ENTREPRENEURSHIP PRACTICE AND PRODUCT SECTOR ENVIRONMENT
Practice and exercise on general store and green grocery retail chain
- Rivals
Big Bazar, Reliance fresh, Sri Lal Mahal basmati rice retail store, Safal Stall, Six to Ten, Departmental stores, Mega malls etc.
- Standard profile of customer
Walking customers of local area.
- Purpose
Daily shopping on kitchen, housing and fresh vegetable.
- Procedure
This store may require land area of 20x40 square feet only. There may one store manager, two or three executives and a security guard. It costs Rs 40,000 monthly salary and Rs 20,000 monthly rental. Investment on stock of general store items and grains may cost Rs 900,000. Fresh vegetable, milk and bread may cost Rs 100,000. Rack, interior, computer, printer, baskets and electronic scales may cost 200,000. Security deposit on rent may Rs 300,000. Hence forth it has Rs 60,000 monthly maintenance and Rs 1500,000 investment. Overall daily sale of Rs 100,000 may have Rs 80,000 from FMCG at 5% profit rate and 20,000 groceries at 20% profit. Hence it has total Rs 8,000 daily and Rs 240,000 monthly profit. It is Rs 160,000 net monthly or Rs 1920,000 annual income from a retail store. This is 125% annual return on investment business. Retail chain with brand positioning of less on MRP of FMCG at local area at rural, urban, semi urban, capital, metro city and big city shall always workable with high response. Brand positioning shall take a corporate look to prove a success entrepreneurship.
- Products from this stall shall be arranged available at 2 to 5% less on MRP of FMCG and general stores items.
- Positioning of less on MRP shall impact attraction to local community towards dependent daily shopping. It may include home delivery with certain charge, distance or value.
- Stocks should be healthy, hygienic, fresh, pure and clean.
- Store designed with self-service by easy display from proper racking.
- Basket, computer billing, reliable electronic scale should available in regular manner.
- Fresh and green vegetables of good quality on better price than open market.
- Business Profitability Return Table
Product FMCG and vegetable groceries
Particular Amount in INR
Stock 1000,000
Premise Rental security 300,000
Furniture and electronics 200,000
Total Investment 1500,000
Daily Sale 100,000
Monthly sale 3000,000
Average profit @8% 240,000
Monthly fix overhead and salary 60,000
Net monthly profit 160,000
Net annual profit 1920,000
Annual investment return rate 125%
Segmentation Colony
Targeting Daily consumption by colony residents
Positioning FMCG items at 2 to 5% less on MRP
Practice some exercise on jewelry retail showroom chain
Jewellery retail shop is very valuable business in society. It is very low margin business with a publically defined standard sales price on daily Sensex market. It was profession of goldsmith and now it is a practice by high investors. It require huge investment on glass furnishing, luxury chairs, granite floor, air conditioning, staffing, internet, risk management, strong lockers etc. It is high maintenance, high investment, high risk but high turnover and low margin business.
Business Profitability Return Table
Product Jewellery retail showroom chain
Particular Amount in INR
Stock 3300,000
Premise Rental security 300,000
Furniture and electronics 200,000
Total Investment 3800,000
Daily Sale 100,000
Monthly sale 3000,000
Average profit @20% 600,000
Monthly fix overhead and salary 60,000
Net monthly profit 540,000
Net annual profit 6480,000
Annual investment return rate 170%
In case of rapid fired positioning scheme of 5% on price discount on daily Sensex price of Gold and Silver Metals
Monthly Sale will double 6000,000
Average profit @ 12% 720,000
Monthly Fix overhead and salary 60,000
Net monthly profit 660,000
Net annual profit 7920,000
Annual investment return rate 200%
Segmentation Local customer in city
Targeting Entire jewellery buyers
Positioning 5% Discount on Gold and silver exchange rate on jewellery items.
- SWOT
Strength- High turnover, high social status, hidden income, multiple alternate products, money lending, making, repairing, consultancy service etc. are open option of increasing margin. Instead of being a precious metal business, it has very normal investment on stock than franchisee business. Glass racks and interior designing require the amount of Rs 200,000 only. It may lower than security money of shop. Jewelleries for display in showcase are artificial only. Stocks for sale are kept in safe box with fifty pieces each product. On average on 20 gram each set, it hardly require one KG gold worth Rs 2800,000. Investment on Silver jewellery and other ranges may hardly come over Rs 500,000. Jewellery sales against an order booking are booked against advance payment. Hence this business gives the profit of Rs 70,00,000 at the rate of 20% on Rs 3,65,00,000 turnover per year. Deducting fix overheads and salary, it may a safe annual profit of Rs 6500,000. This is 170% on investment. Entrepreneur may wave off the making charge of expected 3% on turn over for a positioning. For a better positioning, a discount of 5% on Sensex price is required a rapid fired attraction of customer. This will give the annual profit above 200%.
Weakness- Low profit, publically open sales price, daily variable price from commodity exchange, high risk and high investment.
Opportunity- Selling readymade jewellery on gross price on costlier metal weight includes following margin of 20%:
- it has very less income margin average 1% per gram on sales of gold weight
- making charge- average 3% margin,
- crystal used in designing- average 5% margin,
- mixed copper and brass for hardness in jewellery to defer the trench from 24 carats to 22 carats- average 10% margin.
They are also offering other fancy products, artificial jewellery, crystal goods, gems, stones, branded watches and money lending.
Sometimes the old and antique jewellery comes to them on resale at half or less on actual value. Repairing, sales of 24 carat pure gold and fresh jewellery making orders are several extra source of income in this business. Overall profit from cash in counter is 30%.
Threat- High Investment, low margin, high risk, un happening of stolen goods at repairing, remaking, reselling, collateral deposit on lending etc.
Practice and case study on fried spice
Spice products are:
None fried Turmeric powder
None fried Chili powder
Fried Chili powder
Fried Coriander powder
Fried Kitchen king spice powder
Fried Jeera powder
Deferent dish and vegetable fried spice powder (mixture with packet size suitable per KG vegetable)
Meat fired spice powder
Chicken fried spice powder
Mutton fried spice powder
Fish fried spice powder
Paneer butter masala vegetable fried spice powder
Matar paneer fried spice powder
Chilly paneer fried spice powder
Sahi paneer fried spice powder
Potato paneer fried spice powder
Paneer do payaja fried spice powder
We can assume pricing with respect to profit margin and production cost.
Spice - Coriander
Price per KG- Rupees 100 only
Fry charge- Rupees 5 only
Grinding- Rupees 5 only
Transport- Rupees 1 only
Weight loss- 10%
Cost price- Rupees 123 only
Whole sale price- Rupees 140 only
Maximum Retail Price- Rupees 170 only
Country like India having 1.2 billion population may have assumed daily spice consumption with foods worth Rupees one per person. Hence total spice market size in India from consumption is worth Rupees 120 crore daily and Rupees 44000 crore per year. It has rupees 4400 crore per year profit market to the manufacturer at the rate of 10% profit margin on sale price. If a high potential fried spice and vegetable fried spice may occupy 25% market size of spice business, that cause an annual profit of rupees 1100 crore and annual sale of rupees 11000 crore to the fried spice entrepreneur. Fried spice is a desired product and unavailable from market. It will delight the consumer. They consumption will multiply up to double. Industry size will double. This reflect an annual profit of rupees 4400 crore and total sale of rupees 44000 crore and above.
- Starting this business with an investment of rupees 10,00,000 only with production capacity of 500 KG fried spice per day.
- We may start from a normal area.
- Rupees 1,00,000 investment on rent, infrastructure and remodeling.
- Rupees 2,00,000 on 4 sets of power generator and grinding machine unit.
- Rupees 2,00,000 on frying machine unit.
- Rupees 4,00,000 on spice seeds and packing.
- Rupees 1,00,000 cash in hand.
We can start product marketing, shop to shop display and franchisee appointment for the product brand. Price discount and other terms as per standard FMCG companies like Unilever Limited India etc.
- It is assumed only 40 KG spice sale at 20 counters at first day by a team.
- It is 280 KG spice sale at 140 counters in seven days by a team.
- It is 4000 KG spice sale at 2000 counters in seven days by 15 teams.
- Monthly sale is 16000 KG or rupees 250,00,000.
- Monthly profit is rupees 2,50,000.
- Monthly profit to the owner is invested in setup of production units. According to increasing production units’ distributorship and franchisee invitation notice should be published at national newspapers for potential areas according to the rate of production. Security money collected from franchisee will be invested to set production units devoted for him to secure adequate production and supply. This will be repeated to increase business from state level to national level and international level by a regular invitation for CNF and super distributors according to market size.
- Appointing first distributor at second month of enterprise establishment. Continue with two appointments at third month, three appointments at fourth, four at fifth and five at sixth month. It starts growing fast in a state market.
- Invite CNF or super distributor and production partner for neighbor state through a national newspaper, from seventh month. Continue inviting CNF for rest of the states at every next month.
- This may provide a countrywide marketing of this product. Every potential product can be introduced at countrywide marketing from beginning by individual setup; on this business strategy. Fried spice powder is one of the expected, desired, customer delighting, unavailable and easy acceptable products at present Indian, Asian and African market.
Business Profitability Return Table
Product Fried Spice powder and vegetable fried spice powder
Particular Amount in INR
Stock, packing 500,000
Rental, remodelling 100,000
Frying, Grinding and generator machine 400,000
Total Investment 10,00,000
Daily Sale 90,000
Monthly sale 25,00,000
Average profit @10% 250,000
Monthly fix overhead and salary 50,000
Net monthly profit 200,000
Net annual profit 24,00,000
Annual investment return rate per unit to cover area of single city 240%
CHAIN DEVELOPMENT STEPS
In hand cash after two months @ INR 250,000 monthly profit 500,000
In hand cash after three months @ set up of one extra unit by last profit of INR 500,000; to occupy supply from one more chain will give two times monthly profit from chain in two cities. 500,000
In hand cash after four months @ set up of one extra unit by last profit of INR 500,000; to occupy supply from one more chain will give three times monthly profit from chain in three cities. 750,000
In hand cash after five months @ set up of one extra unit by last profit of INR 750,000; to occupy supply from one more chain will give four times monthly profit from chain in four cities. 1000,000
In hand cash after six months @ set up of two extra unit by last profit of INR 1000,000; to occupy supply from two more chain will give six times monthly profit from chain in six cities. 1500,000
Distributing Brand Franchisee
Distributing brand franchisee in next 10 cities after ninth months and earn monthly profit from 20 chain in 20 cities. 2500,000
Invite material production partner and franchisee on state or territory level supply for 20 each chains
Distribute super distributor and CNF at every 20 chain cities through national level news-papers.
Regular monthly income after 12 months with national level demand supply network by the team of 20 production partner for supply and 20 CNF handles 20 franchisee each for demand, will give 400 times monthly profit from chain in 400 cities throughout the country. 400x250,000= 1000,00,000
Segmentation National and International Market
Targeting Daily consumption to every human being
Positioning Fried Spice Powder unavailable desired product
Practice some exercise and case study on dry fruit juice
- Standard profile of customer
High power, high energy, high muscle building, strong body building, delicious most, richest most, status symbol and expansive rich diet loving person may adopt it in his regular diet. Sale of this product from an ATM size, shape, location and furnishing stall with expected rent security of Rs 100,000 and furnishing expanse of Rs 100,000.
- Product development
Deferent dry fruits are grinded with milk mixed with sugar and sweet flavours. It is presented in a glass. This is utmost tasty, extreme caloric and most energetic juice in mind of society. It is the choice of society. Not available in every city. It is presented in a big glass with total weight of 300 grams. It is thick juice with 150 grams dry fruit and 150 mile litre milk. Average price of fry fruit is Rs 300 per KG. Total costing on each glass is Rs 50 only. It can be sold at Rs 80 per glass. This is three times costlier than other energy juice in market. It is very high selling product with an average of 200 glasses per day. Daily sale is Rs 16,000. It has Rs expected profit of Rs 5000 per day from a counter. From 10 counters in a city, it may total Rs 100,000 daily or Rs 30,00,000 monthly. Entrepreneurship can continue to develop a national and international business chain.
- Business Profitability Return Table
Product Delicious high energy dry fruit juice
Category Amount in Indian Rupee
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Annual investment return rate 1080%
Segmentation Metro city and urban city
Targeting
Rich families, caloric prescription, delicious and high energy diet likers
Positioning Delicious strong calorie source
- Case study
A traditional stall near world famous Charminar, Hyderabad has positive business profitability and positioning of heavy energy diet among target customer.
Practice some exercise and case study on artificial flavored juice
- Procedure
Juice machine could be installed at busy corporate streets, high traffic stops, railway platforms, airport, bus terminal, metro stations etc. serving flavoured artificial juice at economic most price of their range in fastest needful change from zero queues, chilled, fragrant and relaxing air.
- Business Profitability Return Table
Product Artificial flavour chilled juice from a machine at busy traffic point
Category Amount in Indian Rupee
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Annual investment return rate 4300%
Segmentation Rush traffic points of metro cities
Targeting
Traveller passing on street
Positioning Light hygienic juice at cheapest price in fastest change from zero queues, chilled, fragrant and relaxing air.
- Case study
Regal theatre is located at famous Connaught place in New Delhi. There is huge rush at this street. There is a small snacks stall installed with a refrigerated juice machine producing artificial flavoured pine apple juice for all 365 days in a year. Juicer is installed out-side the shop for a direct view and attraction to customer. Perfume of pine apple is enough to catch attention of people passing near this street. Freshness and chilled air from the running electronic machine touch the body of people passing around. Standing crowd at street with juice in transparent glass does stop to think. Price of juice is printed at machine and walls with the cheapest and easiest change load on pocket. This price factor is final positioning of the success. People suddenly change his mind for a certain zero load on pocket with respect to overall attraction by a chilled perfume in air. He feels relax by expensed change of his pocket. Over all impacts in fastest needful change from zero queues, chilled, fragrant and relaxing air
Practice exercise and case study: Vegetable health juice on wheel
- Standard customer
Inspired people from the health tips by world famous yoga saint Baba Ram Dev: old age people, sugar complains, fitness purpose, morning jogging etc.
- Purpose
Physical fitness
- Procedure
Cucumber juice, Pumpkin juice, carrot juice, tomato juice, sugar cane juice, orange juice, apple juice, pumpkin juice, lemon juice, leafy vegetable and spice juice can be sold on trolley in early morning targeting to the morning joggers near park, walking streets, school gates, colony etc. Business administrator would distribute the trolley vendors to deferent locations installed with fresh groceries, clean dress, washed tools, use and throw glasses, transparent gloves etc. Sales of average 50 glass juices at the rate of Rs 20 per glass will give total Rs 1000 per trolley. Expected expanse on groceries may Rs 600 and salary to vendor may Rs 300 per day. Then daily profit from each trolley comes to Rs 100. If there may 100 trolleys distributed to the vendors. Monthly income from a limited investment in this line of business is Rs 300,000. An entrepreneurship can use the advantage of his brand publicity from trolley in other related business targeted to cover his loyal clients. Same juice can be packed and introduced in market with personal brand. It may open an opportunity to establish the brand positioning in food and beverage industry for diversified lines and products.
- Documentation
There is no need of any documents or official permission at initial level. On achieving packing, branding, marketing and supply of products, it required departmental licence from food and drug department. Quality standard and grading certification are an extra procured certification at choice.
- Product development
- Fresh juice
- Packaged branded juice
- Brand value may open an opportunity in using same brand name at mineral water.
- Introducing soda and lemon juice with positioning of created brand value.
- Ice cream and herbal drugs in national and international market by sales and supply collaboration with renowned restaurants, airlines, five start hotels etc.
- Business Profitability Return Table
Product Vegetable health juice on wheels
Category Amount in Indian Rupee
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Annual investment return rate 360%
Segmentation Metro city and urban city
Targeting
Old age, Diabetic, Fitness conscious
Positioning Vegetable health juice
- SWOT
Strength- Pesticides complains from a packaged brand is risk free from a licence and quality certification. Certification department decide the production level and insure the claim. Matter of pesticides, reverse effect on health and death from consumption are omitted and system licenced only against a procured performance maturity level to produce a perfect digestible product.
Weakness- Regular skill test of employee and regular washing of machinery are ignored in practice. Packets in market are often unsafe by temperature, handling, expiry etc.
Opportunity- There is open prospective market. No player in this desired product. It is highly popular product among target customer, familiar among every people in society, chance of positive appreciation from Baba Ram Dev himself and obvious free advertisement of product from daily television programs by Baba.
Threat- Initial level is very risky in sense of reverse health complain by user due to allergy level of taste would vary from physical system of man to man.
Practice exercise and case study: Caventar milk ice cream shake shop.
Scope of dairy business is on boom due to insufficient nutrition from hybrid foods. There are national, state and local dairy companies with their pasteurised, chilled, flavoured and bottled milk in market. Some sweet corners sales hot milk in glass. Ice cream and shake companies’ sales their products with deferent flavours and taste. Still it is rare to find fresh, chilled and flavoured cow milk. It is also rare to find ice cream shake made by ice cream break and fresh chilled cow milk. These two products are served in market from a long back and successfully run in society. This business is desired in society. It needs an entrepreneur to open the branches in deferent part of city.
- Business Profitability Return Table
Product Delicious fresh and chilled dairy shakes
Category Amount in Indian Rupee
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Annual investment return rate 5400%
Segmentation Metro city and sub metro city business centre and corporate centre
Targeting
Young executive and business class
Positioning Delicious fresh, chilled, flavoured, hygienic, energetic cow milk and dairy diet
- Case study
Caventar: It is a popular and old shop in Connaught place, New Delhi. It has no other branch. Chilled milk served in around half litre bottle that is filled fresh from refrigerator and served direct in uncapped. Crowd of customers are enjoying the demanded flavours of energy drink in standing position at street of this small stall. There is high demand and attraction to this hygienic and delicious product. Deferent flavours of delicious ice cream shakes are most liked product of the regular customers. It is served in plate/glass and spoon with a piece of ice cream brick dipped in to chilled milk. Stall has very big fan following for their quality positioning among their target customer. This is very unique approach of a common product. It is absolutely success business. Instead of this, it is not introduced or copied by others. Stall has some light snacks pizza, patties, pastry, sandwich etc.
Practicing exercise and case study on cane furniture, wood carving, antique interior and gardening
- Standard profile of customer
Bangla, apartment, restaurant, hotel, office, reception, garden, capitalist and politician, royal families, film and drama industries are having extra money to expanse on show products.
- Purpose
This furniture is light in weight, hand-made art, beauty in look, durable by quality, fashionable design in society, symbol of status and used as natural theme.
- Procedure
Cane furniture is an art work of traditional labours weaving entire range of furniture, designed baskets and beautiful toys from thin bamboo sticks and its parts; belongs from north east states of Indian mountain area. This are and product is close to cultures in many area of India. It is now disappearing. Hence it needs to be promoted. Government organize cultural fairs for support and encouragement of this art. We can talk with this furniture and listens messages from it. It is truly a living thing with a history that touches our body and cares it from natural heat and cold by speciality of reverse effect in its quality. Hence it is highly demanded product by the users and there is no alternate of it near them. Wood carving is also one of the major hand-made art works by the talented labours punching long lasting valuable woods on cultural designs. It gives extreme beauty with when combined as complement to cane furniture.
- Product development
Set a factory for production of cane furniture and wood carving from an individual entrepreneurship mission is a labour dependable business. It requires a skill to tolerate the unexpected attitude of cultural artists and talents. They are emotional and strict. Find a community of this labour. Select one team from them. Appoint at clear and defined salary and terms. Keep 20% extra in mind and save them in reserve account for the emergency hours of unexpected demands by them. This twenty present is expected exempted to oblige them and continue them on work.
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- Business Profitability Return Table
Product Cane furniture, Wood carving and antique piece
Particular Amount in INR
Stock 10,00,000
Rental security and labour advance 300,000
Carving and moulding machine 200,000
Total Investment 15,00,000
Monthly production 10,00,000
Monthly sale 15,00,000
Average monthly profit @50% 5,00,000
Number of branch possible in a year 20
Monthly profit from 20 branches 1,00,00,000
Net annual profit from 20 branches 12,00,00,000
Annual investment return rate 400%
Segmentation Metro city and sub metro city
Targeting Bangla, apartment, restaurant, hotel, office, reception, garden, capitalist and politician, royal families, film and drama
Positioning Artistic natural home furniture
- Case study
There are dozens of big showrooms at Ghitorny and almost a dozen shops at Aaya nagar and approx. a dozen shops at Sikandarpur Chowk, at Delhi metro rail route in Mehrauli Gurgaon Road. Most of them have their own production and sales counters. These small and big shops are in a queue of 10 KM straight road. Small scale shopkeepers have economic price, since low maintenance and includes individual labour. Show rooms have inferior quality but machine polish. They are charging high from this showroom. Customer can easily understand this gape. Finally the overall sales unit is equal from the two categories. Showroom has double and multiple profit margins from their fixed pricing on similar investment. Small scale sellers have low margins after bargaining. Overall on sale of 1 unit showroom charge 3x with profit of 2.7 and small sellers charges 1x with profit if 0.3x only. This is 900% extra profit to a showroom at same sale of same units.
Practicing exercise and case study on china steel furniture, rod iron furniture and bamboo chick
Rod iron furniture, china steel furniture and Chinese imported bamboo stick curtains are now become a part of apartments, big houses and farm houses at metro towns among elite and executive class. This is liked due to the advantages of price economy, modern look, durability, light weight and low maintenance. Chinese imported bamboo chick certain are quite natural in look. It is nature friendly and costly for a status symbol. Growing executive and elite class adopt this product for their multi-colour beauty in status symbol. Trained labour measure the premises and prepare the certain in size. Fix them to the premise at customer instruction. It is costly product and charged on square foot. High charge is zero after a satisfying fitting of this beautiful modern certain in dream house of a new couple executive class.
- Business Profitability Return Table
Product Rod iron furniture, China steel furniture, Bamboo chicks
Particular Amount in INR
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Annual investment return rate 450%
Number of branch possible in a year 20
Monthly profit from 20 branches 90,00,000
Net annual profit 10,80,00,000
Segmentation Metro city and sub metro city
Targeting New couple executive and elite class, garden, farm house, apartment
Positioning Modern, economic, light weight, low maintenance
- Case study
There are dozens of medium size showrooms at Ghitorny, couple of shops at Aaya nagar and half a dozen shops at Sikandarpur Chowk, at Delhi metro rail route in Mehrauli Gurgaon Road. They have wholesale purchasing from importers and manufacturers directly or indirectly through suppliers. These small and big shops are in a queue of 10 KM straight road. Small scale shopkeepers have economic price, since low maintenance and includes individual labour. Show rooms have same product with machine polish. They are charging high from this showroom. Customer can easily understand this gape. Finally the overall sales unit is equal from the two categories. Showroom has double and multiple profit margins from their fixed pricing on similar investment. Small scale sellers have low margins after bargain sale. Overall on sale of 1 unit showroom charge 2x with profit of 1.7 and small sellers charges 1x with profit if 0.3x only. This is 500% extra profit to a showroom at same sale of same units. Bamboo chick certain business requires outdoor fitting labour and tailoring labours for a size certain.
Practice some exercise on local area yellow page etc.
- Procedure
Publisher is authorised for booking of advertisement from the market on registration of title name of yellow page. It requires hard effort and marketing skill for space booking at initial months of publication. There may other pre-existing rival yellow pages successfully running in this area. New publisher does win trust of target customers as well as recognized by resident listeners for its effective editing and quality print. Try to improve and balance matching on expectation of space payee as well as regular viewers. Result in business growth to advertising clients due to advertisement in this magazine will attract fresh advertisement to magazine. Marketing on 100 fresh shops and offices in a street per day shall result to average 5 confirmed booking and 15 prospective clients. From 10 days marketing and follow-up to pipeline prospects we may get total 100 clients by 50 easy and 50 repeat visits. Average revenue collection may come with the ratio of average 2 space booking per advertisements. Some advertisements are booked for single box space, some for multiple boxes and some with multicolour multipage also. If there are three executive marketing parallel. Then it will total three hundreds booking to occupy 600 boxes. It will generate revenue of Rs 3,00,000 at first month. From the next month, these executives require repeat collection of revenue from the previous business and may effort to generate 10 to 20% extra fresh business from the spare time. This will result in an optimum Rs 4,00,000 monthly revenue collection from the fourth month.
This business does require minimum investment since, a proof writing of advertisement contents prepared from the service providers in retail market and magazine is printed from the private printing press according to approved formats in coral drive software. Initial investment on setup of offset printing press and coral draw operator can be ignored from this method. Salary of employees and marketing executive will be payable at month end. Revenue collection does start from first day only. Hence it is a zero investment retail business against implementation of managerial skill from an individual level. It just requires a clear business concept, determination, experienced team, licence application and visiting card.
- Documentation
Licence can be procured from the government department of news and publication registration. It charges nothing except filled up form enclosed with identity proof and notarised affidavit. Choice of brand name is confirmed through postal letter within two month of submitting application. Then collect advertisement or news according to area of activity. Publish magazine and submit one copy of first edition, identity proof, attested corporate formation application etc. to the licence department. Licence with authorization of using the sticker of press at vehicle and related documents are provided.
- Business profitability Return Table
Product Local area free distribution yellow page
Category Amount in Indian Rupee
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Annual investment return rate 16800%
Segmentation Metro and sub metro city
Targeting Shops, service providers, event managers, hotels
Positioning Local area free distribution monthly shoppers phone directory
Practicing exercise and case study on brand positioning by production, marketing and demand chain supply management of product business like: Motor spare
Annual petroleum business in India is rupees 6000 billion. Assuming a tourist car is reserved for a day to a journey of 100 KM at daily rent of rupees 500 only. Two side distance of journey is 200 KM and it consume 20 liters diesel at an average of 10 KM per liter fuel consumption by the car.
- Car consumes petroleum of rupees 1000
- Owner collected rupees 500 on car rental.
- Rupees 150 paid to driver.
- Rupees 100 per day on installment, insurance and tax.
- Rupees 25 per day on Mobil oil.
- Rupees 50 on motor spares.
- Rupees 25 to garaging.
- Rupees 150 to owner profit.
- This reflects that the market of motor spare business is rupees 50 in comparison of rupees 1000 fuel consumption by the same motor. It is 1 against 20.
Sharing of motor segment in total annual fuel consumption in India is 50%. Rest 50% fuel is consumed by rail, airplane, industry, generator, agriculture etc. 50% fuel by motor segment covers one fifth by heavy vehicles, one fifth by tractors, one fifth by utility, one fifth by cars, and one fifth by two and three wheelers. It is 10% of annual fuel consumption in country at each motor segment. Fuel consumption in one motor segment is 10% or rupees 600 billion only. Motor part business size is just 20 part of fuel consumed by this segment. Hence it is rupees 30 billion only. Original spares and local spares business market may be assumed 50-50. That give industry size of just rupees 15 billion for an individual entrepreneur. There are thousands of spares in a motor and several brands of those spares. Spares packed, branded and marketed with 1% value of vehicle may give the market size of 1% of rupees 15 billion. It is rupees 1500,00,000 only. If we occupy 30% market of other brands in introduced local spare parts, then it will rupees 4500,00,000 annual business or rupees 37,50,000 monthly or rupees 125,000 daily sales business size to an entrepreneur. It is not too healthy place for all time entrepreneurship. It is good to start and uplift a career. It is also very good career for life time wholesale business life. Activist may focus on brand name, label print, packing method, quality, price-list discount on MRP, gifts and coupon, distribution channel etc. The best method of market coverage in local motor parts at current motor spare industry is; get the best quality product, multiple gift items of same price with deferent packet of same product, plus a gift coupon and packing in useful pearl pet jar or hot pot or steel tiffin or plastic pot etc. protected by thermo coal layers according to size of spare parts. Price list would highest with maximum less percentage and MRP shall higher than list. Profit should optimum. Expanse on unnecessary multi-color packing would deducted by sticker printed with brand name and logo. This packing cost would be paid on useful pot packing. Good quality product will prove long lasting in vehicle, packing pots attract consumer, high list less attract whole seller, high MRP on list will attract retailer and multiple product gifted from deferent pack will attract to mechanics.
Same method to measure the business industry size and similar strategy suitable to business line shall be applied in business lines of garments, stationary, electrical and sanitary etc.
Practicing entrepreneurship in INR 2 per glass mineral water at road trolley
- Documentation
- Company formation deed at non-judicial stamp paper near notary advocate.
- Road side stall installation permission and information to local police station, city municipal department, food and drug department, sales tax department, labour department and a NGO.
- Strategy by individual vendor from zero investment.
An individual vendor may open a self-service stall of mineral water glass at corporate streets in metro city. He needs a folding table or a trolley, four jars of branded mineral water 20 litres each, five hundred use and throw plastic glass, 500 use and throw plastic spoons and one KG transparent pearl pet plastic jar of sugar, salt, lemon, sugar free tablets, digestive powder (jal jeera) and glucose each. Corporate street consumers are skilled professional and maintain his hygienic living standard. They will recognize the value added quality management system at stall. One litre mineral water bottle is available at Rs 15 and an individual require only half water. He pays extra on it and throws the bottle and the water remains in it. 20 litre mineral water jar of same brand cost Rs 50 0nly. Hence it is carrying total 60 glass water of 300 ML glass each, which cost below one rupee a glass. General market impure water glass of 200 ML is available at Rs 1 per glass plain water and Rs 5 per glass water with a lemon and salt. This is a self-service stall. Customer can pay Rs 2 for 300 ML branded mineral water and Rs 5 for water with option of multiple hygienic energy products on choice and taste. Stall would have space for advertisement. Vendors are uniformed with cap and gloves. Advertisement space on uniform can also be sold to sponsors. Investment on table/trolley, uniform, 4 jars of 20 litre mineral water, five bottles Sugar, Sugar free tablets, glucose, salt, lemon and digestive powder will cost below INR 5000 only. Daily expected sales from four jars of 20 litres each will 250 glasses. We may assume sales of 150 plain glasses at Rs 2 per glass equal to Rs 300 and 100 mixed glasses at Rs 5 per glass equal to Rs 500. That is total sales of Rs 800 per day. Expanse on 4 jars is Rs 200 and other consumed mixture is Rs 300. Total expanse is Rs 500 per day. It is Rs 300 total profit in a day. There is expected daily income of INR 100 from advertisement space on trolley. This is overall INR 400 daily profit from a stall. An entrepreneurship personality may increase open the branches at his next points and gradually occupy the entire city. Target customers would adopt the concept sales at his easy access. Ordinary water selling vendors may start turn towards this mineral water stall vendor ship on commission and a salary. Entrepreneur may offer a fix salary of INR 3000 monthly, employee medical insurance, death coverage, commission on sale etc. from Rs 200 daily profit. And keep rest Rs 100 as his daily profit from each branch. Total daily income will become INR 100,000 on installation of 1000 branches across a metro city from 1000 vendor ship distribution. It has monthly income of INR 30,00,000 from the end of first year from this business.
- Business Profitability Return Table
Product Branded mineral water in glass
Category Amount in Indian Rupee
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Annual investment return rate 720%
Segmentation Metro city road corners
Targeting
Every citizen
Positioning Hygienic mineral water glass in every hand
Practicing exercise on establishing retail chain of individual brand in computer sales and maintenance stores at every railway station
Current generation has very rapidly adopted and finally depended over mobile and internet communication technology. Henceforth resale, repairing and maintenance of hardware and software of mobile and computer laptop systems are highly grown business everywhere in society. It may not wrong to compare or term it among FMCG business. Recharge voucher has already defeated to the FMCG industry. There are lots of scope in rural, urban, semi-urban, big city, sub metro and metro city to open an individual computer sale, replacement parts, repairing and hardware software maintenance business.
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Chain of this business is possible from the positioning to providing toll-free number to call a service engineer for on door maintenance; and distributing business chain franchisee at stall from railway stations. There are hundreds and thousands of railway stations across a country for a prospective market. Benefit of chain branding, consistent service, durable product and easy location will all prove a success to this entrepreneurship career. On growing rate of a new branch per year shall create impact to regional consumer familiar with brand name as a chain business, controlled by employed store managers. On fifth year an entrepreneur with above ten branches would have value to invite franchisee of his brand chain store. Gradually the franchisee could be distributed across the country in better command of entrepreneurship management. Profit from 100 stalls may INR 16,20,00,000 per year.
- Business Profitability Return Table
Product Computer shop, repair and maintenance
Particular Amount in INR
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Annual investment return rate 162%
Segmentation Railway station
Targeting Local citizen
Positioning Chain branding, consistent service, durable product and easy location
Practicing exercise on establishing chain of production factory or brick kiln industry
The time and the vision both are all on their schedule. Man need to match them absolutely. Day to day big opportunity on hope is a probability. The day to day daily works are mandatory. Business is only possible, if we jump in to the market. Achievement is only possible, when we apply some skill. Here, we need to improve our-self and correct our business method. What we are doing is just a business of probability, which achieved from the successful platform by skill. We may also think on other part of business... that is daily transaction once jumps in to the real market.
I hope, you may have discussed with your sources in India about the scope of Brick factory.
Budget:-
1- Investment on 5 acre land minimum requires area: - minimum INR 25 Lacs. Lands are usually Rupees 5 lacs per acre in rural area of Bihar, where the truck of Coal is reaching at plot. And the land cost is similar all over India. Land on buy-pass rural area near city is also in similar price ranges. Or if it increases, it is around Rupees 8 Lac per acre. So rupees 40 Lacs on land for the setup of Brick kiln called chimney.
2- Brick made fixed blast furnace is costing Rupees 8 Lacs only.
The above two things are arranged in build, if taken on lease of Rupees 3 Lac annual rent approx. Otherwise the above cost is require for a new setups.
3- Coal 110 MT required each round. Cost approx. INR 6 Lacs; Except 200 MT coal required at first round.
4- Labor @500 Rupees per thousand brick making. Cost on making 10 lacs brick each round will cost 5 Lac Rupees.
5- Two tractors financed against down payment of Rs 3 Lacs. This is also available on rent basis. So expanse can be ignored.
6- License permits are available at Rupees 50000 on mining tax, Rupees 60000 on yearly compounding sales tax, rupees 8000 on company formation and rupees 2000 on pollution.
7- Expanse in administration, other staff and miscellaneous is approx. Rs 2 Lacs maximum, and not required initially. Hence it is ignored. It is maintained from business income, but any how minimum rupees 50000 may require until the factory starts giving revenue.
- Factory has their first round manufacturing in December end depends of weather moisture. Vary by weeks or a month from first week of December to first week of January. Every round is of 26 days. Total 6-7 rounds between Januarys to June, until rainy days. So, total of 50 Lacs Bricks manufactured in a season.
- Each round, brick manufactured between 8-10 Lacs.
- So total sale is approx. Rupees 2 Crore at the rate of rupees 4 per brick.
- Expanses are usually Rs 5 lac on coal + Rs 4 Lac on Labor + Rs 1 Lac on administration labor = approx. Rs 10 Lacs each round. So total in six rounds is Rupees 60 Lac. Rest we may take Rs 40 lac in favor of tax, breakage, local criminals etc. Instead of this maximum expanse is Rupees 1 Crore per year.
- Final profit would now Rupees 1 Crore per year from the investment on setup worth Rupees 30 Lac. Investment on maintenance is Rupees 10 Lac per round. We must be ready with capacity of two round cash in hand for a safe and regular business. This two month cost will not be Rs 20 Lac; it can be solved by just Rupees 20 Lac. Coal, and Labor and all can work on credit by part payment from second months. So, minimum 20 Lac Rupees should be in hand, before thinking to start operation of a running factory.
* Working with Rupees 22 Lac, then a chimney on lease can work.
* Working with Rupees 33 Lac and family land, then a new factory will run.
* Working with fresh purchase of land then Rupees 55 Lac should require as enough and safer investment.
Investment partner may receive 50% in profit. Income is rupees 1 crore per year as expected above. Means Rupees 8 Lac monthly profit and Rupees 4 Lac monthly to said investor. All are from real, physical and practical business. It is safe, sure, legal, good return.
Chain of brick kiln chimney could be developed across the country. It will grow by 100 brick kiln at fifth year across the country. It is established entrepreneurship with rupees 400,00,000 monthly income at starting business with initial investment capital of rupees 55,00,000 only.
- Business Profitability Return Table
Product Brick kiln called Chimney
Particular Amount in INR
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Annual investment return rate 200%
Segmentation Semi urban city
Targeting Local citizen, builder and developer
Positioning Chain branding
Practicing exercise on farming vegetables, fruits and flowers
Planning for a profit is must before entering in to a business investment. Agriculture is constructive, social and humanitarian work. A planned agriculture is one of the high profit businesses. Corporate houses can earn profit from this business as well as contribute in food productivity to the society. We are a family of 7 billion population through-out the world. All of us mandatory require the regular diet on daily life. Hence regular productivity of food is must for our life. This is also the back bone business industry. An entrepreneur is easily adopting the trading of foods. But they direct deny participating in food production, farming and harvesting. We must attract them towards the high profitability from food production business.
A farming land costing INRs 500,000 per acre. It has area near 44000 square feet. On cultivation of tomato plants at every two feet in rows and columns, it has space for total 11000 tomato plants per acre. A planned agriculture as a business industry has a careful treatment of farming land in sense of applicable pesticides, fertilizer, hybrid seed, watering, security etc. A hybrid tomato plant will take two month to start giving 10 tomatoes in weight 200 grams each at every five days for 10 cycles in next two months. This means 2 KG tomato produced at every fifth day for next ten cycles. This is 22000 KG or 22 tons tomato production per acre at every five day for ten cycles. Total 220 tons tomato produced per acre land in four month agriculture business. Profit of INR 5 per KG tomato will give total INR1100,000 profit per acre agriculture in four months at the land cost INR 500,000 per acre. This ratio is almost same in case of deferent green vegetables.
Similarly from the farming of papaya at same land planted at the distance of 5 feet at every row and column in one acre land. It is approx. 2500 papaya plants per acre farming business. A hybrid papaya tree may start giving papaya at tenth month from plantation. They have papaya at average weight of 1 KG per papaya in total 30 papayas per tree at the rate of 6 papayas in every seven days within next two months period. This is total 30 KG papayas per tree from 2500 trees per acre. That means total 75000 KG papaya production per acre in a year. If profit per KG papaya is INR 6, then it is total INR 450,000 per acre yearly profit from the papaya production business. This ratio is almost same in case of banana production.
- Business Profitability Return Table
Product Tomato farming
Particular Amount in INR
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Annual investment return rate 200%
Segmentation Rural farming land
Targeting Local and big city fruits and vegetable commission agent
Positioning Bulk and regular supply of hybrid fruits and vegetables
Practicing exercise on plantation as a profit business
Balancing nature, global warming, air purification, green society, future wood sourcing, soil fertility in autumn, fruit and herbal arrangement etc. Plantation may either target to wood purpose for a long term investment in teak, rose, rubber, cotton and similar furniture and industrial words. Or annual source of fruit production from nursery trees like, mango, apple, orange, lemon, guava, jackfruit etc. Some trees like bamboo, news-paper industrial grass tree, herbal trees etc.
Per acre average production of bamboo is 20,000 pieces. Wholesale price of bamboo is INR 30 per piece. Bamboo tree takes three years for maturity. Return per acre in three years term is Rs 600,000. Hence per acre annual return from bamboo plantation is INR 200,000. This is almost same in case of industrial grass plantation to supply paper mills, plywood factory, drug manufacturer and other industrial supplies.
Per acre average production of fruits plants from fifth year of plantation shall start INR 200,000 at the rate of 100 mango and similar fruits tree per acre with 500 piece mango per tree at price INR 4 per mango. Finally the costs of wood at thirty year term of mango tree will INR 300,000 per acre at the price of INR 3000 per tree.
Planted per acre 1000 palm, pine, rose, rubber, teak and related industrial and furniture trees cost INR 100,00,000 at the rate of INR 10,000 per tree in future forty years. This will provide greeneries to society, collateral value at bank loan, suitable cropping in shadow like betel leaf, leafy vegetables etc. for regular annual income.
Palm tree plantation in India is very bright. India has consumption of 8.3 Million MT edible oil. It imports 3.7 Million MT crude palm oil. This is import dependency of approx. half of the consumable volume. India has production of crude palm oil with just 0.2% of its total import. Godrej group is top producer; with 20,000 MT out of 70,000 MT total production of palm tree in current India. 35 Million MT crude palm oil produced from 28 Million acres land per year in world at an average of 1.25 MT per acre. Price of 1.25 Million MT crude palm oil is $1000 or INR 50,000 as per acre yearly revenue from plantation of palm tree. If there is 70% expanse on production and all other favors, then it is $700 or INR 35,000 per acre business profit.
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Remarkably per capita annual consumption of edible oil is 13 KG in India and average 23 KG in world.
- Business Profitability Return Table
Product Palm tree plantation
Particular Amount in INR
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Annual investment return rate 100%
Segmentation Rural plantation land
Targeting Domestic consumption in country
Positioning Open market
Practicing exercise and case study on food solution to society
Food solution is a contribution in social productivity. This is a virtuous task, performed for true satisfaction of a soul. It is a humanitarian work as a matter of pride.
Poultry farm to produce egg and chicken, fish production, cattle farming for meat, pub, beef and others. Finally we have 7 billion populations in world. They require the three times daily diet. We have to maintain the balance of nature. Hence our productivity should always consider the supplement arrangement to resource. If we produce meat, beef or other; then we must calculate the number of cattle on earth. Each animal would double in number at particular durations of their reproduction schedule. Balance the numbers and source according to milk, meat, mammal, bone, leather, diet to wield animals etc. Supply extra cattle for food sourcing to the society.
Fish production
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Hence fish production business profitability return is 500% per year.
- Business Profitability Return Table
Product Fish production
Particular Amount in INR
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Annual investment return rate 400%
Segmentation Rural pond or farming land converted in water storing tank
Targeting Local and big city fish market commission agents
Positioning Bulk and regular supply of hybrid fresh fish
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