BUSINESS MODEL FOR OPENING OF UNISEX SALOON IN YOUR AREA.
Introduction;- In the modern life style,the men and women are having habits/hobby to look good while attending marriage parties/family functions/going in any type of social and religious function. Besides this ,the men are also prone to get saloon services for facials/hair cuttings with modern style etc. This all has come out with conversion of Old Barber shops into A MODERN saloon with added feature of UNISEX SALOON. UNISEX saloon is a modern theme shop in India which has established a good market itself and some business houses are doing chain of saloon in the cities:- Sr No Gist of Issues Proposed Infrastructure 1 Name of Project Opening of UNISEX SALOON 2 Objective Small Business as a New Start-up 3 Name of Brand Own Popular Brand or Franchisee 4 Type of Agreement Franchisee Agreement 5 Time 3 years 6 Space/premises 200sqft to 300sqft 7 Fits out Shall be provided by the brand 8 Training 10 days training Shall be provided by the brand to promoter or his representative 9 Space/premises May be owned or on rent/lease basis with minimum period of 3 to 5 years matching with agreement period 10 Branded Licence fee Depending on the terms of Franchiser 11 Electricity connection Must be ready 12 Business entity May be proprietor/partnership/pvt limited company Name of company/firm Name of Promoters; Address; PAN No; ADHAR NO; Date of Birth; Mobile no; Existing Bank account with; Account No: 14 COST OF PROJECT (Rs in Lacs) MEANS OF FINANCE (Rs in Lacs) Franchisee licensing fee :3.00 Margin/own contribution 2.50 Furnitures/fixtures A/C,Electrical fittings 2.00 Bank Loan 7.50* Fit Outs/decorations 2.00 working capital 2.00 Contingency 1.00 Total 10.00 Loan can be availed by way of Term Loan Rs6.00Lacs Cash credit Rs1.50 with aggregate amount of Loan Rs7.50Lacs. 10.00 16 DER 3.00:1 ECONOMIC VIABILITY OF PROJECT;- EXPENSES Rent=Rs20000/- Electricity=Rs7000/- Salary of 5 persons=Rs100000/- EMI of Term Loan=Rs19000/- Misc overheads = Rs10000/- Total ; =Rs156000/- Surplus = Rs181500/- Grand Total = Rs337500/- RETURN ON INVESTMENT ON MONTHLY BASIS=18.15% Sales/Revenue =Rs337500/- Cost =Rs156000/- Contribution=Rs181500/- Fixed Expenses=Rs700000/- PV Ratio =26% BEP Level in =Rs249750/- Margin of safety =Rs87750/- Keeping in view the small size of term loan from bank,the financial cost burden by way of interest on business is low hence profitability is booked right from the beginning which can be ploughed back in the business depending on the opportunities available to the entrepreneur. hence the project is technical feasible and economically viable. INCOME Sitting capacity in parlor=5 Occupancy 100% = 5 Average Revenue per person in a hour =Rs150/- ,total revenue is Rs750/- in half an hour Time of sitting of customer=30 minutes Total hours in a day of opening of shop=10hours Proposed Revenue per hours=Rs1500/- Revenue in a day=Rs15000/-(90% estimates Rs13500/-) Months Revenue=Rs337500/-(suppose shop is opened 25 days) Net Revenue =Rs337500/- MAIN POINTS OF PROJECT; 1. We have taken opening of UNISEX saloon with 5 seats . 2. Projections of Revenue is taken on monthly basis. 3. The area of shop should be in the market established or being established where foot-fall is possible. 4. Above all the PROMOTER SHOULD HAVE A PASSION TO DO THIS BUSINESS. PREPARED BY SATISH KUMAR UNDER DEN NETWROK TEAM
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BUSINESS MODEL FOR ICE CREAME PARLOUR
Introduction;-The summer season is a attractive choice to start a small Ice creame parlour of branded company by way of Franchisee model. as under;- Sr No Gist of Issues Proposed Infrastructure 1 Name of Project: Opening of Branded Ice Crèame parlour 2 Objective: Small Business as a New Start-up 3 Name of Brand: Popular Brand in Ice cream 4 Type of Agreement : Franchisee Agreement 5 Time: 3 to 5 years 6 Space/premises: 500sqft to 700sqft 7 Fits out : Shall be provided by the brand 8 Training: 10 days training Shall be provided by the brand to promoter or his representative 9 Space/premises: May be owned or on rent/lease basis with minimum period of 3 to 5 years matching with agreement period 10 Branded Licence fee: Varies from 3.00lacs to Rs5.00lacs 11 Electricity connection: Must be ready 12 Business entity: May be proprietor/partnership/pvt limited company Name of company/firm Name of Promoters; Address; PAN No; ADHAR NO; Date of Birth; Mobile no; Existing Bank account with; Account No: 14 COST OF PROJECT (Rs in Lacs) MEANS OF FINANCE (Rs in Lacs) Franchisee licensing fee : 3.00 Margin/own contribution 5.50 Furnitures/fixtures: 3.00 Bank Loan 10.00* Machine: 3.00 working capital: 5.00 Contingency: 1.50 Total: 15.50 Total: Loan can be availed by way of Term Loan Rs5.50Lacs Cash credit: Rs4.50 with aggregate amount of Loan Rs10.00Lacs. 15.50 16 DER: 1.82:1 ECONOMIC VIABILITY OF PROJECT;- EXPENSES Rent=Rs25000/- Electricity=Rs7000/- Salary of 2 persons=Rs30000/- EMI of Term Loan=Rs12000/- Interest on Cash credit=Rs4000/- Misc overheads = Rs10000/- Total ; =Rs88000/- Surplus = Rs102000/- Grand Total = Rs190000/- RETURN ON INVESTMENT ON MONTHLY BASIS=18.50% Pay back period of licensing fee=6 months Sales =Rs1,90,000/- Cost =Rs88000/- Contribution=Rs1,02,000/- Fixed Expenses=Rs5,50,00/- PV Ratio =53.68% BEP Level in =Rs1024590/- MOS =Rs1255410/- Keeping in view the small size of term loan from bank,the financial cost burden by way of interest on business is low hence profitability is booked right from the beginning which can be ploughed back in the business depending on the opportunities available to the entrepreneur.hence the project is technical feasible and economically viable. INCOME Sitting capacity in parlour=20 Occupancy 80% = 16 Average Revnue per person=Rs50/- Time of sitting of customer=1 hour Total hours in a day of opening of shop=10hours Proposed Revnue per hours=Rs800/- Revnue in a day=Rs8000/- Months Revnue=Rs2,00,000/- Revnue sharing 5% to brand=Rs10000/- Net Revnue =Rs190000/- AUTHOR: SH SATISH KR SHERWAN, EX DGM, PUNJAB NATIONAL BANK DEN ENTREPRENEURSHIP PROGRAM—BUSINESS KI BAAT As you are aware that the life scenario is being changed very fast. The livelihood which was earlier depend on Government jobs, small own work, Shop and private job with very meager salary ,now the market has opened up with multiple options for earning sources. Due to technology driven market and Digital market expansion in each and every products, it is imperative that we should consider to do the business. Instead of depending on getting Government jobs on reservations pattern, we should create our own business and provide jobs to others. The government of India has given directions for OBJECTIVE OF DEN To get our DEN members in the above said program, we are making efforts to get attached the younger aspirants or existing business man/women for IMPROVING THEIR SKILL and guide them enter into DEN ENTREPRENEURSHIP PROGRAM –BUSINESS KI BAAT The following tips shall open your information Pandora for doing business in any field .
As a matter of process, the bank NORMALLY sought the following documents/information from the firm/COMPANY :-
Government schemes available in which we are available for assistance Stand up India scheme;-
Article contributed by Sh Satish Kumar Shervan
(a) Minimum economic size of unit shall comprise of 10 milch animals, with the second option of 10 animals being purchased after a lapse of 6-8 months. (b) Financial assistance for meeting feed requirement for a period of one month @ 4 kg of concentration per day per animal (total 120 Kgs per animal) shall be provided. (c) Composite loan for purchase of milch animal, meeting cost of feed for one month and growing fodder will be extended to the beneficiaries as medium term loans on the same terms and conditions as applicable to term loans for purchase of milch animals. (e) Facility of loan to meet cost of feed and fodder for 3 months in addition to loan for purchase of milch animals for such borrower(s) who are not capable of providing feed and fodder to begin with will continue. For other items on receipt of revised unit cost approval as stated above, finance will allow production credit for one cycle for raising fodder crops and also ELIGIBILITY (a) The intending Individuals should be having experience in maintenance of milch animals and having Training in Dairy Farming Activity. (b) He should be landless agricultural labourer or farmer/any individual who has arrangements for supply of adequate quantity of fodder. (c) Activity should be economically viable. (d) He should have shed/accommodation for keeping the animals or should have adequate space for constructing the shed for keeping the animals. MILCH ANIMALS QUALITY TO BE CONSIDERED FOR THIS PROJECT
TECHNICAL ASPECTS AND POINTERS TO BE KEPT IN MIND FOR GOOD CATTLE MANAGEMENT: Major differences between milch cattle of good quality established indigenous breeds/cross bred cows and non-descriptive local cows are given here under to emphasize upon keeping only good quality cattle for running the dairy enterprise efficiently. Milch cattle of Established breed/ Non-descript Cross bred cows local cows Average age at calving 2.0 - 2.5 years 3.5 - 4.0 years Average milk yield/lactation 1800 - 2800 litres 200 - 400 litres Average dry period 3 months 6 - 8 months Further, following points, apart from quality of cattle, need to be kept in view: - 1. Housing: Proper housing arrangements are required for protecting animals from extreme climates, diseases, predators and mischievous elements. The cost of housing, however, has to be contained especially in smaller sized dairy units. The dairy shed should be at higher elevation to offer good scope for rainfall and drainage with rough flooring easy to clean., well ventilated and having proper feeding and watering space. An animal should be provided a space nearly 20-25 sq. ft. 2. Feeding: Feed requirement depends upon body weight of the animal, level of milk production, state of pregnancy and the type of fodder and feed ingredients i.e. roughages (succulent and dry fodders) and concentrates (cereals, oil cakes, animal proteinsupplement, feed additives). Feeding Schedule for cows and buffaloes in milk should more or less conform to the following table: - Green fodder (kg) Dry fodder(kg) of legume and non-legume Concentrate mixture 40 Nil 40% and 50% of milk production in cowsand buffaloes, respectively. 30 2 --do-- 20 3 3 Kg for Maintenance and as above. 10 5 ---do--- 5 or below 6 2 Kg for maintenance and as above. In case of pregnancy, animal should be dried by 7th month of pregnancy and provided 20-30 Kg green fodder, 2 Kg dry fodder, 1 Kg of concentrate mix and 30-60 gm. of mineral mix and 30-60 gm. of common salt everyday during last 2 months of pregnancy. (During dry period animal will build up the body reserves lost in lactation and will require additional nutrients to support the fast growth of foetus which takes place in the last quarter of the pregnancy. Breeding: It is desirable to breed the animal only after it attains proper body weight. Normally, the stage reaches in 15-18 months of age for exotic/cross bred animals and 24-30 months in case of indigenous cows/buffaloes. Proper feeding and care of female cows shall help reducing the age of first calving substantially. The period between the consecutive calving (calving interval) should also be kept at the minimum for deriving optimum benefits from the dairy enterprise. This can be done by reducing the period from calving to subsequent conception and the pregnancy period is of fixed duration only. It is worthwhile to keep the following information in view of this regard: - (i) Average length of pregnancy Cows 280 to 285 days Buffaloes 300 to 305 days (ii) Average length of oestrus cycle 21 days (iii) Average length of oestrus time 24 hours (iv) Period of maximum fertility when insemination/service should take place. 8-12 hours from onset of heat. (v) Minimum time gap for insemination/service after calving 60 days (Normally healthy animal comes in heat within 48 days after calving) (vi) Useful reproductive life of cattle 10-12 years. Infertility often tends to be a major reason for economic losses in dairy. IMPORTANT;- In view of the advantage of artificial insemination either with liquid semen or frozen semen, every emphasis should be laid on making use of all facilities available from the State Animal Husbandry Department, Krishi Gyan Kendra, etc. Health Cover:
MILK FLOW CHART FOR TWO BUFFALOES 1. Lactation Period (LP) - 280 days. 2. Dry Period (DP) - 120 days. The above period is indicative which provide information to purchase the 2nd dose of animals to maintain the production of milk in the Dairy unit. NOTE: Animals are purchased at an interval of 6 months and after 10 days of calving. COST OF PROJECT (Estimates) Sr No Gist of Expenses Amount Rs in Lacs Remarks 1 Land @1.5acres 60.00 If Land is owned the cost can be reduced 2 Construction of shed covered area 40% @600/-30.00 If shed is owned then cost can be reduced 3 Water connection(tubewell) 3.00 4 Electricity 1.00 5 Pits for putting dung 1.00 6 Purchase of Animals(20 animals) @Rs1.20Lacs per animal 24.00 7 Vehicle with tank for Transporting Milk 9.00 8 Utility Vehicle for Fodders 7.00 7 Margin for working capital 25.00* Total 160.00
MEANS OF FINANCE;(ESTIMATES) Sr No Particulars Amount Rs in Lacs Remarks 1 Own Contribution(10 persons investing Rs2.00Lac each in unit) 20.00 Amount is to be deposited in bank account in the name of proposed unit. 2 Subsidy(NABARD) 30% on CAPEX* 40.00 To be claimed by bank on sanction of bank loan 3 Bank Loan 100.00 Bank loan to be released in phases Total 160.00
INCOME FLOW (PROJECTIONS) No of ANIMALS in unit in First stage= 10 Milk Production = 40 liters per day per animal Total Milk Production = 400 Liters Cost of selling Milk per liter = Rs45.00 per liter Cash Flow per Animal = Rs45.00X400 liters=Rs18000/- per day Total cash flow in a month = Rs18000X30 days=Rs540000/- MARKETING of PRODUCTION Based on the market scenario, the milk production is having a brisk demand of households,Halwai,Milk related products units e.g.AMUL,MOTHER DAIRY etc. hence market of milk is readily available and cash flow shall be aintained based on the FAT ratio required for the consumers. PREPARED BY SH. SATISH KUMAR SHERVAN DEN Platform is making all out efforts to guide the Younger Perspective Entrepreneurs TO ESTABLISH FACTORY/UNIT or existing industrialists to upgrade the unit. The information on venture capital funds given below shall be helpful in deciding the idea of establishing New projects with total investments Up to Rs 5.00Cr or up gradation of existing unit. BACKDROP
Eligibility Criteria for setting up of unit with financial assistance upto Rs5.00cr.
Other Requirements;- Purpose: To provide concessional finance to SC entrepreneurs Investment focus; The projects/unit being set up in manufacturing and service sector ensuring assets creation out of the funds deployed. Existing companies proposing capacity expansion and diversification projects are also eligible. Nature of Financial Assistance; Equity, compulsorily convertible preference share (maximum up to 25% of the corpus), non-convertible debentures, Debt/Subordinate loans. Tenor of Financial Assistance; up to 6 years in a company Moratorium on principal ; on cases to case basis but not more than 36 months from the date of investment, interest shall be payable from the date of investment in the company at a regular interval. Investment Size;Rs 50.00 Lacs to Rs 15.00 Cr, however aggregate assistance not more than 2 times the current net worth of the company. Expected Returns through Investment;- Yields return on Equity 15%,Debt /convertible instruments=10% Funding pattern: Financial assistance upto Rs 5.00 Cr- project maximum up to 75% shall be funded and balance 25% shall be contributed by promoters. Exit Mechanism; Exit through payments out of operations, buy back/redemption by promoters or through strategic investments or any other exit process. Security; The assets of the project being funded/assisted under the scheme shall be mortgaged or charged to the bank. The project assets includes land, building, plant &machinery and rights on license/patents etc In view of the foregoing an individual/Corporate/partnership concern can choose any of the following projects with total investments up to Rs 5.00 cr and fulfill the cherished desire of becoming a SUCCESSFUL ENTREPRENEUR. DEN TEAM SHALL PROVIDE ALL POSSIBLE HELP TO PREPARE THE PROJECT PAPERS FOR GETTING THE FINANCIAL ASSISTANCE . Note prepared by SATISH KUMAR SHERVAN-Ex Chief Manager |