2. Table of Contents
I. Executive Summary 1
II. General Company Description 2
III. Products and Services 3
.IV Marketing Plan 4
V. Operational Plan 5
VI. Management and Organization 6
VII. Personal Financial Statement 7
I.VII Startup Expenses and Capitalization 8
.IX Financial Plan 9
X. Appendices 10
4.
Services:
To solidify people’s confidence in the financing options, and to demonstrate the company’s dedication to the community, a large wind power station
and community center will be constructed in Nellore. A number of end‐user services will be provided at this community center, such as coffee bean
processing, food storage and refrigeration, battery charging, water distilling, computing, telecommunications access and Internet browsing. Most of
these services will be provided within a year after CARL WindBelts’s initial establishment in Nellore, but eventually they will generate as much as
75% of the company’s revenue. All of these services will be designed to help the village residents augment their incomes. In this way, CARL
WindBelts hopes to foster economic activity, and thus prosperity, within the community. This business plan will not describe the community center
aspect of CARL WindBelts’s operation in detail, but the offering of these services is part of the company’s long‐range plan for development in AP.
Marketing Plan
The marketing plan is based on developing an awareness regarding CARL WindBelts's products and services to the end‐use consumers. CARL
WindBelts shall strongly use networking as a means to publicize its products. To reach the end user customers, CARL WindBelts will use
Advertisements in the local paper as well as within the yellow pages. As a means of increasing visibility of the company, it will participate in several
community‐based seminars that serve as a free source of information for the citizens of India. CARL WindBelts believes that participating in the
seminars will be an effective way of meeting many of the potential customers and allowing them to become familiar with our expertise. Apart from
these, word‐of‐mouth publicity will anyway be there if the product is good.
In Nellore, and in all other project sites, CARL WindBelts will seek partnership with a local organization to help with operations, marketing, legal
negotiations, and other important aspects of conducting business. As such, we are confident that no other foreign company will be able to enter this
market because it is virtually impossible for any foreign company to conduct effective or sustainable business in a poor, developing community
without trustworthy local contacts.
Website Marketing Strategy:
The website will be used as a marketing tool. It will offer a description of the products offered as well as customer reviews/feedback/complaints etc.
The plan for marketing is fairly simple: submission to search engines such as Google, Yahoo and Bing and listing the website URL on all of the
company`s correspondence and printed marketing/sales media. Also, since we are in a renewable energy sector, we shall have backlinks to our site
in many other relevant websites in this sector.
Online Media:
Another plan for marketing is the extensive use of online media. CARL WindBelts shall have a facebook page, a twitter page and a blog apart from the
website mentioned above. Frequent updates on latest sales, customer reviews, ratings, stories, other technologies, latest innovations at CARL
WindBelts etc. can be publicized more effectively, thereby attaining a greater reach, which in turn increases the sales. This is particularly targeted at
rban customers as most of them are tech‐savvy. u
Operational Plan
Production plan:
Production techniques and costs ‐ We need a manufacturer to make our products as per our design. In the long run, we wish to set up our own wind
belt manufacturing plant.
Quality control – To ensure quality, a team of two or three experts in this particular technology will be appointed and frequent checks shall be
conducted on a couple of products from the mass/batch production. We can as well try for ISO certification which also increases customer trust.
Product development – A dedicated product design and development team exists and it works directly under the guidance of the Ravi teja, Manager,
Product Design. It`s job is to constantly innovate for new products as well as enhancing the existing products for a flawless output.
Personnel
Since we are a 4‐member team, we do not require other members to carry out the company`s initial tasks. However, in a month or so, we would be
needing people for reaching out to the deeper communities, demonstrations, marketing etc. For the BoP markets, we would be hiring a local person
since it will have a maximum impact on the end users. For advertising, we may tie‐up with a branding partner such as Desto. We shall have a
reasonable pay structure that is convenient for everyone. Staff shall be trained in their respective areas by experts for a month or so. We shall make a
rafter job descriptions for employees and develop internal communications with them. d
Management and Organization
The company will be lead by four of us ‐ Ravi teja, Abhinay Sali, Chandrasekhar and LaxmiNarayana. All of us are mechanical engineers from iit
madras. Ravi Teja has a good technical knowledge as well as designing skills. So, that helped him to be a suitable product designer for CARL
WindBelts. He worked for XYZ that provided him with a foundation of knowledge regarding green energy, just one of the areas of assessment.
Abhinay Sali has a great creativity and will be helpful for online marketing of CARL WindBelts. Chandrasekhar and LaxmiNarayana are capable of
ground work since they knew the BoP markets very well.
Personnel Plan:
For the first three months, the founders can take the responsibility of all the company operations. Ravi will be responsible for most of the business‐
related issues as well as doing research and helping out with the work projects. Abhinay's responsibilities will be marketing and sales based. He will
work hard on developing visibility for the company as well as working with prospective customers. CARL WindBelts has forecasted that on month
four it may need administrative assistance. The duties will be answering the phone, some input accounting, and other clerical functions. Initially this
person will be part time but will move to full time at the beginning of year two. Chandrasekhar will head the Research and Development department.
LaxmiNarayana shall manage the sales and accounting departments.
5.
Startup Expenses & Capitalization
Start –u nses: p Expe
he entrepreneurs invest Rs.50,000 from their pocket and take a loan of Rs.1,00,000 from a bank. T
Legal 3000
Stationary etc; 1000
Infrastructure 26,000
Total Start‐up
Expenses
30,000
Start‐up assets needed:
Cash balance on starting date 70,000
Other current assets 50,000
Total Current assets 120,000
Long term assets 0
Total assets 120,000
Total Requirements 150,000
Funding
Investor 1 15,000
Investor 2 10,000
Investor 3 10,000
Investor 4 15,000
Total Investment 50,000
Current Liabilities
Accounts Payable 5,000
Current Borrowing 0
Other Current Liabilities 0
Current Liabilities 5,000
Long term Liabilities 100,000
Total Liabilities 105,000
Loss at start‐up 30,000
Total Capital 50,000‐30,000=20,000
Total Capital and liabilities 125,000
We have rented an office for Rs. 5,000. So, out of the current assets Rs. 5,000 goes off and Rs. 1,15,000 is the money left.
Our product cost of manufacture as of today is Rs.100. We wish to manufacture 500 products in the first month and sell them at Rs.300 each. It is still
cheaper given the fact that the product is viable and the customer gets the demo of how he can reduce his current bills.
The bank interest rate is 5% per month. So, 5000 rupees are to be paid per month. There would be 10 sales boys given Rs.4000/month and 5
workers given Rs.4000/month again. The rent is Rs.5000/month.
Month 0 1 2 3 4
No. of Products 500 500 750 2000 2000
Advertise 0 10000 10000 10000 10000
Rent 5000 5000 5000 5000 5000
Interest 0 5000 5000 5000 5000
Employees Salary 0 75000 75000 75000 75000
Manufacture Cost 50000 50000 75000 200000 200000
Maintenance 0 10000 10000 10000 10000
Total Sales Balance 0 150000 225000 600000 600000
Startup Capital left 115000 65000 60000 105000 400000
Total Assets 115000 215000 285000 705000 1000000
Fixed Cost 50000 155000 180000 305000 305000
Money Left 65000 60000 105000 400000 695000
Bank Repayment 0 0 0 0 100000
Entrepreneur Salary 0 0 0 0 0
Money after Repay 65000 60000 105000 400000 595000
The company is all set for the large scale wind belt production at the end of 4th month. The 95,000 will be shared by the initial investors i.e.; the
entrepreneurs. Keeping the money back instead of investing the whole money is playing safe. The entrepreneurs can exit safely if they fail.