A BUSINESS PLAN (1)

8/7/2019 A BUSINESS PLAN (1)

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A BUSINESS PLAN

Of

SUPER SPORTS..

make winning a habit

SUBMITTED TO:

Mr.Sonu Dua

Lect. LSM

SUBMITTED BY:

OUR TEAM

Name Roll No.

1.Vivek 51

2.Nisha Garg 523.Aashiq Aziz 53

4.Isha Sikand 54

5.Mohd.Sajad 55


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PREFACE

Every study needs an application to analyze the problem , and thus working on its improvement

is needed.The application of ideas and concepts provides an opportunity to a student to

demonstrate skills and competence required.

Our Business Plan is SUPER SPORTS

Industry : Sports

The business plan helps us to devote our skills to set up the business and to work upon it and

look to suggest the alternative solutions. Further on evaluating it using theoretical and analytical

approach , it helps us to see into ourselves for our strenghts and weaknesses.

We tried our level best to prepare this business plan without any contamination. Every effort

has been made to offer the accuracy .


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TABLE OF CONTENTS

S.NO. TITLE PAGE NO

1. INTRODUCTION 52. EXECUTIVE SUMMARY 63. VARIOUS PLANS FOR OUR BUSINESS 74. FINANCIAL PLAN 85.

OPERATIONS PLAN 1

3

6. HUMAN RESOURCE PLAN 157. MARKETING PLAN 198. CONCLUSION 26


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EXECUTIVE SUMMARY

Super Sports is a new venture that is related with the sports industry. As we already know that

Sports like Cricket , Hockey and others are very popular in India , particularly in Punjab . Punjab

is the main hub for sports . Cities like Jalandhar are very popular in sports industry.

We , therefore , after analyzing whole market of Jalandhar, with some research there as well,

came to know that still there is lot of market in jalandhar that needs to be explored.

We started with the analysis like situation analysis.

In situation analysis we have taken three Cs:

1. Company2. Customers3. Competitors

Business concept

Our business works on the concept of uniqueness in sports .Our quality of wood and finishing

touch are our advantages.

Goals

y Short term To have a sustainable market share and to capture the untapped market. Thisis our first goal that we are working upon, because in Punjab there are already many local

and national players in the market. And to attain the same the first strategy is to launch

our SS-Passion product in the market in bulk than the other one and the ratio could be

4:1. This is due to the reason the professional players will not easily accept the brands

until it has a good image. That is why we are launching bats for the habitual at the initial

stage.

y Long term - build an image of a strong player in the market. This is our long term goaland can be achieved if we got a good image of our brands in the market. This could only

be done after our first gone is achieved. We have designed lot strategies to achieve that

level and would be discussed in promotions part.


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yCapacity

Our capacity is 30000 units. It includes both finished and semi finished goods. We are

producing 22000 units. Out of these units 6000 units are finished and 16000 units are

semi finished goods.

Sales

Our sales will depend upon the performance of Indian team the best they play best would

will be sales. It is always expected that whenever Indian team goes through a series all the sports

business persons are very concerned with the game. So the main reason behind our expectations

is that the coming world cup is going to held in our subcontinent. It will impact a lot of our

business and I hope it would be positive.

Political & regulatory environment

y We are using willow for our products, so there would be great danger for our business ifgovernment frames trees protection policies.

y Other environmental protection organizations like WWF is also working onenvironmental protection and could prove as a threat to our business.

After all this , we will start our business with our financing plan , how we have managed this

capital and then the discussion various phenomena.

VARIOUS PLANS OF THE START UP

There are actually various plans through which we can start our business and managed it nicely.

These plans are:

1.Financial Plan

2.Marketing plan

3.Human resourse Plan

4.Operations plan

Let them discuss one by one


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Financial Plan

Project Income Statement by MonthSUPER SPORTS

NOV DEC JAN FEB MAR APR MAY JUN JULY AUG SEPT OCT

SALES 282000 309200 332000 363800 392000 397400 412300 482000 559000 579300 584700 590000

COST OFGOODS

115500 128100 136500 150150 161700 164850 172725 199500 236250 247275 250425 262500

9$5,$%/(

(;319500 20800 22750 24700 26650 26650 26975 32500 35750 36075 36075 32500

.P14

7000 160300 17

2750 188950

203

6502

059002

12

6002

500002

870002

959502

98200

295000

SALARIES& WAGES

84500 84400 85000 84700 84000 84650 85150 84300 84700 84000 84400 76000

RENT 22000 22000 22000 22000 22000 22000 22000 22000 22000 22000 22000 22000

INSURNCE 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000

INTEREST 18750 18750 18750 18750 18750 18750 18750 18750 18750 18750 18750 18750

DEP. 4400 4400 4400 4400 4400 4400 4400 4400 4400 4400 4400 4400

MISC.EXP 8000 8500 7800 10500 8300 9000 9600 10700 10500 9300 11000 11300

NETPROFIT

7350 20250 32800 46600 64200 65100 70700 107850 144650 155500 155650 160550


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Projected Cash Flow Statement First Year by MonthSuper sports

Nov Dec Jan Feb Mar Apr May Jun July Aug Sept Oct

TotalItem

ESTCASH

RECEIPTS

Cash Sales1500

016700

18000 19000

18500

19200

20000

20500

21300

21800

22000

212000

Collectionsfrom CR

accounts2820

00294200

315300

3458

003730

003789

003931

004620

00

5385

00

5580

00

5629

0045037

00

TOTALCASHRECEIPTS 0

297000

310900

333300

364800

391500

398100

413100

482500

559800

579800

584900

4715700

CASH PAID

OUT

Purchases(merchandise)

250000

285000

280000

310000

310000

314500

324000

332000

380000

422550

2983050

Gross wages(exactwithdrawal) 84500 84400 85000 84700 84000

84650

85150

84300

84700

84000

84400

76000

945360

Rent 22000 22000 22000 22000 220002200

02200

02200

02200

02200

02200

02200

026400

0

Misc exp 8000 8500 7800 10500 8300 9000 960010700

10500 9300

11000

11300

114500

Insurance 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 24000

TOTALCASH PAIDOUT(Disburseme

nts

11650

0

11690

0

36680

0

40420

0

39695

0

4276

50

4287

50

4335

00

4432

00

44930

0

4994

00

5338

50

43309

10CashPosition(end ofmonth)=cash flow

-116500

180100

-55900 -70900

-32150

-36150

-30650

-20400

39300

110500

80400

51050

384790

12-month Projected Income Statement Explanation

SalesOur sales will depend upon the performance of Indian team the best they play best would will be

sales. It is always expected that whenever Indian team goes through a series all the sportsbusiness persons are very concerned with the game. So the main reason behind our expectations

is that the coming world cup is going to held in our subcontinent. It will impact a lot of ourbusiness and I hope it would be positive.

.

Capacity


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Our capacity is 30000 units. It includes both finished and semi finished goods. We areproducing 22000 units. Out of these units 6000 units are finished and 16000 units are semi

finished goods.

Sales, Price, and COGS Breakdown

Price

costof

good

margi

n

Capacity

"

yearly

salesSales

monthly

Yearly

COGS

COGS

monthl

yFinished

units 490 305 155 6000 2695000 224583 1677500 139791Semi

finishedunits 180 122 58 16000 2880000 240000 1952000 162667

Cost of Goods Sold

Cost of goods include wood price and machinery charges in case of semi finished goods and in

case of finished goods it includes later and other polishing charges and sticker prices etc.

Operating Expenses

Salaries and wagesWe have 15 employees out of which 6 are skilled and rest are semi skilled or un skilled the

former gets 8000 per month and late gets 4000 per month

Miscellaneous expensesThese expenses include electrical charges, telephone, fuel and carriage etc. it also includes

travelling expenses.

Advertising:we have investment some amount at the initial stage in promotional strategies which will be

amortized @ 5% from the next year.

Legal


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We to give pay Rs 30000 for license fee and this amount is included in preliminary expenses and

we will write off these expenses over a period of 10 years.

Rent

This includes rent of outlet and the land that we have taken on lease for manufacturing purpose.

We are paying a total amount of Rs 264000 under this head.

Cash Flow Projection Explanation

Cash In From SalesWe are selling goods mostly on credit because our new entry but instead of this we are able to

get near about 5% of sales in cash. Our debtors collection period is 2 months we receiving the

remaining amount in the next month.

.

Other Expenses

Expenses are paid in the month they are incurred that means there is no outstanding balance in

expenses.

Break Even AnalysisIf we take into consideration, cost of machinery and other preliminary expenses then our break

even sales are Rs635000

Sources and Applications of FundsCapital contribution by owners Rs 2000000

Loan provide by bank Rs 1800000

Machinery and equipments Rs 530000

Preliminary expenses Rs140000


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Projected balance sheet of Super sports

Liabilities AssetsRs

Capital2000000Loan1800000

Creditors

513000

total

4313000

Machinery

530000Equipments260000

Stock

1700000Debtors

590000Cash

1093000Preliminary expenses @5% written off

140000

total

4313000


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Operational Plans

Locations & Facilities: We are starting our business in Kashmir and Jalandhar. In Kashmir

we will have manufacturing unit because easy availability of raw material and labour. As

Kashmir is famous its wood work so there is skilled labour for our sports products. And also

there is easy availability of raw material (woods).

In Kashmir we need 2 kannal of land. We will arrange this land on lease of Rs.50,000 yearly for

5 years.In Jalandhar we will have a outlet in sports market football chowk . This will also be onlease of Rs.84,000 per year.

Description Location Lease/Owned Lease /Rent

Manufacturing Unit Kashmir Lease Rs.50,000 per year

Outlet Jalandhar Lease Rs.84,000 per year

Operating Methods/Procedures : We are adopting a U shaped process for

manufacturing.Raw material

Wood: wood will be purchased from Kashmir where we have our manufacturing

unit.

1. Types of wood:y Willowy Populary Breny Kikkar2. Glue

3. Polish


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4. Sticker

5. Sandpaper

6. Machinery

y Sawmill -2 machinesy Demoy Generator

7. PestisidesLabour we need:

Total number of workers: 15

10 people at the initial stage

5 people after21 days of start of process


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PRODUCTIONPROCESS:

Firstly we have wood in the form of raw material. Then it will go for shaping in the sawmill a

machine to provide shape and will be handle by the skilled labour. 1 unit of product will take

approximately4

minutes to shape & size. In one day if we work for 8 hours we can produce 120

units at 1 machine. As we have 2 machines we can produce 240 units in a day. Still this we have

semi finished goods. Here will be inspection to check the size and right shape of the product.

After this pesticides will be given and semi finished goods will be dry for a particular time this

time depends upon the initial condition of raw material. After this process, process of rubbing,

handling jointing & polishing will be done. At this stage again an inception will be done

regarding polishing of the product. After passing by inspector stickering & packaging will be

done. This will be our finished good.

We can safe around 5000 units as inventory as semi finished goods so initially to produce 5000

units it will take around 21 days so at the very beginning we need only skilled labour and

inspector.

Raw material

Shaping & Size

Semi finished

goods

pestisiding and

drying semi

finished goods

Rubbing

Handlingjointing Polishing

Stickering &

Packing

Finished Good


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HUMAN RESOURCE PLAN

The establishment of a high motivation human resource program can result in important benefits

to a firm. In the first place and most obviously, such a program allows for the creation of a

positive work environment in which employee morale, job satisfaction, and productivity can be

maximized. Also, a good human resources program will enable a firm to attract the best available

employees, create a positive work milieu, and build cooperation and teamwork among the

various groups in the company.

There are eight basic elements in establishing a high motivation human resource program: (1)

survey employee attitudes on a regular basis; (2) show an individualized concern for employee

satisfaction; (3) communicate regularly and forthrightly with workers concerning company

progress and direction; (4) treat all employees in a fair but firm manner; (5) maintain wages,

salaries, and fringe benefits at competitive levels; (6) attempt to gain the allegiance of the natural

leaders in the work force and channel them into management positions or employee

organizations such as the suggestion committee or employee activity group; and (7) keep the

work environment as clean and modern as the budget will allow; and (8) avoid hiring workers

who do not have the qualifications to perform the work they are employed to do.

Effective communication within management and between management and employees is very

important in building employee morale and high productivity. We being the initiator and at the

top management will hold regular meetings with line management to discuss company thinking

on employee matters and get from these men and women the problems they are having in the

working sphere..Our employees will also be informed as to the progress of the firm and what

direction it proposes to take in the future

REQUIREMENT OF LABOR


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Total number of workers required will be 15.These workers are further classified into skilled and

semi skilled workers which will be hired on the basis of the qualification and experience. The

skilled workers will be provided the job of proroviding shapes to the raw material and the

packaging and labeling work will be done by the semi skilled workers. There will be one

inspector as well whose work will be to check the quality of not only the goods produced but

also the quality of the raw materials and as well as the production process.

Number of skilled labor= 9

Number of semi skilled labor=5

Inspector= 1

SALARIES

The first step in setting up an equitable wage/salary and benefit plan should be the review of

wage, salary, and benefit levels for competitiveness in the market and for internal consistency.

This should be followed by the drawing up of job descriptions and job specifications, the

evaluation of positions, the taking of wage and salary surveys, the setting of new job rates whererequired, and the establishing of a wage/salary payment plan which relates output to merit

increases and provides for wage/salary progressions which employees consider equitable.

Salary given to the skilled workers will be 8000 per month.

Salary given to the semi skilled workers will be 3000-4000 per month.

Salary given to the inspector will be 7000 per month.

INCENTIVES

Employees will be provided with various incentives which are as follows:


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Overtime-Under this the workers will be paid more on the basis of their time spend on their

work.

For skilled workers the overtime pay will be rs 40 per hour

For semi skilled workers the overtime pay will be rs 20 per hour

The workers will also be given healthy working environment and medical facilities as well

because they have to spend their time on different machines.

Facility of group insurance will also be given

Some additional programs which build employee morale, motivation, and loyalty are the

following:

Company newsletter

Employee electronic bulletin boards

Partial or complete subsidization of cost of production worker work clothes

Reasonable wash-up time for production workers

Company sponsored employee discount purchase plan

Employee activity committee to organize dances, dinners and sports leagues

Service award program

Choosing employees at random for awards, such as free baseball tickets, paid dinners, etc.

Annual company picnic

Program in which workers represent company at charitable events at holiday times

Annual open discussions between employees and top management - small groups meet with

President and Human Resources Director to discuss employee relations subjects and company

progress

Company sports program partial or full subsidizing of cost of golf, bowling and baseball

leagues and uniforms

Scholarship awards to children of workers

Company paid lunches when work groups surpass long standing output records


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Suggestion system - with or without cash awards

Keeping employees productive and satisfied with their work is not a difficult matter. The key to

success is building an awareness of the problems which create employee discontent and low

productivity, establishing a human resources program to counteract them, and operating the

program as an integral part of general business operations.

MARKETING PLAN

SITUATIONAL ANALYSIS

In situation analysis we have taken three Cs:4

.

Company

5. Customers6. Competitors1) Company

Company - SS-Sports.


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Product line- we are manufacturing two variants of cricket bats

a) Ss- professional ( a fine quality willow made)b) Ss passion ( medium quality willow made)

Technology and experience

We are using traditional form of bat manufacturing i.e. handmade with simple tools of crafting.

The reason is that a bat manufacturing is a very crucial task to perform and it can effectively be

done through hands so that its quality can be maintained. A machine made bat is not so much

good in comparison to it, moreover the other factor of choosing this method of manufacturing is

that manufacturing through labour requires a nominal investment as only the cost factor is the

wood and the salaries to them.

We have the labour force that has the experience of over3 years in this industry. As discussed

earlier that the experience is the main requirement to have an quality product, that is why we

divided the whole process of manufacturing into different steps and the work is allotted as per

this criteria among the semi-skilled and skilled labour.

Goals

y Short term To have a sustainable market share and to capture the untapped market. Thisis our first goal that we are working upon, because in Punjab there are already many local

and national players in the market. And to attain the same the first strategy is to launch

our SS-Passion product in the market in bulk than the other one and the ratio could be

4:1. This is due to the reason the professional players will not easily accept the brands

until it has a good image. That is why we are launching bats for the habitual at the initial

stage.

y Long term - build an image of a strong player in the market. This is our long term goaland can be achieved if we got a good image of our brands in the market. This could only

be done after our first gone is achieved. We have designed lot strategies to achieve that

level and would be discussed in promotions part.

2) Customers


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Market size- we are currently focusing on Punjab and further to go for whole north region. This

is due to the factor as we have a little amount to contribute on promotional activities, and the

production is less in the initial stages.

Market segment we are segmenting the market on behavioural variable i.e. product end use.

The cricket is the No. 1 game in India. It is sometimes called as religion. Because of the fact

that India has largest number of fans. The school and college students especially play it as to pass

the time and to satisfy the need of entertaining themselves. The other group is of youths who

plays cricket as career and profession, in national, state or district levels.

Ss-Professional- for those who play as their career.

Ss- Passion for those who play as hobby.

3) Competitors.Here if we look at the sports industry then cricket has various competitors like football,

volleyball, badminton and tennis. But if we talk about the cricket only our competitors are local

sports goods manufacturers as well as national brands of cricket bats.

Strengths of competitors

1) Products in the market from long period: They have got a plus point of a long termpresence in the market as everybody knows them and have developed loyalty among their

customers.

2) Knowledge about customer needs: They know but people actually demand as they knowit through customer grievances and regular feedback.

3) Sponsorship taken of various cricket tournaments: They have already signed variouscontracts of sponsorships over a number of years with many upcoming events.

4) Tie-ups with various schools and colleges: Colleges also organise many tournaments likeinter-college or intra-college tournaments so many brands already have tied-up with

them.

Weaknesses of competitors

1) More intermidiatories from manufacturer to customers: There are many intermidiatoriesbetween the manufactures and the ultimate consumers in case of the present competitors.


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2) Low quality of wood used: They generally use substitute for willow and is not so stableand efficient for playing.

3) Low quality: Manufacturing by machines results to poor quality. They manufacturesmainly by using machines, this could result in poor quality of bats

4) Generally heavy: As they use substitute for willow, the other wood is generally heavierand the final product is of more weight.

PEST ANALYSIS

Political & regulatory environment

y We are using willow for our products, so there would be great danger for our business ifgovernment frames trees protection policies.

y Other environmental protection organizations like WWF is also working onenvironmental protection and could prove as a threat to our business.

Economic environment

y Increasing rates of diesel put to more cost: we are sending goods from Kashmir to jammuthrough trucks and later on by trains. As petroleum rates are increasing day by day so it

could result in more cost to us and would force us to decrease our profit margin or to

increase the price of products.

y Octoi and other charges: If Punjab govt. would increase the octroi and taxes then it willincrease our cost of transportation.

y Cost of living and inflation could force us to increase our products price: The demandrise in prices would result us to increase the salaries of workers and employees them

ultimately to write off we have to increase the prices.

Social/Cultural environment


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y Very busy time table: In a busy schedule there is less time for games. In fast moving lifenobody has enough time to entertain him by playing. Also the people who really like to

play cricket could not even find an hour to play.

y Changes trends of playing: the people are finding other ways e.g. switching from outdoorto indoor games as relatively less cost is there and also can be played involving every

member of family.

y Decreasing land for playing in cities: As the trend is changing and the open spaces arebeing filled by buildings so that is why people are finding other forms of playing.

Technological environment

y Shift to computer based cricket games. Now in the modern technological era thealternative to the outdoor is there. EA CRICKET is a computer based game where an user

can satisfy his hobby of cricket in home or office.

STP Model

Segmentation

We are segmenting the market on behavioural variable i.e. product end use. That how a person

treats the product based on his requirement .it divided the market into two category people:

1) Professional players.2) Habitual and general players.

Cricket is the No. 1 game in India. It is sometimes called as religion. Because of the fact that

India has largest number of fans. The school and college students especially play it as to pass the


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time and to satisfy the need of entertaining themselves. The other group is of youths who plays

cricket as career and profession, in national, state or district levels.

Targeting

We are mainly targeting the people who are playing as an entertainment. Because it has a great

demand of quality but generally at a low price .this group wants the rigid and stable product that

could cost them less. The main reason for targeting this category was to introduce a possible best

thing at a low price. Here the pull strategy will work, as the demand will got higher and higher.

Because we are penetrating our product. And a little promotion will do the rest to increase the

sales. And probably we can increase our rates at later stage.

Positioning

Through our various promotional activities that are mentioned below like sponsorship,

advertisements, hoardings and banners, and especially through the sponsorships of college

cricket tournaments.

FOUR PS OF MARKETING

1)ProductSs Passion (a medium quality willow made) - this is our basic product that we are

going to launch in the low range cricket bat category. This is medium-quality willow

product but comparatively very efficient and long lasting than its competitors products.

It is good featured product than its category due to its light weight and low price.

Moreover it is stable and designed by the skilled labour and not using any kind of

machines and equipments.it is simply for the habitual and general players.

Ss- Professional (a high quality willow made) - this is a superior product and specially

designed for the people who are playing cricket as their career. It is made from the fine

quality willow and would compete the Indian market players like BDM and Fenta. It is

cheaper than its competitors as we are selling them without any intermediatories and due

to these economies we maintained a lower price. It takes about twenty-one days produce

this bat because a lot of steps are required to follow.


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2)Pricea) Ss- Passion (medium quality willow made)- Rs 300. We have initially planned to

launch this product at this range because the other players are there who are playing on

less price.

b) Ss Profession (high quality willow made) - Rs1500. The initial price is little lowerthan the existing competitive rate and would increase as per the demand factor.

3)PlaceManufacturing- Kashmir

Distribution centre- Jalandhar

4)PromotionWe are planning to spend 80 thousands on advertisement and promotional activities.

Advertising Advertisement is very essential for a new company for its emergence because to

generate awareness and to increase the demand. Our advertisement will include print ads,

billboards, brochures, catalogs, posters and banner ads. It would be done near to the school and

college gates. Printed brochures would be distributed in the gathering like college campuses and

bus stations.

Personal Selling We will directly go to school and colleges and meet to sports co-ordinators

there in order to convince them for buying. We would send our marking team to these institutes

and to deal with their sports department in order to get a contract for supply of our products.

Making retailers: We are also planned to increase and expand our distribution through the

shops. We will regularly send are teams to the market to give knowledge about our product and

to place the orders by them.

Sales Promotions

1) Special discount offers for bulk purchase. Discount ranging from 5-15% would beprovided if the lot is big. More is the order more would be the discount.

2) Free T-shirts for Ss- professional bat buyers. This scheme is only for the buyers of theSS-professional bat as to launch in this segment needs lot of offers, and this is one of the

promotional strategies we are following.


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3) Exhibitions at various play grounds and state level stadiums. In Punjab there are manygrounds. Every school and college has their own ground and also many stadiums are

there on district levels. We will treat them as a big platform for are promotions and

demonstrations.

Sponsorship

1) Upcoming institutional events: We are planning to sponsor various cricket tournamentslike the upcoming cricket tournament at LPU. LPU is organising cricket tournament in

the next coming year, we are also in a talk with the university vice-chancellor about this

issue, and it would give us promotion on big level.

2) Organising intra-state cricket tournaments. We are planning to enter with contracts withmany big inter-state events at a quite later time, because it needs a huge amount of money

for promotion.

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A BUSINESS PLAN (1)

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