visibility.

LI.
Category III 21lacs to 1crore budget
5 | Page

LII.

This category will include companies which are established

before 10 years and are doing good in the market, above
mentioned tools will include as well as exposure to outdoor
media and a touch of TV advertisement will also be included
in the package.

LIII.
Category IV Above 1crore budget
LIV.
This category will include the well settled companies in
their verticals and are performing well in there sector, these
companies will be provided will all round exposure to every
sector to the advertising tools, starting from online media to
TV advertising.

LV.
LVI.
LVII.
LVIII.
LIX.
LX.
LXI.
LXII.
LXIII.
LXIV.
LXV.
LXVI.
LXVII.
LXVIII.
LXIX.
LXX.
LXXI.

Marketing Management

A.

6 | Page

Research and Analysis

LXXII.

Brand is the idea and Branding is the transmission of that

idea. Our company is about creating long term value for
corporations by building deep bonds with the consumer in a
value-creating and enduring manner.

LXXIII.

The targeted market are startups who lacks in financial &

technical proficiency. The problem for the startups is that they lack
visibility due to low experience as they are new in the market
People need to know companys product or service exists before
they can consider making a purchase.

For startups, raising brand awareness and establishing a

degree of credibility is a big challenge.

Its easy to develop a Facebook page for the startup, but
challenge is to grow that presence and make company stand

out from the crowd.

They know what kind of brand they want to build but they

doesnt know the direction to approach.

Moreover we will also help well established firms which are
facing problem in brand building due to lack of professional
expertise

LXXIV.

The estimated number of clients is approximately 30-40

companies in 1 year
LXXV.

Some related facts & market trends

71% of companies planned to increase their digital marketing

budgets this year, by an average of 27%. (Econsultancy)

67% of marketers say increasing sales directly attributable to
digital marketing campaigns is a top priority this year.

(Forbes)
Internet advertising will make up 25% of the entire ad market
in 2015. (Social Fresh)

7 | Page

$118 billion was spend on content marketing last year.

(NewsCred)
Marketers will spend $8.3 billion on social media advertising in

2015. (NewsCred)
Interesting content is one of the top three reasons people

follow brands on social media. (NewsCred)

Social media marketing budgets are projected to double over
the next five years (Social Fresh)

LXXVI.
LXXVII.

There are two key reasons for increase in outsourcing

marketing activities: First, outsourcing can save money and
improve quality. American Expresss consolidation of customer
service call center operations in India, for example, cut service
costs per customer by 20% to 30% while improving response
time and boosting the percentage of satisfied customers by 20
points.

LXXVIII.

Second, outsourcing can provide increasingly critical leftbrain marketing expertise that many companies lack, such as
customer database management and analysis. When Sony, a
legendary marketer, wanted to build a customer database, sell
services, and market new, high-end products through its online
store, Sony Style, it outsourced the program, recognizing that it
didnt have the required skills in-house. Allstate has outsourced
lead management, which has doubled the leads each agent gets.
Ericsson has outsourced the management of its extranet, which
provides the sales force with up-to-date customer information
and allows direct communication with selected customers.

LXXIX.

The market strategy is to tap the startups to be targeted

by the initial intensive selling efforts and established firms to be
targeted for later selling efforts. We believe in creating economic

8 | Page

value for the client. We will target on market niche, by offering

quality services at affordable prices. As a startup we will also go
for digital marketing in order to Create brand awareness &
capture maximum market.
LXXX.

We

will

focus

on

Content

marketing

as

reputation

enhancement and using referrals as a lead generation source.

We will adopt price penetration strategy, as the cost involved in
social media marketing is very less so we can charge affordable
prices.

B. Market size and trends

LXXXI.

Online advertising spend in India stood at US$0.8 billion by

end of 2014.
Accounting for 10.6% of total advertising. During 2010-2014,
online advertising in the country has increased at a CAGR of

37.1%.
This growth is expected to continue in 2015 with brands
expected to spend US$1.1 billion, representing an increase of

28.2% over 2014.

Over the forecast period (2015-2019), we expect online
advertising spend to grow at a CAGR of 22.4% to reach
US$2.4 billion in 2019, accounting for 22.4% of the total

advertising spend.
The Indian advertising industry in 2014 grew by 16.4%,
almost at par with the growth projection of 16.8%. In terms of
absolute numbers, the advertising industry increased by Rs

5,200 crore and touched Rs 37,100 crore in 2014.

The online advertising market in India touched Rs 3,575 crore
(577.97 million) by March 2015, a 30 per cent rise from Rs
2,750 crore (US$ 444.59 million) in March 2014, as per a joint

9 | Page

study by the Internet and Mobile Association of India (IAMAI)

and IMRB International.

Of the current Rs 2,750 crore (US$ 444.59 million) digital
advertisement

market,

contributed

the

most

search

advertisements constitute 38 per cent of total advertisement

spends followed by display advertisement at 29 per cent.

LXXXII.
C. Online Advertising
LXXXIII.

The Internet's share in total advertising revenue is

anticipated to grow twofold from eight per cent in 2013 to 16 per
cent in 2018, as per a joint report by Confederation of Indian
Industry

(CII)

and

PricewaterhouseCoopers

(PwC).

Online

advertising, which was estimated at Rs 2,900 crore (US$ 468.84

million) in 2013, could jump threefold to Rs 10,000 crore (US$
1.61 billion) in five years, increasing at a compound annual rate
of 28 per cent.

D.Competition
LXXXIV.

There are plenty of choices for businesses /

Corporations who are looking to outsource their advertising
needs to an Ad Agency. Some of the major players in Delhi are as
follows

LXXXV.
1)Adbur Pvt Ltd
2)Akshara Advertising
3)Ambience D'arcy
4)Chaitra Leo Burnett Pvt Ltd
5)Contract Advertising (India) Ltd
6)Crayons Advertising and Marketing Pvt Ltd
7)Creative Advertising
8)Enterprise Nexus Communications Pvt. Ltd
9)Euro RSCG Advertising Pvt Ltd
10)Everest Integrated Communications Limited

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LXXXVI.

But we are offering something different from others that is

an Integrated Marketing Solutions for all the companies starting
from startups to well established companies.

LXXXVII.

Our USP is to provide the wholesome solution to the

companies which are looking forward for the visibility in the
market, especially startups. Startup are the companies who
required a lot of visibility and recognition in the market by the
people. The category distribution is our major USP as discussed
in the operations part below.

LXXXVIII.
LXXXIX.
XC.

Operations
A. Identify Location : Advantages
XCI.

Three offices will be set up in Delhi NCR region initially with one
owned office and other two will be on rent. Locations for these three
offices considering all the factors which would be suitable for our
agency are as follows.
o Delhi Covering full Delhi.
o Gurgaon Covering full Gurgaon and nearby areas.
o Noida Covering Noida, Ghaziabad and nearby areas.

XCII.

Office which would be owned by us will be situated in Delhi,

Nehru Place. Each office will be of 200 to 300 sqft.

Delhi office will be the head office of our company which will be

look after by Mr. Akash Nelson and Mr. Prakhar Pathak.

Gurgaon office which will be our branch will be look after by Mr.

Mohit K Sharma and Ms. Radhika Sharma.

Noida office will also be our branch and will be look after by Mr.
Prateek Sharma.

XCIII.

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Advantages:

Location of offices is selected in such a way that it is situated in

the area where there is large number of businesses and

companies are established.

In case of any urgent meeting will be required with the client,
then it would be easy to commute to the place, as most of the

offices are situated in the same region.

In case of any service breakdown, easy outsourcing will also be
available nearby through any other agency or designer.

XCIV.
XCV.
B. Specific Operational Procedures
XCVI.

This will include all the services which will be provided by our
company to the prospective users, which are as follows:

XCVII.

Location Based Marketing (LBM)

Location Based Marketing strategies are designed to optimize
your sites exposure around specific local neighborhoods.
Services include set-up and optimization of Google Places,
and

location-based

applications

(e.g.

Foursquare,

Facebook Places, etc.). With Google Places, we guarantee a

top-5 ranking on Page 1 of Google.

XCVIII.
XCIX.

Search Engine Optimization (SEO)

Our Search Engine Optimization strategies are designed to both
rank your site on Page 1 in the search engines and
increase traffic back to your site. SEO services include
the latest developments in keyword research, competitor

analysis, link-building strategies, content posting, and article

writing.

C.
CI.

Search Engine Marketing (SEM)

Our Search Engine Marketing

services

include

design,

development, and placement of advertisements on appropriate

12 | P a g e

sites throughout the Internet.

Examples of SEM

services include Pay-Per-Click (PPC) advertising (on Google,

Bing, Yahoo, Facebook, etc.), banner ads, and press release
distribution.

CII.

CIII.

Social Media Marketing (SMM)

Our Social Media Marketing strategies include the set-up, design,
and content development of social media properties (e.g.
Facebook, Twitter, LinkedIn, etc.). We also offer advanced
services including the design of custom Facebook Fan

Pages. SMM services are designed create attention, drive traffic and,
ultimately, convert fans into customers

CIV.

CV.

Web Site Design

Our web site design

services

include

custom

design,

development and implementation of web site design,

graphic

design,

layout,

logos,

branding,

and

programming. We can create a site to meet any budget.

Our staff offers expertise in web hosting, flash/animation, auto
responder

integration,

e-commerce

solutions,

and

back-end

marketing.

CVI.
Print Media Advertising
CVII.
Well be a prominent Service Provider of Print Media
Advertising based in Delhi, India. Our Print Media Advertising will
be one of its kinds and has no other alternative in the market.
Well provide Print Media Advertising in News Paper, Fashion
Magazine, Journals, etc. The Print Media advertising that well
provide help in effective promotion of our clients. Our Print Media
Advertising will provided to our clients in the most convenient
manner at the charge of nominal rates to reach consumers,
business customers and prospects.

CVIII.
13 | P a g e

 TV Advertising
CIX.
Advertising draws attention to the product or service and
can be performed through a number of mediums such as
television,

radio,

websites,

blogs,

social

networking

sites,

newspapers, magazines and journals. Even the transportation

can be used for the advertising purposes but, undoubtedly the
TV is the best and most effective medium for these purposes. We
will become a well-known and highly dependable TV Advertising
Service provider based in New Delhi. The benefits of TV
Advertising produce customer loyalty that can bring a long-term
competitive

advantage;

this

will

bring

confidence

from

consumers and continue the much-needed i.e. Brand Loyalty.

TV Advertising Services will keep the business going on with a
guarantee.

CX.
Outdoor Media Advertising
CXI.
The medium combines the strengths of audio-visual
communication with the visibility of outdoor. The medium has an
ability to ensure that the advertisers get their message across
their most difficult to reach consumers with regularity and across
different day parts. We will deliver audiences in different frames
of mind which enhances the communication impact and also
audience recall.

CXII.
Media Consultancy Service
CXIII.
The company is a New Delhi based Service Provider
offering Media Consultancy Services. The millions of dollars spent
on the advertising campaign can be nothing more than a waste if
the right medium, right place and right time is not chosen. The
effort and money is valuable and therefore the company, as a
Media & Broadcast Consultant, designs and conceptualizes the
advertising campaign with the delicacy of artist giving that
14 | P a g e

much-needed aesthetic blend. The Media Consultancy Services

will provide a creatively designed media campaign, which in all
certainty has a great impact on the mind of the masses and
helps them to select the right products and services.

CXIV.
C. Personnel needs and uses
CXV.

Our each office will consist of 6 employees whose work

description are as follows:

There would be three sales person in each office to generate

sales for the company according to their targets assigned as well
as do the marketing for our company also by telling clients about
our USP and servicers which we offer, and how they are

distinguished from others.

There would be one designer in each off the office to do all the
designing work for print media, outdoor media, etc. which is

assigned to him.
One receptionist in each office to maintain the list of visitors, and

to fix appointments and meetings with the clients, etc.

One peon in each office for the look after of the premises and to
check the needs and requirements if any.

CXVI.
CXVII.
CXVIII.
CXIX.
CXX.
CXXI.
CXXII.
15 | P a g e

CXXIII.
CXXIV.
CXXV.
CXXVI.
CXXVII.
CXXVIII.
CXXIX.
CXXX.
CXXXI.
CXXXII.
CXXXIII.
CXXXIV.

Management Composition

CXXXV.

Prateek Sharma, VP, Finance

CXXXVI.

prateekcreed@gmail.com

CXXXVII.

DAV (PG) College, Bachelors of Commerce.

CXXXVIII.

Jaypee Business School, MBA in Marketing and Information

Systems.

CXXXIX.

Conducted a highly successful e-marketing campaign for a startup

called "FRSH" increasing turnout by 30%.

16 | P a g e

Suggested new methods of increasing scalability and flexibility for

various e-commerce websites.

Interned with "Orbit Peripherals pvt ltd" as a part of "Corporate

Sales and Customer Handling" Department.

CXL.
CXLI.

Mohit Krishna Sharma, VP, Operations

CXLII.

mohitk2793@gmail.com

CXLIII.

Graphic Era University, Bachelors of Business Administration.

CXLIV.

Jaypee Business School, MBA in Marketing and International

Business.

CXLV.

Coordinated the efforts and activities designed to promote mutual

funds in a very successful promotional drive.

Generated highest sales in terms of amount & emerged as the most

successful intern at SBI Mutual Funds.

Conducted various market researches to understand the mobile

cellular network market with a motive to get deeper insights about
customer experience management.

CXLVI.
CXLVII.

Radhika Sharma, VP, Human resource

CXLVIII.

radhikasharma10.8.1993@gmail.com@gmail.com

CXLIX.

Dayalbagh Educational Institute, Economics Hons.

CL.

Jaypee Business School, MBA in Marketing and Information

Systems.

17 | P a g e

CLI.

Carried out a very valuable marketing research campaign for

SunSource Energy Ltd. to find the new prospects for their products
in the markets abroad.

Designed various products visual advertisements which were to be

used in online space & also in print medium.

CLII.
CLIII.

Prakhar Pathak, VP, Sales

CLIV.

prakh.p8@gmail.com

CLV.

St. Johns College, Bachelors of Commerce.

CLVI.

Jaypee Business School, MBA in Marketing and Business Analytics

Holds an experience of 3 years of working for an advertising firm

Media, (A House of Publicity).

Building long lasting relationships with clients and help them

creating strategy in their advertisement for the benefit in their
business.

Has worked with specialist partners to build complex design for the
clients advertisement according to their needs and desires.

Prototyping and new ideas for transforming content in an innovative

and attractive advertisement design.

CLVII.
CLVIII.
CLIX.

18 | P a g e

Akash Nelson, VP, Marketing

akashnelson22@gmail.com

CLX.

St. Johns College, Bachelors of Commerce, Masters of Commerce

(Applied Business Economics)

CLXI.

Jaypee Business School, MBA in Marketing and International

Business.

CLXII.

Carried out a very valuable market research for SRF Ltd. to find the
new prospects for the products R227ea & R23 in the Indian markets.

Suggested the product R-170 as per the market demand of the

industrial users that this would be more viable option for SRF Ltd.
rather R23.

Creating

attractive

banners

and

advertisement

concepts

promoting products and services demanded by the client.

CLXIII.

CLXIV.
CLXV.
CLXVI.
CLXVII.
CLXVIII.
CLXIX.
CLXX.
CLXXI.
CLXXII.
CLXXIII.

Financial Segment
Pro- Forma Balance Sheet

19 | P a g e

for

CLXXIV.

A pro forma balance sheet is similar to a historical balance sheet, but it

represents a future projection. Pro forma balance sheets are used to
project how the business will be managing its assets in the future. For
example, a pro forma balance sheet can quickly show the projected
relative amount of money tied up in receivables, inventory, and
equipment. It can also be used to project the overall financial soundness
of the company. Given below is the pro-forma balance sheet of our

company.
CLXXV.
Pro-Forma means projected as opposed to actual. The pro forma
balance sheet projects what the financial condition of the venture will be
at a particular point in time.
CLXXVI.
For a consultancy firm however most of the assets in the organization
other than the cash receivable and the cash do not change much as the
consultancy needs to focus on the people of the company as the value
generated by a consultancy firm is generated by Human Capital only.

CLXXVII.
CLXXVIII.
CLXXIX.
CLXXX.
CLXXXI.
CLXXXII.
CLXXXIII.
CLXXXIV.
CLXXXV.
CLXXXVI.
CLXXXVII.
CLXXXVIII.
CLXXXIX.
CXC.
CXCI.
CXCII.
CXCIII.

The Following is the Balance sheet at the:Start of the business.

Liabilities

CXCIV.

Amoun
CXCV.
t

20 | P a g e

(in

Assets

CXCVI.

Amoun
t

(in

Lakhs)
CXCVII.

Lakhs)

Owner's Equity
CXCVIII.

CXCIX.
CCIII.

CCI.

Owner's Capital CCII.

CCV.

Long
Liabilities

30

Fixed Assets
Furniture
Fittings

CC.

and
CCIV.

20

Term
CCVI.

Land & Building

CCVIII.

CCXI.

Current Assets
CCXII.

120

CCIX.

Borrowed CapitalCCX.

CCXIII.

CCXIV.

CCXV.

Cash in Hand CCXVI.

CCXVII.

CCXVIII.

CCXIX.

Cash at Bank CCXX.

30

CCXXI.

CCXXII.

172CCXXIII.

CCXXIV.

172

Amoun

CCXXIX.

Amoun

CCXXV.

142

CCVII.

After Six months

CCXXVII.
t

CCXXVI.
CCXXX.

Liabilities

(in

Lakhs)
CCXXVIII.

Owner's Equity
CCXXXI.

CCXXXII.
CCXXXVI.

CCXXXIV.
CCXXXVIII.

Owner's Capital
CCXXXV.

30

t
Assets

(in

Lakhs)

Fixed Assets
CCXXXIII.
Furniture
Fittings

and
CCXXXVII.

20

Retained

CCXL.

CCXLI.

CCXLIII.

CCXLIV.

Land & Building

CCXLV.

CCXLVI.

Borrowed Capital
CCXLVII.

142
CCXLVIII.

Current Assets
CCXLIX.

CCL.

CCLI.

CCLII.

Cash in Hand CCLIII.

CCLIV.

CCLV.

CCLVI.

Cash at Bank CCLVII.

50

CCLVIII.

CCLIX.

192 CCLX.

CCLXI.

Earnings
CCXLII.

Long
Liabilities

CCXXXIX.

20

Term
120

192

CCLXII.
CCLXIII.

After Two Years

CCLXIV.

Liabilities

21 | P a g e

CCLXV.

Amoun
CCLXVI.

Assets

CCLXVII.

Amoun

(in

Lakhs)
CCLXVIII.

Owner's Equity
CCLXIX.

Lakhs)
CCLXX.

CCLXXIV.
CCLXXII.
CCLXXVI.

Owner's Capital
CCLXXIII.

30

Fixed Assets
CCLXXI.
Furniture
Fittings

and
CCLXXV.

20

Retained
Earnings

CCLXXX.

(in

Long
Liabilities

CCLXXVII.CCLXXVIII.
60

CCLXXIX.

Term
CCLXXXI.

CCLXXXII.

Land & Building

CCLXXXIII.

120

CCLXXXIV.

Borrowed Capital
CCLXXXV.

142
CCLXXXVI.

Current Assets
CCLXXXVII.

CCLXXXVIII.

CCLXXXIX.

CCXC.

Cash in Hand CCXCI.

CCXCII.

CCXCIII.

CCXCIV.

Cash at Bank CCXCV.

90

CCXCVI.

CCXCVII.

232
CCXCVIII.

CCXCIX.

232

CCC.
CCCI.

The above pro-forma balance shows a constant increase in the

retained earnings because the company is gearing up for expansion.

CCCII.
CCCIII.
CCCIV.

The Income Statement

A financial statement

that

measures

company's

financial

performance over a specific accounting period. Financial performance is

assessed by giving a summary of how the business incurs its revenues
and expenses through both operating and non-operating activities. It also
shows the net profit or loss incurred over a specific accounting period,
typically over a fiscal quarter or year.

CCCV.
CCCVI.
CCCVII.
CCCVIII.
CCCIX.
CCCX.

Also known as the "profit and loss statement" or "statement of revenue

and expense."
CCCXI.
Given Below is the Income Statement for our company.
22 | P a g e

CCCXIII.
CCCXII.

Particulars

CCCXIV.

Revenues

CCCXVI.

Sales

Amount
(in Lakhs)

CCCXV.
CCCXVII.

70

Net Sales

CCCXIX.

70

CCCXX.

No Purchases

CCCXXI.

CCCXXII.

Gross Profit

CCCXXIII.

CCCXXIV.

Selling Expenses

CCCXXVI.

Advertising

CCCXVIII.

CCCXXVIII.
CCCXXX.

CCCXXV.
CCCXXVII.

Salaries

CCCXXIX.

General & Administrative Expenses

CCCXXXI.

CCCXXXII.

Salaries

CCCXXXIV.

Insurance

CCCXXXVI.

Rent

CCCXXXIII.
CCCXXXV.
CCCXXXVII.

CCCXXXVIII.
CCCXL.

70

CCCXXXIX.
Other

30
7
1.2
51.2

CCCXLI.

CCCXLII.

Interest Expenses

CCCXLIV.

Income Before Tax

CCCXLVI.
CCCXLVIII.

CCCXLIII.

1.42

CCCXLV.

17.38

Income Tax @ 30%

CCCXLVII.

5.214

Income After Tax

CCCXLIX.

12.166

CCCL.
CCCLI.
CCCLII.

Cash Flow Statement

In financial accounting,

a cash

flow

statement,

also

known

as statement of cash flows, is a financial statement that shows how

changes

in

balance

sheet

accounts

and

income

affect cash and

cash equivalents, and breaks the analysis down to operating, investing

CCCLIII.

and financing activities.

The cash flow statement was previously known as the flow of Cash

statement.
CCCLIV.
The cash flow statement reflects a firm's liquidity.
23 | P a g e

CCCLV.

The balance sheet is a snapshot of a firm's financial resources and

obligations at a single point in time, and the income statement
summarizes a firm's financial transactions over an interval of time. These
two financial statements reflect the accrual basis accounting used by
firms to match revenues with the expenses associated with generating
those revenues. The cash flow statement includes only inflows and
outflows of cash and cash equivalents; it excludes transactions that do not
directly affect cash receipts and payments. These non-cash transactions
include depreciation or write-offs on bad debts or credit losses to name a

CCCLVI.

few.
The cash flow statement is a cash basis report on three types of
financial activities: operating activities, investing activities, and financing
activities. Non-cash activities are usually reported in footnotes.

CCCLVII.
CCCLVIII.

The cash flow statement is intended to provide information on a firm's

liquidity and solvency and its ability to change cash flows in future
circumstances provide additional information for evaluating changes in
assets, liabilities and equity improve the comparability of different firms'
operating performance by eliminating the effects of different accounting

CCCLIX.

methods indicate the amount, timing and probability of future cash flows
The cash flow statement has been adopted as a standard financial
statement because it eliminates allocations, which might be derived from
different

accounting

methods,

such

as

various

timeframes

for

depreciating fixed assets.

CCCLX.
CCCLXI.
CCCLXII.
CCCLXIII.

Given below is the Cash Flow Statement for our company.

CCCLXV.

Amoun
t

CCCLXIV.

Particulars

CCCLXVI.
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Lakhs)
CCCLXVII.

(in

CCCLXVIII.

1. Cash Inflows from Operating Activity

CCCLXX.
CCCLXXII.

2. Cash Flows from Investing Activity

CCCLXXIV.
CCCLXXVI.

3. Cash Outflows from Financing Activity

CCCLXXVIII.
CCCLXXX.

Total Cash Flows (1+2+3)

CCCLXIX.

30

CCCLXXI.

30

CCCLXXIII.

Nil

CCCLXXV.

Nil

CCCLXXVII.

-1.42

CCCLXXIX.

-1.42

CCCLXXXI.

28.58

CCCLXXXII.

CCLXXXIII.

CCLXXXIV.

CCCLXXXV.

CCLXXXVI.

CCLXXXVII.

CLXXXVIII.

CCLXXXIX.
CCCXC.
CCCXCI.
CCCXCII.
CCCXCIII.
CCCXCIV.

Critical Risks
Being aware of the most common risks small businesses are faced with
enables one to be better prepared and hence deal with them
appropriately.

25 | P a g e

CCCXCV.

Business risks can be broken up into the following:

Strategic risks - risks that are associated with operating in a particular

industry

Compliance risks - risks that are associated with the need to comply
with laws and regulations.

Financial risks - risks that are associated with the financial structure of
your business, the transactions your business makes and the financial
systems you already have in place

Operational risks - risks that are associated with your business'

operational and administrative procedures.

Market/Environmental risks ex

ternal risks that a company has little control over such as major storms
or natural disasters, global financial crisis, changes in government
legislation or policies

CCCXCVI.

Keep in mind that not all risks will fit perfectly into one of the above
categories. There may be incidents where a risk overlaps into two or more
categories

A. Theft of data and intellectual property:

CCCXCVII.

Safety of intellectual property & crucial data will be handled at the

organizational level initially by preventing unwanted intrusion physically &
electronically, both. Enough security measures will be installed so that
data security & security of intellectual property is maintained.

B. Increased competition:
CCCXCVIII.

This kind of risk is some sort of both negative & positive in nature.
Negative in a way that with the increment in the competition will curb the
profit levels, which every business thrives to increase constantly. The

26 | P a g e

competition is positive in nature as it brings the best out from you. There
will be a positive sort of pressure for performance as it will motivate the
firm to increase their business.
CCCXCIX.

Talking about curbing the competition, one would need to be proactive

in the way the firm is operating. Focus should be maintained on to
delivering the creative solutions to the clients on the competitive
prices. Also the detailed knowledge about the market is needed so that
market dynamics are well known which helps to conduct many analysis &
position of the market.

C. Focus is shifting away from prices and back toward

brand innovation and marketing:
CD.

As competition is increasing, the vehicle for competition is also

changing.

CDI.

Companies will continue to increase spending, while looking for

"healthier" ways to grow. These include marketing and brand innovation.

CDII.

Companies must ensure that they extract the best return on

investment from their advertising and promotional (A&P) spending as
there is scope to improve returns.

CDIII.
CDIV.

Companies need to focus on optimizing the execution of their

marketing strategy. For example, by greater use of real-time online data
to analyze the relationship between advertising and sales, and by
investing in the promotional potential provided by new social media, the
return on spend can be improved.

CDV.

Achieving organizational fitness also helps generate the cash needed

to fund a higher marketing spend. Scope exists for further improvements

27 | P a g e

in supply chain efficiency, both within existing organizations and from the
potential for cost synergies from merger activity.
CDVI.

But whether facing competition from private label or new global

challengers from the emerging markets at home and overseas, it is clear
that consumer products companies cannot expect a slackening of
competitive intensity.

D.Dealing with Negative Cash Flows:

CDVII.

"The number-one risk for most small businesses is improper cash-flow

management," says Scott Lovingood, CEO of The Wealth Squad Inc., a
small-business consultancy in Riceville, Tenn. "Calculate every month how
much money you have on hand and how long it will last if your income
dries up. Also evaluate monthly your total accounts payable and the
number of days accounts are outstanding because a slowdown in
accounts

payable

will

lead

to

cash-flow

crunches."

Companys word to negotiate this risk would be:

CDVIII.

Avoid those crunches by creating a contingency plan and setting aside

three to six months of operating costs in reserves. "In the contingency
plan, ask where your business would be three to six months from now if
you lost your biggest client," explains Lovingood. "Which expenses could
you cut? Which would you have to keep paying? That number of three to
six months is variable because you could have cash-flow problems for
various reasons. Losing a key customer could take away 50 percent of
your revenue, but it might also take away 50 percent of your expenses."
E. Legal Implications:

CDIX.

Focusing on staying within the boundaries of the law is now more

important than ever. What you do on social media will be around
permanently in some form or fashion, and an ad you released a year ago
may be pulled up to be used as evidence in some type of litigation. This

28 | P a g e

risk is handled by understanding the law and by operating a clean

campaign. But you have to realize that the risk is there.
CDX.

The more risks youre aware of in social media, the better equipped
you will be at handling them. The risks mentioned above only cover a
small number of the many potential issues you could face. However,
understanding the main categories will give you the proper frame of
reference for dealing with most of the inherent risks.

CDXI.
F. Insure key people
CDXII.

If key staffers leave or can't perform their duties then entire business
could fail. You've got to have key-person insurance on anyone who's
mission-critical to your business.If you already have key-person insurance,
review your policy quarterly because it may be outdated if your business
has grown dramatically. Recruitment process should be cost effective &
policies should be reviewed periodically to understand the current
strengths & loopholes in business operation processes & employee
management.

CDXIII.
CDXIV.
CDXV.
CDXVI.
CDXVII.
CDXVIII.
CDXIX.
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CDXX.
CDXXI.
CDXXII.
CDXXIII.
CDXXIV.
CDXXV.
CDXXVI.
CDXXVII.
CDXXVIII.
CDXXIX.
CDXXX.

Harvest Strategy
Entrepreneurs must realize that the eventual success of their venture
will lead them to decision concerning the future operations and
management of the business. A harvest plan defines how and when the
owners and investors will realize an actual cash return on their
investment.

CDXXXI.

The Urban Sky as our tagline say Save time and Grow profits our
business goal while making our clients visible to the world our aim is to
grow profits and expand at international level and become the market
leader in providing service to our clients.

A. Strategic Acquisition
CDXXXII.

As we are a start up at this point, so thinking of strategic acquisition is

way beyond our reach and as of our future plans acquisition will depend

30 | P a g e

on the market trend and what company will profit from after acquisition of
the company.

B. Initial Public Offering (IPO)

CDXXXIII.

Many entrepreneurs have sought capital through the public market,

just to reiterate, the term initial public offering (IPO) is used to represent
the registered public offering of a companys securities for the first time.
In 2015, there were 575 IPO that raised $225 billion.

As a startup we

cannot go public till 5 years from the commencement of the company so

what our short term aim are to get as much as venture capital funding
and grow and expand to as larger extent that can be possible and then
launch are company in public domain for getting as much investment and
then continue to expand internationally and become the market leader in
the service segment provided by our company. Although it is difficult to
estimate how much liquidity the capital markets will provide in the years
to come, the current market looks very favorable for growth of the
companys services and increasing the client base.

CDXXXIV.
CDXXXV.
CDXXXVI.
CDXXXVII.

Milestone Schedule
December 16, 2015: Review of the business plan and final decision
to incorporate.

CDXXXVIII.
CDXXXIX.

January 2016: Establishing relationship with the investors.

February 2016: Begin scouting location in and around Delhi/NCR for a
physical office.

CDXL.

March 2016: Getting investor for the business for expansion and
setting up of the office and providing service.

31 | P a g e

CDXLI.

April 2016: Creating the website of the company and building the
necessary contacts for delivering better service to the clients.

CDXLII.
CDXLIII.

May 2016: Launch of the company for the business.

June 2016: Establish relationship with Google Adsense; establish
relationship with companies who may be interested in advertising on
Urbansky.com

CDXLIV.

July 2016: Raise Rs. 1 crore for additional funding to carry out
operations.

CDXLV.

August 2016 : Begin contacting companies interested in our services

to introduce them to our product and service, our idea and the packages
we will have available for purchase or subscription; start by focusing on
smaller companies, slowly increasing our scope as time goes on.

CDXLVI.

September 2016: Continue to line up sponsor items, begin sales of

our services as client no, and become sufficient for statically significant
interpretation.

CDXLVII.

October 2016: Begin to hire full time employees to aid the companys
operation and expansion.

CDXLVIII.
CDXLIX.
CDL.
CDLI.

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