Entrepreneurship & Small Business Management

Business Plan Presentation

Tiffins R Us
Dr. Aaron Brody
GM 560 August 17, 2009

Pulkit Bhatnagar
D03218464 b.pulkit@gmail.com 404.403.2980

This presentation is prepared towards partial fulfilment of the course: GM560 Entrepreneurship & Small Business Management being instructed by Dr. Aaron Brody for the July 2009 session at the Gwinnett campus of Keller Graduate School, DeVry University. The logo for Keller is reproduced here as a student and not an endorsement by the School. The views expressed in this report are solely of the author and without any intention of infringement or harm. Images have been sourced through Google and sources can be included if b.pulkit@gmail.com pointed out. Copyright 2009 Pulkit Bhatnagar as Business author for this report. Pulkit Bhatnagar Entrepreneurship & Small Mgmt

Agenda
An Indian Business in an American Setting.
The Tiffin Concept

Snapshot of the Business Idea

Significance of the Website

Tiffins R Us Business Plan

Identification of Gap Vision, Business Model, Long Term Direction Target Market Marketing Mix SWOT Financials

Pulkit Bhatnagar

b.pulkit@gmail.com

Entrepreneurship & Small Business Mgmt

An Indian Business in

an American Setting

Pulkit Bhatnagar

b.pulkit@gmail.com

Entrepreneurship & Small Business Mgmt

The Tiffin Concept

In India, tiffin refers to a packed meal prepared for working Indian men by their wives to be eaten at work, or for school children by their mothers. Professional Tiffin systems are quite popular in India. In fact, one of the worlds experts in Supply Chain and Logistics is the Mumbai dabbawala system system). .

5000 employees deliver over 200,000 tiffins every day using green/local transportation.
Error rate: 1 in a 16 mil. mil. (6 (6 Sigma Sigma certified) certified) Service at < $ 10 per month. Featured by CNN, BBC, Forbes, Economist, NY Times, and many business schools.
Mumbai Dabbawala video

Pulkit Bhatnagar

b.pulkit@gmail.com

Entrepreneurship & Small Business Mgmt

A Simplified Snapshot
Input Mechanism:
Website Orders; Payments; Feedback

Delivery Mechanism:
Vans / Cars Food; Promotional Material

Food Delivery to pay for ALL Expenses. Additional Revenue Streams add to bottomline directly. (Alternative Advertising/Promotion Media with direct access to consumer)

User Browses Website & Places Order

Selected Vendor Prepares Order

Hands Over to Delivery

Home Delivery

User has Meal and Rates the Vendor

Business Idea
Pulkit Bhatnagar b.pulkit@gmail.com Entrepreneurship & Small Business Mgmt

Significance of the Website

Tiffins R Us Returning / New Customers

Advertising

What should I order?

Restnt Restnt Restnt Vendor Vendor 1 2 3 4 5

Food / Ongoing Schemes

Featured/ Sponsored Restaurants

Let me log-on to Tiffins R Us where I can order according to my preference.

Provide Feedback / Rate a Supplier

Advertising

Selected Restaurant Pricing Details

Checkout/ Payment Options

Customer-end
Pulkit Bhatnagar

Rate the Supplier

b.pulkit@gmail.com

Advertising Other things of Interest

Entrepreneurship & Small Business Mgmt

Tiffins R Us The Actual Business Plan

Pulkit Bhatnagar

b.pulkit@gmail.com

Entrepreneurship & Small Business Mgmt

Identification of Gap
South Asians:
Around 200,000 Indians, Pakistanis, Bangladeshis, Nepalese, and Sri Lankans in Atlanta. Students and Working professionals on 1 3 projects. Hotspots: Alpharetta, Decatur and Lilburn / Gwinnett, Dekalb, Fulton

Food / Meals:
Spend $ 7 - $ 15 per meal; eat-outs 8-10 times a week. Remaining meals are cooked at home or skipped. Dont mind paying a small premium (~ $ 9-10 overall) if food is delivered.

Restaurants:
Family-owned units; Generally operate with decent profits. Not interested in starting own deliveries but interested in partnering.
Pulkit Bhatnagar b.pulkit@gmail.com Entrepreneurship & Small Business Mgmt

Vision, Business Model

Vision:
To allow access to food according to your taste buds.

Business Model:
Select a target region with high density of South Asians; partner with local Indian restaurants/chefs & offer home delivery services; allow users to create their profiles on a Web 2.0 interface and place their orders (longer duration get better discounts); have 3-4 vans for delivery per region.

Long Term Direction:

To establish a chain of delivery mechanisms in countries other than South Asia

(like USA, UK, Canada, Australia), which have a large population of South Asian
students and professionals. To be the next localized Amazon.com specifically for food delivery services.

Pulkit Bhatnagar

b.pulkit@gmail.com

Entrepreneurship & Small Business Mgmt

Target Market

Details:
~ 1500 South Asians.
20 sq. miles Area. Four Indian restaurants. Zero with Home Delivery. Nearest to Emory: 3 mi

Nearest to GT: 3.5 mi

Strong Local Competition Good MARTA connectivity Parking issue in Mid-town 18 Indian restaurants in 50 sq. miles coverage.

Pulkit Bhatnagar

b.pulkit@gmail.com

Entrepreneurship & Small Business Mgmt

Marketing Mix
Product:
Delivery Mechanism from Doorstep of Customer. Interactive Web 2.0 website. Kitchen of Supplier to

Price:
Cost + Flat Margin component model; Pre-paid system Amount billed per order + 40% of billed amount 40% based on estimates to cover delivery costs and required margins Discounts to be offered for Higher-priced orders or longer-duration orders Avg Est: Cost: $ 7 per meal. Price: $ 9 per meal.

Advertising opportunities on the Website and through in-tiffin promotional catalogs.

Advertising Pricing still to be worked out but expected to grow from $400 in Month 1 to $ 1500 by Month 6.

Promotion:
No expensive campaigns. Flyers distribution; College Bulletin Boards placement. Marketing Collateral like T-Shirts and Bumper stickers. M-1 soft launch with 8-10 known contacts: Free Meals in return for Buzz Marketing. M0 launch scheme: Long Term Committers discount. Referrals scheme discounts for people introducing their friends.

Place / Distribution:
20 sq. miles between GT, Midtown, Emory, North Druid Expansion in year 2 to Alpharetta. Distribution: Customer to order, pre-pay via Website. Distribution: Supplier free to source own RM. Distribution: Day-routes to be decided each morning. Delivery of order by venture. Driver will be venture employee and vehicle will be venture asset. Prepaid transactions hence no money transfer issues

Pulkit Bhatnagar

b.pulkit@gmail.com

Entrepreneurship & Small Business Mgmt

SWOT
Opportunities:
Un-served South Asian population (incl. cooking-averse target segment). Inexpensive media (similar target mkt).

Strengths:
Low start-up costs; financial independence. Strong relationships with incumbent restaurant owners. Easy access to student population of G. Tech & Emory (Essential to establish a regular following/customer base). Openness to learn from others advice and experiences. Passion to have own venture and succeed in it. Ability to be practical to limit losses.

Opportunity to start small, make mistakes, learn and correct to have a better business model while scaling up.
Additional revenue generating opportunities (like the website, mobile delivery vans, in-tiffin promotional catalogs). Bootstrap financing and viral marketing opportunities.

Weaknesses:
Lack of experience (regulatory, marketing, logistics, design). Assumption that social relationships will translate into business relationships.

Threats:
Low entry barriers. Restaurants can begin own delivery service. People can start to cook for themselves. Pre-packaged and Existing Options Available Unforeseen legal & regulatory issues. Unforeseen financial expenses; since external funding not sought. Atlanta may not remain a preferred study/work location.

Pulkit Bhatnagar

b.pulkit@gmail.com

Entrepreneurship & Small Business Mgmt

Pre-Launch Financials
all figures in USD, unless indicated Avbl Price Delivery Mechanism * Car * Scooter 14,695 2,000 16,000 2,500 12,000 1,800 9,000 Ford Focus 2008 1,200 JCL-MP250A
(http://www.banko famerica.co m/small_business/business_financing/index.cfm?template=sba_financing)

Maximum

Expected

Optimistic Remarks

Financed through Bank of America SBA Financing Options at 10% Website Domain Name Registration Website Construction 1,000 6,000 1,000 6,000 400 4,500

100 Free Resources available 1,000 For Security, partner with Paypal & Google Finance

Done through friends in India; local Student friends; Software experts Necessary Expenses Legal Fees * Insurance (GEICO) Marketing Expenses Collateral Development Travel and Meeting Laptop / Mobile 1,000 1,000 900 1,000 1,500 1,000 700 1,200 850 400 Flyers/Explanatory Docs for Vendors, Investors 700 Gas, MARTA ($50 p.m. card), Meals 650 Laptop: 550; Mobile: 100
(http://www.banko famerica.co m/small_business/business_financing/index.cfm?template=sba_financing)

5,000 500

5,000 500

5,000 400

3,000 Terms of Use for website, other legalities 300 Vehicles, Website, Life, Business, Liability

Financed through Bank of America SBA Financing Options at 10% TOTAL Initial Investment Required 32,095 34,500 26,850

16,350

$ 16,000 - $ 35,000

Depending on Finance Availability, initial investment can be channeled as per priority/requirement To recover $ 35,000 at $ 2 per meal margin and 350 days per work year, indicates 50 deliveries per day. That is not viable for one person to handle; hence at least one more employee is required. Therefore * - additional Car will be purchased on achieving required volumes.

Pulkit Bhatnagar

b.pulkit@gmail.com

Entrepreneurship & Small Business Mgmt

Year 1: Month-wise P&L

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Entrepreneurship & Small Business Mgmt

Projected Income Statement

all financials in USD 2009 Revenues Operations Advertising Revenue generated Expenses Operations Expenses incurred Gross Profit Insurance Premiums Marketing Expenses Salaries & Wages Communication Expenses Maintenance Expenses Unaccounted / Misc. Exps. Depreciation Expenses Total of 'Other Expenses' Operating Profit Interest Expenses Profit Before Tax Tax Expenses Profit After Tax 400 2,000 2,480 200 5,000 400 10,480 10,480 250 10,730 10,730 321,335 321,335 107,610 8,800 5,050 46,720 2,400 1,200 6,200 8,400 78,770 28,840 3,000 25,840 9,280 16,560 610,537 610,537 239,454 18,480 9,595 116,800 4,800 1,800 9,300 16,800 177,575 61,879 6,000 55,879 16,764 39,115 899,738 899,738 371,297 30,800 17,675 163,520 8,400 4,200 18,600 25,200 268,395 102,902 12,000 90,902 27,271 63,631 413,145 15,800 428,945 826,290 23,700 849,990 1,239,435 31,600 1,271,035 2010 2011 2012

2010: Atlanta, 1 region 2011: Atlanta, 2 regions 2012: Atlanta, 2 regions Seattle, 1 region OR San Fran, 1 region OR Houston, 1 region

Pulkit Bhatnagar

b.pulkit@gmail.com

Entrepreneurship & Small Business Mgmt

Projected Balance Sheet

all financials in USD 2009 Current Assets Cash Accounts Receivable Prepaid Expenses Total Current Assets Fixed Assets Cars and Scooters less Accumulated Depreciation Laptop / Mobile less Accumulated Depreciation Total Fixed Assets Total Assets Current Liabilities Accounts Payable Accrued Wages / Salaries Payable Current Portion of Long Term Loan Accrued Interest Payable Total Current Liabilities Long Term Liabilities Bank loan from BofA / SBA - Cars/Scooter Bank loan from BofA / SBA - Other Exps Total Long Term Liabilities Total Liabilities Owner's Equity Add: Retained Earnings Total Owner's Equity Total Liabilities and Owner's Equity 14,000 16,000 30,000 30,250 - 10,730 -10,730 19,520 25,667 13,333 39,000 47,000 - 10,730 16,560 5,830 52,830 51,667 10,667 62,333 79,583 5,830 39,115 44,945 124,529 75,667 8,000 83,667 113,022 44,945 63,631 108,577 221,599
2014 2,333 2,000 4,000 4,000 2,667 2015 2,333 2,000 4,000 4,000 2,667 2,000 4,000 4,000 2,000 4,000 4,000 4,000 4,000 4,000 2016 2017 2018 2019

2010

2011

2012

4,920 4,920

26,197 4,289 2,145 32,631

80,379 8,500 4,250 93,129

168,333 12,710 6,355 187,399

14,000 300 1,000 100 14,600 19,520

27,700 7,500 900 900 20,200 52,831

48,200 16,800 31,400 124,529

59,400 25,200 34,200 221,599

Loan Taken Amount LOAN REPAYMENT SCHEDULE 2010 2,333 2011 2,333 2,000 2012 2,333 2,000 4,000 2013 2,333 2,000 4,000 4,000 2,667 2,667 2,667 2,667 2009 2010 2011 2012 2009 14,000 14,000 28,000 28,000 16,000

250 250

5,000 3,000 8,000

4,250 7,000 6,000 17,250

6,355 11,000 12,000 29,355

Pulkit Bhatnagar

b.pulkit@gmail.com

Entrepreneurship & Small Business Mgmt

Thank You
Sources: Indian Trade/Business Associations in Atlanta Restaurant Owners Google Amazon Wikipedia Youtube www.Mydabbawala.org

Pulkit Bhatnagar

b.pulkit@gmail.com

Entrepreneurship & Small Business Mgmt