crint - business plan
DESCRIPTION
Crint - Business PlanTRANSCRIPT
Crint
SLIMS | PGDM | Finance | 2013-2015
Business Plan
15/11/2014
Prepared By:
Sangita Dey - 25
Ashka Gupta - 32
Sarfaraz Heranja - 33 Viral Raiyani - 73
Vinod Thadhani - 97
Crint Business Plan
1
Who are we?
We are a one stop shop printing solution for individuals & organizations who seek affordable, high quality,
colorful and professional designing of personalized or customized products, merchandise & marketing material
in quick, easy & hassle free manner.
It might seem to us that the world has moved entirely online, but face-to-face interactions still involve exchanging
business cards. Posting a letter still requires a letterhead and small business marketing still requires flyers and
other printed materials. In short, creating effective promotional materials still rates a place on the to-do list for
most organizations. We at Crint continuously seek to ease the tasks of designing and printing of such marketing
material.
What is the Problem Worth Solving?
For Individuals For Small Businesses
It is difficult to find options to personalize
merchandise & if found, the cost is high for single
/ low quantity customized printing.
It is very costly to hire professional designers for
designing professional marketing material.
Accumulating all the resources such as design, raw
material, etc. is a big headache. It consumes a lot
of time and involves high costs.
It becomes difficult to find suitable design & get
all marketing material prepared under one roof &
and hence it consumes a lot of time.
Custom Designs Premium Quality Affordable Prices
Crint Business Plan
2
Business Profile
Particulars Details
General Business Information
Name Crint
Type Private Company
No. of Members 5
Head Office Ahmedabad
Website www.crint.com
Email [email protected]
Strategic Business Information
Concept Customized Printing
Vision We are committed to provide quick, easy and hassle free customized printing
solutions with minimum harm to environment
Mission To be India’s best premium quality and most affordable customized printing service
provider by 2025.
What is Our Solution?
Be it an individual, small business or an organization, At Crint everybody can enjoy our DIY printing solution at
affordable prices along with high quality, colorful and professional designing of personalized or customized
products, merchandise & marketing material in quick, easy & hassle free manner.
What is Our Target Market?
Every Individual, small business & organization be it schools, sports team, NGOs/NPOs, restaurants & bars, etc.
seeking customized marketing material and personalized products across PAN India are our potential
customer/client.
Crint Business Plan
3
Service Specification
Our DIY solution will allow individuals, small businesses and organizations to design professional marketing
material and make their business or brand stand out in the market. We will provide freedom of customizing
designs & printing products like business cards, flyers, brochures, postcards, gift certificates, banners, posters,
stickers, invitation cards, announcements, labels, letterheads, invoices, envelopes, clothes, caps, bags, calendars,
mugs, photo gifts, key chains, mobile & laptop accessories, etc.
Value Chain Analysis
Inbound Logistics
OperationsOutbound Logistics
Marketing & Sales
Services
Purchase of raw material from suppliers
Content Management
Return from customers
Raw material Inspection
Capturing graphics creations
Graphic Printing
Final Product Inspection
Packaging
Digital delivery of designs
Dispatch of final product
Distribution to final consumers via FedEx or Bluedart.
Internet Marketing
Social Media Marketing
Branding
Surveys & Sales Promotions
Mobile apps
Online customer support services
Online DIY Toutorial
Expert/Marketing counselling
Crint Business Plan
4
Operational Plan
We will have an open supply line wherein we will Contact suppliers and select the one who offers the
best price and quality. At warehouse we will keep all the necessary goods.
1. Offering wide selection of designs. Know what the fad is at certain times and ride with it. We
will try to offer unique designs as well to keep your bases covered.
2. Set up variety of payment methods. We will give variety of payment options like cash on
delivery, paypal or another form of online payment. That way, there would be less reason for not
buying online.
3. Open a shipping account. Selling online needs to be shipped quickly. We will contact various
shipping companies and select the one that gives you the best service and rate.
Marketing Plan
The ultimate goal of our business is to sell as many products as possible to many customers. We will
connect with as many people in order to promote our business. Here are ways of promoting our
business.
1. Website. Online presence is a very big factor for our businesses where everything can be
searched and bought online. We will also create blogs and write about the good qualities of your
products and why they should buy from us.
2. Social Media. Social media such as Facebook, Twitter, Google +, LinkedIn, etc., keep people
connected and updated 24 hours a day. People use these social media to talk about anything
that caught interesting. Businesses have been capitalizing on this phenomenon to their
advantage by pitching advertisements about their products. We would reach out to a lot of
potential customers by using these social media to promote your business.
3. Promotion: The best way to promote our business is to give free stuff. People love free stuff.
Giving away free stuff should not really be free. We will create a promotion for free stuff whereby
those who participate will have to provide you their email addresses or contact numbers and
Crint Business Plan
5
agree that we can contact them for promotional purposes. Through this way we will be able to
build customer database for future promotions and advertisements.
4. Price: As this is a customized printing business, every product is different here in terms of
design, color and size. So the pricing for all the products will be different. Because every product
has its unique design, color and size as per the customer requirements, so pricing will be decided
on the basis of which product customer needs and how much they want to customize their
products.
5. Market Analysis: Crint has segmented the market into two groups, organized by the type of
product that they purchase. The first group is customers that desire an already created graphic
image to be placed on their products. The second group are those that prefer custom artwork to
be placed on their products. Crint has decided to divide the market by the products that they
purchase because it offers an intuitive, easy method of targeting the two different groups. An
additional reason for segmenting the market based on the two products is because the
demographics for the buyers of the two products are distinct enough to group them separately.
6. Market Segmentation: Crint has segmented their market into two distinct groups. As mentioned
previously, the two segments are grouped by the type of product they chose. Although Crint is
dividing the market by product type, it is effectively dividing the market by age as well since the
customers who purchase the custom artwork products tend to be older than the group preferring
the ready-made graphics. While this is not a hard and fast rule, it is a fairly accurate
generalization.
Graphics -- This is group purchases products and has an existing graphic placed on their
desired products. This is the less expensive option and lends itself to low production
numbers, as low as one, since there is not the inherent expense of artwork creation.
Artwork -- This segment prefers having custom artwork created and placed on their
products. They generally have the image or style in mind and will direct the artist to create
it. Occasionally when the customer will not have an exact image in mind but will rely on
the artist's skills to help shape the work.
7. Sales Strategy: The sales strategy will emphasize the fact that ordering a product from Crint is
a very easy and pleasing experience. The sales effort will work on the continual development of
the website, the main tool used for ordering. It will be quite important to have a friendly, easy to
use web interface for two main reasons. One, there are so many choices available that it could
become daunting to the customer. The second reason is that a large portion of sales will be
Crint Business Plan
6
placed on the website. It is imperative to make it so easy that people don't stop part way through
ordering due to cumbersome or difficult instructions. The website embraces the philosophy of
making the experience so easy and pleasing that the customer comes back to buy more.
Crint will also rely on three other factors to help boost sales. The first is exemplary customer
service. Having excellent service will provide the customer with the feeling that the business is
looking out for the customer's interest. Second, when a customer places an order, they will
probably be excited to see the finished product, so Crint will ensure the fastest turnaround time
possible. Lastly, sales will be boosted by offering customers a high quality product. We will use
highly quality printing materials.
8. Website Marketing Strategy: The website will be integral in Crint marketing effort as the site is
a key sales tool for both local and distant customers. The URL address will always be used in
promotional material, encouraging people to check out the company, concept, and the products.
In additional to inclusion in the traditional marketing campaigns, Crint will submit their website to
a variety of search engines, significantly increasing the number of inquiries from people
searching out custom printings.
Competitor Analysis:
At present there are two major players in India, who can be our direct competitors. They are Print Venue
and Vista Print. We will also face some competition from local players but we are sure that the choice
and convenience that we provide to our customer will beat them alone.
Crint Business Plan
7
Personnel Plan & Remuneration
1. Manpower Planning: Crint will require employees for the following positions.
Business Development Executive
Sales & Marketing Executive
Skilled Printer
Tele Caller – Customer Support Executive
Artist
Personnel Remuneration
Year 1 Year 2 Year 3
Business Development Executives Rs.22,000 Rs.26,000 Rs.30,000
Sales & Marketing Executive Rs.13,000 Rs.13,000 Rs.13,000
Skilled Printers Rs.7,200 Rs.11,000 Rs.11,000
Artists Rs.16,200 Rs.21,000 Rs.21,000
Skilled Printers Rs.10,000 Rs.12,000 Rs.12,000
Total People 5 5 5
Total Payroll Rs.68,400 Rs.83,000 Rs.87,000
2. Recruitment Policies: In Crint we recruit candidates as per our requirements. Firstly we held online
test among interested candidates and then personal interview taken by our experts in order to check
knowledge and creativity of the candidates. A sour business is of customized printing, we need
more creative personnel who can create and develop new designs in printings and can customize
the product as per the need of the customers.
3. Training and development: We believe in satisfaction of the customers and that can only be
possible with the help of good and creative staff of employees and so we give full training to our
employees for working and making the product. Whole training program design for the new
candidates who join and also for the existing employees for updating themselves. We also give our
employees good remuneration with incentives and develop them for betterment of their life.
Crint Business Plan
8
Organization Structure
Corporate Social Responsibility
As a part of our corporate social responsibility activities, we will develop a “art & design center”, where
any person who is interested in artwork and designing can take enroll himself/herself and learn different
designs and arts which we will further use in our business. The creator of new design and artwork will
also be paid reasonable royalty for his work. Because our business is of customization and we have to
provide good designs to our customer if they don’t ask for specific design. So, our art & design centers
will develop persons for making career in this field.
Crint Business Plan
10
General Assumptions
General Assumptions
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00%
Crint Business Plan
11
Projected Profit & Loss Account
Pro Forma Profit and Loss
Revenue Year 1 Year 2 Year 3
Sales Rs.117,882 Rs.290,581 Rs.334,145
Direct Cost of Sales Rs.58,941 Rs.145,291 Rs.167,072
Total Cost of Sales Rs.58,941 Rs.145,291 Rs.167,072
Gross Margin Rs.58,941 Rs.145,291 Rs.167,072
Gross Margin % 50.00% 50.00% 50.00%
Expenses
Payroll Rs.68,400 Rs.83,000 Rs.87,000
Sales and Marketing and Other
Expenses
Rs.2,500 Rs.3,000 Rs.3,000
Depreciation Rs.996 Rs.996 Rs.996
Crint Business Plan
12
Rent Rs.11,000 Rs.12,000 Rs.12,000
Utilities Rs.3,300 Rs.3,600 Rs.3,600
Insurance Rs.3,000 Rs.3,600 Rs.3,600
Payroll Taxes Rs.10,260 Rs.12,450 Rs.13,050
Other Rs.1,500 Rs.1,800 Rs.1,800
Total Operating Expenses Rs.100,956 Rs.120,446 Rs.125,046
Profit Before Interest and Taxes (Rs.42,015) Rs.24,845 Rs.42,026
EBITDA (Rs.41,019) Rs.25,841 Rs.43,022
Interest Expense Rs.6,045 Rs.5,700 Rs.5,120
Taxes Incurred Rs.0 Rs.5,743 Rs.11,072
Net Profit (Rs.48,060) Rs.13,401 Rs.25,834
Net Profit/Sales -40.77% 4.61% 7.73%
Crint Business Plan
13
Projected Cash Flow Statement
Pro Forma Cash Flow
Cash Received Year 1 Year 2 Year 3
Cash from Operations
Cash Sales Rs.117,882 Rs.290,581 Rs.334,145
Subtotal Cash from Operations Rs.117,882 Rs.290,581 Rs.334,145
Additional Cash Received
New Current Borrowing Rs.0 Rs.10,000 Rs.0
Subtotal Cash Received Rs.117,882 Rs.300,581 Rs.334,145
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending Rs.68,400 Rs.83,000 Rs.87,000
Bill Payments Rs.80,550 Rs.194,234 Rs.218,664
Crint Business Plan
14
Subtotal Spent on Operations Rs.148,950 Rs.277,234 Rs.305,664
Additional Cash Spent
Principal Repayment of Current Borrowing Rs.0 Rs.200 Rs.2,400
Long-term Liabilities Principal Repayment Rs.8,400 Rs.9,000 Rs.10,000
Subtotal Cash Spent Rs.157,350 Rs.286,434 Rs.318,064
Net Cash Flow (Rs.39,468) Rs.14,147 Rs.16,081
Cash Balance Rs.16,932 Rs.31,079 Rs.47,160
Crint Business Plan
15
Projected Balance Sheet
Pro Forma Balance Sheet
Assets Year 1 Year 2 Year 3
Current Assets
Cash Rs.16,932 Rs.31,079 Rs.47,160
Inventory Rs.2,702 Rs.6,659 Rs.7,658
Other Current Assets Rs.1,500 Rs.1,500 Rs.1,500
Total Current Assets Rs.21,133 Rs.39,238 Rs.56,317
Long-term Assets
Long-term Assets Rs.5,000 Rs.5,000 Rs.5,000
Accumulated Depreciation Rs.996 Rs.1,992 Rs.2,988
Total Long-term Assets Rs.4,004 Rs.3,008 Rs.2,012
Total Assets Rs.25,137 Rs.42,246 Rs.58,329
Crint Business Plan
16
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable Rs.18,697 Rs.21,605 Rs.24,253
Current Borrowing Rs.0 Rs.9,800 Rs.7,400
Subtotal Current Liabilities Rs.18,697 Rs.31,405 Rs.31,653
Long-term Liabilities Rs.56,600 Rs.47,600 Rs.37,600
Total Liabilities Rs.75,297 Rs.79,005 Rs.69,253
Paid-in Capital Rs.15,000 Rs.15,000 Rs.15,000
Retained Earnings (Rs.17,100) (Rs.65,160) (Rs.51,759)
Earnings (Rs.48,060) Rs.13,401 Rs.25,834
Total Capital (Rs.50,160) (Rs.36,759) (Rs.10,924)
Total Liabilities and Capital Rs.25,137 Rs.42,246 Rs.58,329
Net Worth (Rs.50,160) (Rs.36,759) (Rs.10,924)
Crint Business Plan
17
Projected Financial Ratios
Ratio Year 1 Year 2 Year 3
Sales Growth 0.00% 146.50% 14.99%
Percent of Total Assets
Inventory 10.75% 15.76% 13.13%
Other Current Assets 5.97% 3.55% 2.57%
Total Current Assets 84.07% 92.88% 96.55%
Long-term Assets 15.93% 7.12% 3.45%
Total Assets 100.00% 100.00% 100.00%
Current Liabilities 74.38% 74.34% 54.27%
Long-term Liabilities 225.16% 112.67% 64.46%
Total Liabilities 299.54% 187.01% 118.73%
Crint Business Plan
18
Net Worth -199.54% -87.01% -18.73%
Percent of Sales
Sales 100.00% 100.00% 100.00%
Gross Margin 50.00% 50.00% 50.00%
Selling, General & Administrative
Expenses
90.68% 45.20% 42.02%
Advertising Expenses 0.00% 0.00% 0.00%
Profit Before Interest and Taxes -35.64% 8.55% 12.58%
Main Ratios
Current 1.13 1.25 1.78
Quick 0.99 1.04 1.54
Total Debt to Total Assets 299.54% 187.01% 118.73%
Pre-tax Return on Net Worth 95.81% -52.08% -337.84%
Crint Business Plan
19
Pre-tax Return on Assets -191.19% 45.32% 63.27%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin -40.77% 4.61% 7.73%
Return on Equity 0.00% 0.00% 0.00%
Activity Ratios
Inventory Turnover 48.00 31.04 23.34
Accounts Payable Turnover 5.31 9.12 9.12
Payment Days 35 37 38
Total Asset Turnover 4.69 6.88 5.73
Debt Ratios
Debt to Net Worth 0.00 0.00 0.00
Liquidity Ratios
Net Working Capital Rs.2,436 Rs.7,833 Rs.24,664