E- COMMERCE

CIA-3

Business Model

Submitted To
Prof. Georgy P Kurien
Institute of Management
Christ University

Submitted To:

Threads Financial Service

1. Value Proposition

The primary service of the firm is to provide an online platform for

SMEs in order to connect with investors and creditors and vice
versa.

The SMEs in India forms the backbone of the countrys

industrial output. Thus, we register SME, investors and lenders and

create a strong database and enable them to connect to each other

on a single platform.
Our firm analyses SME firm which are private firms who are unable
to avail credit from bank due to high benchmark and standards. Our
Analysis Report of SME will be our primary product in which we will
thoroughly analyse SME which are registered on various parameters
including fundamental analysis, credit rating, ratio analysis and in-

depth verification.
Investors and creditors who wish to invest would apply to purchase
our report on a particular SME firm through our website and analyse
the SME. That would provide the investors and creditors insight

about the company and enable them in decision making.

Our company will provide consultancy based on our reports and
facilitate the financial process of transfer of funds, shareholdings

and interest payments.

This would provide a first of its kind B2B platform which will help to

directly connect investors/lenders to SMEs in India.

Our business model is to create report which would give investors
and lenders financial analytics, KYC verification, credit rating, CMA
predictive analysis which would help in project as well as corporate

financing.
Our advertising model will help SME and investors set up priority
basis on our website which will enhance business.

Business Opportunities

BALANCE SCORECARD

Finance : To
succeed
financialy and
expand

Vision: To
become
India's
leading
online
financial
service
company

Customers: To give
customers
unparallel report
and financial
service

Internal
business
process: To satify
diiferent heads of
customers and
operate
effeciently

Learning and
Growth : To
achieve our and
ability to connect
different
customers and
provide authentic
analysis.

Perspecti
ve
Customer

Objective
Improve
Client/
Satisfaction

Measure
Customer

To enable financing of unfinanced SME

To make good quality and
authentic report
To
facilitate
financing
process and transfer of
funds, shares and interest
payment.

Financial

Reduce Cost to Client/Customers

Expand
Use
Sourcing

Internal
Business
Processes

of

competitive

Improve Leverage Quality

Encourage innovation

Operation and delivery system

Growth &
Learning

Enhance Employee Competence

Management Structure

To safeguard interests of
investors and lenders.
Reduce cost of analysis of
SME for investors.
Reduce cost of connecting
to lenders and investors for
SME.
Consultancy on investment,
SMEs for debt restructuring,
Unfinanced or firms unable
to meet banks benchmark
are financed.
The firm will try to minimize
leverage and financing from
debt and emphasise on
capital infused by
shareholders at the initial
phase.
The firm will recruit financial
as well as technical
expertise in order to make
our products excellent and
website.
Operations and delivery
mechanism will be fluid and
constantly adopting
requirements of customers.
Training and developments
assignments and program
and help in greater
efficiency, motivation and
employee satisfaction
Firm will concentrate on
forming horizontal form of
management for efficient
management.

2. Revenue Model
A firms revenue model describes how the firm will earn revenue, generate profits and
produce a superior return on invested capital. Although there are many different e-commerce
revenue models that have been developed ,most rely on one, or some combination.

We in Thread financial services follow a combination of 3 revenue models

1.Sales Model

2.Affiliated
Model

3.Advertising
model

a. Sales Model: Thread financials prepare analysis report for SMEs which could also be
analyzed by the investors.This report will be sold to SMEs
b. Affiliate model: Thread financials make money also through connecting investors
with potential SMEs for loans with a clear background check and valuations. Thread
financial receive a referral fee or percentage of the deal amount
c. Sales Model : Thread financials prepares and sell financial and valuation reports of
SMEs
Major income is derived from sales model as this is in high demand

3. Competitive Advantage
New model of business where in collaboration between investors and the Small and medium
enterprises (SMEs) is sought and the industry is a new one though there have been allied
models like CRISIL providing credit rating, and equity research analysts giving stock
recommendations. But this model also taps the private sector and analyses the SMEs
financials to generate a report based on that in order to aid the investors looking to invest in
it.
This is a new model of business and hence the competitive advantage is high even when
competition arrives eventually.
4. Competitive Environment

Business Model (New entrant)

Analyse both public and private firms unlike existing
equity analysts
Wide Reach

Even though many brokerage firms dealing in stocks, offer their own analysis, and research
analysts provide selected reports for a huge fee, this company offers reports of all the SMEs
no matter their status, and provides them at a low cost. The existing firms follow a
transactionor a fee based model, this firm follows a revenue based model and transaction
based model
5. Market Opportunity
The SME segment is the backbone of Indias economy as it accounts for 95% of industrial
units, 40% of the total industrial output & 50% of total exports. It also employs 45% of the
countrys industrial workforce.
(Source: http://msme.gov.in/)

Extracting Information from the banks.

Information about customers who have come with an intention to invest in SMEs but were
rejected as there were no information regarding the particular SME. Adding to the scenario ,
these were also rejected because they were not listed. In view of SMEs, banks have high
standard level for sanctioning of laons which cant be matched by some SMEs, so we provide
reports for such companies. And help companies to meet different investors.

CUSTOMER

COMPETITION

TECHNOLOGY

Treads Financial services concentrates on customers who wants to invest in SMEs which are
listed and non-listed as well. Online reports provided by us will give a proper picture about
the company. This will help both SME as well as the Investors.
Treads financial services has a highly sophisticated Research team, who provide analysis with
accuracy level of 99.9%.
Treads financial services has a first mover advantage, as our company is the first to provide
online valuation and financial reports of SMEs and also help them to connect to investors on
a single online based platform. We also have tie ups with leading rating agency like CRISIL,
ICRA.

6. Marketing Strategy
The business model we have created needs a strong marketing strategy to promote its reach
on the online platform. As our business is very formal in nature it requires promotion on the
same level:
1. Tie-ups- As target customers for our reports are potential angel investors, banks and
various venture capitalists we need to make our credentials strong on professional

front. Various tie-ups with institutions like CIBIL, CRISIL, KPMG & PWC will make
our presence prominent for future growth.
2. Media coverage- Like a typical e-commerce site we too need media coverage but on
financial news channels like Bloomberg, NDTV Profit etc. This will not only promote
the website but also make it visible to investors who throng such channels in hoards
and more or less abide by whatever they have to say about an entity or product.
3. Social media- We need to promote the website on Facebook and other social media
channels like 2min ads on you tube videos of famous financial analysts. A paid search
result query to be created with the help of Google and promotion of the website and
its page on LinkedIn where it will be endorsed by various industry experts.
4. Government sponsorship- As our main focus is on dying SMEs we would like
endorsement by state as well as central government ministry of corporate affairs so
that a certain level of trust can be instilled in the minds of investors regarding the
authenticity of the reports and their usage.
5. College program initiative- We can involve college students and have strategic tieups with colleges so as to train them how such reports are made, their relevance in the
successful credit worthiness appeal for a SME and also give them opportunity to work
in the team to market our product.
6. Green Initiative- As our reports are purely in form of e-books or pdf we avoid the
unnecessary paper usage thus maintaining the clean green office environment which
can be used as a tool to promote the website and its business.
7. Corporate events- We need to make our presence felt in the corporate meetings and
various functions held on the same lines so that reach of the website can be increased
at the most.
8. Free subscriptions- Early bird subscribers will be given free subscription of certain
days in order to validate their interest and earn a loyal customers.
9. Reviews- Will include a review section in our website where expert comments on our
reports can be given which can be read by all visitors.

7. Management Team

Kind of management expertise an individual need to work in the firm. To manage a firm one
should be expertise in many skills and he/she should be human enough to face any kind of
situation. If we look closely that the type of skills that diverted towards the surroundings are
Leadership is what that motivates employees and keep them in track. Leaders have advantage
of leading their men instead of pushing them.
Communication is ability to interact with people within the company and other shareholders
regarding the issues of the company.
Collaboration is the skills of dealing with those not necessarily that are not a part of
hierarchy. So most issues solved through negotiation.
People required for creating business model is qualified financial personal with qualification
and corporate expertise. Qualified financial expertise such as Chartered Accountants, F.RM
for risk analysis and Post Graduate finance for building financial model and data
interpretation.
An individual who got employed must be sound in his financial concepts. They will have
experience on
Strategic planning
Decision making
Project management
Additionally we require technical knowledge and expertise such as computer engineers,
certified data analytics experts, statisticians, and software engineers for building website
which can be used as a interactive model which helps to calculate risk, calculate eligibility
criteria, create data base analysis from the report for investors and lenders and create payment
mechanism.